Chillin' out till it needs to be funded
A feverish December closes a earth shaking 2011
If you are looking for a year end review, you can start here If you want to know whats happening on new bank regulation just to catch up withthe Joneses and because the new year’s games tickets were burnt by your overenthusiasm/christmas weekend lazies, here’s one late review and a couple for the US and the UK
If you need the year’s last word on JP Morgan they are growing in debt franchise, Goldman Sachs (well on its way to becoming an asset management and deal advisory giant in the new avatar), HSBC and StanChart are on a mission to invade hearts of their guanxi in the middle kingdom and the others with US mortgage markets and dependencies in the retail business ( like Wells Fargo, Bank of America and Citi) are all on $1.5 bln to $ 3bln a quarter savings programs, leading to the biggest exodus on Wall Street inthe last 7 decades.
Europe is another matter altogether, hanging by the thread on Italy’s 7% yield vagaries as they survived a crunch on collateral, with the largest collateral free loan facility from ECB annd the markets are on to a Santa rally this week on promised low volumes and Paulson leading the hedge funds out as global equities went down between 17% to 50% across India, China, Brazil and Europe, and S&P siurvived for a miniscule gain after the rally on Friday with Economic data looking up, good auctions and Japan getting into business with China as Yuan trade is likely to be 15% of China’s $5 tln trade this year. That means a ready customer for China’s treasuries with a commitment to the Yuan which has depreciated more against the lonely yen in the period than appreciated against the USD at 6.3
Europe’s new deal came through, the Euro survived dozens of threats as it stayed above 1.30 and the Germans cemented their economy’s gains even with hope for the region’s recovery fading and France surviving weeks without the promised downgrade and european competition well by the wayside as it became difficult for banks in the region to survive without short term capital
Even as bank profitability adjusted to market noise and realities targeting double digit returns an out of shape objective for them, deleveraging
by the Europeans could not stop the surge in dealmaking in November and December even in Asia which is slated to grow into the biggest deal continent in a few years. The IPOs came back with Facebook and Zynga, a deal for Twitter and our weekly round up of Advantage Dealbook showing up some interesting deals as AT&T and Deutsche Borse deals (nearly) fell by the wayside.
WE also featured big comebacks and bigger results from Amazon , Linked In and McDonalds, as Apple started losing in poor depressed Europe , while growing in US UK and Australia. The week all of us lost Steve Jobs at the age of 56, we started a books section every Friday having reccomended a few of the best including Steve Jobs’ biography in his own words.