February 7th, 2012
Further further reading
For the commute home,
- “Deposits” with money market funds aren’t protected like those in banks, and the SEC is only just getting around to regulating them. Better late than never?
- The shortage of safe assets is both structural and cyclical.
Global liquidity fail — the role of skewed incentives
Presenting, one of the best accounts of how the current crisis came about that we’ve read to date.
It comes courtesy of Benoît Cœuré, member of the executive board of the ECB, and should be required reading for every player in financial markets,
From deposit stashing to repo lending at UBS
UBS announced lacklustre results on Tuesday, saying it expected further weakness in investment banking in the first quarter.
But the bank also provided details of some interesting underlying trends at the bank,
It just dropped in my inbox…Trump Hotel Collection
This is a pilot for an occasional AV series.
Shouting and emphasis not ours…
NEW YORK – Feb. 7, 2012 – TRUMP HOTEL COLLECTION™ has launched a fresh, new lifestyle website and national advertising campaign that promote living without compromise – inviting guests to seize opportunities in travel and life in the Trump family tradition.
LTRO-ing, with Magnus
Intesa Sanpaolo’s chief executive says he’ll use ECB funds to buy Italian bonds…
BBVA sells the first senior unsecured bond to be issued by a Spanish bank since October… (like Intesa a few weeks ago.
Markets Live transcript 7 Feb 2012
Markets Live chat transcript for the chat ending at 12:06 on 7 Feb 2012. Participants in this chat were: Paul Murphy Bryce Elder/FT PMMorning PMWelcome to Markets Live
Collateralised commodity borrowing, BP edition
From BP’s fourth quarter results on Tuesday:
At 31 December 2011, $131 million of finance debt ($128 million at 30 September 2011 and $790 million at 31 December 2010) was secured by the pledging of assets,
Mangled metaphors from Neelie Kroes
From the European Commission vice-president (Digital Agenda), interviewed in the Dutch paper Volkskrant, via Google translate…
“…But there is absolutely no man overboard when we miss someone from the eurozone…Maybe my word choice was not entirely happy.
Glenstrata — some backlash? [updated with more backlash]
The Scheme will be subject to the following conditions:
2.1 its approval by a majority in number of the Scheme Shareholders who are on the register of members of Xstrata at the Scheme Voting Record Time,
The dramatic final days of MF Global
From the Powerpoint of the trustee’s update on their investigation — re-ordered slightly, for narrative flow.
Let’s start with the timeline of margin calls…
(On October 24, Moody’s downgraded MF’s debt to Baa3,
“Grexit”
Grexit being, of course, a Greek exit from the eurozone. (Also, an app for archiving and sharing Gmail threads. Bummer for them.)
The term comes from Willem Buiter and Ebrahim Rahbari at Citi, who are now leaning towards the “let them leave”
Further reading
Elsewhere on Tuesday,
- Stigma (for some) in tapping the ECB’s LTRO.
- Barry Ritholtz has a secret about Hank Paulson.
- MF Global, the preliminary trustee report.
- Why a freezing Europe needs a) Qatar b) shale.
Pink picks
Comment, analysis and more from Tuesday’s FT,
Jagdish Bhagwati: Shame on you, Mr Obama, for pandering on trade
President Barack Obama infamously killed the multilateral Doha Round last December by instructing his representative at the World Trade Organisation to be a “rejectionist” negotiator,
Snap news
Breaking pre-market news on Tuesday,
– Glencore offer for Xstrata pitched at a ratio of 2.8 – statement
– Year-end numbers from Xstrata – statement
– UBS reports 76 per cent drop in Q4 profits – Bloomberg and statement
– BP hails a return of operational momentum – statement
– “Resilience”