Good morning New York,
ALPHAVHILLE
Vodafone-Verizon: a $245bn solution: According to Bryce's usually reliable sources, Verizon Communications and AT&T have been working on putting together a breakup bid for Vodafone. Apparently the offer under discussion, should it happen, would be pitched at around a 40 per cent premium to Vodafone's current price, or about 260p a share. Such a bid would give Vodafone an enterprise value of around $245bn. That would dwarf the previous M&A record holder.
NEWS
North Korea to restart nuclear facilities: North Korea said on Tuesday it would restart all nuclear facilities at its main Yongbyon nuclear complex including a uranium enrichment plant, a move that further ratchets up tension on the Korean peninsula. Experts said Pyongyang's decision will add pressure on South Korea and the US to resume talks with North Korea to dismantle its nuclear programmes as Pyongyang vows to expand it in response to stronger international sanctions, following its third nuclear test in February. (Financial Times)
Abe warns over Japan inflation target: Japanese Prime Minister Shinzo Abe has said that the 2 per cent inflation target he imposed on the Bank of Japan may not be reached within two years. His comments mark the first time that the new prime minister has suggested the inflation target he set out four months ago may not be met within the two-year timeframe outlined by Mr Kuroda, his choice for BoJ governor. On Wednesday, Mr Kuroda takes charge of his first two-day meeting of the BoJ's policy board, with investors expecting a shift in tone and direction from the Shirakawa era. They yen has gained back 3.3 per cent against the dollar since mid-March. (Financial Times)
Perpetually Miserable Indices... still are: Manufacturing across the euro zone fell deeper into decline in March, although the Cyprus bailout crisis has yet to take a toll on factory activity, a business survey showed on Tuesday. Markit's Eurozone Manufacturing PMI fell in March to 46.8 from 47.9 in February - slightly better than an preliminary estimate of 46.6, but extending its run below the 50 mark that separates growth and contraction for a 20th month. (Reuters)
Slight easing of Cyprus bailout terms: A draft copy of the loan agreement by the eurozone and the IMF seen by the WSJ gives Cyprus until 2017 — one year longer than previously negotiated — to reach a 4 per cent primary budget surplus. "Putting public finances on a sustainable path is of overriding importance in order to stabilize the economy and to restore the confidence of companies, citizens and foreign investors in the longer-term economic prospects of Cyprus," the draft agreement says. (Wall Street Journal)
Central Bank of Cyprus governor Panicos Demetriades tried to calm fears of a deposit flight once capital controls end. Demetriades told the FT the controls should be lifted "gradually". "I can't really tell you if it will be seven or 14 days before capital controls end." He denied there would be a run on deposits. "Once people realise how well capitalised the banks are there is little reason why there will be deposit flight." (Financial Times)
Air pollution linked to 1.2m premature deaths in China: "Outdoor air pollution contributed to 1.2 million premature deaths in China in 2010, nearly 40 percent of the global total, according to a new summary of data from a scientific study on leading causes of death worldwide." (New York Times)
Euro area unemployment rate at 12.0 per cent: The euro area seasonally-adjusted unemployment rate was 12 per cent in February 2013, stable compared with January. The EU27 unemployment rate was 10.9 per cent, up from 10.8 per cent in the previous month. In both zones, rates have risen markedly compared with February 2012, when they were 10.9 per cent and 10.2 per cent respectively. These figures are published by Eurostat, the statistical office of the European Union. Youth unemployment rates highlighted the ongoing divergences in the zone with Greek youth unemployment rates hitting 55.7 per cent and Germany's at 7.7 per cent. (Eurostat)
US banks are weighing tactics to mitigate the effect of EU bonus caps ""We are not thinking of transferring people from London to Dubai tomorrow," said one US banker. "But future growth in Africa could be led out of the Middle East or South Africa." Other approaches include restructuring remuneration packages. "JPMorgan is among the banks to have considered the introduction of "allowances" that could be increased or decreased annually, according to bank insiders." (Financial Times)
The US has gained 387,000 managers and lost almost 2m clerical jobs since 2007, BLS data show. Employment growth came from healthcare, management, computing and food service jobs, but salaries for many of the fast-growing occupations are lower than for those they are replacing. (Financial Times)
Goldman moves into mid-market business lending: " Goldman Sachs is launching a listed vehicle to lend to US middle-market companies, in a move designed to skirt the Volcker rule's curbs on banks sponsoring investment funds." (Financial Times)
Novartis loses Glivec patent battle in India: India's Supreme Court rejected Novartis AG's attempt to win patent protection for a major cancer drug, a landmark judgment roundly criticized by pharmaceutical companies but praised by public-health activists, who said it would protect India's ability to make inexpensive generics for the developing world. (Wall Street Journal)
Markets: European markets started the post-Easter period on a positive note as most major equity indices climbed on opening and government borrowing costs edged down, despite simmering concerns over the fallout from Cyprus's bailout and the absence of a stable Italian government writes the FT's Global Markets oil rigger Robin Wigglesworth.
