Daily Archives: September 19, 2012

James Mackintosh

Being widely hated is one thing, but being widely hated and poor is even worse. This fate almost befell Europe’s bankers earlier this summer. Share prices have soared in the past two months, so all the bankers now have to worry about is mobs with pitchforks.

Seriously, though, European banking seems to be returning to what passes for normal nowadays: money markets have stabilised, bond markets reopened and Americans are even willing (at a price) to put dollars back into French banks, as I discuss in today’s Short View video:

The result has been that eurozone bank shares were one of the smartest investments of the year – as long as you avoided the trouble periphery. This chart shows the split in returns from buying eurozone core or eurozone periphery banks. Read more

James Mackintosh

The Bank of Japan has surprised the markets by printing another Y10tn ($126bn) as it fights deflation, a weak economy and the currency wars.

The yen is the most important factor for investors, and its behaviour has been odd, as discussed in this morning’s Short View video. Read more

John Authers

Today’s Note video is on Frontier Markets. In theory, they should be exciting, offering the chance of real upside for the bold that Emerging Markets once did. In practice, FM equities have been mediocre over the last few years, while spreads on FM debt has tightened so sharply as to raise questions about how discriminating the buyers have been. The video, with Robin Wigglesworth, is here:

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