FURTHER FURTHER READING
- Why investors can’t imagine a collapse of the bond market.
- In the long run, we are telepathic androids.
- In defense of Tesla’s price tag.
- Is the Canadian housing market falling apart?
- The Krugman Curve.
- Lehman’s carcass, and its battle with former clients.
- “Shock and awesome”, the divergence in commodities and equities.
ROUND-UP
FT markets round-up: “Wall Street stocks powered to fresh record peaks and Treasury bonds came under selling pressure as investors put doubts about the prospects for the US economy on the back burner. The S&P 500 equity index rose 1 per cent to set a record closing high for the third session in a row. The Eurofirst 300 rose 0.5 per cent to its best level since mid-2008, although the Nikkei 225 in Tokyo fell 0.2 per cent – its first decline in three sessions. But concerns over the pace of global growth remained in evidence elsewhere, with industrial commodities struggling to make progress in the wake of some disappointing economic data from China. Copper fell 2.3 per cent to $7,245 a tonne, while Brent crude settled 22 cents lower at $102.60 a barrel.” (Financial Times)
US deficit falls faster than expected: “The US budget deficit is declining faster than expected as the government collects more revenue from companies, households and the two mortgage companies it rescued in the financial crisis in the latest sign of the rebound of the world’s largest economy. The brighter fiscal outlook comes as other advanced economies are struggling to reduce their deficits through drastic spending cuts and tax rises at a time of weak or negative growth. Growth figures to be released on Wednesday are expected to show that the 17-country eurozone contracted again.” (Financial Times)
European Commission raids oil groups over price benchmark: “Europe’s leading antitrust authority has raided oil majors Royal Dutch Shell, BP and Statoil in an investigation into the setting of oil prices, the latest probe into global benchmark rates. The London offices of Platts, the world’s leading price reporting agency, were also raided on Tuesday, while ENI of Italy said it had received a request for information from Brussels, although its offices were not searched. (Financial Times)
Loeb puts polite pressure on Sony: “In one of the clearest signs yet that Japan’s expansionist monetary policies are fuelling a surge of interest in the country from foreign investors, US hedge fund manager Daniel Loeb has taken a $1.1bn stake in Sony. Mr Loeb, who has made a name for himself – and billions for his investors – as one of Wall Street’s most aggressive activists, called for the Japanese electronics group to sell off part of its film and music business. He made the call in a letter to Kazuo Hirai, Sony’s chief executive, delivered in person at the weekend.” (Financial Times)
China on track to overtake US in non-financial corporate debt: “China is forecast to surpass the US as the world’s largest corporate debt market for non-financial companies in the next two years, according to a report from Standard & Poor’s. The rating agency expects the debt needs of companies in China to reach upwards of $18tn by the end of 2017, accounting for a third of the forecast $53tn in new debt and refinancing needs of global companies in the next five years. Debt includes bank loans and bonds and is drawn from public information collated by S&P.” (Financial Times)