Japan’s Nikkei 225 climbed above 15,000 for the first time since January 2008. The benchmark index reached as high as 15,109 and was up more than 2%. The Hang Seng rose 0.5% and the Kospi was flat. The MSCI Asia Pacific rose 0.8% and the yen weakened to 102.4 per dollar, the lowest since October 2008. (Bloomberg)
Today: Euro area GDP is due at 10am BST.
HSBC said it will target $2bn to $3bn of additional cost savings. The bank has sold or closed 52 businesses and announced 46,000 job cuts to eliminate $4bn of annual costs since CEO Stuart Gulliver took up the role in 2011. (Bloomberg)
Sinopec issues jumbo $3.5bn bond, Asia’s biggest in a decade: “The offering pushed the value of bonds issued this year in Asia, excluding Japan, in either U.S. dollars, euros or yen to US$59.91 billion, according to data provider Dealogic.” (Wall Street Journal) China is forecast to surpass the US as the world’s largest corporate debt market for non-financial companies in the next two years, according to a report from Standard & Poor’s. (Financial Times)
JC Flowers buys UK’s biggest debt collector, Cabot. “The deal is expected to value Cabot Credit Management at about £800m including debt, according to people familiar with the asset.” It will be Christopher Flowers’ biggest ever deal in the UK. (Financial Times)
“Some of JPMorgan Chase’s largest shareholders are sparing Jamie Dimon but voting against other directors in a contentious ballot on the board of the largest US bank, according to people familiar with the matter.” The vote next Tuesday could leave in doubt the position of directors such as Ellen Futter, a lightning rod for corporate governance activists. (Financial Times)
Three Chinese airlines cancelled some domestic flights after receiving threats. Shenzhen Airlines cancelled and aborted a total of three flights after receiving threats about them, and Juneyao Airlines also turned back a flight after receiving a threat. China Eastern also received threats about flights, according to a state broadcaster. (Bloomberg)
COMMENT AND CURIOS:
- Martin Wolf: Why the world faces climate chaos. (Financial Times)
- Loeb ventures into Japan, where many activist investors have failed. (Financial Times)
- Matthew Klein: How can we tell if Abenomics is working? (Bloomberg)
- Hedge funds, including Paulson & Co, are betting on a Fannie and Freddie rise. (Wall Street Journal)
- Insurers stray from conservative line on climate change. (New York Times)
- Private equity focus shifts as buyout returns become more difficult. (Wall Street Journal)
- Lloyd Blankfein is advising Jamie Dimon in a role reversal. (NYT Dealbook)
OVERNIGHT MARKETS: UP
Asian markets
Nikkei 225 up +272.90 (+1.85%) at 15,031
Topix up +21.18 (+1.72%) at 1,252
Hang Seng up +115.97 (+0.51%) at 23,046
US markets
S&P 500 up +16.57 (+1.01%) at 1,650
DJIA up +123.57 (+0.82%) at 15,215
Nasdaq up +23.82 (+0.69%) at 3,463
European markets
Eurofirst 300 up +5.57 (+0.45%) at 1,237
FTSE100 up +54.30 (+0.82%) at 6,686
CAC 40 up +20.86 (+0.53%) at 3,966
Dax up +59.82 (+0.72%) at 8,339
Currencies
€/$ 1.29 (1.29)
$/¥ 102.13 (102.38)
£/$ 1.52 (1.52)
Commodities ($)
Brent Crude (ICE) up +0.08 at 102.68
Light Crude (Nymex) up +0.08 at 94.29
100 Oz Gold (Comex) up +0.50 at 1,425
Copper (Comex) unchanged 0.00 at 329.05
10-year government bond yields (%)
US 1.98%
UK 1.91%
Germany 1.39%
CDS (closing levels)
Markit iTraxx SovX Western Europe -0.14bps at 89.45bp
Markit iTraxx Europe -0.82bps at 96bp
Markit iTraxx Xover -8.2bps at 388bp
Markit CDX IG -0.73bps at 72.75bp
Sources: FT, Bloomberg, Markit