Posts tagged 'Briefings'

The (early) Lunch Wrap

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NEWS

Obama tackled Romney more forcefully in the second US presidential candidates’ debate, striving to make up for lost ground in the first round. “Romney stumbled badly at one point in an exchange over the deadly attack on the US consulate in Libya,” and was most articulate on the economy. “Obama was much sharper and more energetic than in their first debate two weeks ago.” (Financial Times)(Reuters)(FT live blog)

Vikram Pandit stands to forfeit almost $33m in cash and stock from a retention package according to the terms of a May 2011 regulatory filing by Citigroup. Whether the board gives him a payout to ease his exit may reveal more about the circumstances around his departure.  Read more

The 6am Cut London

Romney basically won last night’s debate: Mitt Romney was widely viewed as more successful in the first US presidential debate of this campaign, in which he focused on weak growth and high unemployment. Two of Barack Obama’s top campaign advisers conceded that Romney won on style, even as they said the president won on substance. Read more

The 6am Cut London

Asian stock markets rose despite news of weaker Chinese services growth, stoking speculation the nation will step up measures to stimulate the economy and overshadowing concern about Spain’s reluctance to seek a bailout. (Bloomberg)

China’s non-manufacturing industries expanded at the weakest pace since at least March 2011. The services PMI fell to 53.7 from 56.3 in August. (BloombergRead more

The 6am Cut London

NY lawsuit filed against JP Morgan over Bear Stearns MBS: New York Attorney General Eric Schneiderman filed a civil fraud lawsuit against JPMorgan on Monday over mortgage-backed securities packaged and sold by Bear Stearns, which JP Morgan bought in March 2008. The suit seeks unspecified damages and cites $22.5bn of losses were suffered by investors. It is the first action to come out of a working group created by President Barack Obama earlier this year to go after wrongdoing that led to the financial crisis. JP Morgan in a statement it would contest the allegations. Schneiderman’s office said: “We intend to follow up with similar actions against other sponsors and underwriters.”  (Financial Times)(Reuters)(Wall Street Journal)

EU report will call for bank bonuses to be paid in debt: The Liikanen commission, an independent review set up almost a year ago by EU commissioner Michel Barnier, will on Tuesday recommend reforms for long-term pay incentives as well as advocating ringfencing trading activities to make big banks safer. Some of the panel’s most radical measures have been toned down and Barnier will decide whether any of the proposals will be included in his reforms. (Financial TimesRead more

The 6am Cut London

Xstrata is set to recommend the latest offer from Glencore on Monday, after the miner on the weekend hammered out a novel structure designed to win support from its shareholders. Barring a last-minute glitch, Xstrata’s board will recommend the offer via a proposal that allows investors to support the deal even if they differ over the merits of the multimillion-pound packages designed to retain the company’s top ­executives. (Financial Times)

Asian shares fell after poor data from Chinese and Japanese manufacturing surveys. The MSCI Asia-Pacific was 0.7% lower in late morning Tokyo time. Markets in China, Hong Kong and South Korea were closed for holidays. (BloombergRead more

The 6am Cut London

Asian stocks remained under pressure amid concern that Europe’s debt crisis is worsening and global economic growth is slowing. The MSCI Asia Pacific index slipped 0.2 per cent, wiping out all the gains made after markets rallied on the US Federal Reserve’s QE3 announcement. (Financial Times) However China’s stocks rose for the first time in three days as on speculation the government would move to support markets after the Shanghai Composite fell below 2,000 yesterday. (Bloomberg) The rise in Spain’s 10-year yields yesterday has shaken faith that the ECB’s new bond-buying programme might end the crisis “merry-go-round”. (Financial Times)

Protesters descended on Spain’s parliament for a second night on Wednesday and prime minister Mariano Rajoy called on Spaniards to ignore “short-term interests” as he prepared to unveil 2013 budget plans today.  His government is also preparing to unveil a new reform programme and the results of a banking stress test. (Financial Times) Rajoy in a speech in New York said that sacrifices would have to be distributed evenly throughout society. (ReutersRead more

