Asian stocks rose for the first time in three days as Citigroup's earnings yesterday raised expectations ahead of another 76 S&P 500 members reporting this week. (Bloomberg)
Today: UK inflation, EU CPI, German ZEW. US CPI, industrial production. US earnings: Goldman, J&J, Yahoo, Coca-Cola.
Indian stocks fell and the rupee strengthened after new rules were announced late yesterday, aimed at preventing short moves against the currency by putting a daily cap on how much banks can borrow from the RBI. The rupee strengthened almost 1% against the dollar and the benchmark Sensex stock index fell 1.6%, with financials falling 2.3% on average. (FastFT)(Bloomberg)
Spanish PM rejects calls to stand down: Mariano Rajoy rejected what he called efforts to blackmail him into resigning. Political pressure mounted yesterday after Luis Barcenas, the former treasurer of his centre-right People's Party, gave new testimony before a judge looking into a party finance scandal. Barcenas said he had made payments of €20,000-€25,000 to Rajoy and party secretary-general Maria Dolores Cospedal between 2008 and 2011. (Financial Times)(Wall Street Journal)
Up to 13 global engineering companies probed in Brazil transport cartel investigation: Alstom, Mitsui and Bombardier confirmed they are among the companies subject to an antitrust inquiry over a possible cartel across the country's train and metro networks. The probe comes at a sensitive time as complaints over public transport costs sparked huge protests last month. A Brazilian newspaper said Siemens had first notified the authorities of the existence of a cartel, in which it allegedly took part, in exchange for immunity. The German company said it was aware of the investigation but did not confirm its involvement. (Financial Times)
Argentina on Monday said it would allow companies to export 20% of oil and gas tax-free provided they invest $1bn over five years. The announcement came on the eve of an expected deal between re-nationalised YPF and Chevron to develop part of the rich Vaca Muerta shale formation. (Financial Times)
The UK peer-to-peer lending market is set to reach £1bn by 2016 from £550m today, according to research by the Open Data Institute supported by the Bank of England. (Financial Times)
Gross raised Pimco rate exposure as yields jumped: "When many investors cut holdings of bonds broadly, Mr. Gross increased mortgage-backed-securities holdings for the $268 billion Total Return Fund to 36% at the end of June from 34% in May, according to data from Pimco's website released Monday." (Wall Street Journal)
Hungary's central bank asked the IMF to leave, ahead of national elections next year. "The new central bank governor Gyorgy Matolcsy wrote that since the standby loan agreement between Hungary and the IMF is about to end, "we have come to the conclusion that it is not necessary to maintain" the IMF's representative office. The IMF said it would follow the government's request." (Wall Street Journal)
ON FT ALPHAVILLE
- Can we expect a dehoarding effect in metals?
- Turkey, bowing to the inevitable.
- China's GDP oddities, and the investment factor.
COMMENT AND CURIOS:
- Adam Posen: 'There is no one interest rate that determines or even represents credit conditions in the modern economy.' (Financial Times)
- A quarter of Wall St insiders would engage in insider trading if they could get away with it. (NYT DealBook)
- US banks are on the verge of making too much money to keep warning of the risks of new regulations. (Financial Times)
- Apartment sales 'at a virtual halt' in central Ordos. (Bloomberg)
- Editorial: Fabrice Tourre looks like a fall guy for derivatives losses. (Financial Times)
OVERNIGHT MARKETS: UP
Asian markets
Nikkei 225 up +68.79 (+0.47%) at 14,575
Topix up +6.97 (+0.58%) at 1,209
Hang Seng down -15.87 (-0.07%) at 21,287
US markets
S&P 500 up +2.31 (+0.14%) at 1,683
DJIA up +19.96 (+0.13%) at 15,484
Nasdaq up +7.41 (+0.21%) at 3,607
European markets
Eurofirst 300 up +4.47 (+0.37%) at 1,200
FTSE100 up +41.17 (+0.63%) at 6,586
CAC 40 up +23.49 (+0.61%) at 3,879
Dax up +22.04 (+0.27%) at 8,235
Currencies
€/$ 1.31 (1.31)
$/¥ 99.73 (99.85)
£/$ 1.51 (1.51)
Commodities ($)
Brent Crude (ICE) down -0.17 at 108.92
Light Crude (Nymex) down -0.27 at 106.05
100 Oz Gold (Comex) down -4.40 at 1,279
Copper (Comex) unchanged 0.00 at 3.16
10-year government bond yields (%)
US 2.55%
UK 2.34%
Germany 1.57%
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
