Welcome to see such punchy prose from an executive, surely.
“Have you ever had one of those weeks where your best- prepared plans weren’t good enough to accomplish everything you set out to do?” Geiger asked in a Feb. 1 e-mail to executives. “Well, we just had one of those weeks here at Walmart U.S. Where are all the customers? And where’s their money?” Read more
Cardiff writes mostly about US macroeconomic issues, with daily excursions into other topics about which he claim no expertise. Before Alphaville, Cardiff spent a little more than two years as a reporter at Dow Jones Financial News covering investment banking, asset management, and private equity. Along the way he has written freelance pieces on a variety of other topics from behavioural psychology to Muay Thai, the latter also being a personal interest that involves frequently getting kicked in the shins (and torso, and head).
Downloadable for your Friday afternoon commute, we had a chat about a few topics we’ve been covering lately and even answered some of the questions you, the readers, submitted last week. If you want to jump directly to a topic, below is a time guide and some links we refer to in the podcast: Read more
Masa joined the FT in 2009 and has worked on a number of desks across the paper, including Companies, Markets and Comment. She spent much of 2010 in New York covering the US equity markets. But earlier this year she finally saw the light and moved to Alphaville.
She started her career in the investment banking division at Lehman Brothers in the summer of 2007, timing it perfectly with the beginning of the credit crunch.
She studied philosophy, politics and economics at Oxford University.
The eurozone’s largest economy has defied the crisis better than most expected, yet it couldn’t maintain growth in the final quarter of last year, shrinking by an estimated 0.6 per cent. That compares to France’s 0.3 per cent and Spain’s 0.7 per cent respective falls. But given that usually Germany is the region’s engine of growth, the key question is how long this weakness might last.
Fortunately it seems that the recovery might be brisk. Read more
Lisa joined FT Alphaville in September 2011 after a tour of duty through the guts of the financial industry, having worked as an analyst at a bank and for a financial data company.
Mortgage markets come in many different flavours. Some American states, for example, like theirs to be non-recourse. In such locations, a homeowner can walk away from their mortgage, and send the house keys to the lender secure in the knowledge that the only asset that can be seized is the property.
Such tastes no doubt contribute to a higher proportion of non-performing loans, as mortgage-holders are quite aware of their right to walk away — an option that becomes increasingly more attractive in an economic and housing downturn.
And now it would appear that the Spanish might prefer their mortgage market to have a taste of the non-recourse mortgage in future, as a pressure group succeeded on Tuesday in getting the country’s parliament to debate an initiative for making the change. Read more
Izabella Kaminska joined FT Alphaville in October 2008. Before that she worked as a producer at CNBC, a natural gas reporter at Platts and an associate editor of BP's internal magazine.
This is a follow up to Thursday’s post about Rosneft’s 500 million barrel collateralised financing (to raise money for its purchase of BNP-TNK) and how the market managed to absorb it almost without any price impact.
Most of the previous post was based on the observations of Philip. K. Verleger, who believed the latter point represented a triumph for the futures markets, which had reached a whole new level of maturity.
And yet, as we have been reporting, it’s always more important to look to the curve. Spot price, or “flat price” as traders like to call it, is almost irrelevant. What’s happening in so-called time-spreads is usually much more critical. (And yes, nobody usually takes unhedged positions on flat price.) Read more
Masa joined the FT in 2009 and has worked on a number of desks across the paper, including Companies, Markets and Comment. She spent much of 2010 in New York covering the US equity markets. But earlier this year she finally saw the light and moved to Alphaville.
She started her career in the investment banking division at Lehman Brothers in the summer of 2007, timing it perfectly with the beginning of the credit crunch.
She studied philosophy, politics and economics at Oxford University.
Anglo slumps to full-year loss || ECB won’t cut rates to weaken euro, says Weidmann || Broker draws Tullett into Libor scandal || Buffett and Brazil tycoon make Heinz offer || Commerzbank chief to forgo bonus || Cameron blasts retailers over horsemeat || JPMorgan’s Gulati to launch own fund || Meteorite hits central Russia, 400 hurt || Markets: Traders are in cautious mood Read more
Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.
Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.
Asian markets lower || Muto reportedly leading BoJ contender || Tullett Prebon drawn into Libor scandal || Dell on offensive over buyout || Portugal confident of bond market return || Lehman wants to talk to London Whale || Browett returns to UK high st after Apple || The EU FISH Read more
FT markets round-up:“Disappointing European economic data crimped optimism about global growth prospects and weighed on global stocks. The single currency also fell sharply on the day. The FTSE All-World equity index fell 0.1 per cent as the FTSE Eurofirst 300 closed 0.2 per cent lower. In New York, the S&P 500 turned an initial 6 point loss into a 1 point advance to 1,521 — a fresh five-year closing high.” (Financial Times) Read more
Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)
Makes sense, given what Stein was mostly talking about — places in the market where the yield chase could be relying on assets that in turn rely on short-term funding. In other words, leverage that turns “overheating” into a supernova. Read more
Izabella Kaminska joined FT Alphaville in October 2008. Before that she worked as a producer at CNBC, a natural gas reporter at Platts and an associate editor of BP's internal magazine.
Izabella Kaminska joined FT Alphaville in October 2008. Before that she worked as a producer at CNBC, a natural gas reporter at Platts and an associate editor of BP's internal magazine.
Cars and motoring are not really FT Alphaville’s specialty. But we do love public spats.
The current one running between Tesla and SpaceX founder Elon Musk and John Broder of the New York Times is particularly engaging. It regards Broder’s test-drive of the Tesla Model S and his subsequent rubbishing of the experience in an article that claimed the electric car ran out of battery early and generally failed to perform in cold weather. Read more
David joined the FT in 2011 as a Marjorie Deane fellow. He covered emerging markets, equities and currencies before making the jump over to FT Alphaville in May 2012.
David joined the FT in 2011 as a Marjorie Deane fellow. He covered emerging markets, equities and currencies before making the jump over to FT Alphaville in May 2012.
German and French economies contract as Euro area GDP disappoints || Japan’s recession continued in Q4 || The BoJ maintained asset purchase programme size and rates || AB InBev makes offer to seal Modelo deal || Rolls-Royce names next chairman || Fat-cat referendum in Switzerland || Rocky road lies ahead in trade pact talks || US Treasury, banks, businesses criticise EU Tobin tax plans || FSA warns banks not to leave Libor || Rio Tinto falls into $3bn full-year loss || AMR board approves US Airways deal || CITIC buys stake in Australia’s Alumina for A$452m || Google sues BT over patent || Time Warner in talks to spin off magazines || ‘Abe trade’ boosts macro hedge funds || SAC Capital probe widened || Monte Paschi former finance chief held || Markets summary || Valentine’s day GDP massacre || Isda committee decision on SNS Bank CDS weird or what? || Exorcising eurozone ELA as we know it Read more
Kate is FT AV’s Asia Correspondent. She joined FT Alphaville in mid-2011 after carrying out various roles in the FT’s London office since 2005: interactive editor, companies reporter, and founding editor of the FT’s Energy Source blog.
Japan’s economy failed to grow in Q4 || Asian markets higher on Abenomics hopes || BoJ continues as expected || US banks, Treasury, etc criticise EU Tobin tax || AMR-US Airways deal agreed || Google sues BT over patent || Macro funds do well on Abenomics yen short || CITIC buys stake in Australia’s Alumina || Barclays puts everything first Read more
Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)
Jack Lew placed tax reform “at the very top” of his priorities if confirmed as Treasury Secretary. Lew pledged to look at business tax cuts and brushed off questions on his past as a Citigroup executive, in a mostly placid Senate Finance Committee hearing on his nomination by President Barack Obama (Reuters, Financial Times). Read more
Lisa joined FT Alphaville in September 2011 after a tour of duty through the guts of the financial industry, having worked as an analyst at a bank and for a financial data company.