The (early) Lunch Wrap

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The 6am Cut London

Asian stocks extended losses as commodity shares and machinery makers slumped amid renewed concerns about the global economic slowdown and Europe’s financial crisis, following Germany’s weak IFO data. The MSCI Asia Pacific index inched down 0.1% with Japan’s Nikkei 225 Stock Average up 0.2%, South Korea’s Kospi Composite index down 0.2% and Australia’s S&P/ASX 200 index off 0.3%. (Financial Times)

Temasek sounding out potential buyers for its £6bn StanChart stake: Temasek, the fund owned by the Singapore government, had been judging buyer interest for its 18% shareholding in recent months, said people close to the situation. Bankers believe any ambition Temasek might have had to engineer a merger between StanChart and another of its investments, Singaporean bank DBS, has faded, given the complexities and regulatory hostility to big banking mergers. (Financial TimesRead more

The 6am Cut London

Asian stocks came under pressure after rising in the previous session on Japan’s monetary easing measures even though China’s manufacturing activity stabilised this month. The MSCI Asia Pacific index slipped 0.2% with Japan’s Nikkei 225 Stock Average down 0.5%, South Korea’s Kospi Composite index off 0.4% and Australia’s S&P/ASX 200 index 0.3% lower. (Financial Times)

China flash PMIs show slightly slower contraction: The preliminary reading was 47.8 for a manufacturing purchasing managers’ index released today by HSBC  and Markit Economics. It compares with a final 47.6 last month and points to the longest run of readings below 50 in the survey’s eight-year history. (Bloomberg)(StatementRead more

The (early) Lunch Wrap

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The 6am Cut London

Anti-Japanese protests spread across China: Thousands of Chinese protesters gathered outside the Japanese embassy in Beijing on Tuesday, some hurling water bottles at the heavily-guarded facility, and Japanese companies in China braced for an escalation of demonstrations over a territorial dispute between the two countries. Canon, Toyota, Honda and Mitsumi have all suspended some operations while Fast Retailing’s Uniqlo shops and many 7-11 stores are also closed. September 18 is the anniversary of Japan’s 1931 occupation of parts of mainland China. US election campaign criticisms of China and the White House’s decision to seek trade sanctions against China for illegal auto industry subsidies is further complicating the picture. (Financial Times)(Reuters)(Wall Street Journal)

US inflation expectations have risen sharply after the Fed’s QE3 announcement. Expectations for US inflation over the next 10 years rose as high as 2.73 per cent on Monday, based on the difference or the “break-even rate” between nominal and inflation-protected Treasury debt. It was the highest intraday break-even rate since May 2006. (Financial TimesRead more

The (early) Lunch Wrap

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The 6am Cut London

Asian stocks rose after the Federal Reserve outlined new easing measures on Thursday. The MSCI Asia Pacific index advanced 1.1 per cent with South Korea’s Kospi Composite index jumping 2.4 per cent, and Australia’s S&P ASX 200 adding 1.1%. Japan’s Nikkei 225 Stock Average gained 1.6%, topping 9,100 for the first time since August 28. Hong Kong’s Hang Seng index rose 2.3% while China’s Shanghai Composite index added 0.7%. (Financial Times)(Bloomberg)

The yield on mortgage securities guaranteed by Fannie Mae fell to a record low after news of the Fed’s planned MBS purchases. Yields were down by 24 basis points to 2.12%. The buying frenzy, by investors trying to get in before the Fed makes its first purchases, was in contrast to the initial sell-off in Treasuries, which some investors had hoped would be the focus of the central bank’s easing programme.(Financial TimesRead more

The (early) Lunch Wrap

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The 6am Cut London

Asian shares were little moved as investors waited to see if the US Federal Reserve on Thursday outlines another bout of quantitative easing, or at least reaffirms its commitment to intervene should economic conditions warrant it. Japan’s Nikkei was up 0.5 per cent while South Korea’s Kospi was up 0.1 per cent and Australia’s S&P/ASX 200 was off 0.3 per cent. In Hong Kong the Hang Seng was flat and on the mainland the Shanghai Composite was down 0.5 per cent. (Financial Times)

