FURTHER FURTHER READING
- End times.
- The costs of "good" economics.
- Immaculate conception theories of real interest rate changes.
- Who will be saddest about a successful Dell buyout?
- On that September tapering.
- Automotated driving system company raises $400m.
- China faces a difficult credit bubble workout.
- Further, further further reading.
ROUND-UP
FT markets round-up: "US and European equities started the week on a positive note, supported by retreating government bond yields on both sides of the Atlantic and optimism about the forthcoming quarterly earnings season. The 10-year US Treasury yield had shot up to a two-year high on Friday as a robust US employment report added weight to the view that the Federal Reserve would soon start to scale back, or taper, its quantitative easing programme. On Monday, the yield on the 10-year US government bond fell 9 basis points to 2.64 per cent – after touching 2.75 per cent in Asian trade – while that on the German Bund shed 3bp to 1.70 per cent. Portugal's 10-year yield fell back below 7 per cent as political calm appeared to have been restored in the country over the weekend. The dip in Treasury yields took some of the wind out of the dollar's sails, with the US currency easing back 0.3 per cent against a basket of its counterparts, having earlier touched a three-year high. But US equities maintained their positive tone, with the S&P 500 rising 0.5 per cent as the focus began to shift to the US earnings season, with Alcoa's results due after the close of trade. The FTSE Eurofirst 300 advanced 1.4 per cent." (Financial Times)
US and EU open talks on transatlantic trade pact: "US and European officials have taken the first steps in high-stakes negotiations to craft a transatlantic trade agreement, with the initial round of talks focusing on cutting barriers to trade and harmonising regulations across a swath of economic activity. The discussions, which started in Washington on Monday, are being hailed by many business groups that view a deal as having great potential to stoke growth across the US and European economies." (Financial Times)
CME chief defends clearing houses' growing role: "The head of the world's largest exchanges operator, CME Group, has rejected calls from global banks that the growing reliance on clearing houses is posing a new challenge to the stability of the financial system. The risk management houses are becoming a critical part of the plumbing of the world's financial markets after global regulators mandated that more of the vast but opaque over-the-counter derivatives market be processed through central counterparties." (Financial Times)
Financial information groups face NY probe: "Some of the world's top financial data providers are under investigation over the profits that sophisticated investors make by paying for early access to market-moving information. Under pressure from New York state's attorney-general, Eric Schneiderman, Thomson Reuters on Monday suspended its practice of releasing closely watched consumer sentiment data two seconds early to clients who pay extra." (Financial Times)
Moelis directors boosted by $35m payout: "Moelis & Company will pay out $35m to staff and investors in a move that highlights the independent US investment bank's profitable growth in recent years. Ken Moelis, chief executive, announced the advisory group's first ever cash distribution in a staff call on Monday, people close to the situation said." (Financial Times)
Investor group ISS gives its support to Dell buyout: "Michael Dell's attempt to buy back control of the PC maker he founded as a student 29 years ago received an important boost on Monday as an influential shareholder advisory group threw its support behind the deal. Institutional Shareholder Services, which advises large investors like mutual funds, strongly rejected the claim by activist investor Carl Icahn and other opponents that the $24.4bn buyout would lead to Mr Dell enriching himself at the expense of his company's shareholders." (Financial Times)
