The 6am Cut London | FT Alphaville

The 6am Cut London

Asian stocks lost early gains after HSBC’s China flash PMIs for March were published, indicating a fifth month of contraction at 48.1. The final measure for February was 49.6. The MSCI ex-Japan index was largely flat after an 0.6% gain prior to the PMI release and Shanghai’s stocks fell into negative territory. (Bloomberg)(Reuters)

Backlash over UK Budget tax measures: ‘Pension anger mars business Budget’ (Financial Times). ”Granny tax’ hits 5m pensioners’ (The Telegraph)

Tata Communications is close to finalising a $2bn term loan to buy Cable & Wireless Worldwide, according to sources. (Reuters)

– The ECB’s second covered-bond buying programme could be dropped early. Only €9bn of assets have been purchased in the programme, launched in November 2011 with a €40bn target. The programme is due to finish in October at the latest.  The slowdown in purchases largely reflects improved market conditions, but it also comes amid discussions at the central bank about weaning banks off the ECB’s support. (Financial Times)

– Deutsche Bank has ditched its American bank holding company to avoid new rules under the Dodd Frank law that require US subsidiaries of foreign banks to hold capital locally. The German bank, fearing it would have to pump up to $20bn into the subsidiary, instead shifted assets once held in its American bank holding company into a new vehicle. (Wall Street Journal, Financial Times)

– Japan reported an unexpected trade surplus for February when exports fell less than economists had predicted. (Bloomberg)

Chevron’s head of Brazilian operations could face 31 years jail after prosecutors there filed criminal charges against 17 Chevron and Transocean employees for an oil spill last year in Rio de Janeiro. (Financial Times)

– An MF Global treasurer has been subpoenaed by a US congressional investigative panel. Edith O’Brien, a Chicago-based assistant treasurer at the failed futures broker, has so far refused to co-operate with the various inquiries into missing funds. (Financial Times)

Goldman lost a bid to dismiss a lawsuit alleging it used Hudson Mezzanine CDOs to offload risky securities to unsuspecting investors. (Reuters)


– A thumbs down for the UK Budget from Martin Wolf – more political, less economically important (Financial Times)

– Bunds’ safe haven status fades a little (New York Times)

– Is Brazil faking the currency wars, and if so, why? (Financial Times)

– LuLuLemon’s (weird) secret sauce: deliberate scarcity, eavesdropping employees, crazy growth. (Wall Street Journal)

– Investors are piling into the riskiest corporate bonds. Too much too soon? (Financial Times)


Asian markets lost some early gains on news that the HSBC flash China PMIs were negative for a fifth month. [More]