It’s QE3 day — maybe. “Many economists are confident the Fed’s policy-setting Federal Open Market Committee will deliver a third round of quantitative easing, or QE3. On median, they see a 60 percent chance, according to a Reuters poll.” The decision is due at about 12.30pm New York time or 5.30pm in London. (ReutersRead more

The 6am Cut London

Asian stocks rose for a fifth consecutive session after Wen Jiabao, China’s premier, signalled Beijing had room to do more to shore up slowing growth in the world’s second-biggest economy. The MSCI Asia Pacific index advanced 0.4% with Japan’s Nikkei 225 Stock Average up 1.2%, South Korea’s Kospi Composite index adding 0.9% and Australia’s S&P/ASX 200 index 0.7% higher. Hong Kong’s Hang Seng index rose 1% and China’s Shanghai Composite index gained 0.6%. (Financial Times)

It’s Karlsruhe day. The German Constitutional Court ruling on the ESM and the fiscal compact is due at 8am GMT. (ReutersRead more

The (early) Lunch Wrap

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Asian shares tracked Wall Street lower as caution crept in ahead of the Federal Reserve’s meeting and German court ruling on the legality of the eurozone’s rescue fund later this week. The MSCI Asia Pacific index retreated 0.5 per cent and headed for its first fall in four days. (Financial Times)(Bloomberg)

The performance of troubled Olympics contractor G4S will be reviewed “very carefully”, the Cabinet Office has warned, in a shake-up of outsourcing contracts across government that has already seen two IT companies — one of which is Fujitsu — struck off its list for future tenders. (Financial TimesRead more

The 6am Cut London

Glencore softened terms of its offer for Xstrata, saying it would keep Sir John Bond on as chairman of the mining company as part of the revised offer and retaining the same balanced board structure as proposed in February, with equal numbers of non-executive directors from each company’s board. Xstrata, which on Friday said it needed more information to consider Mr Glasenberg’s latest plans, declined to comment on Sunday and Qatar Holding, a key shareholder in Xstrata, is awaiting the board’s response. (Financial Times) Glencore could publish details of its revised offer as early as today. (Reuters)

Confidence is growing that a German court may approve the ESM in its ruling on Wednesday, and there are fresh signs that pro-EU parties in the Netherlands have surged ahead in national elections.  Meanwhile Olli Rehn, Brussels’ economics commissioner, said the “strict and effective” conditions described in the Outright Monetary Transactions programme would be much the same as the annual Brussels-led recommendations for national governments’ fiscal targets and economic reforms, but with greater detail and timetables for implementation. (Financial TimesRead more

The (early) Lunch Wrap

Good morning New York…

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The 6am Cut London

Asian stocks rose on news of the ECB’s bond buying programme and US employment data, with the MSCI Asia Pacific index rising 1.2% and headed for its biggest gain in a month. Shares in companies exposed to Europe benefited, with Canon gaining 3.4%. Toyota, which depends on North America for a quarter of its sales, added 2.1% after data showed US jobless claims fell. (Bloomberg) Earlier, the S&P 500 rose to its highest level since 2008. (Financial Times)

Spain will not be forced into requesting a rescue until the attached conditions become crystal clear, senior officials in Madrid insisted on Thursday. MarioDraghi’s insistence that intervention from the ECB’s new bond-buying would come with “strict and effective” conditionality has effectively scrapped the “conditionality-lite” programmes Spain agreed to in June, erasing political gains the Rajoy government thought it had secured. (Financial TimesRead more

The 6am Cut London

Asian stocks were little changed as investors were cautious ahead of the ECB’s meeting later in the day. The MSCI Asia Pacific index was steady with Australia’s S&P/ASX 200 index up 0.9 per cent and South Korea’s Kospi Composite index adding 0.2 per cent while Japan’s Nikkei 225 Stock Average slipped 0.2 per cent, falling for a sixth consecutive session. (Financial Times) The euro rose more than 1% on Wednesday after several leaks raised hopes about the ECB’s plans. (Reuters)

