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’Essar fail
Essar Energy shares trade in London at 108p. It’s down as much as 37 per cent on the day, making it a contender for the worst FTSE 100-eligible flotation ever.
(At pixel time.)
Essar Energy stepped straight into the FTSE 100 after floating in May 2010 at 420p (and had to cut its original price at the time).
Eurozone running out of knights
Knights in shining armour that is.
The recently-floated plan for the big emerging markets to send money to Europe via an IMF-led SPV, which could be used alongside the EFSF to buy sovereign debt, is getting the lead balloon treatment.
The Sensex is bipolar
Joe Saluzzi of Themis Trading has spotted a sharp almost flash-crash like move in India’s Sensex index on Monday:
And yet, is it all that unusual?
When you take a longer view of the index you realise that the Indian equity benchmark is hardly impervious to choppy technicals — though it is true they usually tend to the upside:
If it bleeds…
With hedge funds going into the meedja sentiment business this is probably worth exploring:
Finance news articles mentioning ‘crisis’ are at a three-year low, say Société Générale’s cross-asset research team using a famed indicator:
Peak Testosterone
An interesting application of political science to the market, from Deutsche Bank analysts:
Youth bulges in emerging markets likely to decline sharply from 2010–2020
Emerging-market youth bulges are projected to decline in the next decade (except in sub-Saharan Africa,
Ambani’s $2.6bn worth of negative publicity
It’s more diabolical than any dark scenario of a Bollywood plot. As India’s stock market investors watched in disbelief, Anil Ambani saw a whopping $2.6bn wiped off the value of his Reliance ADAG group of six publicly-traded companies in a single day on Wednesday.
Quantifying corruption risk in India
Egypt’s grabbed all the headlines in the ‘emerging market risk’ category so far this month, but there’s been a touch of controversy elsewhere in the EM category too.
India’s been rocked by a series of corporate and political scandals.
Casualties of the currency war
This is ironic, Brazil.
That’s a Nomura chart showing the Brazilian government as the biggest ‘loser’ of the currency war. You know the war we’re talking about: Brazil was the first and loudest to declare it in 2010.
The west’s Chindian nightmare unfolds
Chindia seems to be the theme of the week in Asia.
But apart from spurring a bilateral Sino-Indian deal frenzy, the arrival of Chinese premier Wen Jiabao in India on Wednesday seemed also to have stirred confusion and some very odd recriminations.
Jonathan Wilmot: Hell or Heaven in 2011?
Jonathan Wilmot, global strategist at Credit Suisse Investment Bank, sets the scene for next Wednesday’s ‘Around the world in 21 PMIs’ guest editing day at FT Alhpaville.
Heaven or Hell in 2011?
Three questions loom large in our thinking about the coming year.
Behold the new economic super-cycle
Remember the economic super-cycle?
Well, it never really went away. At least not according to Standard Chartered, which has just published a huge report on the world economy and the decades of strong growth that lie ahead.
Rates on the rise in Asia
It’s central bank action month, or at least, central bankers are grabbing the limelight – even as government leaders and policy makers from around the world prepare to discuss ‘currency wars’ and other issues at the G20 and Apec gatherings later this month.
QE-EM inflation risk, charted
Here’s one way to consider the damage inflation might wreak on emerging markets — something that might just be on investors’ minds now that the structural trend is to diversify into EM debt.
Via Fitch Ratings,
25 interventions in a one week band, redux
Keeping up with currency wars can be a busy business.
It’s time, therefore, to give our already extensive intervention list, originally compiled on September 28, an update. And check out the emerging market entrants.
Of Vedanta and Vikings, Part II
The deal’s done and Cairn Energy’s choice is made, then. Greenland, rather than India. Via a deal with Vedanta the size of which was largely unexpected when an offer was first rumoured last week.
Any room for second thoughts then?
Not really,
Of Vedanta and Vikings
And to think Friday used to be the day when we only heard daft rumours about takeover bids in London, rather than actual fact-based stuff.
Exhibit A — an Indian press report that Vedanta is taking a 51 per cent stake in Cairn India for between $8bn and $8.5bn,
I am Shiva, destroyer of market confidence — not
Someone killed the rally in London’s markets on Monday, and the Reserve Bank of India is a suspect – but FT Alphaville fears a miscarriage of justice.
(Shiva is the Hindu god of destruction and benefaction,
India sort of ♥ Glass-Steagall
And you thought the Volcker Rule was bad. The Indian government is reportedly considering forcing the country’s public sector banks to exit non-core businesses.
The thinking, circulated in a Finance Ministry proposal,
Compare and contrast – GDP edition
Crack open the champagne! The UK emerged from recession with a magnificent 0.3 per cent rise in GDP.
Meanwhile, India was also digesting its latest GDP figures.
From Reuters on Friday:
India’s economy grew by 6 percent in the quarter through December from a year earlier,
The Asian anti-inflationary effect
Last Friday, the Indian central bank surprised markets by holding rates while lifting its cash reserve ratio by 75 bps to 5.75 per cent. They had been anticipated to hike rates by 25bps while lifting the cash reserve ratio by 50 bps.
India’s growth shatters forecasts
Strong manufacturing and services helped India’s economy to shatter growth forecasts in the quarter through September, raising the prospect of an early rise in interest rates. The economy grew by 7.9% yoy,
‘Brangelina’ cash-in on gold mania (for charity of course)
From the World Gold Council’s website on Tuesday:
Brad Pitt and Angelina Jolie to launch gold jewellery range
Monday, 16th November 2009 (145 views) Luxury jeweller Asprey is teaming up with Brad Pitt and Angelina Jolie to launch a new range of gold and other jewellery and accessories. According to Women’s Wear Daily,
Why Asia may shake off an S&P correction
The risk of the biggest US equities correction since the March low on the S&P500 has increased over the past week — but Asian economies, after a comparatively resilient year, are better placed than usual to resist an S&P-correlated correction,
The gold for SDR swap confirmed!
Back when gold began its first sharp ascent over $1000 per troy ounce in September, we at FT Alphaville wondered what, if anything, the move might have had to do with the IMF’s jumbo issue of $250bn worth of special drawing rights.
Emerging market consumers not persuaded by plastic
Plastic in the form of credit cards, that is.
The Business Standard reported on Tuesday that in India, “the annual growth in credit card balances has fallen to an all-time low”:
According to the Reserve bank of India (RBI) data,
Moody’s global bank review, redux
Moody’s comprehensive re-examination of its ratings on the world’s banks continues apace. Here’s an overview of the actions taken since May 21:
- Moody’s reviews five Kazakh financial institutions for downgrade
London,
Cadbury sees India as cocoa growth market
Cadbury is looking to build on its dominant position in India’s chocolate market by turning the country into a regional centre for cocoa production, the FT said. The UK-based producer of brands such as Cadbury’s Dairy Milk and Bournville said India was proving to be one of its most resilient markets,
Indian markets leap on Congress victory
Share prices on India’s benchmark stock index surged 17% on Monday – recording their biggest one-day gain in almost two decades – after the Congress party’s weekend election victory. The gains on Bombay’s Sensex index,
Pressure mounts for UK and EU rate cuts
British and EU monetary policymakers are facing mounting pressure to slash interest rates to historic lows. The BOE’s monetary policy committee and the ECB’s governing council meet this week amid an unprecedented clamour for rate cuts.
Emerging (markets) squeeze
Speaking of emerging market economies in the 1990s, we may be having a repeat.
This is from Sean Corrigan, chief investment strategist at Diapason Commodities Management.
Public sector surpluses