FT Alphaville " The (early) Lunch Wrap Hannam, spun: Just when we were considering launching the Ian Hannam is Innocent OK? campaign, Hannam goes and gets himself all PR-ed up. Read Murphy's take on the case here. On QE being mis-sold: Is the Fed engaging in a policy of credible irresponsibility, courting stronger ties with the Treasury, because it knows that in a liquidity trap it's become ineffective? Izzy presents the views of Paul McCulley and Zoltan Pozasar, who believe nothing is currently as it seems when it comes to the Fed. That said, Ben Bernanke's 2003 Japan deflation paper offers some genuine clues as to what is really going on. The return of the US manufacturer: On the back of stronger than expected US manufacturing PMI, Lisa wonders if the sector is in the early stages of a renaissance. There is a popular image of manufacturing being in perpetual decline due to offshoring and large scale layoffs, but what is the real story behind what's been occurring in the sector? Spain: after Wednesday's auction, bonds yields are up and credit default swaps are widening out. Graphs galore in this post. Morgan Stanley chief executive James Gorman has been in discussions with Moody's in an attempt to maintain its credit ratings and stave off a downgrade that could diminish the bank's ability to buy the rest of Citigroup brokerage Smith Barney, according to people familiar with the matter. JPMorgan Chase will pay a $20m fine levied by the CFTC relating to allegations that the bank mishandled Lehman Brothers" customer accounts for almost two years before the broker filed for bankruptcy court protection in September 2008. ECB watch: Mario Draghi has dismissed as premature Bundesbank demands for an"exit strategy" to unwind the European Central Bank's crisis-fighting measures, even as he seeks to head off German fears of surging inflation (Financial Times). Talk of an exit have been causing reverberations in Spain, where government bond yields have been on the rise (Bloomberg). Myanmar: as a result of the by-elections held in the country over the weekend, which saw the opposition party of Aung San Suu Kyi win 40 of the 45 contestable seats, the US is to begin easing sanctions against the country, starting with a relaxation of restrictions on travel by Myanmar officials and on financial transactions and investment. Paulson & Co. made large gains betting on mergers and acquisitions in the first quarter of 2012, but also saw losses on gold miners, in a mixed performance for the hedge fund that is attempting to recover from its loses last year. Oil markets were showing the signs of easing on Wednesday after the biggest two-week rise in US crude stocks in more than 10 years, helping to dampen fears of a shortfall (Financial Times). However, the price decline may prove short-lived, as a key Chinese insurer is reportedly halting the sale of indemnity coverage for tankers transporting oil from Iran (Reuters). Gold also reversed its fall on Thursday morning, having sold off for two days after Fed minutes indicated a decreased likelihood of further stimulus, thereby dampening the commodity's appeal as a hedge against inflation. Markets overview: trading has begun to thin ahead of the Easter holidays and investors position for the monthly US jobs data (Financial Times). S&P futures are currently indicating a negative start to the US session (Bloomberg). This entry was posted by FT Alphaville on Thursday, April 5th, 2012 at 10:44 and is filed under Uncategorised.