Asian stocks were mixed, with benchmarks swinging between gains and losses, with positive momentum from US markets failin to carry over. Markets in Hong Kong were suspended due to a storm. The MSCI Asia Pacific rose less than 0.1% and most commodities fell. (Bloomberg)(Financial Times)
Today: UK unemployment, BOE minutes, EU GDP and CPI. US mortgage applications and PPI.
JP Morgan 'whale' traders could be charged today: Javier Martin-Artajo and Julien Grout, neither of whom now works at the bank, are expected to be criminally charged in connection with misvaluing trades, according to people familiar with the investigation. A lawyer representing Martin-Artajo said his client was confident he would be exonerated once the relevant events were reconstructed. The bank could also face civil charges. (Wall Street Journal)
UK gilt yields reach two-year record on doubts Carney will keep inflation contained: The yield on 10-year UK gilts rose above 2.6% on Tuesday – the highest since October 2011 – before easing slightly, as improving economic data convinced investors that official interest rates would rise sooner than expected by the Bank. Today is the first release of UK jobs data since new BOE governor Mark Carney gave guidance relating to the unemployment rate. (Financial Times)
Kroes rebuked for 'unambitious' telecoms reform: "Brussels' top competition authority has called for 28 national telecoms regulators to be replaced by a single pan-European watchdog in a sharp rebuke to a set of proposals from Neelie Kroes, the bloc's telecoms chief." (Financial Times)
The US Department of Justice sued to block the merger of US Airways and American Airlines' bankrupt parent. The DoJ says the $11bn merger with AMR Corp and US Airways would push up fares. The two companies had been confident of completing the merger next month after more than a year of negotiations. Antitrust lawyers said the companies would have difficulty resolving the DoJ concerns. (Financial Times)(Bloomberg)
BP sues US government over post-disaster contract ban: The Environmental Protection Agency temporarily suspended BP from winning new contracts last November over the Deepwater Horizon disaster, saying the ban would not be lifted until it could provide sufficient evidence that it met federal business standards. "In a filing made in the US District Court for the southern district of Texas, BP challenged the EPA's decision and called on the court to declare the suspension and disqualification null, void and unenforceable." (Financial Times)
Icahn amasses 'large' Apple positions, pushes for bigger buyback: Carl Icahn announced a 'large' position on Twitter and said he'd talked with CEO Tim Cook about his views on bigger share buyback. Icahn says Apple has the ability to do a $150bn buyback now by borrowing funds at 3%. (Reuters)(Bloomberg)
Foxconn considers moving into solar panels: Taiwan's Hon Hai Precision, best known for assembling Apple products, may end up timing such a move well despite overcapacity concerns, say analysts. ""We aim to make a decision about whether or not we will enter this market by the end of this year," Foxconn spokesman Simon Hsing told Reuters. " (Reuters)
Whirlpool agreed to buy a majority stake in Hefei Rongshida Sanyo Electric Co, a Chinese home-appliances maker. The purchase of a 51% stake for $552m in cash (Rmb3.4bn) is a big expansion of Whirlpool's Asia business, with the region only accounting for 4.7% of its sales last year. (Wall Street Journal)
ON FT ALPHAVILLE:
- On the low-wage recovery.
- Where are the hyperloop barons?
- Crash test dummies and fund manager surveys.
- Hyperloop, dehyped.
COMMENT AND CURIOS:
- Internet tycoons and their futuristic ventures. (Financial Times)
- John Kay: The shortcomings of economic forecasting. (Financial Times)
- US corporate profit growth is beginning to stumble - or worse, if you exclude financials. (Wall Street Journal)
- ... Yet stocks are surging and earnings forecasts are strangely optimistic. (Financial Times)
- Shiller's CAPEs are growing inconvenient for brokers. (FT Longshort)
- How can blue-collar workers avoid being replaced by robots? (Bloomberg)
- The 1m Ghanaian miners suffering from gold's downfall. (Bloomberg)
- Chinese billionaire waits for go-ahead from Iceland's new government. (Bloomberg)
- Student loan burdens make entrepreneurship unsurprisingly difficult. (Wall Street Journal)
OVERNIGHT MARKETS: MIXED
Asian markets
Nikkei 225 down -98.73 (-0.71%) at 13,768
Topix up +2.18 (+0.19%) at 1,159
Hang Seng unchanged 0.00 (0.00%) at 22,541
US markets
S&P 500 up +4.69 (+0.28%) at 1,694
DJIA up +31.33 (+0.20%) at 15,451
Nasdaq up +14.49 (+0.39%) at 3,684
European markets
Eurofirst 300 up +6.96 (+0.57%) at 1,237
FTSE100 up +37.60 (+0.57%) at 6,612
CAC 40 up +20.82 (+0.51%) at 4,093
Dax up +56.51 (+0.68%) at 8,416
Currencies
€/$ 1.33 (1.33)
$/¥ 97.90 (98.17)
£/$ 1.54 (1.54)
Commodities ($)
Brent Crude (ICE) down -0.54 at 109.28
Light Crude (Nymex) down -0.60 at 106.23
100 Oz Gold (Comex) up +1.30 at 1,323
Copper (Comex) down -0.01 at 3.31
10-year government bond yields (%)
US 2.70%
UK 2.63%
Germany 1.81%
CDS (closing levels)
Markit iTraxx SovX Western Europe -1.16bps at 88.33bp
Markit iTraxx Europe -0.9bps at 94.76bp
Markit iTraxx Xover -3.58bps at 394.45bp
Sources: FT, Bloomberg, Markit
