Financial job losses
Could the collapse of covered interest rate parity be the harbinger of even stranger things to come ? At the heart of the issue is how on earth the interest rate differential between two currencies in the cash money markets is no longer equal to the differential between the forward and spot exchange rates.
Remember WMPs? The touchstones of China’s shadow market? The shadow market that China might actually be cracking down on … like for real this time … According to Credit Suisse, new regulatory guidelines or consultation papers about new regulations have been announced on almost a bi-weekly basis since May:
Some people aren’t terribly happy with the way government debt is sold in the US and UK. Some even say using auction data and game theory that full pre-auction information sharing between dealers and investors would raise $4.8bn more revenue for the US Treasury each year than a fully closed bidding mechanism where no information is shared.
Sterling’s fall hits Rolls-Royce, a slew of mixed results and Jaguar is caught between Tata and NTT DoCoMo. FT Opening Quote, with commentary by City Editor Jonathan Guthrie, is your early Square Mile briefing. You can sign up for the full newsletter here.
Until relatively recently, academics and Western policymakers overwhelmingly supported the official position of the European Union. Nowadays we live in a world where the head of the International Monetary Fund — who also happens to be the former Finance and Economy Minister of France — publicly says the “inherent volatility” of cross-border capital movements is a problem.
Jamie Dimon’s public request for a back pat opinion piece in the New York Times heralds an upcoming raise for many of the bank’s lower-paid workers (our bold): Our minimum salary for American employees today is $10.15 an hour (plus meaningful benefits, which I’ll explain later), almost $3 above the current national minimum wage. Over the next three years, we will raise the minimum pay for 18,000 employees to between $12 and $16.50 an hour for full-time, part-time and new employees, depending on geographic and market factors.
So Saudi Arabia has invested $3.5bn in Uber, the ride-hailing app, making it the largest single investment ever made in a private company. Talk of war chests and global expansion abounds. But perhaps what the above really implies is that Uber’s famous capital-light model is about to get much more capital intensive — especially as it moves towards rolling out the much hyped self-driving fleet. If that’s the case, investors need to pay attention. Along with capital intensity come limitations to the exponential growth rates investors have come to expect.
City AM has announced plans to turn the commercial model upside down by no longer relying just on journalists to report the news but also articles from a raft of other contributors – including corporate brand and advertising PR people — who would have direct access to the publication’s content management system. Here’s City AM owner Jens Thorpe’s rationale for the move, as reported by media consultant Ian Burrell in his column for The Drum:
M&S full-year profits are down 18 per cent, Dixons Carphone has raised its guidance, Royal Mail has avoided new price controls. FT Opening Quote, with commentary by City Editor Jonathan Guthrie, is your early Square Mile briefing. You can sign up for the full newsletter here.