Asian stocks rose, paring earlier losses and leading some analysts to say this week's sell-off was overdone. The MSCI Asia Pacific rose 0.2% after earlier falling 0.3%. The yen weakened against the dollar by 0.4% to 98.6 after finance minister Taro Aso told reporters that Japan's policies were unopposed at the G20 meeting. (Bloomberg)
UK and IMF set for austerity dust-up: George Osborne is "prepared to 'aggressively' defend his policies" when an IMF team arrives in London next month to make an annual assessment of the British economy, according to aides. He fears that an anti-austerity faction is gaining ground within the Fund, which could formally urge for a relaxing of Osborne's fiscal plans, providing a boost to the Labour party. (Financial Times)
"Blackstone pulled out of bidding for Dell amid concerns about the computer maker's finances and the worsening outlook for global PC sales, said people with knowledge of the situation." (Bloomberg)
Italy's centre left splinters after failure to agree on president: "Questions were immediately raised over Pier Luigi Bersani's continued leadership of the Democratic party after many of his parliamentarians rebelled and voted against his preferred presidential candidate, Franco Marini, an 80-year-old former Catholic trade unionist widely seen as emblematic of a discredited establishment." The election of a new president was seen as a crucial step towards either forming a new government or dissolving parliament for fresh elections. (Financial Times)
Ireland picks through debtors' lifestyles: "Irish homeowners applying for debt writedowns will have to give up satellite television, foreign holidays and private school educations for their children under a strict new insolvency law introduced to tackle the country's debt crisis." (Financial Times)
Energy companies pose stability risk: British economist Lord Stern says the size of energy companies means there is a risk of fossil fuel assets being devalued by climate policy. "These carbon-based companies form a tremendous part of international financial assets and if those were at risk, as they surely would be if we took the [climate change] issue as seriously as we should, then that is potentially a major source of instability." (Financial Times)
COMMENT AND CURIOS:
- UK dairy group plugs pensions hole with actual cheese. (Financial Times)
- Analogue businesses in many sectors are unprepared for the digital revolution. (Financial Times)
- Clues to how Rich Ricci's fate was sealed. (Financial Times)
- Gillian Tett: Wake up to the twitter effect on markets. (Financial Times)
- Spain's tide of foreclosure squatters. (Bloomberg)
- Japan will make good on Abenomics promise, says finance minister. (Financial Times)
- Private equity groups regain enthusiasm for listings. (Financial Times)
OVERNIGHT MARKETS: MIXED
Asian markets
Nikkei 225 up +46.15 (+0.35%) at 13,266
Topix up +0.24 (+0.02%) at 1,123
Hang Seng up +223.58 (+1.04%) at 21,736
US markets
S&P 500 down -10.40 (-0.67%) at 1,542
DJIA down -81.45 (-0.56%) at 14,537
Nasdaq down -38.31 (-1.20%) at 3,166
European markets
Eurofirst 300 down -0.38 (-0.03%) at 1,147
FTSE100 down -0.54 (-0.01%) at 6,244
CAC 40 up +0.13 (0.00%) at 3,599
Dax down -29.30 (-0.39%) at 7,474
Currencies
€/$ 1.31 (1.31)
$/¥ 98.53 (98.13)
£/$ 1.53 (1.53)
Commodities ($)
Brent Crude (ICE) up +0.37 at 99.50
Light Crude (Nymex) up +0.27 at 88.00
100 Oz Gold (Comex) unchanged 0.00 at 1,392
Copper (Comex) down -3.75 at 316.70
10-year government bond yields (%)
US 1.70%
UK 1.69%
Germany 1.23%
CDS (closing levels)
Markit iTraxx SovX Western Europe +0.4bps at 100.98bp
Markit iTraxx Europe +0.88bps at 114.06bp
Markit iTraxx Xover +7.96bps at 461.65bp
Markit CDX IG +0.87bps at 84.98bp
Sources: FT, Bloomberg, Markit
