The 6am London Cut | FT Alphaville

The 6am London Cut

Cyprus imposed severe capital controls: “Cyprus is to become the first eurozone country ever to apply capital controls – with limits on credit card transactions, daily withdrawals, money transfers abroad and the cashing of cheques – intended to prevent a vast outflow of euros when its banks open on Thursday. Under drastic measures that some analysts say are incompatible with monetary union, depositors would be able to withdraw no more than €300 in cash each day, said people familiar with the move. Transfers over €5,000 would require permission of the central bank.” (Financial Times)

Chevron cuts senior executives’ pay: “Chevron, the US oil group, is cutting the pay of its chief executive and other senior executives after high-profile safety failures. The board has decided to cut stock awards and cash bonuses for 2012 by about 10 per cent, according to a person familiar with the decision.” (Financial Times)

RBS and Lloyds must raise extra £9bn: “Britain’s two part-nationalised banks account for as much as £20bn of a £25bn capital shortfall across the sector identified by the UK’s new financial ­stability regulator, people close to the process said. The Financial Policy Committee announced yesterday that UK banks were overstating their capital by £52bn, after it scrutinised their balance sheets with tougher measures of risk and factored in looming fines and expected losses.” (Financial Times)

Google eyewear to be ‘made in USA’: “Google will manufacture Project Glass, its futuristic digital eyewear, in Silicon Valley, in a high-profile example of the return of electronics manufacturing to the US. Google is working with Hon Hai Precision Industry, the Taiwanese contract manufacturer better known as Foxconn, to assemble the sci-fi headset at a facility in Santa Clara, California, according to people familiar with the company’s plans.” (Financial Times)

Blacktone is open to keeping Michael Dell on as CEO if it gains control of Dell. Mr Dell began the current bidding war for the company with an offer to take it private alongside Silver Lake Partners, but his fate as founder and largest shareholder is likely to be key to any rival deal. Blackstone sees Mr Dell as a “potential ally” for securing control of the company if its bid succeeds. (Wall Street Journal)

American Airlines’ $11bn merger with US Airways received a bankruptcy judge’s approval. However, Judge Sean Lane objected to a clause giving a $20m severance package to AMR’s outgoing chief executive, Tom Horton (Reuters). The two airlines announced the merger plan in February, with the backing of creditors (Bloomberg).

COMMENT AND CURIOS

- Single supervisor? Not so fast. (Brussels blog)

- Icahn unleashed. (Forbes)

- Next stop for wealthy Russians: New York. (Guardian)

- Personality hunger and the regulation of consumptive choice. (L’Hote)

- Atheist-branded packages. (Marginal Revolution)

- Faster smartphones or better battery life? (Slate)

OVERNIGHT MARKETS: MIXED

Asian markets
Nikkei 225 down -173.29 (-1.39%) at 12,321
Topix down -14.93 (-1.43%) at 1,032
Hang Seng down -250.21 (-1.11%) at 22,215

US markets
S&P 500 down -0.92 (-0.06%) at 1,563
DJIA down -33.49 (-0.23%) at 14,526
Nasdaq up +4.04 (+0.12%) at 3,257

European markets
Eurofirst 300 down -4.51 (-0.38%) at 1,184
FTSE100 down -11.81 (-0.18%) at 6,388
CAC 40 down -37.00 (-0.99%) at 3,712
Dax down -90.58 (-1.15%) at 7,789

Currencies
€/$ 1.28 (1.28)
$/¥ 94.16 (94.43)
£/$ 1.51 (1.51)

Commodities ($)
Brent Crude (ICE) up +0.24 at 109.93
Light Crude (Nymex) up +0.04 at 96.62
100 Oz Gold (Comex) down -1.10 at 1,605
Copper (Comex) up +1.35 at 344.85

10-year government bond yields (%)
US 1.84%
UK 1.75%
Germany 1.27%

CDS (closing levels)
Markit iTraxx SovX Western Europe +2bps at 104.71bp
Markit iTraxx Europe +5.3bps at 128.42bp
Markit iTraxx Xover +9.22bps at 491.29bp
Markit CDX IG +2.08bps at 92.49bp

Sources: FT, Bloomberg, Markit