"Asian stocks were mixed, with Japanese shares struggling to find direction amid continued volatility due to concerns over rising bond yields. The MSCI Asia Pacific index shed 0.5 per cent, falling for the fifth consecutive session, amid expectations that the US Federal Reserve will soon wind down its bond purchases on the back of the improving US economy." (Financial Times)
China targeting 7% growth, says Li: Chinese Premier Li Keqiang told German business leaders his country faces "huge challenges" as it pursues an average annual growth rate of 7% this decade. The country's leadership appears increasingly willing to tolerate lower growth. At a press conference in March, Li referred to a target of 7.5% average growth through 2020; however state-media transcripts that day said Li gave a 7% figure. (Bloomberg)
European lenders draw down on central bank reserves: 'Cash hoards' stashed at central banks by the 12 biggest European lenders have fallen 19% from their peak. (Wall Street Journal)
"Huge disparities in the fees paid by the UK's local authority pension funds to their fund managers have been revealed in Financial Times research, with some councils paying three times as much as funds the same size elsewhere in the country." (Financial Times)
New Co-op Bank chief warns of 'no quick fixes' to capital black hole. The Co-operative Group has turned to Niall Booker, a former 30-year veteran of HSBC to lead efforts to resuscitate its banking arm. Booker is due to join within days and the Co-op's directors are set to meet formally this week for the first time since the bank's credit ratings were slashed to junk status. (Financial Times)
Valeant in $8.7bn Bausch & Lomb deal: "Valeant, the Bermuda-domiciled speciality pharmaceuticals group, has launched its most ambitious takeover yet with the agreed $8.7bn purchase of Bausch & Lomb, the privately held ophthalmology business." (Financial Times)
Club Méditerranée is to be taken over by its biggest shareholders, Axa Private Equity and Chinese conglomerate Fosun, in a friendly deal that values the French holiday resort group at €556m. News of the deal saw Club Med's shares rise 22%. The offer, which was made with the company's management, is a €17 a share – a 23% premium to the Friday closing price. (Financial Times)
Cov-lite loans rise: More than half of new leveraged loans issues this year were without covenants, more than double the level of 2007. (Financial Times)
COMMENT AND CURIOS:
- BoJ minutes reveal tensions over 'contradictions'. (Financial Times)
- Could tech chiefs follow bankers into a populist backlash? (Financial Times)
- China eyes cap on carbon emissions by 2016. (Financial Times)
- Britain's four biggest banks will have eliminated about 189,000 jobs from their peak levels, by 2014. (Bloomberg)
OVERNIGHT MARKETS:
Asian markets
Nikkei 225 up +165.77 (+1.17%) at 14,308
Topix up +19.46 (+1.69%) at 1,174
Hang Seng up +31.81 (+0.14%) at 22,718
European markets
Eurofirst 300 up +3.77 (+0.31%) at 1,230
FTSE100 down -42.45 (-0.63%) at 6,654
CAC 40 up +38.37 (+0.97%) at 3,995
Dax up +77.98 (+0.94%) at 8,383
Currencies
€/$ 1.29 (1.29)
$/¥ 101.77 (100.93)
£/$ 1.51 (1.51)
Commodities ($)
Brent Crude (ICE) up +0.01 at 102.63
Light Crude (Nymex) down -0.60 at 93.55
100 Oz Gold (Comex) unchanged 0.00 at 1,387
Copper (Comex) up +0.01 at 3.30
10-year government bond yields (%)
US 2.05%
UK 1.92%
Germany 1.46%
CDS (closing levels)
Markit iTraxx SovX Western Europe +3.8bps at 82.99bp
Markit iTraxx Europe +6.29bps at 98.23bp
Markit iTraxx Xover +15.2bps at 401.44bp
Markit CDX IG +2.44bps at 75.73bp
Sources: FT, Bloomberg, Markit