The ECB won’t target a formal cap on bond yields under its new plan to buy distressed eurozone sovereign debt, two people familiar with the matter said. The plan is to be revealed in detail later today. (Financial TimesRead more

The (early) Lunch Wrap

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Asian shares fell for a fifth consecutive session on concerns about US economic growth, following weak manufacturing data from the world’s largest economy, while Australian miners took a hit from falling iron ore prices. The MSCI Asia Pacific index dipped 0.5 per cent with Japan’s Nikkei 225 Stock Average down 0.6 per cent, South Korea’s Kospi Composite index off 1.2 per cent and Australia’s S&P/ASX 200 index 0.7 per cent lower. (Financial Times) The US manufacturing sector contracted for the third straight month in August, the longest slide since the recession ended, in line with recent data showing a pullback in business spending. (Financial Times)

The US Department of Justice intends to prove at trial that gross negligence or wilful misconduct by BP caused the 2010 Deepwater Horizon disaster in the clearest statement yet that they are seeking the maximum possible penalties from the company. The company was seeking a resolution for a total of about $15bn, but if the DoJ can establish gross negligence, the penalties under the Clean Water Act would be up to $21bn, with compensatory and punitive damages would come on top of that sum. (Financial TimesRead more

The 6am Cut London

Asian stocks fell as poor data from the region’s biggest economies fuelled concern about growth. Korea’s inflation rate slowed to the weakest pace in 12 years in August, a Japanese report showed companies’ capital spending gained less than expected, and China’s official manufacturing PMI figure published on Saturday indicated contraction at 49.2, when expectations were for a reading of about 50.1. (Bloomberg)

Only a quarter of Germans think Greece should stay in the eurozone or get more help from other countries in the currency union, a Financial Times/Harris poll has found. Fifty-four per cent of Germans think Greece should leave the eurozone, while in France only 32% gave the same reply. (Financial Times)(Survey results – PDFRead more

The 6am Cut London

Asian stocks fell as investors awaited Ben Bernanke’s speech later on Friday, and reports showed an unexpected decline in Japan’s industrial output and manufacturing activity contracted to the lowest level in 16 months. South Korea’s second consecutive month of decline in industrial output also dampened exporters there (BloombergFinancial Times).

The ECB would have sweeping powers over all eurozone banks under draft plans drawn up by the European Commission, although Germany and the ECB itself have urged more decentralised steps towards a eurozone banking union. The EC plan, which is still being drafted and will be unveiled on September 12, would strip national supervisors of almost any authority to shut down or restructure their countries’ failing banks, handing this power to a new ECB board separate to its governing council (Financial Times). Read more

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Mario Draghi said it was justified for the ECB to use “exceptional measures” as part of its mandate to keep prices stable in the eurozone, in an apparent rebuff to German criticism. “Fulfilling our mandate sometimes requires us to go beyond standard monetary policy tools,” Draghi wrote in German newspaper, Die Zeit. Many details of the ECB’s bond-buying programme appear yet to be fleshed out ahead of the September 6 announcement. (Financial Times)

Barclays is facing a fresh criminal probe as the SFO investigates payments the bank made as part of its 2008 capital raising. Barclays in a short statement on Wednesday night said the SFO had commenced an investigation into payments under certain commercial agreements between Barclays and Qatar Holding LLC”. (Financial Times) Read more

The (early) Lunch Wrap

Good morning, New York…

FT ALPHAVILLE Read more

The (early) Lunch Wrap

Good morning, New York…

FT ALPHAVILLE Read more

The 6am Cut London

Asian shares were under pressure as investors remained cautious ahead of US GDP and the Jackson Hole central bankers’ meeting later in the week. The MSCI Asia Pacific index slipped 0.3 per cent with Japan’s Nikkei 225 Stock Average down 0.2 per cent, South Korea’s Kospi Composite index off 0.1 per cent and Australia’s S&P/ASX 200 index flat. (Financial Times)

Japan’s government lowered its economic outlook, cutting its forecasts for personal consumption, homebuilding, exports, imports and industrial production. Some economists believe the country’s economy will contract this quarter. (BloombergRead more