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Bailouts and obsolescing bargains
The central administration lacks the management, oversight and co-ordination structures to support effective implementation and long-term management of policy measures, including structural reforms to support sustained economic growth.
News Corp hit by trouble at second UK tabloid
Rupert Murdoch will fly to the UK this week to troubleshoot another crisis in his British newspaper business which threatens to reach to the heart of News Corp, reports the FT. UK police arrested five journalists of The Sun on Saturday,
Bubble warning over Toronto’s condos
Almost three times as many skyscrapers and high-rises are being built in Toronto than in New York, reviving fears that Canadian property prices are unsustainable, reports Bloomberg. Investors have rushed into Canadian housing in response to record low interest rates.
China gets some can-kicking practice
Just last week, Patrick Chovanec was warning about the looming need to roll over debt in China:
Chovanec tells Nouriel Roubini the conflict between driving growth through investment-directed credit,
Volcker fires back on prop trading
Paul Volcker is set to launch a strong defence of banning proprietary trading in a comment letter on the rule which bears his name, says the WSJ. The Volcker rule would stop investors bidding up asset prices in the hopes of always finding a buyer,
Mass loan rollover and a property U-turn in China
China’s bank regulator has ordered lenders to roll over more than $800bn of local government loans coming due in the next three years as it bids to avoid a wave of defaults hitting the system, the FT reports.
Oil rush for private equity
The shale gas and fracking boom in America’s oil industry is attracting ever more private equity money, with funds signing three times the value of energy deals in 2011 compared to 2010, the WSJ reports.
Election-year budget projects $901bn deficit
The White House will unveil $350bn of jobs measures and $1,500bn in tax increases in its budget proposal for the 2013 fiscal year later on Monday, Reuters reports. The budget projects a $901bn deficit in 2013,
One Greek hurdle down, but more ahead
A tense Sunday in Athens as the Greek parliament approved an austerity budget amid violence in the streets that included riot police firing tear gas and stun grenades at protesters while buildings throughout the city were firebombed:
Snap news
Breaking pre-market news on Monday,
- Vodafone considering an all-cash offer for Cable & Wireless Worldwide — statement
- Olympus forecasts $412m annual loss, “no concrete talks” on tie-up — statement and report
- Fidessa revenue up six per cent,
Overnight markets: Up
Most Asian markets edged higher as investors took heart from the Greek parliament’s approval of painful austerity measures crucial for getting a second bail-out package, but gains were limited as Athens has yet to reach a final deal with private creditors over a debt write-off,
City bonuses set to fall further
Investment banks in the UK are set to push ahead with bonus cuts next year as a mixture of falling revenues and political and shareholder pressure prompt a fresh rethink on remuneration. The FT reports City bonuses are expected to drop by another £1bn,
UK funds face pension reform threat
All remaining defined benefit pension schemes in the UK will be forced to close and many businesses pushed into insolvency if European proposals to strengthen company retirement plans are put in place,
Five bankers arrested in UK tax fraud probe
Tax authorities have arrested a number of investment bankers at Royal Bank of Scotland and other banks in an inquiry into alleged fraud, reports the FT. Investigators arrested four current and one former RBS employee at their homes,
Buy-out group eyes Ducati disposal
Ducati is set to change hands this year after its private equity owner said it aimed to make three times its initial investment by selling or listing the producer of top-end Italian motorcycles. Investindustrial,
G4S to build and run UK police station
With police forces seeking savings in the face of the government’s austerity-led budget cuts, G4S, the world’s largest security company, has won the first contract in Britain to staff and build a police station,
Junk bond market revives LBOs
The big leveraged buy-out groups of the credit boom have gained renewed access to funds as the junk bond market has rallied and buyers have flocked to the highest-yielding assets, says the FT. Energy Future Holdings,
Tepco faces avoids delisting, secures bailout
Tokyo Electric Power received agreement from Japan’s government for $8.9bn of aid to support compensation payments after the Fukushima nuclear disaster, says Bloomberg. The deal averts the risk of having its stock listing removed.
China tells banks to roll over loans
China has instructed its banks to embark on a mammoth roll-over of loans to local governments reports the FT, citing bankers and analysts familiar with the matter. China’s stimulus response to the
Greek parliament passes austerity bill
Greek lawmakers on Sunday approved a tough austerity package aimed at averting a default, but the vote was overshadowed by violent street protests in central Athens and dozens of arson attacks against shops and banks,
Japan’s GDP shrinks 2.3% in fourth quarter
Japan’s economy shrank for the third time in four quarters between October and December, after floods in Thailand damaged production and a strong yen and subdued overseas demand hurt exports, reports the FT.
[SFTW] ‘orrible merger! Read all about it!
If he’s selling, I’m not buying. This was an excellent plan with last year’s public offer of Glencore shares. Dazzled by the fees and muzzled by the conflicts of interest, very few mining analysts were in a position to say what they thought.
Further further reading
For the commute home,
- Dude, where’s my national mortgage settlement document? (Via Ryan McCarthy.)
- On recessions and job churn.
- Greek vote seen as a referendum on the euro.
- Earnings season is getting better.
Editorialising, SEC-style
Maybe we are making too much of this, but when the SEC is on its 30th or so figurative lynching related to the Galleon rat case, does it really need to juice up its press releases in the hope of a tabloid pickup?
From the SEC IMMEDIATE RELEASE
From the actual SEC complain,
[AV meets Naked Capitalism] The blogosphere
On Wednesday, FT Alphaville met Yves Smith, proprietor of the blog Naked Capitalism. Ms Smith is the author of the book ECONned: How unenlightened self interest undermined democracy and corrupted capitalism.
Reminder: US Markets Live at 10am New York, 3pm London
Greece, the foreclosure settlement, um, Greece… we really have no idea what we’re going to talk about this morning. Watch us wing it at the usual place, starting in a few minutes.
Those haircut-heavy credit claims [updated with more haircuts]
Update — apologies for a rather disorganised (and long) post… but we’ve finally gained information from all seven eurozone central banks who’ll accept additional credit claims under the ECB’s new rules…
Bill Gross, Treasuries king for much longer?
Pimco’s Total Return Fund, managed by Bill Gross, now holds Treasuries to the greatest extent since July 2010, departing from sharp cuts to its holdings in 2011, Bloomberg reports. Holdings of US government debt rose to 38 per cent last month from 30 per cent in December.
Warning sign over Chinese imports
China’s imports fell 15.3 per cent in January, indicating pressures on domestic demand beyond the normal Chinese New Year slowdown, the FT reports. The country’s exports also recorded their first year on year drop since late 2009,
Venizelos, uncut
Having been Schäubled late on Thursday, here’s the actual statement issued early on Friday by Greek finance minister Evangelos Venizelos. We’ve emphasised the rousing, emotional stuff…
(Via Google translate;