Good morning New York,
FT ALPHAVILLE
Shanghai exchange, nothing to see here: Kate took a look at rumours surrounding Shanghai-listed shares jumpeing 6 per cent in six minutes in morning trade, despite opening the day lower. Also, a dog that thought it was a lion. (FT take)
NEWS
Egypt braced for confrontations as Islamists plan 'day of rage': Egypt is braced for fresh confrontations as Islamist supporters of Mohamed Morsi, the president ousted by the army last month, called for "day of rage" protests after Friday prayers. The rallies, to start at designated mosques around the country including 28 locations in Cairo, will be the first since the Egyptian security forces stormed two pro-Morsi protest camps on Wednesday, killing hundreds and unleashing a wave of violence by enraged Islamists who attacked churches and clashed with police around the country. (Financial Times) (New York Times) The UN Security Council held an emergency meeting on Thursday evening to discuss the situation in Egypt. Diplomats said the council was unlikely to issue a statement after the meeting. (Financial Times)
China and Japan led a record outflow of Treasuries in June: The two countries accounted for nearly all of $40.8bn of net foreign selling of Treasuries. It was the fifth straight month that foreign investors sold off the broader category of long-term US securities, "but the specific selling of long-term government bonds was the big turnaround as foreigners had bought $11.3bn of Treasuries in May". (Reuters)
Foreign banks in talks over Chinese bad bank: Goldman Sachs, Deutsche Bank and Morgan Stanley have held talks with one of China's biggest "bad banks", Huarong, about investing in its $1.5bn stake sale ahead of a planned Hong Kong listing next year, according to people close to the process. The move is one sign that the Chinese government rely more on market driven remedies than state bailouts for the next round of problem loans emerging from China's credit boom. (Financial Times)
China may probe US tech giants: "China's Ministry of Public Security and a cabinet-level research center are preparing to probe IBM Corp, Oracle Corp and EMC Corp over security issues, the official Shanghai Securities News said on Friday." (Reuters)
Chinese copper premiums reached a record level: The closely-watched spread between physical and benchmark futures prices has more than tripled since the start of the year to more than $200 a tonne, traders say. (Financial Times)
L'Oreal has offered to buy Chinese facial mask maker Magic Holdings International for $840m, a move that would put the world's largest cosmetics group in the lead of the fastest growing sector in China's $15 billion skincare market. (Reuters)
The Indian rupee hit a new record low in intraday trading on Friday, breaching 62 to the US dollar following new government restrictions on capital outflows that some say risk sending a panic signal rather than providing a long-term solution. (Financial Times)
Markets: The FTSE Eurofirst 300 is down 0.1 per cent as US index futures indicate the S&P 500 will follow Thursday's 1.4 per cent drop to a five-week low with a fractional gain. Since hitting a record high at the start of August, the S&P 500 has lost 2.9 per cent, denting sentiment globally. The CBOE Vix index of implied volatility, Wall Street's so-called fear gauge, has jumped to a six-week high – though at 14.7 it remains low by historical standards writes the FT's Global Markets psychohistorian Jamie Chisholm.
