Asian shares retreated, the yen weakened and silver prices continued to slide as the BoJ begins its monthly two-day policy meeting today. The Nikkei rose 0.1% while the Hang Seng fell 0.5% and the Kospi was 0.1% higher. The yen weakened 0.3% to 102.54 per US dollar, and silver slipped 1.7% after a 2.5% rally yesterday. (Financial Times)(Bloomberg)
A major disaster has been declared in Oklahoma by US president Barack Obama who ordered federal aid be made available after a tornado devastated the town of Moore. At least 51 people were killed and damage is still being assessed. (Bloomberg)(Reuters)
Congress accuses Apple of avoiding billions in tax: US congressional investigators on Monday accused Apple of avoiding paying billions in taxes around the world by exploiting loopholes and using Irish subsidiaries that are not tax residents of any country. The Senate permanent subcommittee on investigations released a 40-page report of a hearing on Tuesday, which said the company used technicalities in Irish and American tax law to pay virtually no corporate taxes on at least $74bn over the past four years. Apple denied entities were set up with the aim of avoiding taxes. Subcommittee staffers said Apple was not breaking any laws and had cooperated fully with the investigation.(Financial Times)(FT Alphaville)(Reuters)
Qatar buying fresh stakes in key banks: “The Qatar Investment Authority, the principal fund responsible for allocating the gas-rich emirate’s vast wealth, is poised this week to invest up to $1bn as part of a $3.2bn capital raising by VTB, Russia’s second-biggest bank, according to people close to the transaction.” Qatar was key among new investors in Deutsche Bank’s €2.9bn capital raising three weeks ago, according to bankers, who said the state authority invested more than €100m. (Financial Times)
Goldman Sachs is selling its remaining shares in Industrial & Commercial Bank of China for about $1.1bn. Goldman’s sixth sale of the stock since 2009 completes its exit from ICBC, in which it bought a 4.9% stake for $2.58bn in 2006. The latest move brings the total raised from sales to about $10bn. The exit comes ahead of new capital regulations that raise the cost of holding stakes in other financial companies. (Wall Street Journal)
Riverstone leads talks of $1bn commodities venture: “US private equity group Riverstone is leading talks on an investment of as much as $1bn in a new commodities investment venture to be run by a former Deutsche Bank executive who aims to plug a funding gap left by the banks.” (Financial Times)
COMMENT AND CURIOS:
- Japan’s brokerages look abroad, despite boom at home. (Wall Street Journal)
- Analysis: European Tobin tax plans likely to be diluted. (Financial Times)
- Patrick Jenkins: The time to fix European banking is now. (Financial Times)
- Coal’s ‘new normal’: $100/tonne, half 2008 peak. (Bloomberg)
- The ‘big data’ risk to financial markets. (Financial Times)
- ENRC: Minorities deserve more – Lex. (Financial Times)
OVERNIGHT MARKETS: QUIET
Asian markets
Nikkei 225 down -2.72 (-0.02%) at 15,358
Topix down -0.06 (0.00%) at 1,269
Hang Seng down -117.49 (-0.50%) at 23,376
US markets
S&P 500 down -1.18 (-0.07%) at 1,666
DJIA down -19.12 (-0.12%) at 15,335
Nasdaq down -2.54 (-0.07%) at 3,496
European markets
Eurofirst 300 up +3.91 (+0.31%) at 1,252
FTSE100 up +32.57 (+0.48%) at 6,756
CAC 40 up +21.58 (+0.54%) at 4,023
Dax up +57.83 (+0.69%) at 8,456
Currencies
€/$ 1.29 (1.29)
$/¥ 102.52 (102.26)
£/$ 1.53 (1.53)
Commodities ($)
Brent Crude (ICE) up +0.11 at 104.91
Light Crude (Nymex) up +0.04 at 96.75
100 Oz Gold (Comex) up +3.20 at 1,388
Copper (Comex) unchanged 0.00 at 335.70
10-year government bond yields (%)
US 1.96%
UK 1.93%
Germany 1.38%
CDS (closing levels)
Markit iTraxx SovX Western Europe -6.1bps at 82.64bp
Markit iTraxx Europe -1.03bps at 90.29bp
Markit iTraxx Xover -1.45bps at 380.23bp
Markit CDX IG +0.67bps at 71bp
Sources: FT, Bloomberg, Markit