Most Asian stocks fell, led by mining companies amid fears of a weaker outlook for global growth. The MSCI Asia Pacific index was 0.5% lower, the Nikkei and the Kospi fell 0.3% and the ASX was down 0.7%. The Hang Seng and the Shanghai Composite swung between gains and losses. Gold fell as much as 2.8% on outflows from ETFs. (Bloomberg)
Japan has posted its narrowest trade deficit for nine months, helped by a big rise in the value of shipments to the US, which has toppled China as Japan's number one export destination. Provisional figures from Japan's finance ministry today showed that overall exports rose 1.1 per cent in March from a year earlier to Y6.3tn ($64bn), while imports – boosted by fuel to replace idled nuclear capacity – were up 5.5 per cent to Y6.6tn. (Financial Times)
Apple shares dropped below $400 for the first time since December 2011 after one of its audio-chip suppliers, Cirrus Logic, reported an inventory glut that suggests iPhone sales may fall short of analysts' expectations. The company's shares are down 43% from their record high in September. On Tuesday the company is expected to report its first year-on-year decline in quarterly earnings for almost a decade, and sentiment was also weighed down by news that Apple was ordered by Chinese authorities to remove some content it hosted. (Bloomberg)(Financial Times)
Italy's centrist parties said to reach deal on President: "Senior parliamentarians in both parties told the Financial Times that an agreement had been made on the candidacy of Franco Marini, an 80-year-old former Speaker of the senate." President Giorgio Napolitano's term ends in mid-May, and a new head of state will have to try to break the deadlock from the inconclusive February elections. (Financial Times)
G20 talks in Washington begin today and central bank easing is expected to be in focus. The merits and risks of low interest rates and unconventional monetary policy were also debated at the IMF spring meetings yesterday. Currency valuations and debt reductions goals are also likely to be topics of debate. (Reuters)
Global policymakers will discuss the impact of unprecedented monetary policy easing at meetings in Washington this week along with the softly-softly approach central banks will need to eventually wean the world off super-cheap funds.
New BHP chief makes mark: Andrew Mackenzie, the new CEO of BHP Billiton, has moved to stamp his authority on the company with an overhaul of its senior management team that will see the head of petroleum, chief executive of the aluminium and nickel division, and head of ferrous and coal division all depart their roles. A new structure will mean five divisional chiefs all report directly to the CEO. (Financial Times)
Euro falls on Bundesbank comments: The German central bank's president Jens Weidmann "signaled that the ECB could reduce interest rates if incoming data suggest it is warranted. But he warned such a move wouldn't turn around the euro bloc's economic fortunes." Weidmann warned Europe's debt crisis could take another decade to overcome. (Wall Street Journal)
PBoC says China will press on with widening the Rmb trading band, despite slower than expected growth in Q1. "I think in the near future we are going to increase the floating band even further," PBoC vice governor Yi Gang said in Washington. (Wall Street Journal)
Net selling of overseas assets by Japanese institutional investors continued for a fifth week, but the rate of sales was much slower than in the first week of April. The sales have confounded expectations that Japanese investors would rush to buy foreign assets in the wake of the BoJ's new easing measures; but some analysts say it may still be too soon to expect massive outflows. (Wall Street Journal)
"Chinese banks must rate their clients' risk of criminal conduct on a scale of 1-5 as part of the central bank's moves to curb money laundering and fraudulent transactions estimated at hundreds of billions of dollars a year." (Reuters)
BP accepted responsibility for a critical Deepwater Horizon negative pressure test, as the first phase of the liability trial for damages and penalties over the 2010 disaster ended. However the company said it had strong safety systems and had not put the crew under pressure to finish the Macondo well more too quickly. (Financial Times)
COMMENT AND CURIOS:
- Reinhart and Rogoff: Robert Pollin and Michael Ash on 'Growth in a Time of Debt'. (Financial Times)
- The IMF must quit the Troika to survive. (Financial Times)
- Central bankers debate risks of unconventional policies ahead of IMF's spring meeting. (Financial Times)
- Jesse Eisenger looks at fears of a Fed-inspired bubble. (NYT/Propublica)
- Japanese swaps are already anticipating Kuroda's endgame. (Bloomberg)
OVERNIGHT MARKETS: DOWN
Asian markets
Nikkei 225 down -36.67 (-0.27%) at 13,346
Topix down -2.50 (-0.22%) at 1,134
Hang Seng down -10.08 (-0.05%) at 21,560
US markets
S&P 500 down -22.56 (-1.43%) at 1,552
DJIA down -138.19 (-0.94%) at 14,619
Nasdaq down -59.96 (-1.84%) at 3,205
European markets
Eurofirst 300 down -18.10 (-1.55%) at 1,148
FTSE100 down -60.37 (-0.96%) at 6,244
CAC 40 down -86.56 (-2.35%) at 3,599
Dax down -179.55 (-2.34%) at 7,503
Currencies
€/$ 1.31 (1.30)
$/¥ 98.25 (98.09)
£/$ 1.53 (1.52)
Commodities ($)
Brent Crude (ICE) down -0.02 at 97.67
Light Crude (Nymex) up +0.11 at 86.79
100 Oz Gold (Comex) down -18.60 at 1,364
Copper (Comex) down -1.80 at 317.00
10-year government bond yields (%)
US 1.69%
UK 1.67%
Germany 1.23%
CDS (closing levels)
Markit iTraxx SovX Western Europe -0.18bps at 100.58bp
Markit iTraxx Europe +1.84bps at 113.18bp
Markit iTraxx Xover +7.72bps at 453.69bp
Markit CDX IG +1.99bps at 84.11bp
Sources: FT, Bloomberg, Markit
