Report urging bank shares handout 'well researched' says Treasury: "A report urging George Osborne to hand out shares in Royal Bank of Scotland and Lloyds to the public was described by the Treasury as "quite robust and well researched". Mr Osborne is expected to set out his ambition to return the two banks to the private sector next week, with the Treasury eyeing a possible start of that process with a disposal of 10 per cent of Lloyds shares this year." (Financial Times)
Better news on economy boosts house sales, says Rics survey: "The number of homes sold in the UK has soared to its highest level in three and a half years over the past quarter, according to a property survey. The Royal Institute of Chartered Surveyors said on Tuesday that home sales rose to their highest level since January 2010 in the three months to May on the back of better news on the British economy." (Financial Times)
World has 10 years of shale oil, reports US: "Global shale resources are vast enough to cover more than a decade of oil consumption, according to the first-ever US assessment of reserves from Russia to Argentina. The US Department of Energy estimated "technically recoverable" shale oil resources of 345bn barrels in 42 countries it surveyed, or 10 per cent of global crude supplies. The department had previously only provided an estimate for US shale reserves, which it on Monday increased from 32bn barrels to 58bn." (Financial Times)
US to crack down on virtual currency tax fraud: "US officials are targeting virtual currencies due to fears that Americans are using them to evade taxes, opening a new front in the crackdown on tax fraud. Virtual currencies such as Bitcoin and the exchanges where they trade have come under increased scrutiny since last month's arrest of five individuals associated with Liberty Reserve, a Costa Rican-based digital currency business, on charges of running a $6bn money laundering scheme." (Financial Times)
SAC Capital case nears breakthrough on laptop access: "US prosecutors are finalising an agreement with the University of Michigan that would give them access to computer files tied to an insider trading case against a former SAC Capital employee. The battle over the files of Dr Sidney Gilman, a former professor of neurology at the medical school, has become pivotal in the government's investigation of a former SAC Capital employee, Mathew Martoma, who is accused of participating in the biggest insider trading scheme on record." (Financial Times)
G8 leaders braced for battle on evasion: "It has been billed by the British government as "a turning point" in the battle against tax evasion and avoidance. When world leaders gather in Northern Ireland next week, they will set out to end tax havens and stem the illicit flow of funds out of some of the world's poorest countries. The agenda – focused on the 'three Ts" of trade, tax and transparency – is both technically and politically challenging. Progress on the latter two will depend on costly changes, not just in the small states that are widely regarded as tax havens, but also by the G8 countries themselves. " (Financial Times)
Lululemon chief executive to step down: "Christine Day is stepping down as chief executive of the sportswear retailer Lululemon Athletica three months after it was plunged into crisis over yoga pants that were excessively see-through. The announcement came on Monday as the company warned that the fallout from the crisis would continue to squeeze its profitability in the current quarter. The twin blows sent its shares down by as much as 15 per cent in after-hours trading." (Financial Times)
Apple takes fight to rivals with its redesign: "Apple unveiled what its chief executive Tim Cook called the most radical redesign of its iOS software since the introduction of the iPhone six years ago, as the company looks to prove it has not lost the advantage in innovation to rivals. The new iOS7 has a minimalist new look and improvements that will make it easier for users to share documents and organise their photos. Apple's design chief, Sir Jonathan Ive, said the changes would define "an important new direction" for the original smartphone." (Financial Times)
David Cameron rejects claims GCHQ broke law over US Prism data: "David Cameron on Monday rejected claims that the government's intelligence agency, GCHQ, might have acted illegally by receiving information from a US spy programme. The prime minister said the UK's secret services had acted in a "proper" and "fitting" way when he was questioned about revelations that the US was secretly snooping on personal data via internet companies such as Google and Facebook." (Financial Times)
RBS restructuring options set to be curbed by EU rules: "UK options to restructure Royal Bank of Scotland are set to be constrained by EU rules that would effectively stymie any attempt to hive off toxic assets in a "bad bank", unless private shareholders are wiped out." (Financial Times)
COMMENTS AND CURIOS
- A backlash is brewing against iOS 7's new look.
- "Without leaks, Barack Obama might never have been elected to begin with."
- The soaring number of $100 bills.
- "Paradox" redux.
- Brad DeLong on confusion.
OVERNIGHT MARKETS
Asian markets
Nikkei 225 down -124.28 (-0.92%) at 13,390
Topix down -5.81 (-0.52%) at 1,106
Hang Seng down -191.40 (-0.89%) at 21,424
US markets
S&P 500 down -0.57 (-0.03%) at 1,643
DJIA down -9.53 (-0.06%) at 15,239
Nasdaq up +4.55 (+0.13%) at 3,474
European markets
Eurofirst 300 down -0.99 (-0.08%) at 1,193
FTSE100 down -11.54 (-0.18%) at 6,400
CAC 40 down -8.23 (-0.21%) at 3,864
Dax up +53.01 (+0.64%) at 8,308
Currencies
€/$ 1.33 (1.33)
$/¥ 98.74 (98.76)
£/$ 1.56 (1.56)
Commodities ($)
Brent Crude (ICE) down -0.21 at 103.74
Light Crude (Nymex) up +0.06 at 95.83
100 Oz Gold (Comex) down -2.30 at 1,384
Copper (Comex) unchanged 0.00 at 3.24
10-year government bond yields (%)
US 2.22%
UK 2.15%
Germany 1.61%
CDS (closing levels)
Markit iTraxx SovX Western Europe -0.32bps at 87.34bp
Markit iTraxx Europe +3.04bps at 107.32bp
Markit iTraxx Xover +14.88bps at 451.54bp
Markit CDX IG +2.88bps at 83.94bp
Sources: FT, Bloomberg, Markit
