Asian stocks fell the most in more than two weeks and emerging-market currencies weakened. The MSCI Asia Pacific fell 0.6%. (Bloomberg)
Today: UK 2Q GDP. Growth is expected at 0.6% according to a Reuters survey. German Ifo business confidence index. US durable goods orders and jobless claims.
Bo Xilai was charged on Thursday with several counts of corruption and abuse of office. The former high-flying Chinese politician's dramatic purge last year sparked the most serious political upheaval in the country in decades. The trial, which is virtually certain to have a pre-ordained outcome, is expected to start within weeks and will be closed to the public and media, according to people familiar with the matter. An internal party document indicated Bo would be tried on charges of taking Rmb20m ($3.2m) in bribes via his wife, embezzling Rmb5m, and abusing power, an official said. (Financial Times)(Wall Street Journal)
"RBS is weighing an idea to dispense with its freestanding investment banking operation and to integrate it with the group's corporate banking unit, according to two people familiar with the idea. If enacted, it could prompt the departure of current co-heads of the so-called markets business, Peter Nielsen and Suneel Kamlani, the people said." (Financial Times)
South Korea's economy grew at the fastest rate in more than two years, as consumer spending rebounded and the new government boosted state expenditure. GDP rose 1.1% in sequential seasonally-adjusted terms, or 2.3% year-on-year. (Financial Times)
Barclays close to securing 2014 capital deadline: The bank is close to a deal with regulators to meet a 3% leverage ratio requirement by December next year, in a snub to former BoE governor Lord King, who had argued for an end-2013 deadline. A 2014 deadline would force it to accelerate its original plan to meet the 3 per cent ratio by 2015, though bankers said it would be feasible without radical changes of strategy. (Financial Times)
"The eurozone has delayed its decision on whether to approve its next aid payment for Greece until Friday after Athens failed to fulfill all the conditions it had set out earlier this month." Jeroen Dijsselbloem said Greece needed to adopt promised measures regarding teachers by Thursday for the €4bn payment to be released. Greek officials said a vote on the matter would pass easily. (Wall Street Journal)
'Fabulous Fab' takes to witness stand: "Fabrice Tourre, the former Goldman Sachs banker accused of defrauding investors in a complex mortgage bond known as Abacus, on Wednesday took to the witness stand to defend himself for the first time in court. He pushed back against arguments from the US Securities and Exchange Commission's lawyers that he helped Paulson & Co build a synthetic collateralised mortgage obligation that was designed to fail, and also hid from the deal's investors that the hedge fund was betting against the bond." (Financial Times)
Google announced a $35 streaming TV device. The open protocol device would work with any tablet, smartphone or other device, in a challenge to Apple TV. (Financial Times)
Failed ETF trades surge: "Falling equity markets have resulted in the highest level of failed trades in the $2tn exchange-traded fund (ETF) market for nearly two years " (Financial Times)
Earlier: China announced a 'mini-stimulus' which, though limited in size, could herald more policy moves to prop up growth. Measures including creating more financing channels to speed up railway construction and tax breaks for small companies and exporters. The target for fixed asset investment in railways has been raised from 650bn to 690bn. (Bloomberg)(Financial Times)
Facebook beat: Shares leapt as much as 20% in after-hours trade as it reported ad sales rose. (Financial Times)
COMMENT AND CURIOS:
- The US corporate puzzle: Profits are up but investment is stagnant. (Financial Times)
- Fed choice: Between Summers and Yellen. (Wall Street Journal)
- Economists estimate Japan needs a Y5tn fiscal package to stop the sales tax rise from pushing the country into recession. (Bloomberg)
- India's RBI-engineered cash crunch pushing borrowing costs up above 10%. (Bloomberg)
- Richard Lambert: GDP is a clumsy test. (Financial Times)
OVERNIGHT MARKETS: DOWN
Asian markets
Nikkei 225 down -78.80 (-0.53%) at 14,652
Topix down -11.86 (-0.97%) at 1,208
Hang Seng down -63.48 (-0.29%) at 21,905
US markets
S&P 500 down -6.45 (-0.38%) at 1,686
DJIA down -25.50 (-0.16%) at 15,542
Nasdaq up +0.33 (+0.01%) at 3,580
European markets
Eurofirst 300 up +7.47 (+0.62%) at 1,215
FTSE100 up +22.99 (+0.35%) at 6,620
CAC 40 up +39.66 (+1.01%) at 3,963
Dax up +64.88 (+0.78%) at 8,379
Currencies
€/$ 1.32 (1.32)
$/¥ 100.12 (100.24)
£/$ 1.53 (1.53)
Commodities ($)
Brent Crude (ICE) down -0.29 at 106.90
Light Crude (Nymex) down -0.48 at 104.91
100 Oz Gold (Comex) unchanged 0.00 at 1,320
Copper (Comex) down -0.01 at 3.18
10-year government bond yields (%)
US 2.59%
UK 2.40%
Germany 1.66%
Sources: FT, Bloomberg, Markit
