Asian markets were mostly lower, with key benchmarks the Nikkei, Topix and Hang Seng all falling slightly, as investors awaited the outcome of the FOMC meeting tomorrow. (Bloomberg)
Today: UK: Inflation data. EU: Current account, trade balance, ZEW economic sentiment survey.
US: CPI.
Earnings: Adobe. Debenhams and Investec trade updates.
Janet Yellen has "emerged as the front-runner" to become the White House's nominee to lead the Fed, but president Obama hasn't yet made a final decision, an official said. The announcement would not be made this week but would occur during autumn, said spokesman Jay Carney, noting that season begins next week. (Wall Street Journal)
"JPMorgan Chase is in talks to pay at least $800m to settle with securities and bank regulators over the $6bn "London whale" trading loss, but faces additional fines from US derivatives regulators not part of the current pact, people familiar with the matter said." The deal, which could be announced this week, would include the SEC, the Fed, the Office of the Comptroller of the Currency and the Financial Conduct Authority; but not the CFTC. The bank has balked at the CFTC's seeking a fine and an admission it manipulated the IG9 CDS index. (Financial Times)
Lloyds stake sale hailed as UK confidence vote: "[T]he apparently healthy investor appetite for the 4.28bn shares that are being sold is deemed by the chancellor to be further evidence that the British economy is "healing" after the financial crash..." Bankers agree. "Investors are making a call on the UK," said one involved in the deal. (Financial Times, and further)
China may have decelerated in August on slowing real estate activity: "The Conference Board's leading economic index for China rose 0.7 per cent in August. That follows a 1.4 per cent jump in July and 0.8 per cent jump in June." (FastFT)
PwC's Berkeley audit probed: UK regulator the Financial Reporting Council is investigating whether PwC was independent when it audited the accounts of housebuilder Berkeley Group last year. "People with knowledge of the matter said the probe concerned the role of Glyn Barker, a PwC partner who became a non-executive director on Berkeley's board during the year in question." (Financial Times)
Japan warned US of blackout risk in appeal for LNG: Japan warned the US it faced a high risk of blackouts which would threaten the global economy as it prepared to idle its last nuclear plants in March last year, US Dept of Energy documents released under FOI show. (Bloomberg)
TCI has asked the board of EADS to transfer its €4bn stake in Dassault Aviation directly to shareholders, saying such a method "avoid selling the stake at an unattractive price". The French government has a pre-emptive deal on the stake. (Financial Times)
ON FT ALPHAVILLE:
Hedge funds: You don't know what you've got till it's gone.
Name that price, Lloyds stake sell-off edition.
BARC and the true price of 'advice'.
Co-op Bank: Dial B for bondholder.
Rajan, onions and the Fed.
COMMENT & CURIOS:
- Sheila Bair: The US economy will be in uncharted waters when the Fed leaves it to fend for itself. (Financial Times)
- Analysis: The latest plan to rescue Greece. (Financial Times)
- The rupiah has passed the rupee as Asia's worst-performing currency. (Bloomberg)
- Wolfgang Schauble: Ignore the doomsayers on Europe, it's being fixed. (Financial Times)
- Bernanke, a bit like Maradona? (Financial Times)
- Collateral opportunities in the shift to central clearing. (Financial Times)
OVERNIGHT MARKETS: DOWN
Asian markets
Nikkei 225 down -36.05 (-0.25%) at 14,369
Topix down -1.93 (-0.16%) at 1,183
Hang Seng down -63.20 (-0.27%) at 23,189
US markets
S&P 500 up +9.61 (+0.57%) at 1,698
DJIA up +118.72 (+0.77%) at 15,495
Nasdaq down -4.34 (-0.12%) at 3,718
European markets
Eurofirst 300 up +8.16 (+0.65%) at 1,258
FTSE100 up +39.06 (+0.59%) at 6,623
CAC 40 up +37.72 (+0.92%) at 4,152
Dax up +103.58 (+1.22%) at 8,613
Currencies
€/$ 1.33 (1.33)
$/¥ 99.26 (99.05)
£/$ 1.59 (1.59)
Commodities ($)
Brent Crude (ICE) down -0.46 at 109.61
Light Crude (Nymex) down -0.85 at 105.74
100 Oz Gold (Comex) unchanged 0.00 at 1,318
Copper (Comex) unchanged 0.00 at 3.23
10-year government bond yields (%)
US 2.86%
UK 2.93%
Germany 1.95%
CDS (closing levels)
Markit iTraxx SovX Western Europe +0.26bps at 91.26bp
Markit iTraxx Europe -3.71bps at 94.3bp
Markit iTraxx Xover -14.13bps at 377.67bp
Sources: FT, Bloomberg, Markit
