The IMF’s “bigger firewall” has been agreed, with commitments totalling an extra $430bn of lending capacity as meetings in Washington finished on Sunday, but questions remain over how any eurozone country would actually obtain access to the funds, says the New York Times.
François Hollande has taken a narrow lead in the first round of France’s presidential elections, setting up a run-off with Nicolas Sarkozy after a vote that saw one in five ballots go to the far right National Front, reports the FT. Those far right voters may decide the presidential election, says Reuters.
China flash PMIs for April came in at 49.1, a less contractionary figure than the March reading of 48.3. New orders and new export business remained “contracting, but at a slower rate”. Press release [PDF].
Pfizer is expected to sell its infant food business to Nestle rather than Danone although both companies made offers worth about $11bn, says Bloomberg, citing people familiar with the matter.
The FSA has lost a case involving UBS which was seen as a test of its efforts to punish senior managers when failings occur on their watch. The Upper Tribunal for Financial Services rejected the FSA’s case against John Pottage, the former chief executive of UBS’ UK wealth management business, says the FT.
Wal-Mart’s Mexico unit could be targeted by short sellers on Monday, says Reuters, after a report in the New York Times that the parent company shut down an internal investigation into whether bribery was extensively used to gain a big foothold in the local market.
CFTC chairman Gary Gensler is looking at possible ways to ease the effect of new derivatives rules on US banks’ foreign subsidiaries, and foreign banks operating in the US, says the FT. Any proposal that resulted would have to be approved by at least two other CFTC commissioners.
Repsol has said it will take legal action against any company that tries to invest in YPF, reports the FT.
COMMENT AND CURIOS
– “That the eurozone needs this money shows how totally dysfunctional it is,” says the FT in an editorial.
– Japanese automakers are less worried than their peers about the shortage of nylon-12 resin after a factory explosion in Germany, because they buy from a local supplier. (WSJ Japan RealTime)
– Japan’s stock market still host to plenty of insider trading. (Financial Times)
– China is buying up cows. Lots of them. All over the world. (Wall Street Journal)
– A big piece about fracking. (Financial Times)
Asian stocks advanced early on Monday, but later fell on poor earnings and China’s flash PMI.