The 6am Cut London | FT Alphaville

The 6am Cut London

Asian stocks fell on Monday as concerns grew about Spain’s rising bond yields. China’s weekend decision to allow the yuan to trade in a wider band against the US dollar had negligible effect on  mostregional currencies and equities. (Wall Street Journal) The yuan itself fell the most in three months. (Bloomberg)

Goldman Sachs sold nearly half of its remaining stake in the Industrial and Commerical Bank of China before Asian markets opened Monday in its fourth large sale of the Chinese bank’s shares since 2009. (Wall Street Journal) Goldman raised about $2.5bn selling the stake to Temasek, sources said. (Bloomberg)

Three powerful Angolan officials have held concealed interests in an oil venture with Cobalt International Energy, the Goldman Sachs-backed explorer whose operations in one of the world’s most promising energy frontiers are under investigation by US authorities. (Financial Times)

Sarkozy breaks his pact of silence with Merkel on disagreements over ECB policy, saying: “We, the French, will open the debate on the role of the central bank in the support of growth”. (Financial Times)

Bo Xilai’s son has left his apartment near Harvard under escort of private security guards, according to a source. (Wall Street Journal)

Bank of Korea has cut its 2012 growth forecast to 3.5% from 3.7%. (Bloomberg)

Codelco  has had to buy from other copper miners to meet delivery obligations. Poor production out of Chile could counterbalance concerns about falling demand from China. (Financial Times) The industry is pondering whether the market could tip into surplus. (Wall Street Journal)

China’s renminbi move was welcomed by analysts, who say the widening of the volatility allowed in daily trading is a concrete step towards a free floating currency. (Financial Times)

Barclays’ tax planning business will be the subject of scrutiny in a US court case over whether deals the bank structured cost the government more t han $1bn in lost revenue. (Financial Times)(Trial documents)

Barclays will pay Bob Diamond more than £600,000 to offset his US tax liabilities. The payment is part of his contract but is likely to escalate shareholder disquiet over his remuneration. (Financial Times)

Jonnie Goodwin is leaving US investment bank Jefferies, which bought his boutique investment bank Longacre in 2007. Goodwin is setting up Lepe Partners, an “independent merchant bank” focused on media and internet transactions. (Financial Times)

Carlyle’s IPO will value the company at about $7bn, according to sources. (Wall Street Journal)


– Spain’s austerity targets are impossible, and are of a scale that is making investors nervous, says Wolfgang Munchau. (Financial Times)

– Chinese premier Wen Jiabao wrote that public supervision is needed to limit the abuse of power, and authorities must continue to work for a “clean government” in 2012. The piece, titled “Let Power be Exercised in the Sunshine”, was published in the Communist Party magazine. (Bloomberg)

– ‘A generation of investors’ may shun eurozone sovereign bonds. (Financial Times)

– James Gorman vs the bank haters. (Bloomberg)

– A new investment dynamic is emerging between Asia’s two largest economies as Chinese companies step up acquisitions in Japan. (Wall Street Journal)


Equities were lower in Asia on Monday on fears about Spain. [More]