The 6am Cut London | FT Alphaville

The 6am Cut London

UK snow could increase triple-dip risk: “Economists have warned that heavy snowfall sweeping across the country could increase the chances that the UK enters a triple-dip recession, as commuters brace themselves for another week of bad weather.” Analysts expect Q4 data due for release on Friday to show the economy shrank 0.1%. (Financial Times)

Asian stocks swung between gains and losses as Japanese shares dropped after the yen rebounded from its lowest level against the dollar in 2 1/2 years.” The MSCI Asia Pacific was little changed in early afternoon trade, Tokyo time. (Bloomberg)

Allianz Global Investors to launch new UK infrastructure fund: “AllianzGI says it is the first fund from a mainstream asset manager to offer senior infrastructure debt, the safest form of fixed income assets, which is why some investors are hailing it is an important milestone for the markets.” (Financial Times)

Nokia Siemens Networks plans to raise debt in the public markets for finance for the first time, with a high-yield bond that will help gauge broader investor interest in the telecoms equipment maker. The joint-venture between Nokia and Siemens aims to raise as much as €700m with high-yield bonds this spring, according to people familiar with the plan. (Financial Times)

US regulator expands Boeing investigation: An update from the National Transportation Safety Board indicates the Japan Airlines owned Dreamliner that caught fire in Boston may not have had the same cause as the more recent incident that led to an ANA flight making an emergency landing last week. “The safety board’s update, released early Sunday, suggests different circumstances may have preceded the two incidents and that at least to some extent, the investigations surprisingly may be headed in divergent directions.” (Wall Street Journal)

China Vanke shares soar on H-share plan: Shares in China Vanke, the country’s biggest property developer by sales, rose by the 10 per cent daily limit on Monday after the company announced plans to open itself more widely to foreign investors by listing in Hong Kong through a share conversion. (Financial Times)

COMMENT AND CURIOS:

- Gavyn Davies: Are we seeing the great rotation from bonds to stocks? (Financial Times)

- Simon Johnson: The contenders to replace Bernanke. (Bloomberg)

- The curious story of Caterpillar’s China acquisition that went bad. (Wall Street Journal)

- ‘Misjudged the complexity of the issues’ – Bumi plc’s chairman speaks. (Financial Times)

- Japan’s stimulus seen boosting south-east Asia. (Bloomberg)

- Kim Dotcom is back… (Wall Street Journal)

- After Algerian attack, oil and gas companies reconsider security. (Financial Times)

- François Heisbourg on the loss of Franco-German Intimacy. (Financial Times)

OVERNIGHT MARKETS: DOWN

Asian markets
Nikkei 225 down -116.97 (-1.07%) at 10,796
Topix down -5.15 (-0.57%) at 906.29
Hang Seng down -6.81 (-0.03%) at 23,595

US markets
S&P 500 up +5.04 (+0.34%) at 1,486
DJIA up +53.68 (+0.39%) at 13,650
Nasdaq down -1.29 (-0.04%) at 3,135

European markets
Eurofirst 300 down -1.90 (-0.16%) at 1,164
FTSE100 up +22.05 (+0.36%) at 6,154
CAC 40 down -2.53 (-0.07%) at 3,742
Dax down -33.23 (-0.43%) at 7,702

Currencies
€/$ 1.33 (1.33)
$/¥ 89.59 (89.92)
£/$ 1.59 (1.59)

Commodities ($)
Brent Crude (ICE) down -0.36 at 111.53
Light Crude (Nymex) down -0.37 at 95.19
100 Oz Gold (Comex) unchanged 0.00 at 1,687
Copper (Comex) unchanged 0.00 at 366.35

10-year government bond yields (%)
US 1.84%
UK 2.01%

CDS (closing levels)
Markit iTraxx SovX Western Europe -0.78bps at 99.05bp
Markit iTraxx Europe +0.96bps at 103.93bp
Markit iTraxx Xover +3.53bps at 423.93bp
Markit CDX IG -0.5bps at 87.16bp

Sources: FT, Bloomberg, Markit