The (early) Lunch Wrap

Good morning New York,

FT ALPHAVILLE

Buiter on helicoptor drops: David clocks a new paper from Citi’s Willem Buiter, on why helicopter drops of money always work if three conditions are satisfied.

Tech race fuels Bitcoin mining bubble: Even as the Bitcoin price decays, the market for the specially designed computers that hold the Bitcoin network together and “mine” for newly minted coins keeps bubbling, notes Izzy and Stephen Foley.

Deutsch-Rückhalte and le malaise français: Matt suggests you check out the starkly different paths of household indebtedness in France and Germany since the introduction of the euro.

On wages and inflation: jeers for fears: Technological innovation in uniquely labour-saving sectors and globalisation is holding down goods prices and wages leading to disinflaionary times, notes Cardiff.

NEWS

Janet Yellen to see Jackson Hole return to wonky roots: There will be no Wall Street economists in the audience when Janet Yellen addresses the Kansas City Fed’s annual Jackson Hole conference for the first time as chairwoman of the Federal Reserve. Economists from investment banks have for years rubbed shoulders with policy makers at the conference and their expulsion, taking the event back to its roots as a wonky occasion for central bankers, reflects Fed sensitivity about any perception of privileged access for financiers.(Financial Times)

StanChart’s NY anti-money laundering settlement draws UAE ire: The United Arab Emirates’ central bank on Thursday warned the London-listed lender that it may face litigation from thousands of its customers in the Gulf country, which it is being forced to “exit” under the terms of the settlement. (Financial Times)

Activist Edward Bramson steps up pressure to join Electra board: Activist investor Edward Bramson has requested Electra Private Equity calls a general meeting to appoint himself and City veteran Ian Brindle to the board of the London-listed trust and implement a strategic shake-up. (Financial Times)

Co-op Bank slashes first-half losses: The Co-operative Bank has slashed its first-half losses despite losing customers, as it cut jobs at the business that came close to collapse last year. (Financial Times)

Markets: It’s late August, the final global session of the week, and investors have one big question: can Janet Yellen help push the S&P 500 above 2,000 for the first time? In European stocks the FTSE Eurofirst 300 is down 0.3 per cent and Moscow’s Micex is slipping 1.2 per cent as dealers track news that Moscow’s aid convoy has entered Ukraine, apparently without Kiev’s permission. But, providing that situation doesn’t deteriorate, it is the US that will command most attention during the session, with index futures currently showing New York’s S&P 500 will dip 1 point from its record close of 1,992.4. The Wall Street benchmark has powered into virgin territory on the back of investors’ belief that the Federal Reserve will maintain a highly accommodative monetary policy even as the world’s biggest economy continues to improve. Traders have consequently got themselves into a bit of a lather over a speech by Ms Yellen, due at 1500 BST, when the Fed chairwoman will address the Jackson Hole central bankers symposium. (Financial Times)

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