Asian stocks outside Japan fell, after the official Chinese manufacturing PMI for June was only just in expansionary territory. However the Japanese Tankan business survey was slightly stronger than expected, boosting Japanese stocks. The yen weakened 0.2%. The MSCI Asia Pacific fell 0.2%. (Bloomberg)(Financial Times)
The official Chinese manufacturing PMI fell to 50.1 last month from 50.8 in May. It was the lowest reading in four months and just slightly above expectations. Meanwhile the final HSBC/Markit PMI for June was confirmed at 48.2, the lowest level since September 2012 and down from May's final reading of 49.2. It was in line with a preliminary reading of 48.3 released on June 20. (Financial Times)(Reuters)
Optimism outweighed pessimism for Japan's big manufacturers for the first time since September 2011, the country's Tankan survey showed. The survey results for the June quarter were +4 compared to a median economists' estimate of +3 in a Bloomberg survey. "Large companies from all industries plan to increase capital spending 5.5% in the year through March 2014." (Bloomberg)
Kuwait plans $5bn UK investment: "The Kuwait Investment Authority is seeking to invest as much as $5bn directly over the next three to five years in infrastructure assets mostly in the UK, echoing asimilar move by Qatar." (Financial Times)
Onyx rejects Amgen offer: "Cancer drugmaker Onyx Pharmaceuticals said on Sunday it rejected a roughly $10 billion takeover offer from larger biotechnology company Amgen as too low but still is considering selling itself." (Reuters)
Samsung takes lion's share of European smartphones; Android dominates: Almost half of all smartphones sold in major European markets in recent months have been made by Samsung, and Android-based smartphones accounted for more than 70% of sales in the top five European markets in the three months to the end of May, compared with 61% in the same period the year before. (Financial Times)
Apple did not pay UK corporation tax last year, according to its latest filings. (Financial Times)
COMMENT AND CURIOS:
- It's Mark Carney's first day at the BoE, and expectations are high. (Financial Times)
- Wolfgang Münchau: The EU will regret terminating banking union plans. (Financial Times)
- Investors are moving out of cash, and into bonds. (Financial Times)
- Clues to bond market outlook are in who's moving to cash. (Bloomberg)
- Bob Geldof says funds management 'criminally non-innovative'. (FTfm)
- Apple's great leap into the market of China Mobile's customers. (Wall Street Journal)
OVERNIGHT MARKETS: MIXED
Asian markets
Nikkei 225 up +8.15 (+0.06%) at 13,685
Topix up +9.58 (+0.84%) at 1,143
Hang Seng up +363.21 (+1.78%) at 20,803
US markets
S&P 500 down -6.92 (-0.43%) at 1,606
DJIA down -114.89 (-0.76%) at 14,910
Nasdaq up +1.39 (+0.04%) at 3,403
European markets
Eurofirst 300 down -5.25 (-0.45%) at 1,152
FTSE100 down -27.93 (-0.45%) at 6,215
CAC 40 down -23.28 (-0.62%) at 3,739
Dax down -31.53 (-0.39%) at 7,959
Currencies
€/$ 1.30 (1.30)
$/¥ 99.32 (99.12)
£/$ 1.52 (1.52)
Commodities ($)
Brent Crude (ICE) down -0.21 at 101.95
Light Crude (Nymex) down -0.16 at 96.40
100 Oz Gold (Comex) up +10.90 at 1,235
Copper (Comex) up +0.01 at 3.06
10-year government bond yields (%)
US 2.51%
UK 2.44%
Germany 1.73%
CDS (closing levels)
Markit iTraxx SovX Western Europe +0.08bps at 96.4bp
Markit iTraxx Europe +2.53bps at 119.61bp
Markit iTraxx Xover +4.06bps at 476.85bp
Markit CDX IG +1.56bps at 87.5bp
Sources: FT, Bloomberg, Markit
