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Markets: “Asian stocks stumbled to their lowest in five weeks on Monday after a batch of weak data out of China raised the spectre of a sharp slowdown in the world’s second-biggest economy. The Australian dollar, considered a liquid proxy for China plays, also took a hammering and slumped to a six-month low… Data released on Saturday showed China’s factory output grew at the weakest pace in nearly six years in August, while growth in other key sectors also cooled. “This confirms a slowdown in growth momentum in Q3 following the Q2 rebound,” analysts at Barclays wrote in a note to clients, adding they have cut their 2014 growth forecast for China to 7.2 percent from 7.4 percent.” (Reuters) Read more
Markets: Asian bourses were mixed following the release of data showing that Chinese credit grew in August, while US investors continued to fret over the likelihood of the Federal Reserve boosting interest rates. Aggregate financing – a measure of credit in China that includes bank loans and lightly-regulated trust products funded by retail investors – was Rmb957.4bn ($156bn) in August. That was up from Rmb273bn in July, hinting that Beijing is allowing banks to lend more freely amid a property market downturn — trust lending fell by Rmb51.5bn, after also falling by Rmb15.8bn in July.. (FT’s Global Markets Overview) Read more
The latest from the crew at Credit Suisse:
The chart below shows the spread between the “Yes” and “No” vote in various polls since the start of the year. The narrowing of the gap has been sudden, and looks to have been a consequence of both “No” voters switching to “Yes” and the hitherto large pool of undecided voters starting to drift towards the “Yes” camp. Although that trend is not clear across all polls, two major national polling organizations – YouGov and TNS – have picked it up. And, perhaps more critically, all the opinion polls are now showing a tight race. … Read more
Markets: Asian bourses were mixed after China reported weaker than anticipated inflation figures for August. Sydney’s S&P/ASX 200 was down 0.2 per cent, following the release of jobs data. Australia’s headline unemployment rate fell from the 12-year high it reached in July, mainly due to an increase in the number of part-time positions. (FT’s Global Markets Overview) Read more
Markets: Most Asian bourses were unmoved by bold policy action from the European Central Bank, but Japanese equities received a lift after the yen hit a six-year low against the strengthening US dollar. The next market focus is Friday’s key US non-farm payrolls data, for more clues to the path of US monetary policy. Thursday’s report from private sector payrolls operator ADP, a key forecasting tool, showed that 204,000 jobs were created last month, missing estimates of 220,000. For the official reading, forecasters are looking for 230,000 new private and public jobs – the seventh straight month above 200,000 – up from July’s 209,000. In the US, the S&P 500 touched a record intraday high of 2,011.17 before switching direction on the back of falling energy stocks, led by BP after the latest US court ruling on the 2010 Deepwater Horizon disaster, to close 0.2 per cent lower. (FT’s Global Markets Overview) Read more
Group LP has agreed to pay Mr. Cantor an annual base salary of $400,000. Group LP has also agreed to pay Mr. Cantor an initial cash amount of $400,000 and grant Mr. Cantor $1,000,000 in initial restricted stock units (“RSUs”), based on the average closing price of the Company’s common stock on the five trading days prior to his start date. The initial RSUs will generally vest in equal installments on each of the third, fourth and fifth anniversaries of his start date.
For calendar year 2015, Group LP has agreed to pay Mr. Cantor minimum incentive compensation of $1,200,000 in cash and $400,000 in incentive RSUs, payable in equal quarterly installments. The incentive RSUs will generally have the same vesting schedule as incentive RSUs granted to Group LP’s other Managing Directors.
Markets: Bourses across Asia began the new month on an upbeat note, despite weak manufacturing data in China where the official PMI fell to a reading of 51.1 for August, from 51.7 in July, while HSBC’s private measure was revised down to 50.2 from a preliminary August reading of 50.3. The upward moves also came after the S&P 500 notched yet another record high close on Friday, rising 0.3 per cent to 2,003. US markets will be shut on Monday for Labor Day. (FT’s Global Markets Overview) Read more
Markets: Hopes for further easing from the European Central Bank boosted equities overnight but the rally has failed to extend into Asia. Overnight, the S&P 500 briefly traded above the 2,000 mark for the first time, before closing 0.5 per cent higher at 1,997.94. (FT’s Global Markets Overview) Read more
Felix Salmon on the redundancy of banks, in Friday’s FT:
Today’s big Silicon Valley deals are not based on corporate synergies, or the amount that earnings per share will increase after the deal closes. They are not, therefore, based on the sort of thing that bankers can model. (Very few of the acquired companies have any earnings at all; some even lack revenues.)
A discussion between FT banking editor Martin Arnold and Lombard editor Jonathan Guthrie:
We have no idea if Andrew Mackenzie, the Scottish-born chief executive of BHP Billiton, is favour of independence.