Asian stocks fell, with the Nikkei declining more than 3% and the yen trading around 101.2, close to a three-week high. The MSCI Asia Pacific was down 1.4% and the Kospi moved between gains and losses. The Hong Kong IPO of Langham Hospitality Investments saw the shares slump 9.2%. (Bloomberg)
European regulators have clashed with the US over the timing derivatives reforms, in a letter urging further delays to "cross border guidance", which would which would outline how the US would keep tabs on banks and hedge funds whose international swap trading could have a direct impact on the US economy. The European Commission in a letter sent on Tuesday urged the CFTC to extend an exemption for foreign market participants until leaders of the Group of 20 countries have agreed international principles on cross-border swap rules. (Financial Times)
Google is preparing an attack on Apple's iPhone with a device that is more aware of its surroundings and smart enough to anticipate how it will be used next, according to the head of the internet company's Motorola subsidiary. (Financial Times)
Panasonic said it would cut about 5,000 workers from its automotive and industrial division, which employs a total of 110,000, in a bid to bolster its operating profit margin to at least 5% over the next three years. (Reuters)
"Berkshire Hathaway on Wednesday agreed to buy NV Energy, a power company serving customers in Nevada, for $5.6bn, saying the deal would help develop the state's renewable energy resources. The all-cash offer from MidAmerican Holdings, a Berkshire subsidiary that provides power in the midwest and Rocky Mountain regions, values NV at $10bn, including debt." (Financial Times)
British SMEs' external borrowing declines: The quarterly SME Finance monitor found 39% of the 5,000 firms surveyed had used finance such as loans, overdrafts and credit cards. That was down from half in the same three months last year and was the lowest since the survey began in early 2011. (Reuters)
Blackstone is weighing a bigger than expected withdrawal from SAC Capital. Ahead of a Monday deadline for SAC clients, Blackstone is planning to withdraw up to $400m, people familiar with the matter said, which would be double the amount expected early this month. (Wall Street Journal)
"Switzerland has taken a decisive step to resolve its dispute with the US over tax evasion unveiling plans to relax its once untouchable bank secrecy laws to allow banks to make individual settlements with the US over their role in helping Americans evade taxes." (Financial Times)
Brazil's central bank tightened interest rates 50bps to 8% despite growth slowing in Q1. (Financial Times)
COMMENT AND CURIOS:
- Europe's austerity u-turn isn't enough to create growth. (Financial Times)
- Copper users still pay high prices as financing deals lock up supply in warehouses. (Bloomberg)
- John Gapper: The disturbing revolving door from high level public service roles to the private sector. (Financial Times)
- Oil trader known as 'God' says US shale will only temporarily boost world supplies. (Financial Times)
- China big US pork acquisition follows Smithfield's decision to cut controversial additive. (Reuters)
- How to make bank bail-ins work. (Reuters)
- Japanese housewives cooling on AUD uridashi. (Bloomberg)
OVERNIGHT MARKETS: DOWN
Asian markets
Nikkei 225 down -473.97 (-3.31%) at 13,852
Topix down -28.43 (-2.41%) at 1,150
Hang Seng down -110.37 (-0.49%) at 22,445
US markets
S&P 500 down -11.70 (-0.70%) at 1,648
DJIA down -106.59 (-0.69%) at 15,303
Nasdaq down -21.37 (-0.61%) at 3,468
European markets
Eurofirst 300 down -22.94 (-1.84%) at 1,224
FTSE100 down -134.84 (-1.99%) at 6,627
CAC 40 down -76.44 (-1.89%) at 3,974
Dax down -144.29 (-1.70%) at 8,337
Currencies
€/$ 1.30 (1.29)
$/¥ 101.05 (101.13)
£/$ 1.51 (1.51)
Commodities ($)
Brent Crude (ICE) up +0.32 at 102.75
Light Crude (Nymex) up +0.10 at 93.23
100 Oz Gold (Comex) up +3.40 at 1,395
Copper (Comex) down -0.03 at 3.26
10-year government bond yields (%)
US 2.13%
UK 2.02%
Germany 1.54%
CDS (closing levels)
Markit iTraxx SovX Western Europe +0.63bps at 82.05bp
Markit iTraxx Europe +5.99bps at 100.18bp
Markit iTraxx Xover +25.74bps at 410.62bp
Markit CDX IG +1.3bps at 77.01bp
Sources: FT, Bloomberg, Markit
