The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Exchanging a few Economic facts and fictions? …

So much for dramatized Alpha 1 narrations…

The rogue trader at UBS has ben booked for two large ETF transactions which he booked incorrectly and made off with $2 bln in personal gain swould be the simplifie


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d version of what happened in last week’s Kerviel/ Nick Leeson wannabe’s racy parcels of news as investment bankers retired knowing that there wasn’t anything “going on” a UBS all the time just acaught mis deed under wraps for a month or more. Of course with losses of this stature heads will roll, sebnior ones and UBS will unlikely be able o afford a visible Investment Banking presence. Still, the Swiss regulators should probably stay off new regulation opr changing the nobel committee’s youthful composition in Sweden for that would not be a good idea. The future of Delta 1 however has been called into question by this devious turn.

My two cents: Traders and Research Analysts  are a dying breed wh o need constant nurturing and some oversight. They have the agency and the alacrity to solve the world’s problems. don’t have them jjoin the multitudes of the jobless. It would be unfortunate esp as Banks are hardly making any profits now. (hint!)

More so, so much for dull IIPs

The China IIP comes out Monday/Tuesday and they would indicate a stabilising Economy shugging along without an excessive amount of growth, with the renewed warehousing of global input metals and agri commodities boding the bottom has gone by. While we all know the fragile data elements of the China IIP story, the ones from neighbour India are equally vlatile and meaningless for running the economy. The non Capitla Goods components led by Consumer good as andElectricity grew at their best rate in the ltest July/August IIP series and growth is robust including the bump up from Chinese import demand and he August growth in exports at 45% despite the import run up of almost the same magnitude and our bad oil crude basket pricing

The one about emerging market inflows..(oops! Outflows?) 

One Capital Goods sub index up 40% in 2010 for the month and down 15% for the month this year has caused us to believe horror stories about interest rates choking the economy. Similarily, Emerging market outflows of $14 bln for the year t date are used to scare our Indian exchanges into submission down 50% for the year when we are actually growing investors though  yet at a very very slow rate accumulating $ 500 mln in the period knowing how Indian exchanges react in large doses to small notations of

Cover of

Cover of Rogue Trader

India - A Multitude of People and Cultures (Mo...

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HUAIBEI, CHINA - AUGUST 01:   Labors work at a...

Image by Getty Images via @daylife

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