Asian stocks rebounded on Monday as fears abated that Cyprus could plunge Europe back into crisis, but investors remained wary. The Nikkei rose 1.9% after falling 2.7% yesterday. Hong Kong's Hang Seng index rose 0.4% and the Shanghai Composite index added 0.3%. (Bloomberg)(Financial Times)
Cypriot authorities rushed to renegotiate the terms of a €10bn bailout by moving to scrap its controversial levy on small account holders and instead seizing more from larger depositors and businesses. The parliamentary vote on the rescue deal was postponed a second day running and is now scheduled to take place today. In an attempt to win over the handful of votes needed, President Nicos Anastasiades suggested lowering the rate on smaller depositors to 3%, while those with over €500,000 would lose 15% and those in between would get a 10% cut. A eurogroup statement said there would be "more progressivity" introduced to the original scheme. (Financial Times)(FT Alphaville)(Wall Street Journal)
Japan's crippled Fukushima Daiichi nuclear station suffered a power failure on Monday night, and some systems, including cooling mechanisms for several pools storing radioactive fuel rods, remained offline on Tuesday morning. The pools are cooled to well below safe temperature thresholds but if power is not restored, temperatures inside one pool could rise to levels deemed unsafe in a little over four days. (Financial Times)
Citi to pay $730m in subprime class action deal: Settles claims the bank misled investors in its bonds and preferred stock between 2006 and 2008 over its exposure to subprime mortgages, in the second-biggest class action payout related to the financial crisis. (Financial Times)
Blackstone considering Dell bid: "Blackstone Group is weighing a bid for Dell, the computer maker seeking offers to rival the proposed $24.4 billion buyout by its founder and Silver Lake Management, said people with knowledge of the matter." (Bloomberg)
Brussels green light for Italy debt sale: "Italy is considering a substantial increase in sales of government debt to boost its recession-hit private sector after striking a deal with the European Commission that allows a relaxation of Rome's fiscal targets." (Financial Times)
Argentina charges HSBC with money laundering: Argentina's government said it filed criminal charges against the local subsidiary of HSBC for allegedly helping businesses evade taxes and launder a total of 616m pesos ($121m). (Wall Street Journal)
China's foreign direct investment rose for the first time in nine months in February, a sign confidence in the world's second-biggest economy is improving amid optimism growth will keep rebounding. Inbound FDI was 6.3% higher than in February 2012, the Ministry of Commerce said. (Bloomberg)
COMMETN AND CURIOS:
- Cyprus shows how Germany's position is hardening. (Financial Times)
ECB role in bailout comes under scrutiny. (Financial Times)
- Shale gas hasn't dramatically changed the game for US manufacturers. (Wall Street Journal)
- Activist investors are back. (Wall Street Journal)
- Richard Koo: Monetary easing alone won't fix Japan. (Financial Times)
Asian markets
Nikkei 225 up +230.11 (+1.88%) at 12,451
Topix up +16.95 (+1.65%) at 1,045
Hang Seng up +91.55 (+0.41%) at 22,175
US markets
S&P 500 down -8.60 (-0.55%) at 1,552
DJIA down -62.05 (-0.43%) at 14,452
Nasdaq down -11.48 (-0.35%) at 3,238
European markets
Eurofirst 300 down -3.27 (-0.27%) at 1,200
FTSE100 down -31.73 (-0.49%) at 6,458
CAC 40 down -18.56 (-0.48%) at 3,825
Dax down -32.15 (-0.40%) at 8,011
Currencies
€/$ 1.30 (1.30)
$/¥ 95.57 (95.17)
£/$ 1.51 (1.51)
Commodities ($)
Brent Crude (ICE) down -0.11 at 109.40
Light Crude (Nymex) up +0.05 at 93.79
100 Oz Gold (Comex) unchanged 0.00 at 1,605
Copper (Comex) up +0.50 at 342.20
10-year government bond yields (%)
US 1.97%
UK 1.91%
Germany 1.40%
CDS (closing levels)
Markit iTraxx SovX Western Europe +2.5bps at 100.92bp
Markit iTraxx Europe +3.45bps at 108.41bp
Markit iTraxx Xover +9.22bps at 413.37bp
Markit CDX IG +1.51bps at 80.25bp
Sources: FT, Bloomberg, Markit
