Asian shares were mixed, with Japanese shares rising sharply as the BoJ's board began a two-day meeting, while resources stocks and Australian banks fell. The Nikkei rose 2.1% and the Topix 1.5% while the Hang Seng fell 0.3%. The MSCI Asia Pacific Index was less than 0.1% lower.
"The men who ran HBOS in the lead-up to its collapse face castigation on Thursday in a damning parliamentary report that reveals that the total cost of bailing out the bank rose to close to £30bn, according to people familiar with the report... According to people familiar with the parliamentary investigation, Lord Stevenson, chairman of the bank from its creation up to 2008, Sir James Crosby who was chief executive up to early 2007, and Andy Hornby, CEO for the following two years, are set to be the main focus of the report's criticism. (Financial Times)
RBS has lined up former Abbey National finance director Nathan Bostock as its finance chief, succeeding Bruce van Saun. The selection of the was triggered by van Saun's prospective move to head Citizens, the RBS's US subsidiary. The two appointments could be announced within a matter of weeks, according to people briefed on the plan, although it may not take effect until later in the year and could yet be amended. At Citizens van Saun would replace Ellen Alemany, who is expected to retire. (Financial Times)
Multiple EU data watchdogs take action against Google: "The move by data-protection authorities from Britain, Germany, France, Italy, Spain, and the Netherlands is the first co-ordinated and formal procedure by EU states against a single company on privacy, underscoring European frustration with Google." (Financial Times)
Vitol expands into grain trading: The independent commodities house is making the expansion with the hire of a team from Viterra, the Toronto-based grain trading company recently acquired by Glencore. (Financial Times)
COMMENT AND CURIOS:
- Martin Wolf: China faces a risky shift to lower growth model. (Financial Times)
- Lex in Depth: Will Rosneft become a supermajor? (Financial Times)
- The SEC gives companies permission to tweet their earnings. (Financial Times)
- Apple's China apology a 'rite of passage' for foreign companies. (Bloomberg)
- Greylock Capital on why Argentina's behaviour must not be allowed. (FT Beyondbrics)
- Stockton and San Bernardino: A tale of two bankruptcies. (Reuters)
OVERNIGHT MARKETS: MIXED
Asian markets
Nikkei 225 up +257.14 (+2.14%) at 12,261
Topix up +14.53 (+1.47%) at 1,006
Hang Seng down -58.00 (-0.26%) at 22,310
US markets
S&P 500 up +8.08 (+0.52%) at 1,570
DJIA up +89.16 (+0.61%) at 14,662
Nasdaq up +15.69 (+0.48%) at 3,255
European markets
Eurofirst 300 up +14.87 (+1.25%) at 1,204
FTSE100 up +78.92 (+1.23%) at 6,491
CAC 40 up +73.95 (+1.98%) at 3,805
Dax up +148.56 (+1.91%) at 7,944
Currencies
€/$ 1.28 (1.28)
$/¥ 93.48 (93.42)
£/$ 1.51 (1.51)
Commodities ($)
Brent Crude (ICE) down -0.37 at 110.32
Light Crude (Nymex) down -0.50 at 96.69
100 Oz Gold (Comex) down -8.30 at 1,567
Copper (Comex) unchanged 0.00 at 337.20
10-year government bond yields (%)
US 1.86%
UK 1.79%
Germany 1.30%
CDS (closing levels)
Markit iTraxx SovX Western Europe -0.9bps at 104.32bp
Markit iTraxx Europe -4.81bps at 120.78bp
Markit iTraxx Xover -15.56bps at 470.04bp
Markit CDX IG -2.22bps at 87.79bp
Sources: FT, Bloomberg, Markit
