Pink picks

Posted by Tracy Alloway on Jun 28 08:00.

Comment, analysis and other offerings from Tuesday’s FT,

Gillian Tett: Shadow spreading across international banking
A few weeks ago, Mike Farrell, head of Annaly Capital, a New-York based, non-bank finance firm, wrote a letter to his investors that pointed out that “in times of chaos … those that survive aren’t necessarily the biggest or the bravest,” notes the FT’s Tett. Mr Farrell’s letter reveals a much bigger Wall Street trend: namely the degree to which non-bank finance companies, such as Annaly, are now spreading their wings with a new sense of confidence – and entrepreneurial hunger.

George Papaconstantinou: Give Greece time to prove it can do the job
One year after Greece agreed the economic adjustment programme and €110bn loan with the European Union and International Monetary Fund, it is back in the spotlight – and conventional wisdom is more pessimistic than ever on overcoming the crisis. What went wrong? And can it be fixed?, asks the former Greek minister of finance.

Beyond brics: Guest post – Victor Shih on China’s local debt problem
How much local government debt is there in China?, asks Shih, of Northwestern University. On Monday, the National Audit Office (NAO) released a report, stating that local debt in China totaled some Rmb10,700bn as of year-end 2010. Is that the new official estimate for local governmental debt? In short, no. Combining the findings of the NAO, the CBRC, and the PBOC in recent months, the total official estimates of local governmental debt now range between Rmb15,400bn and Rmb20,100bn.

Market insight: Laszlo Birinyi -The Fed turned economists into equity pundits
The financial markets have evidenced significant dislocations from seemingly minor and sometimes not so minor developments. In the US, quoting stocks in decimals, rather than fractions, led to high frequency and program trading, writes the founder and president of Birinyi Associates.

The A-list: Peter Mandelson – The EU must step toward fiscal and political union
More than a year after the eurozone first announced support for Greece, the country’s trauma and the eventual fate of the euro itself remains unresolved, says the former UK business secretary and EU trade commissioner. When the euro was launched, I remember relatively objective commentators arguing that, to be successful, the economic side of economic and monetary union needed a much stronger political framework within which to manage the eurozone’s fiscal policies. They have been proved right.

Richard Lambert: Lessons in capitalism for the FTSE 100
Last year, UK companies raised just £1.3bn in new equity, net of buy-backs and acquisitions, notes the director-general of the CBI. In the past month, Nat Rothschild and Tony Hayward raised the same amount by selling shares in Vallares, their new investment vehicle. What makes this all the more remarkable is that the company, as the prospectus coyly acknowledges, is a newly formed entity with no operating history, no revenues and no basis on which to evaluate its ability to achieve its objectives. So what do we learn from this?

Westminster blog: David Cameron, Wen Jiabao and their pandas for pigs deal
Downing Street have announced £1bn of trade deals between China and the UK today, writes the FT’s Jim Pickard. So what are the concrete deals being agreed today? There’s £1m of exports of breeding pigs to China, which may sound familiar to those who read about the prime minister’s trip to China last November. And there is the promise to open the “poultry market”. High stakes stuff.

Property: Real estate is not a cure-all for inflation
The property bulls are as rampant as their beloved inflation at the moment, but investors need to be wary about relying on real estate as the pure inflation hedge that it is sometimes portrayed as, says the FT’s Dan Thomas.

This entry was posted by Tracy Alloway on Tuesday, June 28th, 2011 at 8:00 and is filed under Uncategorised.

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