All-time highs for the S&P 500, the Dow — and Google. The company’s shares hit $916.38 during trading, closing above $915, a 3.3 per cent gain. The S&P 500 rose 0.51 per cent (Reuters).
Elon Musk will buy $100m of stock in his company’s offering. Tesla Motors announced the raising of common shares and convertible notes to repay its loan from the US Department of Energy (Tesla statement).
JPMorgan’s lawyers made a “formal request” to Bloomberg for more information about its journalists’ access to terminal data (NY Post).
The eurozone is now in its longest-ever recession. The bloc’s economy shrank 0.2 per cent in the first three months of the year, its sixth consecutive quarter of decline. The French economy tipped back into recession, Italy’s contracted 0.5 per cent, and Germany managed growth of 0.1 per cent (Financial Times). France has nevertheless avoided a ‘triple dip’ after revisions to past data.
HSBC has signalled the first major buyback of shares by a European bank since the crisis. Stuart Gulliver, the bank’s chief executive, said he wanted to “plant a flag” that buybacks would be considered, including as a way to offset the dilution of dividends paid in scrip next year. HSBC also set out plans for between 4,000 and 14,000 more job losses in 2014-2016 (Financial Times).
Isda is preparing a new CDS credit event for bank bail-ins. The industry body is circulating a draft of the proposal among its members this week. The changes would allow triggering CDS when a government body writes down bank debt as part of a resolution, and would also change credit event auctions to allow written-down bonds to be delivered on the basis of their value before the bail-in. Existing documentation on restructuring credit events may struggle to keep up with the pace of regulation (IFR, Wall Street Journal).
Dish aims to tap four banks for loans to finance its $25.5bn bid for Sprint Nextel, in a contest with Softbank’s $20bn offer. Sprint’s special committee hasn’t so far declared that Dish’s plan could be a better bid (Bloomberg).
FURTHER FURTHER READING
- “…it ain’t over til 25yr olds are driving around in 3 series BMWs bragging about their portfolios.”
- Macroprudential policy is older than you think.
- And a suave Fed paper on securities lending.
- More worrying about worrying about the (shrinking) US deficit.
- Ubi solitudinem faciunt, euro edition.
- Housing wealth effects, shock du jour.
- Supply chains and human rights: international arbitration the answer?