We’re confused about the restructuring credit event that the Isda determinations committee voted for on Wednesday. It took them three meetings to do it, and Bank of America Merrill Lynch doesn’t agree, but there you go.
Oh, and the Q&A document that Isda published about CDS written on Greece has a line that appears to be in contradiction to decision, but there you go… Read more
Joseph joined FT Alphaville way back in March 2010. He likes all the politically and legally fiddly bits of finance. He also likes credit, rates, global macro, tail risk, and all that stuff. (You should email him story ideas. He’ll take anything.)
Yes the IMF calls for common eurozone deposit insurance, in this new banking union paper. But also look at what they suggest on emergency liquidity assistance:
Lender of last resort. The lender of last resort makes liquidity support available to solvent yet illiquid banks. Centralizing all LOLR functions at the ECB would in the steady state eliminate bank-sovereign linkages present in the current ELA scheme (see Box 1). This would require changes to the ECB’s collateral policy, as by definition euro area banks that tap ELA cannot access Eurosystem liquidity owing to collateral constraints. Until such time as all banks are brought under the ECB’s supervisory oversight, ELA would be sourced through both the ECB (for banks brought under its purview) as well as national central banks (for banks that remain under national supervision, albeit with adjustments made to the national ELA limits).
Which would be nothing short of a revolution. Read more
David joined the FT in 2011 as a Marjorie Deane fellow. He covered emerging markets, equities and currencies before making the jump over to FT Alphaville in May 2012.
The currency war meme rumbles on as the G7 does its very best to avoid a coherent message amid arguments about whether drawing a distinction between “domestic objectives” that weaken a currency and just plain weakening it actually matters. Ho hum. Read more
Lisa joined FT Alphaville in September 2011 after a tour of duty through the guts of the financial industry, having worked as an analyst at a bank and for a financial data company.
SNS Reaal’s sub expropriation was a restructuring credit event after all, according to 14 of the 15 Isda determinations committee members on Wednesday:
David joined the FT in 2011 as a Marjorie Deane fellow. He covered emerging markets, equities and currencies before making the jump over to FT Alphaville in May 2012.
Lisa joined FT Alphaville in September 2011 after a tour of duty through the guts of the financial industry, having worked as an analyst at a bank and for a financial data company.
Oh boo, the committee that decides on whether credit default swap contracts should payout appears to be having trouble reaching a conclusion about whether the nationalisation of SNS Bank counts as a “credit event”. While the quantity of swaps that hang in the balance is teeny tiny, the issue itself is a big deal because it reveals some of the problems that might crop up in future bank rescues and bail-ins of debt while demonstrating yet again that CDS don’t appear to do what a reasonable person would think they do. Read more
Masa joined the FT in 2009 and has worked on a number of desks across the paper, including Companies, Markets and Comment. She spent much of 2010 in New York covering the US equity markets. But earlier this year she finally saw the light and moved to Alphaville.
She started her career in the investment banking division at Lehman Brothers in the summer of 2007, timing it perfectly with the beginning of the credit crunch.
She studied philosophy, politics and economics at Oxford University.
Obama drive to ‘reignite’ US economy || Neither US party swallows a compromise || G7 fails to defuse currency tensions || Comcast in $16.7bn NBCUniversal buyout || Banks in capital race to top as Sweden’s 12 per cent rule sets pace|| Ailing Peugeot posts record net losses || Australia banks on housebuilding boost || Apple downplays Einhorn suit as ‘sideshow’ || Intel to launch internet-based TV service || Markets: Mixed opening of European trading, but stocks close to multiyear highs Read more
1On cash hoarding
2Isda nationalisation of SNS Reaal a credit event? Yes it is
3Elon Musk vs The New York Times
4The non-precedent setting, own-law making, secretive CDS committee is having a seriously bad month
5Mi casa es all you're going to get
Show more6Did you hear the one about Rosneft's 500m barrel hedge?
7Buffett does Heinz
8Isda committee decision on SNS Bank CDS weird or what?
9Currency wars. You're doing it wrong.
10A Rosneft hedge distortion?
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