Porridge Lite

Mint – Bill Blain’s Morning Porridge Lite October 23 2012

Porridge lite this morning I’m afraid… 

Thought for the day: “It’s all about arbitraging the politics. Till it isn’t. At which moment the butcher’s dog is off down the street with your dangly bits..”

That was one of the quietest days I remember in months. In credit markets all the flows seemed to be meandering in the same directionless manner. Markets all in a dither about US earnings, the debt cliff threat and what next. Europe dull and listless as it keeps kicking that can down the road. News from Spain continues to amaze and fascinate: Moody’s downgrading a clutch of regions (ahead of redemption) and banks having to restate land value losses.

Questions for the day/week/month

When will Spain accept the inevitable and sign up for OMT?

Is OMT for Spain inevitable, or how much longer can this phoney balancing of expectations continue? (Perhaps when the news the deficit will exceed EU 6.3% target by 100 bp will upset the precarious balance!)

Must be some value in Spain banks – Wilbur Ross says he wants to buy them..

Cyprus bailout? (Great article in Torygraph this morning says it all…)

Greece?

Was on Bloomberg this morning, and first question was about Mulberry? Mulberry??? What do I know about Mulberry? Opened 25% down. Why? Er.. thought I covered it with they might go down or they might go down further.  I do remember I bought She-who-is-no-longer-Mrs-Blain a handbag, but fortunately She-who-wishes-to-be-Mrs-Blain would much prefer a 0.50 oz Reaching Asymmetric Spinnaker!

Full Porridge Service tomorrow.

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