Bank of New York Mellon declined 1.9 per cent to $30.98 on news that Andrew Cuomo, New York attorney-general, is suing the bank’s Ivy Asset Management unit for “deliberately misleading clients” about investments tied to Bernie Madoff, a convicted Ponzi scheme operator.
Global asset manager Legg Mason was up 11.5 per cent to $33.38 as the stock was raised to “neutral” from “underperform” at Bank of America Merrill Lynch. The broker cited the company’s plans to restructure and buy back $1bn in shares after it suffered some of the biggest losses among publicly traded asset managers during the credit crisis.
Europe’s largest initial public offering since December 2007 will take place in Warsaw on Wednesday – an 8.1bn zlotys ($2.6bn) sale of shares of PZU, the country’s biggest insurance company.
Government bond auctions from the UK and Italy got away with decent investor demand – in both cases, more than twice covered – but for its 12-month loans Italy was forced to pay a 15 basis point premium to market yields. By contrast, the UK successfully sold £2.25bn in 17-year bonds at average yields of 4.47 per cent, at a minimal premium to market yields.
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if in translation, then:
* Bank of New York Melon was run over because of the Medof pyramid a year ago
* Legg Mason shot on 11% on recommendation change. Generally a very interesting company, if there was a need to keep something financial in some portfolio for a long time, then together with Blackrock, Lehmason would definitely be there.
* PZU sells its piece on the Warsaw Stock Exchange today, largest ipio expected from December 07 of the year.
* Bonds in Europe are selling with a scratch but are selling, but in the USA it is very good.
