ROUND-UP
FT markets round-up: “Stocks on Wall Street resumed gains and traded at fresh record highs after a lacklustre session in Europe in thin holiday markets. The S&P 500 rose 0.2 per cent to 1,617.50, after a record-setting week, which saw it breach the 1,600 level and close at all-time highs, supported by an upbeat US jobs report on Friday. But moves in Europe were less impressive. The FTSE Eurofirst 300 slipped 0.1 per cent as an index of eurozone services showed contraction for the 15th consecutive month. The PMI data for both manufacturing and services in the eurozone were not as bad as traders had expected, however, and pared losses for equities. The euro fell 0.3 per cent against the dollar after Mario Draghi, European Central Bank president, said the bank was “ready to act again” if economic indicators continued to disappoint.” (Financial Times)
Brussels trains its sights on Slovenia: “The European Commission is being pushed to take a tougher line with Slovenia amid mounting concerns that infighting is hampering the country’s ability to overhaul its banking sector and avoid becoming the next rescue target in the eurozone crisis. According to two senior eurozone officials, concerns have focused on “non-cooperation” between Slovenia’s finance ministry and central bank, which is responsible for supervising the financial sector. One of the officials said the central bank was being “obstructionist” towards the new government’s clean-up efforts.” (Financial Times)
China seeks to alter World Bank report: “China is leading an effort to water down the World Bank’s most popular research report in a test of the development institution’s new president, Jim Yong Kim. According to people close to the matter, China wants to eliminate the ranking of countries in the Doing Business report, which compares business regulations – such as the difficulty of starting a company – in 185 different nations.” (Financial Times)
New York State to sue BofA and Wells Fargo: “New York state said it intends to sue Bank of America and Wells Fargo for allegedly repeatedly violating the terms of the $25bn national mortgage settlement. Eric Schneiderman, New York state attorney-general, said the state had documented 339 violations since October 2012 of new rules on how mortgages are serviced. Bank of America allegedly violated the servicing rules 129 times while Wells Fargo allegedly violated the terms 210 times.” (Financial Times)
BofA reaches mortgage settlement with MBIA: “Bank of America agreed to pay $1.7bn to MBIA, the bond insurer, settling a long-running legal battle and sending shares in both companies sharply higher. The settlement is a lifeline for MBIA, which had struggled to survive demands for payouts linked to soured mortgages. Its shares rose 45 per cent.” (Financial Times)
FURTHER FURTHER READING
- Uncertainty, liquidity hoarding and financial crises.
- Austerity and jobs.
- Possible complications with the Fed’s exit plan.
- CEOs and buybacks.
- Welcome to the post-Bric world.