Asian stocks climbed the most in a month and the yen weakened on positive manufacturing data. The MSCI Asia Pacific rose 1.4%, with the Nikkei rising 2.65% and the Topix up 2.5%. (Bloomberg)
Today: UK: Markit construction PMI. EU producer price index. US: Markit manufacturing PMI, ISM manufacturing index, construction spending for July.
Microsoft is to buy Nokia's mobile phone business and patents for €5.44bn ($7.2bn) in an all-cash deal that will reshape the telecoms industry on two continents and comprise a big bet that Microsoft can challenge Apple and Samsung. The deal includes €3.79bn for the devices unit and €1.65bnfor patents. Nokia CEO Stephen Elop will step aside to return to Microsoft. Nokia will become a telecoms equipment company, ending a 30-year roller coaster ride with phones. (Financial Times)(Bloomberg)
Vodafone shareholders set for $84bn payout: It would be one of the biggest ever payouts from a corporate asset sale. Verizon Communications agreed on Monday to pay Vodafone $130bn in cash and stock for its 45 per cent stake in their joint venture Verizon Wireless, the largest US mobile operator, in what will be the third biggest deal ever. (Financial Times)
Li says he's confident China will meet economic goals: "Recent data show employment and prices are stable and market expectations have "apparently" improved, Li said in a speech today at the China-ASEAN Expo in Nanning, China, that was broadcast on state television. The economy has "maintained stable development" since the first half and "confidence is increasing," Li said." (Bloomberg)
Centerbridge and Anacap in late-stage talks on EVO Banco acquisition: "Private equity groups are close to acquiring a division of one of Spain's nationalised lenders, in what would be the first significant foreign investment into the country's banking system since the start of the financial crisis." US group Centrebridge and London-based Anacap are bidding in a consortium, while another US private equity fund is also in the running to buy EVO, which is a subsidiary of Nova Galicia, people close to the talks said. (Financial Times)
Banks face new bail-in-able debt requirements: Mark Carney "said the move was a necessary component in the "ambitious" desire of the Group of 20 nations to stop the most important banks from being "too big to fail"." The plan would not be developed until 2015 at the earliest, he said. It's expected the big international banks will have higher requirements. (Financial Times)
"Citigroup has shed more than $6 billion in private-equity and hedge-fund assets in the past month, according to people familiar with the transactions, in order to comply with new regulations limiting banks' holdings of "alternative" investments." A $4.3bn private-equity fund called Citi Venture Capital International for an undisclosed price to Rohatyn Group, while a a $1.9bn emerging-markets hedge fund to the fund's managers, the sources said. (Wall Street Journal)
A group of US hedge funds criticised the Co-operative Bank as "irresponsible" after it revealed it would only formally negotiate with bondholders once it had finalised the terms of a £1bn debt exchange later this year. "The exchange is the critical element of the Co-op's plans to fill a £1.5bn capital hole caused by mounting losses on loans." (Financial Times)
Japanese government takes over Fukushima strategy: Japan has unveiled a Y47bn ($475m) strategy for dealing with a"n increasingly out-of-control spread of radioactive water at the stricken Fukushima Daiichi nuclear-power plant, in a move that for the first time gives the national government direct responsibility for cleaning up one of the world's worst nuclear disasters." Tepco shares rose 4.7% on the news. (Wall Street Journal)(FastFT)
Growth in British retail sales eased slightly in August after a bumper July. The British Retail Consortium said the total value of retail sales was 3.6% higher in August than a year ago, compared with 3.9% annual growth the previous month, which was the best July since 2006. Like-for-like sales were up 1.8%, compared to 2.2% in July. (Reuters)
Australian retail sales disappoint: "Overall retail sales rose 0.1 per cent in July month on month, against expectations of a 0.4 per cent gain, according to economists polled by Bloomberg." (FastFT)
ON FT ALPHAVILLE:
Vodazon tax: Can't... get... outraged.
Calling all fraudulent hedgie bounty hunters.
A financial vulnerability heatmap, Asia edition.
Markets Live has returned.
COMMENT AND CURIOS:
- Kill the old, French edition. (Financial Times)
- Crude oil shipping rates are heading for a 1997 low. (Bloomberg)
- Princeling hires abound in Hong Kong IPOs of Chinese banks. (Wall Street Journal)
- London's Walkie-Talkie building reflections melts car mirror. (Financial Times)
- Anglo-Irish art collection goes under the hammer for an expected €200,000. (Financial Times)
- Investors want to see more declines in Treasurys before they deemed a good buy. (Wall Street Journal)
OVERNIGHT MARKETS: UP
Asian markets
Nikkei 225 up +359.65 (+2.65%) at 13,933
Topix up +27.89 (+2.50%) at 1,146
Hang Seng up +234.97 (+1.06%) at 22,410
US markets
S&P 500 down -5.20 (-0.32%) at 1,633
DJIA down -30.64 (-0.21%) at 14,810
Nasdaq down -30.43 (-0.84%) at 3,590
European markets
Eurofirst 300 up +22.00 (+1.84%) at 1,217
FTSE100 up +93.26 (+1.45%) at 6,506
CAC 40 up +72.23 (+1.84%) at 4,006
Dax up +140.72 (+1.74%) at 8,244
Currencies
€/$ 1.32 (1.32)
$/¥ 99.45 (99.29)
£/$ 1.56 (1.55)
Commodities ($)
Brent Crude (ICE) down -0.13 at 114.20
Light Crude (Nymex) down -1.03 at 106.62
100 Oz Gold (Comex) down -2.80 at 1,393
Copper (Comex) up +0.06 at 3.28
10-year government bond yields (%)
US 2.82%
UK 2.88%
Germany 1.91%
CDS (closing levels)
Markit iTraxx SovX Western Europe -0.05bps at 89.94bp
Markit iTraxx Europe -3.6bps at 103.53bp
Markit iTraxx Xover -15.31bps at 418.73bp
Sources: FT, Bloomberg, Markit
