WHAT THE OTHER PAPERS SAY THIS MORNING November 22, 2011 FINANCIAL TIMES NOMURA STEPS UP ASSET SALE PLANS Nomura has approached big private equity firms about the possible sale of domestic businesses, including its real estate arm, as the Japanese bank moves to shore up its capital buffers. Several people familiar with the preliminary talks with parties including KKR and TPG said the bank was [...]
Fed’s PR plans prompt hopes over more QE November 22, 2011 THE FEDERAL Reserve has discussed how it can improve the communication of its policies to the public, it was revealed last night, stoking rumours that a third phase of the controversial quantitative easing programme (QE3) could be on the way. “A few” of the Fed’s committee believe the economic outlook may be grim enough to [...]
Six American banks face more stress tests over Euro debt crisis November 22, 2011 SIX of America’s biggest banks face a new round of stress tests as the Federal Reserve shows increasing concern over the Eurozone debt crisis. The tests against a possible market shock will take in Bank of America Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley and Wells Fargo, which all have large trading operations. Yesterday [...]
Political ineptitude is driving euro-dollar November 22, 2011 THE string of announcements yesterday provided a snapshot of the failings of politicians and committees on either side of the Atlantic to come up with any form of solution to their respective debt woes. We saw some short-term euro-dollar moves off the news that the IMF had approved changes to credit line structures designed to [...]
HOLDING NO STOCK IN EURO DELIVERANCE November 21, 2011 INVESTOR sentiment has turned decidedly bearish over the past week. As usual, the primary concern is the slow motion train wreck that is the European debt crisis. This means that Eurozone sovereign bond yields remain in focus, with the spreads of Spanish, Italian and even French debt over German bunds under intense scrutiny. Once again, [...]
THE TIPSTER November 21, 2011 Utility stock Severn Trent reports interim results on Thursday and investors will be hoping to hear that their bumper dividend payout is safe. A typical defensive play, the shares have performed well in 2011 gaining over 7 per cent. With uncertainty continuing, equity investors may well continue to seek the safe haven properties of the [...]
WHAT THE OTHER PAPERS SAY THIS MORNING November 20, 2011 FINANCIAL TIMES CAYMAN DIRECTORS COLLECT FUND JOBS A small group of Cayman Island “jumbo directors” are sitting on the boards of hundreds of hedge funds as demand for independent directors booms in the Caribbean tax haven. A least four individuals hold more than 100 non-executive directorships each, and 14 have more than 70 – each [...]
Elastic money is folly – we are facing a breakdown in our entire monetary system November 20, 2011 What is the disease you diagnose in our monetary system? A. We have a strange monetary system. It is inherently unstable. It’s not the natural outcome of market forces. Most people don’t appreciate that the financial system is designed by politics. It’s a fiat money system based on government-controlled money, issued without limit under [...]
Trading on global risk sentiment November 20, 2011 AS IS the case across all asset classes, sentiment in the commodity markets hinges upon the belief, or lack thereof, in the ability of politicians and policy makers to find a solution to the European debt crisis. With no sign of a meaningful, long-term cure for Europe’s ills on the cards, cyclical commodities, like industrial [...]
A LONG CHAIN OF DISAPPOINTMENT November 20, 2011 I SUPPOSE many would call me a cock-eyed euro-optimist. Certainly I’ve been supportive of the common currency since the early days and had high hopes for the euro – a novel concept in its inception. But I have to admit, I am beginning to lose all hope that the euro, at least the euro we [...]