Asian stocks were weaker after China's flash PMI came in lower than expected. The MSCI Asia Pacific Index fell 0.1% after earlier being up 0.2%. The Nikkei and Topix were both 0.4% lower and the Hang Seng fell 0.3% while Shanghai fell 1.3%. The Australian and NZ dollars fell. (Bloomberg)
Today: Eurozone flash PMIs. UK CBI industrial trends survey. GSK earnings. US new home sales, flash PMIs. Facebook, Boeing, Ford, PepsiCo earnings. Dell buyout vote.
Vince Cable has criticised the Bank of England's "capital Taliban" for holding back a recovery. Cable told the FT he believes the BoE has held back small business lending by demanding banks hold onerous levels of capital. (Financial Times)
China's manufacturing weakened further in July, according to the HSBC/Markit flash PMI survey. The July reading of 47.7 was less than June's 48.2 and if confirmed in the final report, would be the lowest in 11 months. (FT Alphaville)(Reuters)
Japan's exports rose for a fourth straight month in June due to a weak yen and shipments to the EU climbing 8.6% from a year earlier, the first gain in 21 months. Shipments to the US rose 14.6%. The trade deficit was Y180.8bn ($1.8bn); bigger than the expected Y160.6bn but much lower than May's Y996.4bn. (Bloomberg)
A former HSBC banker has emerged as the leading external candidate for RBS chief executive, according to three people close to the process. Mark McCombe is vying with at least four other candidates to replace Stephen Hester. David Roberts, a former Barclays executive who now sits on the Lloyds board, is seen as a second credible external candidate. The three top internal candidates are Ross McEwan, Bruce van Saun, and Chris Sullivan. (Financial Times)
SAC criminal charges reportedly planned: "Federal prosecutors are preparing to announce criminal charges as early as this week against SAC Capital Advisors LP, the hedge-fund giant that has been the target of a multiyear investigation into alleged insider trading, according to people familiar with the matter." The sources said prosecutors aren't planning charges again Steven Cohen. (Wall Street Journal)
IMF backs off filing on Argentina case in US Supreme Court: US opposition has abruptly killed the IMF's plan to send an amicus curiae brief to the highest court in the United States in Argentina's long-running battle with holdout creditors. (FT Alphaville)(Reuters)
GlaxoSmithKline is considering cutting prescription-linked commissions paid to its sales staff and reducing drug prices in China amid the fall-out from a growing corruption probe. (Financial Times)
Huawei Technologies sales rose 11% in the first half, as a push into mobile devices helped expand its lead over Ericsson. (Bloomberg)
Big US banks are warning that new funding rules risk damaging the $7tn repo market, where financial institutions borrow against government bonds, potentially destabilising one of the most important financial markets in the world. (Financial Times)
"Ford Motor is to develop its hybrid drive technology for light trucks independently of Japan's Toyota after the pair broke off co-operation in the field amid robust statements from Ford about its strong future in the technology." (Financial Times)
Earlier: Apple earnings beat. (Financial Times) Barclays "took a client's deal for its own account", court hears. (Financial Times)
COMMENT AND CURIOS:
- Robin Harding: Low inflation is worrying central bankers. (Financial Times)
- Singapore could be the Switzerland of the world, not just Asia. (Financial Times)
- China's coal-fired economy is dying of thirst. (Bloomberg)
- Meredith Whitney: Detroit aftershocks could be staggering. (Financial Times)
- John McDermott: 'Help to Buy' is not exactly subprime. (Financial Times)
- China to punish hospital staff who accept kickbacks. (Bloomberg)
ON FT ALPHAVILLE:
Explaining the commodity warehouse trade with scripture.
Commodity warehousing, the interest rate connection.
Why Yellen should be the next Fed chair.
Japan's lessons for China.
3133% interest IS probably unsustainable...
An update on US household formation.
OVERNIGHT MARKETS: DOWN
Asian markets
Nikkei 225 down -61.46 (-0.42%) at 14,717
Topix down -5.03 (-0.41%) at 1,218
Hang Seng down -65.64 (-0.30%) at 21,850
US markets
S&P 500 down -3.14 (-0.19%) at 1,692
DJIA up +22.19 (+0.14%) at 15,568
Nasdaq down -21.12 (-0.59%) at 3,579
European markets
Eurofirst 300 down -3.54 (-0.29%) at 1,207
FTSE100 down -25.73 (-0.39%) at 6,597
CAC 40 down -16.83 (-0.43%) at 3,923
Dax down -16.83 (-0.20%) at 8,314
Currencies
€/$ 1.32 (1.32)
$/¥ 99.70 (99.44)
£/$ 1.54 (1.54)
Commodities ($)
Brent Crude (ICE) down -0.12 at 108.30
Light Crude (Nymex) down -0.15 at 107.08
100 Oz Gold (Comex) up +8.40 at 1,344
Copper (Comex) down -0.02 at 3.17
10-year government bond yields (%)
US 2.52%
UK 2.32%
Germany 1.55%
(CDS data will be returning soon.)
Sources: FT, Bloomberg, Markit
