JPMorgan put to the index by Indonesia after a note analyst – Echoes

The relationship between the financial analysts and the States are not always so simple. Latest example : the government of indonesia has made it known that he severed his ties with JP Morgan, in its capacity as a bank responsible for placing the country’s debt on the financial markets. The reason of this punishment ? A research note, in which analysts from JP Morgan have degraded their recommendation on the shares of South-East Asia, according to our information. They were of the view that it was now necessary to under-weighting of these securities in the portfolios, following the election of Donald Trump. A spokesman for the ministry of Finance has considered that this note was ” neither relevant nor credib le “, reports Bloomberg.

The us bank, which would be in discussion with Jakarta to try to resolve the problem, merely that this decision would have only a marginal impact on its customers. There remains, however, that, according to Bloomberg, JP Morgan has not participated in the recent placements of sovereign bonds in yen and dollars.

witch-Hunt in Turkey

Indonesia is not the only country to put pressure on financial analysts to prevent them from writing negative reviews. Turkey has thus launched a witch-hunt, which also affects the finance sector. A strategist who wrote a commentary deemed offensive towards Ankara (” Les Echos ” of December 13) is now the subject of a lawsuit. This case cools a number of commentators of the political and economic life of turkey.

The rating agencies are targets of political leaders

suspicions soar sometimes on democratic regimes, such as the United States. In 2013, the country was accused by the agency Standard & Poor’s have launched lawsuits against it in retaliation. S & P has stripped the Us of their AAA in 2011. If there is nothing to say that there was a causal link, it remains no less that the rating agencies have been the subject of strong criticism by political leaders around the world, some calling to get rid of them.

The Agence France Trésor watch-dog of the French debt

And France ? Bercy does of course not its relations with the financial community in a manner despotic, but it must sometimes be hard. According to several testimonies, including “Les Echos” had knowledge, during the crisis, and in particular in 2011 when tensions on the rate became extreme, the Agency France Trésor (AFT) has sometimes worn-out bullying. The pattern of this antenna Bercy, in charge of placing the debt of the State on the markets, would not have hesitated to call or convene the leaders of several institutions if one of their analysts or managers had publicly questioned the credit quality of France.

In normal times, the AFT is rather the giving-giving with its network of partner-banks (SVT). It rewards the most deserving in the commissioning on special operations, which offer great visibility. Conversely, institutions that have not met his expectations are excluded from these transactions. But this is not so much the research notes that the banks ‘ involvement in the trade of the French debt which are the most important in the eyes of Bercy.