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The Daily Capital Markets Digest
State Bank of India struggled to market the country’s first offshore Additional Tier 1 securities, as its aggressive pricing expectations clashed with investor concerns over weak fundamentals and strict loss-absorption rules.
Standard Chartered priced the first Samurai bond by a British lender since the UK voted itself out of the European Union, indicating that Japanese buyers are starting to recover from jitters over the impact of Brexit on the country’s banks.
(Reuters) Hit by bad loans, Chinese banks are expected to show a weakening in their capital strength in first-half earnings, raising the prospect that government might have to inject more than US$100bn to shore them up, according to some analysts.
India’s 10-year benchmark yield rose by 4bp to 7.14% on Monday morning following the appointment of Urjit Patel as Reserve Bank of India governor over the weekend.
My apologies for absence yesterday but, like it or not, I do have to emerge from my cave from time to time and venture into the Big Smoke in order to catch up with some of those with their fingers on the pulse. Judging by how little more most of them can sense about what happens next and why, I suppose my vantage point well away from the vortex doesn’t seem to be quite as wrong as it sometimes feels. Elephants are easier to observe with binoculars than they are with microscopes.
THE INCREASINGLY PANICKED and fast-moving state of affairs at Deutsche Bank is eerily reminiscent of that calamitous fourth quarter of 2008. But to be sure, it isn’t the same. Even though the situation in the past week has felt a little disorderly at times, calling a Lehman moment would, I think, be foolhardy. As would suggesting the world financial system is about to fall into the abyss as it did in the aftermath of the Lehman Brothers collapse, taking the world economy with it.
The scandal isn’t that Wells Fargo’s John Stumpf has lost only US$41m of his US$249m in recent compensation after widespread fraud.
British, or more accurately, English news channels, in as much as they have done with dealing with the death of Israel’s towering political leader, Shimon Perez, are today taken over by the news of the resignation of England football manager Sam Allardyce after 67 days in the job.
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