US stocks close at a fresh record closing high: The S&P 500 rose 0.7 per cent to 1,593.61, with the benchmark eclipsing its record high set earlier this year. The day’s gains came as investors welcomed a better than expected report on homes sales and remained optimistic that the Federal Reserve would maintain its aggressive stimulus programme ahead of meeting of central bankers beginning on Tuesday. the FTSE Eurofirst 300 index rose 0.5 per cent. Japan’s stock market was closed for a holiday. (Financial Times)
IMF warns over strong capital inflows into Asia: The international lender said strong capital inflows into Asia had increased the risks stemming from rapid credit growth and rising asset prices, but sounded an optimistic tone on the economic outlook for the region, which it expects to lead a “global three-speed recovery” with growth of 5.75 per cent this year. (Financial Times)
Deutsche Bank in €2.8bn share issue to shore up balance sheet: Germany’s biggest bank by assets on Monday said it would place 90m shares – equivalent to slightly less than 10 per cent of its equity base – with institutions. The bank said the share issue would vault it ahead of many peers in terms of its closely watched benchmark capital ratio. (Financial Times)
Fed faces calls for radical reform: A senior Republican congressman has called for everything from the gold standard to a price level target to be on the table in a 100th anniversary review of the Federal Reserve’s mandate. Kevin Brady, who chairs the joint economic committee, wants Congress to appoint a bipartisan commission that could lead to a radical change in the mandate of the world’s largest and most important central bank. (Financial Times)
Luxembourg set to share companies’ bank details: Under pressure amid a renewed global crackdown on tax evasion and avoidance, Luc Frieden, finance minister, said Luxembourg was willing to expand the number of accounts covered by new information-sharing agreements with the US and the EU to include global companies. The accords, agreed this month, currently only cover individual taxpayers. (Financial Times)
Santander’s Chief Executive Resigns: Alfredo Sáenz resigned on Monday as chief executive of Banco Santander, a move that ends a period of uncertainty over the bank’s leadership as Mr. Sáenz faced a possible ban from banking after a criminal conviction. (Dealbook)
FURTHER FURTHER READING
– The ghost in the house of wonks.
– Smartphone gaming your way to a free meal.
– Inflation nation, NOT.
– The booming online black economy.
– Canada’s upcoming housing bust?
– The fundamental problem of bank profitability.