The 6am Cut London | FT Alphaville

The 6am Cut London

Asian shares fell for a fifth consecutive session on concerns about US economic growth, following weak manufacturing data from the world’s largest economy, while Australian miners took a hit from falling iron ore prices. The MSCI Asia Pacific index dipped 0.5 per cent with Japan’s Nikkei 225 Stock Average down 0.6 per cent, South Korea’s Kospi Composite index off 1.2 per cent and Australia’s S&P/ASX 200 index 0.7 per cent lower. (Financial Times) The US manufacturing sector contracted for the third straight month in August, the longest slide since the recession ended, in line with recent data showing a pullback in business spending. (Financial Times)

The US Department of Justice intends to prove at trial that gross negligence or wilful misconduct by BP caused the 2010 Deepwater Horizon disaster in the clearest statement yet that they are seeking the maximum possible penalties from the company. The company was seeking a resolution for a total of about $15bn, but if the DoJ can establish gross negligence, the penalties under the Clean Water Act would be up to $21bn, with compensatory and punitive damages would come on top of that sum. (Financial Times)

European MMFs planning to pass on negative short-term rates: Four of the biggest money market fund managers have told the FT that along with the rest of the industry they are looking at ways of passing on negative returns to investors. (Financial Times)

The risk of a prolonged global slowdown is increasing, Bank of Japan board member Ryuzo Miyao said on Wednesday. (Bloomberg)

Apple embarrased by hackers’ data leak: The hacker group AntiSec published a trove of sensitive information about 1m Apple devices on the eve of the launch of Apple’s new iPhone. AntiSec said it had obtained the database of Apple device-identifiers from an FBI agent’s laptop. (Financial Times) The company is widely expected to launch its new iPhone at a event announced for September 12. (Wall Street Journal)

China is considering raising its export tax rebates to boost trade, according to three people with direct knowledge of the plan. (Bloomberg)

Barclays has ousted an executive and a trader, both based in New York, over investigations into Libor manipulation, according to filings with regulator Finra. (Reuters)

FedEx said a sharp decline in manufacturing activity would harm its profits, with growth at the company’s Express business, its largest division, already hurt more than it had anticipated. FedEx reports its quarterly results on September 18. (Wall Street Journal)

Forex brokers are backing a series of changes unveiled by EBS, the world’s largest currency platform, designed to discourage predatory practices by high-frequency traders. (Financial Times)


– Joseph Joffe: Merkel’s good politics and bad economics. (Financial Times)

– John Kay: Why Sony didn’t invent the iPod. (Financial Times)

– Shell’s US Arctic difficulties are deterring other oil companies from working there. (Financial Times)

– US states are weighing up their losses related to Libor manipulation with a view to legal action. (New York Times)


Asian markets
Nikkei 225 down -59.45 (-0.68%) at 8,716
Topix down -6.19 (-0.85%) at 720.50
Hang Seng down -218.66 (-1.13%) at 19,211

US markets
S&P 500 down -1.64 (-0.12%) at 1,405
DJIA down -54.90 (-0.42%) at 13,036
Nasdaq unchanged 0.00 (0.00%) at 3,075

European markets
Eurofirst 300 down -12.49 (-1.14%) at 1,079
FTSE100 down -86.40 (-1.50%) at 5,672
CAC 40 down -54.67 (-1.58%) at 3,399
Dax down -82.25 (-1.17%) at 6,933

€/$ 1.25 (1.26)
$/¥ 78.43 (78.38)
£/$ 1.59 (1.59)

Commodities ($)
Brent Crude (ICE) down -0.20 at 113.98
Light Crude (Nymex) up +0.09 at 95.39
100 Oz Gold (Comex) unchanged 0.00 at 1,693
Copper (Comex) up +0.45 at 347.30

10-year government bond yields (%)
US 1.57
UK 1.63
Germany 1.37

CDS (closing levels)
Markit iTraxx SovX Western Europe -3.75bps at 227.16bp
Markit iTraxx Europe -1.52bps at 143.73bp
Markit iTraxx Xover -4.3bps at 569.6bp
Markit CDX IG -0.77bps at 101.08bp

Sources: FT, Bloomberg, Markit