Markets: Asian markets were mixed, with Japanese shares making large gains while the Kospi and the Hang Seng were slightly lower ahead of the Fed's September meeting. The Nikkei rose 2% and the Topix was up 1.4%. (Financial Times)
Today: Fed's FOMC meeting. Bank of England minutes.
Dimon memo outlines plan to 'simplify' JP Morgan, focusing on units with regulatory risk: Jamie Dimon said JPMorgan was "conducting an in-depth review of our foreign correspondent banking business" – an area that has brought anti-money laundering scrutiny to the industry – amid concern that infractions in remote regions of the world could rebound to the bank's headquarters. He also referenced the bank's attempt to sell its physical commodities business and a decision to stop selling student loans were part of the switch to a simpler structure. (Financial Times)
US median household incomes remained lower in 2012 than in 1989, according to new census data. "The figures will also add to pressure from the left for Barack Obama to appoint Janet Yellen – widely regarded as one of the policy makers most concerned about high unemployment – as the next Fed chair." (Financial Times)
Tesla's Elon Musk says self-driving cars will be road-ready within three years. Musk didn't reveal details but the technology would be developed internally. The company's attempt could overtake Google, which has been working on driverless cars for three years but struggled to find a partner to build them. (Financial Times)
EU proposals for Libor et al to be unveiled today: "[B]enchmarks that are deemed to be "critical" would be overseen by a college of national supervisors led by the Paris-based European Securities and Markets Authority, which would have the authority to mediate disputes with binding decisions". (Wall Street Journal)
Siemens to name finance chief: "Chief Executive Joe Kaeser is likely to tap Ralf Thomas, a long-time ally and company insider, as chief financial officer of the German electronics giant, according to people familiar with the situation." (Wall Street Journal)
Former Bankia head joins Santander advisory board: The move offers "a career comeback" Rodrigo Rato, the man who presided over the worst corporate collapse in recent Spanish history. (Financial Times)
EA's new chief appointed: "Andrew Wilson, 39, succeeds John Riccitiello, who stood down in March. He will head one of the world's largest gaming companies at a critical moment for the industry" (Financial Times)
VW plans to target Brazil's rich with production restart: "Rupert Stadler, chief executive of Audi, said on Tuesday that the German company would invest about €150m in Brazil by 2015 to produce its A3 and Q3 models." (Financial Times)
FT ALPHAVILLE
Coastal Energy, the oil and knickers-in-twist combine…
The IMF on fiscal policy as macro stabiliser at the ZLB
A herbal(-ife) high
Which came first, the bank failure or the output gap?
COMMENTS & CURIOS
Martin Wolf: We still live in Lehman's shadow (and go Yellen) (Financial Times)
How would the Fed taper? (FT Money Supply)
Ralph Atkins: Europe will struggle to avoid Fed fallout. (Financial Times)
Big US companies are getting off the power grid. (Wall Street Journal)
Li Keqiang's steel jobs problem. (Bloomberg)
Foreign investors still like Indian companies. (Financial Times)
Shares in companies with 'Shanghai' in their name are soaring. (Bloomberg)
OVERNIGHT MARKETS:
Asian markets
Nikkei 225 up +230.21 (+1.61%) at 14,542
Topix up +13.62 (+1.15%) at 1,195
Hang Seng down -74.68 (-0.32%) at 23,106
US markets
S&P 500 up +7.16 (+0.42%) at 1,705
DJIA up +34.95 (+0.23%) at 15,530
Nasdaq up +27.85 (+0.75%) at 3,746
European markets
Eurofirst 300 down -5.79 (-0.46%) at 1,253
FTSE100 down -52.69 (-0.80%) at 6,570
CAC 40 down -6.71 (-0.16%) at 4,146
Dax down -16.05 (-0.19%) at 8,597
Currencies
€/$ 1.34 (1.34)
$/¥ 99.23 (99.11)
£/$ 1.59 (1.59)
Commodities ($)
Brent Crude (ICE) down -0.20 at 107.99
Light Crude (Nymex) up +0.22 at 105.64
100 Oz Gold (Comex) down -12.20 at 1,297
Copper (Comex) down -0.01 at 3.22
10-year government bond yields (%)
US 2.84%
UK 2.97%
Germany 1.97%
CDS (closing levels)
Markit iTraxx SovX Western Europe -0.02bps at 91.24bp
Markit iTraxx Europe -0.27bps at 94.03bp
Markit iTraxx Xover -1.2bps at 376.47bp
Sources: FT, Bloomberg, Markit
