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’European repo has been contained!
From Icap’s latest repo weekly report:
See that? That’s Italian general collateral trading more-or-less in line with the Eonia OIS curve after a good few months of haywire behavior. What’s more,
Collateral squeeze as strong as ever, Icap says
Oh dear. So much for the big Draghi LTRO helping out the Eurozone collateral crunch.
According to Icap’s latest repo makret report — and remember they operate the dominant electronic repo platform in Europe,
Snap news
Breaking pre-market news on Wednesday,
- Unicredit prices capital increase at €1.943 per share — Reuters.
- Next maintains profit outlook but narrows guidance; “A number of factors have subdued sales in the final quarter” – statement.
More on the collateral crunch
From the ECB’s Mario Draghi on Thursday (our emphasis):
RTRS-ECB’S DRAGHI SAYS REDUCING LENDING WOULD BE THE WORST OPTION OF ALL 11:50 15Dec11
RTRS-ECB’S DRAGHI SAYS STABLE SOURCES OF FUNDING ARE
Eurozone GC is splitsville
Something strange is up in the world of ‘General Collateral’. And since eurozone funding markets are increasingly dependent on collateralised rather than unsecured loans, these are important developments that could be influencing rates elsewhere.
Snap news
Breaking pre-market news on Wednesday,
- LSE says income from its Italian clearing business up 225 per cent from a year ago — statement.
- Icap says expects to meet 2012 forecasts if markets stabilise — statement.
Snap news
Breaking pre-market news on Thursday,
- Thomas Cook shelves dividend; working with lending banks — statement.
- Icap says first half sales marginally ahead of last year — statement.
- Trading in Alexon shares suspended after retailer fails to find buyer — statement.
Snap news
Breaking pre-market news on Wednesday,
- Icap says full-year pretax profit up 4 per cent – statement.
- Land Securities annual profit up 14 per cent on higher property values – statement.
- Corporate:
What Libya crude cuts mean for tanker rates
Icap’s shipping analysts have on Monday come up with an interesting hypothetical take on how an extended Libyan crisis might impact the shipping market.
In a nutshell, think more bearish than bullish for shipping rates.
Europe’s FICC woes
The reporting season for Europe’s investment banks starts this week and expectations are not high…
From Monday’s FT:
European investment banks are expected to reveal sliding revenues from one of their core businesses when Deutsche Bank kicks off the earnings season this week,
Snap news
Breaking pre-market news on Tuesday,
- HSBC placing 6m Icap shares for chief executive Michael Spencer — statement.
- Tesco reports 3.6 per cent like-for-like sale growth in Q3 — statement.
- Xstrata to spend $23bn on new mines by 2016 — statement.
Snap news
Breaking pre-market news on Thursday,
- Ireland puts maximum Anglo Irish bailout cost at €34.3bn — statement.
- Allied Irish Banks planned capital increase rises to €10.4bn — statement.
- Sir John Rose to leave Rolls-Royce in March 2011 — statement.
Explaining the Baltic Dry sell-off
FT Alphaville, and others, watched the Baltic Dry’s recent 60 per cent tumble, which took place over a run of 35 consecutive days, with particular interest.
Some, after all, suggested that it meant the index was no longer a valid economic indicator.
Snap news
Breaking pre-market news on Wednesday,
- Icap says it made a good start to new financial year, to pay dividend of 17.55p – statement.
- Land Securities says net asset value rose 16.5 per cent to 691p a share in past year – statement.
Snap news
Breaking pre-market news on Wednesday,
- Easyjet confirms Carolyn McCall as new CEO – statement.
- Icap says H2 profit margins maintained or improved – statement.
- Delta receives another offer – statement.
The costs of closing a stockbroking business
Another unpleasant surprise for the shareholders of ICAP, the inter-dealer broker run by outgoing Conservative party chairman Michael Spencer.
From RNS on Monday:
ICAP plc, the world’s premier interdealer broker and supplier of post-trade services,
Snap news
Breaking pre-market news on Monday,
- Icap to close most of its cash equities business in Europe and Asia – statement.
- Forth Ports announces increase in the value of property assets, has agreed to meet bidding consortium – statement.
Spencer sells, Icap warns and the City reacts
Ouch.
That’s the price action in Icap on Friday morning after the inter-dealer broker warned on profits.
Icap now expects underlying pretax profits for the year to March 2010 to come in between £295-£315m.
Snap news
Breaking pre-market news on Friday,
- Icap warns profits for the year to 31 March 2010 will be in the range £295 million to £315 million – statement.
- British Airways reports third quarter operating profit of £25m – statement.
2010: Obama’s year of the market-maker?
The ‘Volcker rule’ may be bad news for big speculative investment banks.
It might even be bad news for the inter-dealer brokers like Icap and Tullett Prebon, much of whose business is dependent on offsetting client-risk the big banks can’t internalise themselves.
Another shipping firm taps the bond market
In further signs of the financing pressure facing the shipping industry, DryShips , an Athens-based commodity-focused operator owned by Greek shipping tycoon George Economou, announced late on Tuesday it had signed a waiver agreement with Deutsche Schiffsbank on $117.5m of outstanding debt.
Icap predicts surge in swaps, CDS
Trading in some of the OTC derivatives widely blamed for aggravating the financial crisis is likely to surge if legislators press ahead with proposed reforms, according to Icap, the world’s largest interdealer broker.
Snap news
Breaking pre-market news on Tuesday,
- KiFin (Nathan Kirsh and family) makes 50p per share hostile cash offer for Minerva – statement.
- Cable and Wireless announce details of proposed demerger, launches £200m convertible bond – statement,
Prepare for a junk-bond deluge in shipping
Central bank policy may have successfully pushed down Libor rates following the Lehman blow-out, but banks still appear rather reluctant to pass on those lowered costs to commercial and retail clients.
Yar! Interdealer piracy
Buccaneers hassling your fleet around the seven seas? Time to hire some muscle.
Interdealer broker ICAP are said to be amassing ducats introducing worried ship owners to pirate slaying mercenaries.
And for a small fee you too can be “briefed in anti-piracy preparation and drills”,
ICOPPED?
Rule No1 in crisis management PR: get ALL your bad news out at the FIRST available opportunity.
So we must assume the good investor relations people at moneybroker ICAP were terribly frustrated on Friday,
Snap news
Breaking pre-market news on Thursday,
- Cisco to acquire Tandberg for $3bn — Bloomberg.
- Icap revenue expected to increase 6 per cent in second half — statement.
- 3i Infrastructure invested £32m between April 1 and Sept.