- Omnicom, Publicis call off proposed $35 billion merger (Reuters)
- Apple in talks for $3.2bn Beats deal (FT)
- Alibaba IPO Grew Out of ’80s Chaos and Guy From Goldman (BBG)
- Nigeria's president at WEF pledges to free kidnapped girls (Reuters)
- JPMorgan Joins Wells Fargo in Rolling Out Jumbo Offerings (BBG)
- It's 1999 all over again: Young Bankers Fed Up With 90-Hour Weeks Move to Startups (BBG)
- ECB stimulus talk knocks euro, peripheral yields (Reuters)
- Deutsche Bank Currency Crown Lost to Citigroup on Volatility (BBG)
- London Taxis Plan 10,000-Car Protest Against Uber App Use (BBG)
- Pfizer Holders Could Face Tax Hit in a Deal for AstraZeneca (WSJ)
We at the Fed are the platonic guardians of the global financial system. And our logic is undeniable….
This week's biggest news is not the Non-Farm Payrolls, or the European Central Bank or even Portugal's government falling. No - this week's big deal is the openness with which the Federal Reserve is preparing a major margin call on the too-big-to-fail banks in the US. This has been a long time coming since the introduction of the Dodd-Frank law back in 2010 but it is a game changer. Remember all macro paradigm shifts come from policy impulses, often mistakes. Is the Fed about to given the whole banking industry a major margin call?
With part two of today's Fed-a-palooza due out shortly in the form of the May 1 FOMC meeting minutes, here is an informative recap of the current roster of assorted birds at the FOMC via Bank of America. Of course, since every decision always begins and ends with Ben, and soon his replacement Janet, all of below is largely meaningless.
50% In Favor of Directly Breaking Them Up ... Many More In Favor of Stopping Artificial Support and Letting them Shrink On Their Own
No, American Banks DON'T Need to Be Big to Compete with Bigger Foreign Rivals
The problem with “too-big-to-fail” is first and foremost the behavior of our beloved political leaders in Washington
The Fed is set to become considerably more dovish in 2013 and beyond as Evans and Rosengren become voting members. It seems unlikely that any new 'Bernanke' would drastically alter the Fed's path; and so we present the 'Doves' path to prosperity (in nominal terms). As BofAML notes, "More immediately, the doves largely support the idea that policy should be kept easy “for a considerable time” after the recovery is underway. Market participants thus should be cautious not to overreact to better near-term data: the Fed isn’t likely to turn notably more hawkish any time soon."
- Global easing deluge resumes: Bank of Korea Slashes Policy Rate (WSJ)
- And Brazil: Brazil cuts Selic rate to new record low of 7.25 pct (Reuters)
- With Tapes, Authorities Build Criminal Cases Over JPMorgan Loss (NYT) Just don't hold your breath
- IMF snub reveals China’s political priorities (FT)
- Add a dash of trade wars: Revised Duties Imposed by U.S. on Chinese Solar Equipment (Bloomberg)
- IMF calls for action as euro zone crisis festers (Reuters)
- Dubai Losing Billions as Insecure Expats Send Money Abroad (BBG)
- Softbank in Advanced Talks to Acquire Sprint Nextel (WSJ)
- Lagarde calls for brake on austerity (FT)
- EU lambasts Turkey over freedoms (FT)
- Race Tightens in Two States (WSJ)
All you need to read and some more.
- More HFT Posturing: SEC Probes Rapid Trading (WSJ)
- Fed’s Bullard Says Monetary Policy May Be at Turning Point (Bloomberg)
- Hilsenrath: Fed Hosts Global Gathering on Easy Money (WSJ)
- Dublin ‘hopeful’ ECB will approve bond deal (FT)
- EU Proposes a Beefed-Up Permanent Bailout Fund (WSJ)
- Portugal Town Halls Face Default Amid $12 Billion Debt (Bloomberg)
- Hidden Fund Fees Means U.K. Investors Pay Double US Rates (Bloomberg)
- Europe Weighs Trade Probes Amid Beijing Threats (WSJ)
- Bank of Japan Stimulus Row Fueled by Kono’s Nomination (Bloomberg)
Here are today's economic highlights, for anyone who cares and is deluded to think that any economic numbers actually still matter and drive the market and not vice versa.