Good morning New York,
FT ALPHAVILLE
The road to liberalisation is paved with certificates of deposit: Starting today we get what is basically the first formal step to a fully fledged market based deposit rate system from China (honourable mention of course to those more informal weapons of mass ponzi). It's been coming and the move doesn't effect corporates or individuals, notes David, but in the context of the Shibor spike, deposit pressure and the post-plenum reform blush it's very worth noting.
NEWS
Venezuela poll cements ruling of Hugo Chávez successor: Venezuelan voters on Sunday helped cement President Nicolás Maduro's hold on power in a nationwide municipal poll overshadowed by an economy ravaged by shortages, a yawning fiscal deficit, and near-hyperinflation. (Financial Times)
Japanese Q3 growth revised down: An updated calculation showed economic output increased at an annualised rate of 1.1 per cent, compared with an initial estimate of 1.9 per cent announced in November. (Financial Times)
Chinese inflation slowed in November due mainly to a drop in food prices giving the government more room to push ahead with its slate of financial reforms. The consumer price index rose 3 per cent year-on-year, down from its 3.2 per cent pace in October and comfortably below the official 3.5 per cent target for 2013. (Financial Times)
HSBC sounds out spin-off of UK unit: As well as sounding out investors, the bank has also discussed the issue informally at board level, according to three people familiar with the project. Thinking is at an early stage, according to those involved, but the plan would be likely to involve the listing of a minority stake of up to 30 per in the UK retail and commercial banking operation. Investors estimate that such a business could float with a market capitalisation of about £20bn. (Financial Times)
Kazakhmys sells $1.3bn power station stake: Kazakhmys has sold its remaining stake in Kazakhstan's biggest power station for $1.3bn as it continues to shed peripheral assets and focus on its core copper-mining activities. (
Financial Times)
India markets hit new high after state elections: India's stock market hit a new high in early trading on Monday, buoyed by a wave of investor optimism following a resounding defeat for the ruling Congress party in state elections this weekend. (Financial Times)
Markets: Optimism on the global economy was helping stocks start the week in generally positive mood, with equity bulls bolstered by further weakness in the yen and Treasury yields easing back from recent highs. The FTSE All-World index was up 0.2 per cent as the FTSE Eurofirst 300 traded flat and US index futures suggested Wall Street's S&P 500 would advance 2 points to 1,807, which if held would match its record close. Asia-based investors got their first chance to react to Friday's news of robust US jobs growth, evidence that the world's biggest economy was picking up steam. Also supporting risk appetite was data released over the weekend showing better than expected trade numbers for China – which have contributed to the renminbi hitting a record high versus the US dollar – and a benign inflation rate that enables Beijing to be more flexible if monetary stimulus is required. (Financial Times)
