Screaming night hog

June 24-28, 2013

AMERICAS

Markets:  This week can be described by "ferel hogs" - a quote by US central banker Richard Fisher about market response to Fed tapering. Meaning, despite markets' shakiness this past week, and climbing bond yields, the US Fed will continue on plan. Fisher also said that last week's press conference was an attempt to "socialise" the markets, and tapering would occur when appropriate.

Indeed, the socialisation seems to be working. Markets were much calmer this week. The TSX gained over 1% this week, but is still down 2.45% year to date. The Dow gained only .74%, but is up over 13% for the year so far. 

Companies:  The shares of Blackberry maker Research in Motion (RIM)  fell 26% on Friday, after revealing a loss of $84 mn in Q1.

EMEA

European finance ministers reached a deal around bank bail-ins, where a bank's bond holders (those holding bank debt) shoulder more responsibility in the event of a failure. The new rules allow regulators to force losses on bond holders. The reforms are based on the principle that bond holders lent money to banks, allowing the organisation to take greater risks. Therefor, they should be responsbile before tax payers are. The financial reforms also help move forward a European banking union. 

 *Screeming Night Hog, by Steppenwolf chosen to reflect Fisher's comment on "Ferel Hogs".