Good morning

The headlines:

  1. Apple wins a $1 billion payout from Samsung off a Californian jury.

    Link: WIN.

    Wrote about it here.

  2. Merkel tells everyone to mind their language.

    Link: The weighing of words.

    Angela warned her coalition partners about advocating a Greek exit from the euro.

    I think her point is that perception is 110% of the truth.

  3. The Basel III Capital Argument.

    Link: South Africa to push for corporate debt inclusion.

    Basel III is imposing new requirements to prevent liquidity squeezes on banks. Or, rather, to make sure that the banks survive if they’re “shut out of credit markets for 30 days” AKA the apocalypse.

    One of the approaches is to build up a buffer of bank assets that can be easily liquidated to meet short-term cash requirements. And basically, by the sound of it, the only real qualifying asset is sovereign bonds*.

    South Africa, through their representative on the Basel Committee on Banking Supervision, are pushing for the inclusion of corporate debt that has a higher credit rating than the sovereign bonds. Which makes sense in emerging markets, where the credit ratings on multinationals often have better ratings than the government.

    *presumably, ignoring Greece. And most of the Mediterranean. And Belize. And so on.

That’s all for now.

Have a good day.