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Is UBS Advising Clients To Front Run Its Sellside Calls Now?
In a rogue email blast sent out to its clients, UBS committed the rather unfortunate goof of telling the entire world that on June 1 it "will have published on Tuesday June 1 morning a strategy update going less cautious in mining and commodities." Obviously nobody is supposed to know what a sellside desk will do ahead of time. Only that in this case, everyone now does. The attempt to subsequently recall the email was met with disaster as every trading desk in the US now knows that the bailed out Swiss bank will be going bullish on this critical sector, likely leading to the increased buying in everything commodity related, which in keeping with the US tradition of frontloading everything that is not nailed down, is occurring today instead of Tuesday for those in the know. And since public information is by definition, public, it is now the right of the entire world to know just what UBS will be doing next week.
Full email below, highlight ours:
From: xxxx
Sent: 26 May 2010 16:48
To: xxxx
Cc: xxxx
Subject: Conference call and researchxxxx
would like to go ahead with a conference call on mining update on Tuesday June 1 at 9.30am for all clients, 40 mins (8 min each speaker) with 10 min for questions, can you prepare the flyer
Where to now? Mining update from many Global readings
1. Julien Garran feedback on May 24-28 China basic materials tour
2. Olivia Ker on London May 27 reverse roadshow with feedback on the big 4 diversifieds
3. Fawzi Hanano on feedback from May 24-26 Kazakhstan tour and London May 28 reverse roadshow
4. Rene Kleyweg on feedback from May 24-28 Brazil visit including Vale, Steel companies
5. Peter Hickson on UBS mining strategy and the volatile global context
We will have published on Tuesday June 1 morning a strategy update going less cautious in mining and commodities
xxx
Fellow speakers
I hope this is not too presumptuous or onerous but Tuesday morning is our only window of opportunity to hit the market with a unique set of insights
Monday is a holiday and most are out from Wed
any problems let me know
Surely this is a novel spin on the whole concept of frontrunning your clients: if Goldman has that market allegedly cornered, why not allow your clients to frontrun you?
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In Soviet Russia, Party frontrun you.
so a commidity bull run?
But what if it's fake?
UBS wouldn't have done anything illegal. they could have bought in advance, sell in thuesday and start shorting everything.
Unless I'm to paranoid and must believe banks are always telling the truth...
Funniest screw up like this I ever saw was from Neuberger Berman. Some entry level woman in research (probably Ivy league MBA, whom everyone loved until this moment) sent an email to all retail brokers about some closed end fund. It read something like: "Our numbers are finally in. We suck less!" About five minutes later, an email from her boss came around saying that we were not permitted to read emails that were internal in nature. It's all I ever think of in regard to NB: they suck less. Hey, could be worse.
Ah, my, the suckless fuckers. 'Scuse my French.
So thats the excuse for todays premarket 2% ramp job? A pre frontrun run? Whatever, I say wait till every pop levels out, then short the crap out of it.
I just realized today that the President is in such a PR disaster now with his BP implosion and people pissed at this incredibly weak false reform bill that he is going to have to go after Wall Street again in order to gain some points in the polls. The economy is deteriorating and a sacrifice is needed. Incumbents are being tossed and all does not bode well for his 2012 election.
Anyone else find it odd that the Enquirer Affair story was leaked and the disappeared during financial reform debates as if to send the president a message that they have the key to that story and can out it if necessary?
A large portion of the Enquirer is owned by an investment banker.A New York investment banker.
That's why, if you're an ibanker, fund manager, or successful billionaire, you buy a media operation.
It allows you to blackmail unruly politicians legally. If something someone writes annoys you, all you have to do is phone up editorial and request that the writer be reprimanded.
There's never any reason to break laws in the US if you understand how to do things above the board.
http://www.theonion.com/articles/exhausted-noam-chomsky-just-going-to-tr...
John,
Alibaba, doesn't give a shit................this is his plan.
Takedown, 2008/2012...........
Bobby Jindal is screaming his ass off, what happens?,we take a Vacationes, another one............
I've been trying to tell everyone that this would happen eventually... think about it... where do you place nervous sideline megacash when everything else is turning to trash? Stocks?... nope... awful short term prospects, Bonds?... with QE2 and 3 on the way are you nuts?... Real estate?... been there done that and still waiting for the market to deflate.
Metals, energy, and especially commodities like food are essential for human survival... and they have a very low degree of price/supply elasticity... which is a great place to start to suck the last drops of blood out of the sheeple.
Just sayin'...
This reminds me of the tactic of openly informing fellow swimmers that, "I just pissed in the pool", so now I have the pool to myself.
Anybody feel like calculating the oil price vs. gold price and make a nice chart? Oil should be at 140$ right now.
That is the biggest bunch of nonsense I've ever heard. First of all oil should be down because demand is down. Secondly, there is plenty of supply. Don't believe the hype that we are running out of the second most common liquid on earth. If the Deep Horizon spill has taught me one thing it is that there is so much oil in the earth that without even having to pump it, it comes rocketing out of the earth in mammoth quantities.
They must be referring to lumber mining, on account of the robust real estate sector.
Just when you think it cannot get any more insane.
That ongoing buying support I detected has morphed into a rally...
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
UBS = U Buy (we) Sell
whiners and complainers ?!?!?!?!?
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