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Capital City - Live
Human-curated capital markets social media
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IFR's daily digest of views & news for capital markets professionals
Comment: Waiting for the real Japan story to unfold
When it comes to opinions on Japan’s radical monetary policy, Tokyo is just as divided as anywhere else, says IFR Asia bureau chief Nachum Kaplan.
Bernanke’s dangerous optimism
Federal Reserve Chairman Ben Bernanke is an optimist about economic growth in the coming decades, rejecting “depressing” views about a slowdown to put his faith in collaborative innovation driven by a jackpot culture for inventors. For his mental health, let’s hope he believes it. For our economic wellbeing, let’s hope he doesn’t act on it.
On good times, great runs and the gender of bonds
Old chestnut: Two economists meet in the street. Says one to the other: “How are you?” Replies the second: “Compared to what?” We’ve all giggled over that one but it feels slightly more pertinent now than it has for a very long time. The good times are upon us again but how good are they really?
JP Morgan, under pressure, gives polling information to investors
(Reuters) - JP Morgan Chase & Co, under pressure from the New York Attorney General’s office, has agreed to give investors information about upcoming ballot votes, after the company that collects votes on the measures stopped giving out polling information last week.
IFR Comment: Inflation relief provides flexibility for BoE
The April inflation numbers from the UK managed to surprise to the downside with a 2.4% y/y print compared to consensus forecasts for 2.6%.
Credit Suisse turns more optimistic on Brazil IPOs this year
(Reuters) - Companies in Brazil could raise between US$12bn and US$15bn from initial public offerings this year, a sign that foreign investors are gradually returning to Latin America’s biggest equity market, Credit Suisse Group’s top banker in the country said.
Goldman exits China's ICBC, 7 years and billions later
Goldman Sachs Group Inc raised US$1.1bn by selling its remaining shares in Industrial and Commercial Bank of China, ending a seven-year old investment and handing the Wall Street firm a return of nearly four times its original stake.
IFR Comment: An argument against negative ECB depo rate
German banks borrowed just €15bn in April from the ECB, breaking the previous low of €21.3bn from October 2011. In general, borrowing by core banks in the eurozone stands at below 20% of the total at just over €850bn.
IFR Comment: The Fed needs to cushion negative "tapering" feedback
Since the beginning of the year the Fed has adopted a glacial stance toward communicating its desire to take the foot off the monetary accelerator. The current debate over tapering QE does not stem from a satisfaction with state of the labour market or concern over inflation risks but a desire to limit the perceived financial stability costs of QE. The communication challenge for the Fed is to ensure that financial markets do not overreact 1994-style to a likely tapering of QE this year.
UK should get on front foot with City
It is perhaps too much to expect Britain’s Conservative-led government to head any initiatives on Europe, such is the orgy of self-destruction in the party over whether the UK should stay in the European Union. But, insofar as David Cameron manages to get some respite from the madness, he should launch a strategy to enhance the City of London as Europe’s financial centre.
On European Whits, UKIP and oily decisions
If ever you wanted to find a way of distinguishing the Eurozone core from the periphery, today is the day. The core is taking the Whit Monday bank holiday, the periphery isn’t.
European securitisation event plans return to pre-crisis home
AFME and IMN’s Global ABS conference, the largest annual event in European securitisation, is returning to Barcelona for 2014, following three years in Brussels as the sector attempted to engage with European regulators and policymakers.
IFR Comment: Gold/silver support USD-strength expectation
Gold (and silver) have been a little under the radar since the sharp falls in mid-April. But both are sending some important signals as to the state of play in the markets currently.
Analysis: Shrinking US deficit reduces pressure for budget deal
(Reuters) - The chances of a deal between Democratic and Republican lawmakers that would overhaul the US tax system, trim government spending and reform safety net spending programs appear to be fading.
QE and the portfolio puzzle
Quantitative easing may well be pushing investors to hold more cash rather than risk assets, blunting its impact as monetary policy.
EQUITIES: Tesla Motors increases size of CB, tightens talk
Tesla Motors on Thursday increased the size of its convertible bond and tightened price talk, according to two market sources close to the situation.
Big banks gain as US adopts weakened swap rules
Big banks won key concessions in the battle over who dominates the US$630trn derivatives markets as the top US regulator adopted watered-down rules to bring swaps onto exchange-like trading platforms.
IFR Comment: Eurozone from pessimism to optimism
Investors have regained their confidence on eurozone peripheral debt aided by the reduction of tail risks and reduced breakup risks. For policy makers there remains the outstanding issue of Slovenia but this is something to worry about at a later stage. The key focus now from the eurozone has shifted from putting out crisis fires and limiting contagion to trying to deal with low growth and high unemployment.
Bankers push for Italian SME-backed covered bonds
Italy needs to change its covered bond law so that the country’s banks can provide cheaper funding to the small and medium-sized enterprises (SMEs) that are the backbone of the economy, bankers said.
HSBC in character: strategy update dull but worthy
THE MAY 15 STRATEGY update by HSBC, ably and confidently fronted by CEO Stuart Gulliver, seems to have gone down pretty well. Truth be told, I couldn’t find anything particularly contentious in there, although the cost-income miss and the delay in hitting targeted ROE were far more noteworthy, in my view, than the additional job cuts that got all the headlines.
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Firms shun European leveraged loans for US/HY financing
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EU bonus cap could hit 10 times as many London bankers -PwC
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On a clear day, you can see the precipice
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Record leverage is the biggest threat to Asia’s party
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Tesla Motors gear shift catches out many on Wall Street
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The US factory renaissance
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Analysis: Dimon has big say over who serves on JPMorgan board
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Analysis: Budget deficit cut adds to optimism about US assets
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IFR Brief: A day of Fedspeak, watch for Bernanke over the weekend
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EFSF 10-yr bond flies despite losing French value
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Asia Pacific IPOs in busiest deal week since 2011
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Mid-sized Italian banks face big bang for want of bucks
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It's all but over
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Europe's banks hesitate to join rush for new share capital
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IFR Comment: What impact a Fed exit on equities/risk?
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France's Hollande urges eurozone government, common debt
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France SME scheme to fuse securitisation and covered bonds
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EU supervisors to study banks' assets, delay stress test
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New CDS trigger event proposed to tackle bail-in
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UPDATE: Italy eases debt burden with new 30-year bond
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IFR Comment: The recovery/liquidity story of Greece
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French banks to pool SME loans for CRH-style covered bonds
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Analysis: Yield frenzy propels Spain's funding
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HSBC may cull up to 14,000 more jobs
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On football, losers, the US budget deficit and pyrrhic victories
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Analysis: For all the debt, there's a shortage of bonds
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IFR Comment: BoE - Inflation expectations, growth optimism
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EQUITIES: Tableau lifts IPO price amid heavy demand
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China Galaxy IPO raises US$1.1bn, priced for first day pop
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Ghana plans up to US$1 bn Eurobond in 2013 -vice president
