FT markets round-up: “Financial markets adopted a broadly cautious tone as a big week in terms of central bank meetings and economic data releases got under way. The Federal Reserve, the European Central Bank and the Bank of England are all scheduled to unveil policy decisions this week while a heavy schedule of global macro data will culminate on Friday with July’s all-important US non-farm payrolls report.” (Financial Times)
Publicis and Omnicom face hard sell: “Investors have given a lukewarm reaction to the proposed $35bn merger of Publicis and Omnicom, as the creation of a new Franco-US leader of the global advertising and marketing industry faced scrutiny from clients, regulators, rivals and analysts. The unexpected combination of the industry’s second and third largest companies by revenue, with a promised $500m of annual synergy benefits after five years but no premium for either company’s shareholders, left shares in Publicis up only 0.25 per cent at €59.50 as trading closed in Paris. Omnicom shares closed 0.55 per cent lower at $64.75 in New York.” (Financial Times) Read more
The ECB, BOE and Fed all meet this week, though expectations vary about what will emerge from each:
— The Fed: The FOMC seems unlikely to announce anything major regarding its possible tapering strategy until September, though as always its post-meeting statement will be scrutinised for changes regarding the committee’s outlook for the economy. Some private sector strategists think the Fed could introduce a tapering schedule as soon as this week’s meeting without actually beginning to taper. But given the obviously unanticipated and unwelcome market reaction to Bernanke’s comments about tapering in the latest meeting, we doubt it. If anything, the minutes to this meeting will probably be more interesting than the statement itself. Then again, the FOMC has surprised us before, so we could turn out to be wrong. Read more
Quelle blague with the pari passu saga, sometimes.
You go to all this effort to scare off the IMF from so much as bleating some tame reservations to the Supreme Court about how a ratable payment of holdouts by Argentina might hurt global ‘policy’ on sovereign debt restructuring. Despite ‘policy’ being something many expected the fund to look at.
Then you watch the French swoop in anyway. And they’re much fiercer than the IMF was going to be. Read more
The US said he was busy “managing the nation’s economy”.
Well, tough. Read more
Live markets commentary from FT.com
Publicis and Omnicom’s $35bn tie-up || European demand for oil is on the rise for the first time in two years || Haruhiko Kuroda, Bank of Japan governor, has come out in support of a politically contentious plan to raise the national sales tax || The SFO is set to receive around £2m in special “blockbuster” funding || Siemens is preparing to remove CEO Peter Loescher || Perrigo has agreed to buy Ireland-based Elan Corp for $8.6bn || China will freeze investigations into European wine and polysilicon exports || Rio sells copper mine stake for $820m || Grant Thornton accused of misleading SFO || Markets wrap || FTAVs latest Read more
From Reuters on Monday:
China money rates jump at month-end, big banks refrain from lending
Though, apparently it’s all due to month-end factors:
SHANGHAI, July 29 (Reuters) – China’s money rates rose sharply on Monday as small banks scrambled to top up their cash reserves before the end of the month while big banks held off from lending, traders said. A dealer at a foreign bank in Shanghai said that conditions were tight but the community widely expected them to relax slowly over the course of the next few days.
Elsewhere on Monday,
– The ‘knifing’ of Shiret.
– Bloomberg poaches The Atlantic’s Justin Smith. Read more
Japanese stocks fall || Publicis-Omnicom $35bn tie-up || European oil demand rises after 2 years || Siemens prepares to remove CEO || SFO to receive £2m special funding for Barclays || China to stop investigating Europe’s wine and polysilicon exports || Rio sells copper mine stake for $820m to China Molybdenum || Yellen has the best Fed forecasting record Read more