Overseas whopper: Dow +0.99% to 13226. S&P +1.07%. Nasdaq +1.25%. London +1.37%. Germany +1.03%. France +1.35%.
Given that its IT business contributed 94% of operating profit in 2011-12, Wipro finally decides to fold all its non-IT businesses into a new company and focus exclusively on information technology. (Reuters) [stockquote]WIPRO[/stockquote]
Overall, the global economy seems to be improving, China @ 50.2, up from 49.8 in September; India @ 52.9, up from 52.8; US @ 51.0 from 51.1. (BI)
UBS: There is No Hope! A day after UBS AG announced it was cutting up to 10,000 jobs by 2015, UBS chairman Axel Weber is warning that many of the Swiss banking giant’s rivals may have to follow suit. “I suspect that many banks have not yet really understood what the consequences of the new capital rules for business will be when they come into full effect in 2019.” (Salon)
Yield-starved investors are flocking to a growing number of exchange traded funds that buy bonds issued by companies in emerging markets. These ETFs’ assets under management surged more than 50% in the same time period, to about $1 billion, with net inflows of $343.8 million as of Oct. 22.(WSJ) An important reason that small markets offer large bond yields is because they tend to be illiquid, especially in times of strain. Whither liquidity premium? (Bloomberg)
Is the euro heading for a permanent state of depression? Though the single currency may have been saved from imminent death on the operating table, it seems now to be heading for a scarcely more appetizing alternative – a condition of chronic, long-term illness where still very tight monetary conditions in many parts of the Eurozone in combination with lockstep austerity threaten to induce a virtually permanent state of depression. (Telegraph)
Have a nice weekend!