Asian stocks rose after Chinese GDP growth was in line with estimates. The Australian dollar strengthened and the MSCI ex-Japan was 0.3% higher and headed for its highest close in a month. Japanese markets were closed for a holiday. (Bloomberg)
China's Q2 GDP growth was 7.5%, the second consecutive quarter of slower growth, underscoring the possibility that the economy may miss official targets for the first time in 15 years. The figure just met the official GDP target for 2013 and was in line with median consensus forecasts from both Bloomberg and Reuters surveys, although the consensus had fallen from 7.8% in the past month. Meanwhile, industrial output - a popular proxy for growth - for June was 8.9% year-on-year, versus expectations of 9.1% and a May figure of 9.3%. (Financial Times)(Bloomberg)
Apple is hiring 'aggressively' for its iWatch development, according to people familiar with Apple's plans for the wearable device. (Financial Times)
JPMorgan Chase and Goldman Sachs are seeking to sell their metal warehousing units just three years after their controversial entry to the industry, even as a proposed LME rule change is likely to reduce the attractiveness of the business. "Both banks have informally started sounding out buyers for their warehousing subsidiaries in recent months, people familiar with the matter told the Financial Times." (Financial Times)
"British drugmaker GlaxoSmithKline Plc used travel agencies and consultancies as vehicles to bribe Chinese officials and doctors to illegally boost the sales prices of its medicines in China, police said on Monday." (Reuters)
G20 finance ministers plan to launch a new phase of the international corporate tax crackdown this week even as UK business leaders are warning their government to resist "radical new solutions" to profit shifting by multinationals. (Financial Times)
More signs of UK house price rises: Rightmove said the average asking price for properties listed on its website rose 0.3% in July from June to a new record high of £253,658. "The overall increase was largely fueled by a 12% year-on-year rise in asking prices in London." (Wall Street Journal)
COMMENT AND CURIOS:
- What to make of China's finance minister's airbrushed comments on 7% growth target. (Financial Times)
- A moment of truth is approaching for eurozone leaders. (Wall Street Journal)
- Ed Luce: When the facts change, US deficit hawks should change their minds. (Financial Times)
- How the Fabrice Tourre case could upset Goldman's attempts to present a softer public image. (Financial Times)
- Don't go expecting more strident reforms after an lDP win in Japan's local elections. (Reuters)
OVERNIGHT MARKETS: UP
Asian markets
Nikkei 225 up +33.67 (+0.23%) at 14,506
Topix up +7.22 (+0.60%) at 1,202
Hang Seng up +91.55 (+0.43%) at 21,369
US markets
S&P 500 up +5.17 (+0.31%) at 1,680
DJIA up +3.38 (+0.02%) at 15,464
Nasdaq up +21.78 (+0.61%) at 3,600
European markets
Eurofirst 300 down -1.41 (-0.12%) at 1,195
FTSE100 up +1.53 (+0.02%) at 6,545
CAC 40 down -13.89 (-0.36%) at 3,855
Dax up +53.97 (+0.66%) at 8,213
Currencies
€/$ 1.31 (1.31)
$/¥ 99.24 (99.21)
£/$ 1.51 (1.51)
Commodities ($)
Brent Crude (ICE) up +0.07 at 108.88
Light Crude (Nymex) up +0.01 at 105.96
100 Oz Gold (Comex) up +14.60 at 1,292
Copper (Comex) unchanged 0.00 at 3.17
10-year government bond yields (%)
US 2.59%
UK 2.32%
Germany 1.55%
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
