Most Asian stocks fell, after markets started the day higher following US gains. The falls were led by China where the Shanghai Composite fell 0.8%. The Nikkei was 0.2% lower after earlier rising as much as 0.9%. The yen weakened as Kikuo Iwata, a nominee for BoJ deputy governor, said decisive easing is needed. (Bloomberg)(Dow Jones)
The Funding for Lending Scheme is expected to be extended and "put on steroids". George Osborne and senior Liberal Democrats want the scheme extended beyond 2013 and skewed towards business lending rather than mortgages. (Financial Times)
Finance industry groups team up on TBTF campaign: "The joint statement by five trade groups, including the Clearing House and Securities Industry and Financial Markets Association, underscores the threat big banks face from Washington, where a growing group of policy makers and lawmakers are considering provisions that would forcibly restructure the largest financial groups." The statement underscores banks' fears that lawmakers may introduce laws that would forcibly restructure them. (Financial Times)
Republicans to unveil $4.6tn of cuts: "Republicans in the US House of Representatives are set to unveil a staunchly conservative fiscal package that would slash government spending by $4.6tn over a decade and balance the budget within 10 years, with spending and revenues each worth 19.1 per cent of the economy." Democrats are likely to dismiss the plan as an extreme document that guts spending for the poor and the elderly – as well as domestic investments in research and infrastructure – in order to spare further tax increases on upper-income families and corporations. (Financial Times)
Commerzbank's £5bn UK property sale draws interest: "US real estate investment firms, including Blackstone, Lone Star, Starwood Capital and have expressed interest in buying all or part of Eurohypo in the UK, according to several people familiar with the process." (Financial Times)
Hungary goes ahead with constitutional changes. Despite the EU and US voicing concerns, Hungary's parliament approved constitutional changes which include provisions that allow the court system's top administrator and prosecutors to choose which judges hear legal cases. (Wall Street Journal)
Concern over payments to Intrade founder: Auditors for the company found highlighted "significant financial irregularities" over payments totalling $2.6m in 2010 and 2011 to John Delaney, Intrade's late founder. The revelations, in financial documents filed recently in Ireland, also show that the company's shareholders in 2011 "included hedge fund managers Paul Tudor Jones and Stanley Druckenmiller, and a trust connected to Christopher Hehmeyer, the current chairman of the National Futures Association, a US regulatory body". (Financial Times)
Heritage-Tullow Ugandan tax case begins today in High Court. The case centres on a sale of Ugandan assets by Heritage Oil to Tullow Oil in a $1.45bn deal in 2010. (Reuters)
Lloyds to sell St James's Place stake: "Lloyds Banking Group is set to cash in on the record share price of St James's Place by selling at least a third of its majority holding in the FTSE 250 wealth manager, raising more than £500m." (Financial Times)
Falkland Islanders vote overwhelmeingly to retain British sovereignty. (Reuters)
Bill Gross cuts Treasuries holdings from six-month high: Pimco's Total Return Fund has reduced the proportion of Treasuries to 28% in February from 30% in January. (Bloomberg)
UK home sales point to market pickup: Latest Rics survey shows sales in the three months to February was at the highest rate for about two and a half years, although at an average of 18.6 sales per surveyor, still well below the pre-2008 level of about 25. (Financial Times)
COMMENT AND CURIOS:
- What the central banks are doing in FX markets. (Financial Times)
- Europe's banks saved, but a generation of young people lost. (Reuters)
- Thousands of dead pigs floating in Shanghai water supply. (Reuters)
- Iron ore price falls to 2.5-year low, as Chinese steelmakers resist restocking. (Financial Times)
- Japanese venture capitalists are super excited about Abenomics. (Bloomberg)
- "Blood everywhere" as wholesale gasoline traders grapple with US ethanol credit shortage. (Financial Times)
- SXSW this year has more marketers, fewer startups. No, really. (Reuters)
- Bernanke and the mystery's of Fed exit. (Bloomberg)
- Work-life balance is not just for women. (Financial Times)
- Facebook use 88% accurate in predicting male sexual orientation, 95% per cent for race and more. (Financial Times)
OVERNIGHT MARKETS: DOWN
Asian markets
Nikkei 225 down -21.61 (-0.17%) at 12,327
Topix down -1.48 (-0.14%) at 1,039
Hang Seng down -29.44 (-0.13%) at 23,061
US markets
S&P 500 up +5.04 (+0.32%) at 1,556
DJIA up +50.22 (+0.35%) at 14,447
Nasdaq up +8.50 (+0.26%) at 3,253
European markets
Eurofirst 300 down -0.56 (-0.05%) at 1,195
FTSE100 up +20.05 (+0.31%) at 6,504
CAC 40 down -3.88 (-0.10%) at 3,836
Dax down -2.18 (-0.03%) at 7,984
Currencies
€/$ 1.30 (1.30)
$/¥ 96.56 (96.26)
£/$ 1.49 (1.49)
Commodities ($)
Brent Crude (ICE) down -0.34 at 109.88
Light Crude (Nymex) down -0.01 at 92.05
100 Oz Gold (Comex) up +2.00 at 1,580
Copper (Comex) up +0.70 at 350.70
10-year government bond yields (%)
US 2.07%
UK 2.03%
Germany 1.52%
CDS (closing levels)
Markit iTraxx SovX Western Europe -0.25bps at 98.56bp
Markit iTraxx Europe +0.17bps at 104.32bp
Markit iTraxx Xover +1bps at 404.06bp
Markit CDX IG -1.14bps at 79.5bp
Sources: FT, Bloomberg, Markit
