Most Asian benchmarks rose and the MSCI Asia Pacific was up 0.2% and headed for its biggest weekly gain since April. Metals led commodities lower and the Korean won gained. (Bloomberg)
Half of government Lloyds' stake could be earmarked for retail: The sell-off could start as early as September, with a 5-10 per cent stake in Lloyds being placed with institutional investors at a small discount to the share price. People involved in the process expect a second institutional placing early next year, with a retail tranche to follow, paving the way for the government to offload its entire 39% stake by the end of 2014. (Financial Times)
Schneider Electric is in talks about a 3.3bn offer for Invensys to add industrial software and control systems. Invensys said it was in discussions with Schneider, a French power equipment maker, about details of the approach. Schneider has until 5pm on August 8 to make a firm offer. (Bloomberg)(Financial Times)
China has accused GlaxoSmithKline of being at the centre of a "huge" scheme to raise drug prices in three of the country's biggest cities and said the UK-based drugmaker's staff had confessed to bribing government officials and doctors. GSK, which with other multinationals is under investigation in a separate probe into drug pricing in China, said yesterday's statement from a Chinese ministry was the first formal communication it had received from the authorities detailing the allegations. (Financial Times)
China's finance minister said growth of 6.5% or 7% would not "be a big problem" in Washington. (Bloomberg) "
Swiss deal on US tax cheats nears. "A group of Swiss banks is lining up to deliver key information to U.S. authorities investigating tax evasion, potentially moving a long-running legal battle further toward a close." (Wall Street Journal)
Singapore grew at an annualised rate of 15.2% in the three months to June. (Bloomberg)
New Senate push for Glass-Steagall type rules: A bipartisan group of senators, led by Elizabeth Warren, say it is designed to make banks "smaller and safer" by cordoning off depository institutions from businesses such as investment banking, insurance, swaps dealing and hedge funds and private equity. (Financial Times)
Steve Ballmer has announced a plan to remake Microsoft for an era in which the rules are set by rivals such as Apple and Google. (Financial Times)
BP has registered as a US derivatives dealer under new CFTC rules -- the first oil major is the first energy company to acknowledge its size and role as a derivatives trader are large enough to trigger strict regulatory oversight. (Financial Times)
"A Qatari state-owned entity has held initial talks to buy German utility RWE's Dea oil-and-gas business, in a move that could lead to an expansion of the emirate's holdings in Europe, said two people familiar with the matter. "(Wall Street Journal)
ON FT ALPHAVILLE:
- Actually, Fed personnel moves *are* important.
- On that BusinessWeek hedgies cover.
- Chinese shadow financing, charted. Plus bonus property update.
- The semi-reverse-ferret on SNS Reaal's 'bail-in' continues.
COMMENT AND CURIOS:
- Gillian Tett: Regulators and investors need to understand financial connections. (Financial Times)
- Gold traders finding their bullishness again. (Bloomberg)
- The Goldman settlement shadow over Fabrice Tourre trial. (Wall Street Journal)
- Brent and WTI are getting to know each other again. (Financial Times)
OVERNIGHT MARKETS:
Asian markets
Nikkei 225 up +51.29 (+0.35%) at 14,524
Topix up +8.40 (+0.70%) at 1,203
Hang Seng down -83.82 (-0.39%) at 21,354
US markets
S&P 500 up +22.40 (+1.36%) at 1,675
DJIA up +169.26 (+1.11%) at 15,461
Nasdaq up +57.54 (+1.63%) at 3,578
European markets
Eurofirst 300 up +6.84 (+0.57%) at 1,197
FTSE100 up +38.45 (+0.59%) at 6,543
CAC 40 up +28.45 (+0.74%) at 3,869
Dax up +92.32 (+1.14%) at 8,159
Currencies
€/$ 1.31 (1.31)
$/¥ 99.01 (99.06)
£/$ 1.52 (1.52)
Commodities ($)
Brent Crude (ICE) down -0.06 at 107.67
Light Crude (Nymex) down -0.03 at 104.88
100 Oz Gold (Comex) up +2.20 at 1,282
Copper (Comex) down -0.01 at 3.18
10-year government bond yields (%)
US 2.57%
UK 2.39%
Germany 1.62%
CDS (closing levels)
Markit iTraxx SovX Western Europe -0.43bps at 100.2bp
Markit iTraxx Europe +1.64bps at 113.57bp
Markit iTraxx Xover +9.58bps at 455.56bp
Markit CDX IG +1.12bps at 86.56bp
Sources: FT, Bloomberg, Markit
