Asian stocks were lower, with the Hang Seng down 0.3% and the Nikkei flat despite a 15% fall in Nikon's shares lowered its full-year operating profit guidance from ¥85bn to ¥65bn. (Bloomberg)(FastFT)
China's consumer inflation steady. CPI rose 2.7% in July from a year earlier, the same pace as in June and still well below Beijing's 3.5% upper annual limit. Producer price inflation declined for the 17th consecutive month, at -2.3% year-on-year compared to -2.7% in June. The rates were close to consensus forecasts from Reuters survey, of 2.8% for CPI and -2.2% for producer prices. "The latest figures will add weight to calls from some economists and officials for China to cut interest rates to help boost slowing growth in the world's second-largest economy." (Financial Times)(Reuters)
Lending to UK landlords is surging to a near five-year high, helped by low interest rates and government policies such as the Help to Buy scheme. Over £5bn of buy-to-let mortgages were advanced by UK lenders in the second quarter of the year, up 21 per cent from the previous quarter and nearly a third higher than a year ago. (Financial Times)
JPMorgan in talks with the SEC over a rare admission of wrongdoing over the London Whale losses, after decades of settlements allowing defendents to neither admit nor deny wrongdoing. "People familiar with discussions between the bank and regulators including the Securities and Exchange Commission said JPMorgan had conceded it would have to pay some amount of money and acknowledge failures around disclosure and controls ." (Financial Times) "A pact could come as soon as this fall, according to people briefed on the case, who added that the agency had not threatened to charge JPMorgan executives in the case." (NYT Dealbook)
Italy plans more austerity, lower company tax. Economy minister Fabrizio Saccomanni said the slow growth wasn't enough enough to return to pre-crisis levels, and acknowledged that political tensions could complicate the government's plans to push a new round of reforms in the autumn. (Wall Street Journal)
Australia's central bank cuts its forecast for this year's growth to 2.25% from 2.5% in May; but said the the fall in the AUD could help the country shift away from its recent dependence on commodities. (FastFT)
"The U.S. Department of Justice has stepped up a probe in recent weeks into Bear Stearns mortgage dealings in the run-up to the financial crisis, adding to JPMorgan Chase & Co's legal problems, according to three sources familiar with the situation." (Reuters)
"BlackBerry Ltd is warming up to the possibility of going private, as the smartphone maker battles to revive its fortunes, several sources familiar with the situation said." (Reuters)
Mark Carney played down scepticism on rates. "The move in markets is very marginal in terms of the expected rise . . . measured in terms of months – that's the first thing," Mr Carney told Sky News on Wednesday, adding that the BoE had provided "as much clarity as we can". (Financial Times)
Vale says Chinese steel output will grow 10% this year. (Bloomberg)
ON FT ALPHAVILLE:
Hedge funds: We still growin'
No, Bill, losing money on bonds isn't like dying at the Somme.
Is the IMF board risking eternal slumber? Guest post, Gabriel Sterne.
COMMENT AND CURIOS:
- Chairing the Fed is increasingly literary, so maybe Rushdie should replace Bernanke. (Financial Times)
- The fascinating story of Changsha, central China. (Bloomberg)
- Analysis: Solar is becoming competitive with conventional energy sources. (Financial Times)
- Samuel Brittan: Why the eurozone will fall apart, sooner or later. (Financial Times)
- Japan shouldn't rush to raise consumption tax, with little sign of Abenomics working. (Bloomberg)
- Elon Musk may just have to develop a supersonic jet. (Bloomberg)
OVERNIGHT MARKETS: MIXED
Asian markets
Nikkei 225 up +6.65 (+0.05%) at 13,612
Topix up +1.41 (+0.12%) at 1,141
Hang Seng up +70.56 (+0.33%) at 21,726
US markets
S&P 500 up +6.57 (+0.39%) at 1,697
DJIA up +27.65 (+0.18%) at 15,498
Nasdaq up +15.11 (+0.41%) at 3,669
European markets
Eurofirst 300 up +4.57 (+0.38%) at 1,222
FTSE100 up +18.47 (+0.28%) at 6,530
CAC 40 up +25.83 (+0.64%) at 4,064
Dax up +57.84 (+0.70%) at 8,318
Currencies
€/$ 1.34 (1.34)
$/¥ 96.39 (96.72)
£/$ 1.55 (1.55)
Commodities ($)
Brent Crude (ICE) up +0.43 at 107.11
Light Crude (Nymex) up +0.80 at 104.20
100 Oz Gold (Comex) up +4.50 at 1,315
Copper (Comex) down -0.01 at 3.26
10-year government bond yields (%)
US 2.60%
UK 2.50%
Germany 1.69%
CDS (closing levels)
Markit iTraxx SovX Western Europe +0.5bps at 89.49bp
Markit iTraxx Europe -0.88bps at 95.64bp
Markit iTraxx Xover -1.64bps at 398.47bp
Markit CDX IG returning soon
Sources: FT, Bloomberg, Markit
