Asian stocks rose and gold, the dollar and the Korean won all rallied after Alcoa kicked off US earnings with better than expected results. The Nikkei was 1.7% higher while the ASX rose 1.4% and the Kospi was up 0.5%. (Bloomberg)
Today: UK industrial production and trade; IMF interim global growth forecasts.
Chinese consumer inflation rose 2.7% in June compared to a year earlier -- its highest rate in four months. Producer input prices fell by 2.7%. The median estimate for CPI was 2.5% in a Bloomberg News survey. Food prices were up 4.9%. In May, the year-on-year increase was 2.1%. (Bloomberg)(Financial Times)
UK surveys point to house price rises, business expansion. The Royal Institution of Chartered Surveyors' house price balance jumped to +21 in June from +5 in May - the best reading since January 2010; a Deloitte survey showed Britain's top firms are more willing to expand than they have been for two years. (Reuters)
Alcoa faces a bill of up to $180m to settle a bribery probe brought by the US Department of Justice, the US aluminium company revealed on Monday as it seeks to close the book on long-running allegations of corruption in Bahrain. It reported underlying earnings for the second quarter slightly better than analysts' expectations but a headline loss hit by the provisions for the deal with the DoJ and restructuring costs. (Financial Times)
Financial data releases face NY probe: Thomson Reuters on Monday suspended its practice of releasing University of Michigan consumer sentiment data two seconds early to clients who pay extra, under pressure from New York state's attorney-general, Eric Schneiderman. Schneiderman's office is investigating several participants in the $25bn market data industry. (Financial Times)
China's air pollution has cut life expectancy by an average of 5.5 years in the north of the country and caused higher rates of lung cancer, heart attacks and strokes -- according to a new study seen as groundbreaking because there is little historical precedent for prolonged exposure to such high levels of air pollution. (Financial Times)(Bloomberg)
Kazakhstan's state oil company is planning a big push into Europe. "Daniyar Berlibayev, first deputy chairman of KazMunaiGas, said the company had plans to move into Ukraine and Turkey, and was eyeing petrol stations, import terminals and distribution points in the two Black Sea countries." (Financial Times)
US 'auditor rotation' blocked by new bill: The Republican-controlled House of Representatives voted 321 to 62 in favour of a bill which bans mandatory "auditor rotation" – an idea first floated by the US Public Company Accounting Oversight Board. (Financial Times)
The operator of a runaway train that exploded in Quebec "recorded an accident rate far higher than the US average over the past 10 years, federal data show". (Wall Street Journal)
COMMENT AND CURIOS:
- Gavyn Davies: China is probably not facing a Lehman moment, but it will take years to clean up credit mess. (Financial Times)
- Patrick Jenkins: Spanish banks seek a deferred tax assets loophole on capital rules. (Financial Times)
- The renminbi is the only EM currency to rise against the dollar this year. (Financial Times)
- 'Why I became a shadow banker in China'. (Bloomberg)
- Steve Barclay: UK should, but probably won't, enforce criminal sanctions on reckless bankers. (Financial Times)
- Central bankers are searching for bubble-popping tools. (Wall Street Journal)
OVERNIGHT MARKETS: UP
Asian markets
Nikkei 225 up +236.65 (+1.68%) at 14,346
Topix up +19.09 (+1.63%) at 1,192
Hang Seng up +63.53 (+0.31%) at 20,646
US markets
S&P 500 up +8.57 (+0.53%) at 1,640
DJIA up +88.85 (+0.59%) at 15,225
Nasdaq up +5.45 (+0.16%) at 3,485
European markets
Eurofirst 300 up +16.13 (+1.39%) at 1,180
FTSE100 up +74.55 (+1.17%) at 6,450
CAC 40 up +69.98 (+1.86%) at 3,824
Dax up +162.54 (+2.08%) at 7,969
Currencies
€/$ 1.29 (1.29)
$/¥ 101.02 (100.95)
£/$ 1.49 (1.50)
Commodities ($)
Brent Crude (ICE) down -0.18 at 107.25
Light Crude (Nymex) down -0.04 at 103.10
100 Oz Gold (Comex) up +17.80 at 1,253
Copper (Comex) down -0.02 at 3.09
10-year government bond yields (%)
US 2.65%
UK 2.51%
Germany 1.70%
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
