Good morning New York…
FT ALPHAVILLE
That equities/commodities disconnect: Yes, says Paul, we know it’s not new, but the divergence between stock markets and commodity prices is now looking extreme. And it doesn’t look like getting fixed any time soon.
Sony to Loeb: ‘Thanks, but no thanks Dan’. That’s the gist of Sony’s response to billionaire activist investor Daniel Loeb’s suggestion, made via hand-delivered letter, that Sony should break itself up. David’s post has more.
CEO GO – saying sorry the Bloomberg way: Neil has the full message from Bloomberg CEO Dan Doctoroff. It’s touching.
NEWS
More than ten thousand private messages sent between users of Bloomberg’s financial terminals have leaked online, undermining the company’s attempts to restore faith in its ability to keep client data confidential as it scrambles to allay clients’ privacy concerns. Two long lists showing confidential Bloomberg messages between traders at dozens of the world’s largest banks and their clients have been online for several years, the Financial Times has learnt. (Financial Times)
A top US financial regulator has launched a broad inquiry into the legitimacy of more than 1m energy and metals transactions by the biggest traders in commodities markets over the past two years. The Commodity Futures Trading Commission has issued a “special call” asking Wall Street banks and other traders to provide documents that would prove recent derivatives transactions known as “exchanges of futures for swaps” were legal. Lawyers at the CFTC enforcement division are also scrutinising the trades for possible violations. (Financial Times)
The US will account for a third of new oil supplies over the next five years, more than previously expected, according to the International Energy Agency, illustrating the impact of the shale revolution. (Financial Times)
A prominent investor advisory firm has recommended that Goldman Sachs shareholders vote against the bank’s executive compensation plan, citing a “disconnect between pay and performance”. Shareholders should also vote against the re-election of James Johnson, head of the board’s compensation committee and former chief executive of US mortgage giant Fannie Mae, Glass Lewis, the advisory firm, said. (Financial Times)
A handful of companies that rent houses to single families are preparing to launch initial public offerings on the US stock market as their private equity and hedge fund owners take advantage of investor interest in the US housing recovery. Colony American Homes, backed by investment firm Colony Capital, is expected to be among the largest in what is becoming a new area of the US publicly listed property sector. (Financial Times)
Verizon Wireless will pay a $7bn dividend to its corporate parents, Verizon Communications and Vodafone of the UK. Verizon Communications, which holds a 55 per cent stake in Verizon Wireless, will receive a $3.85bn payout, while Vodafone will receive $3.15bn, according to a regulatory filing. (Financial Times)
Barack Obama said he was outraged over claims that the Internal Revenue Service improperly targeted Tea Party organisations for scrutiny and vowed to hold officials accountable. “If, in fact, IRS personnel engaged in the kind of practices that have been reported on and were intentionally targeting conservative groups, then that’s outrageous and there is no place for it. They have to be held fully accountable,” the US president said on Monday in his first public remarks on the scandal. (Financial Times)
Commerzbank on Tuesday began a fresh attempt to shore up its capital by launching its heavily discounted €2.5bn rights issue. Germany’s second-largest bank by assets will use the proceeds to pay back state support that helped to protect it through the financial crisis. The German government will also cut its equity stake in Commerzbank from 25 per cent to below 20 per cent. (Financial Times)
Markets: Stock benchmarks are easing back from recent peaks as the prospects for the US and German economies, and central bank strategy, remain in focus. The market is sending signals about its concerns over global growth, with “haven” sovereign bond yields dipping from multi-month highs and industrial commodities continuing to struggle. Copper is down 1.7 per cent to $3.30 a pound and Brent crude is off 8 cents to $102.74 a barrel. (FT’s Global Market Overview)
