Asian stocks rose for the first time in three days as investors awaited the release of US jobs data and reacted to the ECB’s rate cut. Metals gained, while the dollar weakened. The MSCI Asia Pacific ex Japan was 0.2% higher, the Hang Seng rose 0.7%. Japan’s markets are closed. Bloomberg’s analyst survey median forecast is for a 140,000 gain in April in official US payrolls later today. (Bloomberg)
RBS to send clearest signal on reprivatisation: Sir Philip Hampton, chairman, will announce today that the bank will be ready to start preparing information on a share sale as soon as next year. RBS had previously indicated that next year would be a suitable time to consider the future of the government’s 82% stake. Although this announcement will be the strongest signal yet that RBS is on the final stretch of its massive restructuring, Sir Philip will not be calling on the government to begin a reprivatisation. (Financial Times)
Three frontrunners have emerged to take the reins at Shell when Peter Voser steps down as CEO next year. “The three are Marvin Odum, who heads Shell’s exploration and production – or upstream – division in the Americas; Andy Brown, who runs all other upstream operations; and Simon Henry, the group’s chief financial officer, who plays a key role in crafting Shell’s corporate strategy.” (Financial Times)
Bharti Airtel to receive $1.26bn Qatari investment after missing profit estimates: “Bharti will sell 199.9 million new shares to the Qatar endowment, representing a 5 percent stake, according to an e- mailed statement today. Shares rose as much as 4.7 percent in Mumbai trading.” (Bloomberg)
JP Morgan devised ‘manipulative schemes’: “Government investigators have found that JPMorgan Chase devised “manipulative schemes” that transformed “money-losing power plants into powerful profit centers,” and that one of its most senior executives gave “false and misleading statements” under oath.” The bank is under by at least eight US regulators. (New York Times)
Macquarie Group has recorded an increase in annual profits for the first time in three years and announced a big dividend increase, sending shares in the Australian investment bank to their highest level since 2010. (Financial Times)
Intel has promoted 30-year veteran Brian Krzanich to CEO, as the world’s largest chipmaker by sales navigates a post-PC world dominated by smartphones and other mobile devices. In contrast to his predecessor Paul Otellini, who was the first non-engineer to lead Intel, Krzanich has been heavily focused on the manufacturing operations. (Financial Times)
Italy wants to join ‘virtuous’ deficit club: Fabrizio Saccomanni, finance minister in the country’s new coalition government, talked of joining a “small group of virtuous countries” that have met Europe’s budget targets said Italy is committed to remaining within that limit. Saccomanni and Enrico Letta, the new prime minister, have stressed their commitment to keeping Italy within the 3% budget deficit limit this year, even while promising to cancel tax increases imposed by Mario Monti’s previous technocrat government. (Financial Times)
Slovenia issued $3.5bn of bonds on Thursday, ameliorating concerns that it will have to be bailed out by the eurozone to pay for its banking sector clean-up. The bond sale had been scheduled for Tuesday but was delayed after Moody’s that day cut the country’s credit rating to “junk”. However demand for the five and 1o year bonds was even stronger than when the book had first been closed. (Financial Times)
COMMENT AND CURIOS:
- Samuel Brittan: Reinhart & Rogoff and the spell of magic numbers. (Financial Times)
- Steve Jobs would’ve bought Tesla. (Bloomberg)
- William Pesek: Abenomics and the second 100 days curse. (Bloomberg)
- The Pentagon approved Blackberry 10s and Samsung phones for use on its network. (Bloomberg)
- How China’s flexing of its anti-trust muscle is causing headaches for global mergers. (Reuters)
OVERNIGHT MARKETS: UP
Asian markets
Nikkei 225 down -105.31 (-0.76%) at 13,694
Topix down -5.09 (-0.44%) at 1,153
Hang Seng up +155.40 (+0.69%) at 22,824
US markets
S&P 500 up +14.89 (+0.94%) at 1,598
DJIA up +130.63 (+0.89%) at 14,832
Nasdaq up +41.49 (+1.26%) at 3,341
European markets
Eurofirst 300 up +5.00 (+0.42%) at 1,207
FTSE100 up +9.42 (+0.15%) at 6,461
CAC 40 up +2.01 (+0.05%) at 3,859
Dax up +48.00 (+0.61%) at 7,962
Currencies
€/$ 1.31 (1.31)
$/¥ 97.95 (97.95)
£/$ 1.55 (1.55)
Commodities ($)
Brent Crude (ICE) down -0.22 at 102.63
Light Crude (Nymex) down -0.19 at 93.80
100 Oz Gold (Comex) up +4.50 at 1,472
Copper (Comex) up +4.55 at 315.00
10-year government bond yields (%)
US 1.62%
UK 1.63%
Germany 1.17%
CDS (closing levels)
Markit iTraxx SovX Western Europe -0.3bps at 93.63bp
Markit iTraxx Europe -4.75bps at 95.55bp
Markit iTraxx Xover -15.55bps at 387.38bp
Markit CDX IG -3.5bps at 74.27bp
Sources: FT, Bloomberg, Markit