Good morning New York,
FT ALPHAVILLE
A case for Cypriot National Equity: Guest writer Chris Cook, a senior research fellow at the Institute for Security and Resilience Studies at University College London, takes us through his alternative resolution for Cyprus, a proposal which involves the creation of fully exchangeable Cypriot national equity units.
What Google Reader tells us about nationalisation and banks: Are there some things that need government support because without it there would be no economic incentive to keep such essential services going? Izzy explains how covering costs is not usually attractive enough for shareholders, meaning the utilitisation of business can sometimes lead to the shutdown of much loved and much used services.
Credibility: Joseph links us up with the latest dollop of mind-bleach courtesy of the Eurogroup.
NEWS
Cyprus banks to stay closed for days: "Cypriot banks will remain closed until Thursday, the government announced on Monday night, as President Nicos Anastasiades acknowledged that the country had come 'a breath away from economic collapse' before its last-minute bailout. Speaking after he agreed a €10bn international rescue that includes the restructuring of the island's two biggest lenders with losses for bigger depositors, Mr Anastasiades also said capital controls would be imposed but as a 'very temporary measure that will be gradually relaxed'." (Financial Times)
Dell founder set to explore deal options: "Michael Dell has said he is willing to "explore in good faith" the possibility of working with Blackstone or Carl Icahn, after they each moved to top the $24.4bn buyout bid he made with Silver Lake Partners for the company he founded. Dell's special committee said it had not yet determined if either Blackstone's offer of at least $14.25 a share for the whole company or Mr Icahn's offer of $15 for 58 per cent of the company constituted a superior proposal to the one on the table." (Financial Times)
Worries hit RIM after US launch: The new touch-screen phone from Research In Motion, the Z10, has received tepid marketing support from AT&T since its debut in stores on Friday, dealing RIM an early setback in its drive to improve sales in the crucial US market. While RIM has bet its turnaround efforts on the Z10 and a keyboard-equipped phone set to launch later this spring and is backing them with its biggest-ever marketing program, retailers in the carriers' networks aren't planning a heavy push. (Wall Street Journal)
IPO fundraising jumps 50 per cent: "A bumper start to the year in the global market for new equity issues has seen funds raised through initial public offerings jump by 50 per cent so far, marking a shift in investor sentiment after years of declining deal volumes and high profile failures. Some $23bn worth of fresh equity has been raised in IPOs this year, up from $15bn in the same period last year, according to data from Dealogic." (Financial Times)
Boeing flight-tests Dreamliner batteries: "Boeing took a key step to returning its 787 to commercial service when it undertook on Monday the first flight of an aircraft fitted with new batteries adapted to minimise the risk of overheating. A Dreamliner took off at 12:11pm Pacific time from the airfield at Boeing's main production plant in Everett, Washington, for the 'functional test flight' and returned two hours later." (Financial Times)
Berezovsky death 'consistent with hanging': "Russian oligarch Boris Berezovsky, whose body was found in the locked bathroom of his luxury mansion near London over the weekend, died by hanging, British police said on Monday." (Reuters)
Markets: Uncertainty over the outcome and potential ramifications of the Cyprus bailout continued to taint global markets, leaving growth-focused products with a lack of strategic clarity as the European session got under way. But at least the mood was generally calmer than witnessed at the start of the week, when "risk" assets rallied then relapsed as relief about Nicosia's €10bn bailout turned to worry that the agreement could become a template for future eurozone bailouts. The FTSE Eurofirst 300 was advancing 0.1 per cent after it received an uninspiring handover from the Asia-Pacific region, where Chinese and Japanese bourses faltered. This left the FTSE All-World up fractionally at 235.5, though not far from the four-and-a-half year high of 238.6 hit a couple of weeks ago. (Financial Times)
