FURTHER FURTHER READING
- Macro Man on the EM sell-off -- with lyrics.
- Finance doesn't belong in macro, Scott Sumner says.
- When to do "autopilot monetary policy".
- Making better powerpoints -- a secret government agency test case.
- And the most wonderful spreadsheet outside JPMorgan's CIO.
- Rock-star risk management, literally.
- Baramucci comes to Midtown.
ROUND-UP
Tuesday's grouchy market. Emerging-market currencies bore the brunt of a volatile sell-off, including the South African rand and Brazilian real both hitting four-year lows against the dollar. Brazilian shares were also pulled into bear-market territory after their 2.6 per cent decline. The yen rose 2.9 per cent against dollar after the Bank of Japan's overnight decision to stand pat on providing further stimulus (Financial Times).
Confusion over the direction of Fed policy was also blamed as New York trading hours failed to stem the tide: the S&P 500 closed down 1 per cent, and the Dow fell 0.8 per cent (Wall Street Journal, Bloomberg).
Greek shares will be reclassified as an emerging market, according to the latest MSCI review of its indices. The UAE and Qatar will join its November inclusion in the category in May 2014, having been upgraded from frontier markets. South Korean and Taiwanese stock markets remained on review to attain developed-market status, while a review will begin on whether to include Chinese A-shares in the emerging markets index (MSCI release).
Google sought to loosen a gagging order on reporting the amount of secret federal court orders it receives for data on its users. "Google's numbers would clearly show that our compliance with these requests falls far short of the claims being made," David Drummond, chief legal officer, wrote (Google Blog, Financial Times). National security requests to Google have come under scrutiny amid the NSA whistleblower case (Wall Street Journal).
"There was no hiding, there was no lying, there was no bullshitting. Period": Jamie Dimon's verdict on allegations that investors in JPMorgan were misled over the London Whale trades, as given at an industry conference on Tuesday (Financial Times). "If anyone sues we're going to fight that one to the end by the way, so keep that in mind," Dimon added.
The SEC fined CBOE $6m for failing to enforce short-selling rules. Staff lacked a basic understanding of those rules, while the exchange helped a member firm under investigation to edit its 'Wells' submission to the SEC, the regulator said (Reuters).
Greece announced the immediate closure of its state broadcaster in a bid to comply with public-sector layoff targets agreed with the Troika. ERT ceased transmission at midnight, after the government arranged a special legal order for the shutdown. Some 2,700 employees have been laid off. The government must find 4,000 civil-service positions to go by the end of this year (Financial Times, Wall Street Journal).
