ROUND-UP
FT markets round-up: "Gold, equities and industrial metals attempted a fightback following the previous session's sharp sell-off but met with varying degrees of success as lingering uncertainty about the outlook for global growth kept market bulls reined in. A rally for gold showed signs of fatigue during the US session, and the yellow metal was up just 1.5 per cent at $1,373 an ounce in late New York trade – having earlier nosed back above $1,400. In the prior two sessions, gold had suffered its sharpest drop in 30 years, catching many investors by surprise." (Financial Times)
IMF deals blow to Osborne plan A: "The International Monetary Fund dealt George Osborne a blow on Tuesday, calling on the chancellor to consider lightening up on his austerity drive in the face of a weak private sector." (Financial Times)
Gold's fall costs Paulson $1.5bn this year: "The tumbling gold price has personally cost billionaire hedge fund manager John Paulson at least $1.5bn so far this year, as a decline in the price of the metal turned into a rout. The estimated losses for Mr Paulson, who has made and lost more money on gold than almost any other hedge fund manager, reflect a bold all-in bet on the precious metal." (Financial Times)
China local authority debt 'out of control': "A senior Chinese auditor has warned that local government debt is "out of control" and could spark a bigger financial crisis than the US housing market crash. Zhang Ke said his accounting firm, ShineWing, had all but stopped signing off on bond sales by local governments as a result of his concerns." (Financial Times)
US inflation expectation at fresh low: "US inflation expectations have fallen to their lowest level since November, with an important investor benchmark back in negative territory for the year and money fleeing exchange traded funds that follow the asset class.The shakeout in the inflation market comes as commodity prices, led by gold, have slumped, and consumer prices for March published on Tuesday were lower than forecast." (Financial Times)
FURTHER FURTHER READING
- How influential was the Reinhart-Rogoff study?
- How central banks beat deflation.
- How and when Apple could return more cash to shareholders.
- Gas prices are down again.
- An interview with JP Morgan's head of M&A on why the deals are coming.
- The great transatlantic investment banking divide.
