Asian shares were broadly higher, with the MSCI Asia Pacific Index adding 0.3%. The Nikkei rose 0.4% and the Hang Seng was 1% higher. (Bloomberg)
Italy's new prime minister lost no time in calling for an easing of austerity policies. Enrico Letta, a veteran centre-left politician, outlined a programme of institutional reforms and measures to create employment, saying that "Europe's policy of austerity is no longer sufficient". (Financial Times)
Buy-to-let landlords could be the biggest FLS beneficiaries, after the BoE gave the go-ahead yesterday for banks tapping its new funding mechanism for small- and medium-sized businesses to be allowed to lend the money on to property investors. Buy-to-let borrowing costs have already fallen to 4.28% from 5.09% in August. (Financial Times)
Merkel faces austerity politics squeeze: "In the campaign for September's parliamentary poll, Ms Merkel risks being squeezed between the centre-left Social Democrats (SPD), calling for more emphasis to be put on growth, and a new anti-euro party campaigning for the return of the Deutschemark." (Financial Times)
Verizon considers $100bn bid for Verizon Wireless control: "Verizon Communications has hired advisers to prepare a possible $100 billion cash and stock bid to take full control of Verizon Wireless from joint venture partner Vodafone Group Plc, two people familiar with the matter said on Wednesday." (Reuters)
Evonik will be biggest German public listing since 2007: Europe's biggest public listing of the year will take place on Thursday when a German chemicals company makes its trading debut in Frankfurt, valuing it at nearly €15bn. (Financial Times)
South Korean Q1 GDP beats: South Korea's economy grew at 0.9% in Q1, the fastest quarterly pace for two years and a rate that beat economists' expectations of 0.7%. The growth was boosted by recovering exports and facilities investment. (Financial Times)
Pressure is mounting on the ECB to cut interest rates next week, after Germany's poor Ifo business confidence survey yesterday. (Financial Times)(Wall Street Journal)
"Samsung Electronics said demand for its flagship Galaxy S4 device is stronger than expected after two top US wireless carriers pushed back their release dates, citing shipment delays. "Pre-order demand is much stronger than expected, so it's difficult to rapidly boost supply in the short term," Lee Don Joo, president of the strategic marketing office at Samsung's mobile business, said today during a company event in Seoul."" (Bloomberg)
European businesses tackle US banks over OTC derivatives spat: The European Association of Corporate Treasurers, which convinced the EU to exempt OTC derivatives sold to corporates from an onerous Basel III capital charge, has accused JP Morgan and other US banks of not putting their own customers' interests first. The European treasurers' group wrote to JPM raising questions about its "concern for its corporate customers globally" because of its lobbying against the concession, but the bank responded that it was seeking a worldwide reduction in the charges. (Financial Times)
US bill for 15% 'megabank' capital requirements unveiled: Sherrod Brown, a liberal Democrat from Ohio, and David Vitter, a conservative Republican from Louisiana, proposed new legislation that would require banks with more than $500bn in assets to meet a new capital requirement of 15%, while midsized and regional lenders would need to hold 8%. The bill is being closely watched on Wall Street, even though it is unclear whether or how far it will advance in Congress. (Financial Times)
COMMENT AND CURIOS:
- Janet Yellen's admirers and foes. (New York Times)
- Opec seems okay with sub-$100 oil for now. (Financial Times)
- How long can peripheral bonds defy gravity? (Wall Street Journal)
- Young, unskilled and unemployed in Spain. (Financial Times)
- The problem of extroverts in finance. (Financial Times)
- Greece is reviving pursuit of WWII reparations from Germany. (Wall Street Journal)
- Olam is surviving Muddy Waters' criticism. (Bloomberg)
OVERNIGHT MARKETS: MOSTLY UP
Asian markets
Nikkei 225 up +60.14 (+0.43%) at 13,904
Topix up +5.01 (+0.43%) at 1,169
Hang Seng up +246.54 (+1.11%) at 22,430
US markets
S&P 500 up +0.01 (0.00%) at 1,579
DJIA down -43.16 (-0.29%) at 14,676
Nasdaq up +0.32 (+0.01%) at 3,270
European markets
Eurofirst 300 up +8.79 (+0.74%) at 1,192
FTSE100 up +25.64 (+0.40%) at 6,432
CAC 40 up +59.89 (+1.58%) at 3,843
Dax up +100.82 (+1.32%) at 7,759
Currencies
€/$ 1.30 (1.30)
$/¥ 99.39 (99.47)
£/$ 1.53 (1.53)
Commodities ($)
Brent Crude (ICE) up +0.42 at 102.15
Light Crude (Nymex) up +0.41 at 91.84
100 Oz Gold (Comex) up +17.70 at 1,441
Copper (Comex) unchanged 0.00 at 315.80
10-year government bond yields (%)
US 1.71%
UK 1.71%
Germany 1.24%
CDS (closing levels)
Markit iTraxx SovX Western Europe +0.24bps at 95.82bp
Markit iTraxx Europe -1.19bps at 106.28bp
Markit iTraxx Xover -1.76bps at 431.99bp
Markit CDX IG -0.74bps at 80.02bp
Sources: FT, Bloomberg, Markit
