Goldman’s elevator annotator failed for a denial of identity. Bitcoin’s fingered father rejects founding the crypto-currency. From this shadowy world, such confusion is expected. Not so among systemically important insurers, where Pimco’s “Bond King” Bill Gross reigns supreme.
Based on the 2007 A&P-Pathmark merger, synergies could be worth more than half the $9.4 bln Cerberus’s Albertsons is paying for its rival U.S. grocer. In theory that leaves room for a higher offer. But competition means cost savings may need to go to shoppers, not investors.
The Russian president fears real democracy in Ukraine as much as at home. And he’s afraid of a disruption of trade and financial ties if Kiev turns towards the EU. If the U.S. and Europe want Putin to back down, they have to convince him that he’s wrong on both counts.
Felix Martin says that money isn’t a commodity, but a system of credits. This insight allows his book to rewrite monetary history in an eye-opening way. It also suggests that the way economists approach finance and recessions is hopelessly wrong.
A government advisor and the chief of the country’s $1.2 trillion public retirement fund are sparring over asset allocation between debt and equity. While stock market investors have a stake in the turf war, the bigger concern for bond buyers is the surge in pension liabilities.
Matteo Renzi has been forced to amend his electoral reform. The result could mean that Italy will remain ungovernable. The new prime minister’s hand is weaker, even though the risk of early elections has subsided. And serious economic reforms will be harder.
The country’s possible first bond default has prompted comparisons with the Wall Street firm’s failure. It’s tempting for investors to seek parallels with 2008. If the analogy fits at all, it’s only because it reminds the Chinese authorities which mistakes to avoid.