The Financial Times – John Dizard: China’s support will come at a price The trade-offs between official support for Europe from emerging markets, and the breaking down of European oligopolies and protections for industry, are a bigger problem for France, Spain, and the other peripherals than they are for certain northern countries. Germany’s capital goods… Continue reading China
The Telegraph (UK) – Ambrose Evans-Pritchard: Hollande’s ‘Growth Bloc’ spells end of German hegemony in Europe For two years Germany has had its way in Europe, treating historic nations much as Bismarck treated Bavaria – sovereign only in name The French-led counter-attack and rumblings of revolt through every branch of the EU institutions last week… Continue reading France
The Financial Times – Mohamed El-Erian: Spain will get worse without reform and European help Standard and Poor’s’ multi-notch downgrade of Spain’s sovereign credit rating was largely shrugged off by markets. That is the good news. The bad news is that S&P’s reasoning speaks to dynamics on the ground that are likely to worsen if… Continue reading Spain
BBC News – Black-Scholes: The maths formula linked to the financial crash It’s not every day that someone writes down an equation that ends up changing the world. But it does happen sometimes, and the world doesn’t always change for the better. It has been argued that one formula known as Black-Scholes, along with its… Continue reading Financial Engineering
Bloomberg.com – Father of Treasury Floaters Says Now Worst Time for Sales Almost two decades after advising the U.S. to sell floating-rate notes to lower debt expenses, Campbell Harvey says starting to issue the securities now would be a costly mistake for American taxpayers. “In an environment with historically low interest rates, the Treasury should… Continue reading Should The Treasury Sink Floaters?
Asia Times – Peter Morici: The euro must go Exacerbating matters, the big European banks are burdened with huge amounts of private debt that will never be repaid. Since December, the European Central Bank (ECB) has been aggressively lending to them, but with bank regulation remaining the province of national governments, it lacks the clout… Continue reading Should The Euro Go?
<Click on chart for larger image> The Financial Times – Food inflation feared as soya prices soar The price of soyabeans is heading towards the record high set during the 2007-08 food crisis, which is set to reignite fears of runaway global food inflation. The surge in prices is because of falling global production levels… Continue reading Is Food Inflation Coming?
The Financial Times – You will buy more Govvies, or else King calls this process financial repression, and now he comes to mention it, it’s clearly been going on for some time if you know where to look. The most obvious place is in the pensions industry. Normal investors tend to sell, or at least… Continue reading Financial Repression – UK Version
Bits (NYT Blog) – Disruptions: With No Revenue, an Illusion of Value Yet an even more bizarre activity in the Valley than shushing the talk of a bubble is how some start-ups are advised by investors not to make money. This concept may sound ridiculous from a business standpoint, but for investors, it fuels the… Continue reading How To Value Technology Firms
The New York Daily News – CNBC ‘freaking out’ over decline in ratings for Andrew Ross Sorkin and Maria Bartiromo ‘Their biggest attractions have become their biggest losers,’ says industry insider According to Nielsen ratings obtained by Gatecrasher, “Squawk Box” is down 16% in total viewers and 29% in the important 25-54 demographic bracket that… Continue reading Sliding CNBC Ratings
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Comment Yesterday we hosted a conference call titled, “Is It 2011 All Over Again?”. Please find the handout, audio and a webcast of the presentation below. [pageview url=”https://www.biancoresearch.com/bianco/wp-content/plugins/PDFViewer/plugin.php?id=76″] Click on the audio player to listen to the conference call: [audio:https://www.biancoresearch.com/bianco/SubscriberArea/503842-592350.mp3|titles=Conference Call] Webcast: [hana-flv-player video=”https://www.biancoresearch.com/bianco/SubscriberArea/042612.flv” width=”600″ height=”495″ description=”” player=”3″ autoload=”false” autoplay=”false” loop=”false” autorewind=”true” splashimage=”https://www.biancoresearch.com/bianco/wp-content/themes/twentyten/images/splash.jpg” /]