Asian shares were higher overall after Wall St closed higher and energy stocks rose on concerns that military action against Syria will disrupt crude supplies. (Bloomberg)(Financial Times)
Today: Gfk Consumer confidence, German CPI and unemployment; US annualised Q2 GDP and jobless claims.
"A probe of JPMorgan's hiring practices in China has uncovered red flags across Asia, including an internal spreadsheet that linked appointments to specific deals pursued by the bank, people with knowledge of the matter said." (Bloomberg) "The crucial point at issue is whether candidates were hired because they were qualified for the roles or with a view to landing specific contracts by currying favour with their relatives" -- a practice that could violate the US Foreign Corrupt Practices Act. (Financial Times)
New York's Department of Financial Services is intensifying its probe of Lloyd's of London over insurance policies that might have broken US laws against dealings with Iran, according to people familiar with the matter, sending a letter to Lloyd's asking for details about the firm's internal investigation of possible violations of US sanctions. (Wall Street Journal)
Brazil's central bank has raised rates for the fourth time since April in a move to restore investors' confidence in Latin America's biggest economy by resorting to its fourth consecutive interest rate increase to tame stubbornly high inflation. Rates were raised 50bps to 9%, bringing the increases to 175bps since April. (Financial Times)
"Amazon is taking a high-stakes legal battle to the US Supreme Court, hiring one of Washington's most prominent lawyers Ted Olson to fight the taxation of its shoppers in New York state." (Financial Times)
Oil prices rising on Syria fears: "talk of western airstrikes in response to the Syrian regime's alleged use of chemical weapons has added $7, or more than 6 per cent, to the price of benchmark Brent crude in just two days." (Financial Times)
Pimco eyes alternative assets expansion: The firm is planning to expand offerings in the coming months aimed at both individual and institutional clients, including potentially launching new funds invested in assets such as distressed debt in Europe, said COO Douglas Hodge. (Wall Street Journal)
BP has been rebuffed again in its attempt to stop compensation payments under the settlement over the 2010 Deepwater Horizon disaster, as a judge ruled that there was no "credible evidence" to support the company's allegations of fraud in the claims process. It was BP's second attempt at an injunction while Louis Freeh, a former FBI director, looked into possible fraud at the compensation programme run by Patrick Juneau, the court-appointed claims administrator. (Financial Times)
The Philippines economy grew 7.5% year on year in the second quarter, slower than last quarter but still faster than expected. (FastFT)
ON FT ALPHAVILLE:
Dates for the pari passu diary.
Statement from Capital Taliban.
The golden Rupee.
COMMENT AND CURIOS:
- Series: The worrying reality of China's debt. (Financial Times)
- Cypriots shift to cash-only economy. (Wall Street Journal)
- Nissan targets new drivers uninterested in horsepower or RPMs. (Wall Street Journal)
- The loneliness of 72m Blackberry users. (Financial Times)
OVERNIGHT MARKETS: UP
Asian markets
Nikkei 225 up +37.69 (+0.28%) at 13,376
Topix up +1.12 (+0.10%) at 1,115
Hang Seng up +79.44 (+0.37%) at 21,604
US markets
S&P 500 up +4.48 (+0.27%) at 1,635
DJIA up +48.38 (+0.33%) at 14,825
Nasdaq up +14.83 (+0.41%) at 3,593
European markets
Eurofirst 300 down -3.80 (-0.32%) at 1,199
FTSE100 down -10.91 (-0.17%) at 6,430
CAC 40 down -8.27 (-0.21%) at 3,960
Dax down -84.66 (-1.03%) at 8,158
Currencies
€/$ 1.33 (1.33)
$/¥ 97.55 (97.62)
£/$ 1.55 (1.55)
Commodities ($)
Brent Crude (ICE) down -0.80 at 115.81
Light Crude (Nymex) down -0.78 at 109.32
100 Oz Gold (Comex) down -8.20 at 1,410
Copper (Comex) unchanged 0.00 at 3.30
10-year government bond yields (%)
US 2.78%
UK 2.84%
Germany 1.88%
CDS (closing levels)
Markit iTraxx SovX Western Europe +1.07bps at 89.3bp
Markit iTraxx Europe -0.33bps at 106.83bp
Markit iTraxx Xover -2.27bps at 434.9bp
Markit CDX IG +1.12bps at 86.56bp
Sources: FT, Bloomberg, Markit
