Selling pressure has returned to the Asian equity markets after Friday's bounce, even though the PBoC has set Yuan firmer for the 2nd straight day. Instead, investors appear to be unimpressed by the latest inflation data from China released over the weekend and also the neglect by the authorities to inject any additional liquidity. December CPI met expectations, but it was mainly the food component - 2.7% v 2.3% prior - that saw some growth, while the non-food CPI remained at 1.1%. Rising threat of China deflation has translated into record lows for some key commodity currencies. MXN and ZAR were particularly hard-hit above 18 and 17.80 respectively. USD/CAD added 30pips close to 1.4190, and AUD/USD traded down nearly 50pips from opening levels below 0.6930. US equity futures were down as much as 0.75% but bounced back in afternoon trade. Likewise, USD/JPY initially cratered 60pips toward 116.60 before a mid-session recovery. In notable Chinese press reports, CASS researcher said expectations of yuan's depreciation and capital outflows have been behind the drop in China's foreign exchange reserves. Recall the latest data for December showed reserves post their biggest decline on record of over $100B to $3.33T. NDRC official also offered downbeat forecasts, noting it would be difficult for China to maintain GDP average of above 6.5% in 2016-20 period, which is required for China to meet its objective of doubling GDP in 2020 relative to 2010 levels. over the Week end : BONT: Sycamore Partners said to have approached company to combine with Belk, KSS: Said to consider break-up of the company and taking itself private
Nikkei closed Hang Seng -2.37% Shanghai -5%
Eur$1.0917 CNY (Onshore) 6.5838 CNH (Offshore) 6.6622 JPY 117.22 GBP 1.4533 CHF 0.9936 RUB$ 75.60 WTI 32.50 (- 2%)
S&P -0.43% EuroStoxx -1.3% Dax-1.5% SMI -1.10% FTSE -0.69%
Macro :
- Fed Open to Modest Increase in Risk Threshold, Alvarez Says
- Renzi Says Italian Projects by Global Investors to Be Announced
- French Business Leaders Ask for Relaxing of Work Rules, JDD Says
- London Hedge Fund Omni Sees 15% Yuan Drop, and More in a Crisis
- Europe May Be ‘Ground Zero’ of 2016 Politics, Roubini Says: AFR
- Kohl’s Said to Consider Taking Itself Private: WSJ
- Legendary Artist David Bowie Dies at 69 http://bit.ly/1ncK5yr
Keep an eye on :
- AAL LN : Anglo to Sell Brazil Mine for $1B This Week, Times Reports
- ABG SM : Abengoa Said to Present Viability Plan by End of January
- AF FP : Air France to Announce New Growth Plan Friday, Les Echos Says http://bit.ly/1RF4xmI
- ALV GY : Allianz Considers Insurance Business in S. Korea: MoneyToday
- ATLN VX : Actelion Confirms 2015 Core Earnings Growth >20%
- BGN IM : Banca Generali Sees 2016 Inflows Close to 2015 Level: Repubblica
- BG/ LN : Glass Lewis to Support Shell/BG Group Deal, Mail Reports
- BG/ LN : Standard Life Investments to Vote Against Shell’s Bid for BG
- BG/ LN : ISS Recommends Shell/BG Deal, Has Compelling Strategic Rationale
- CGG FP : Reports Q4 Vessel production rate 89% v 92% y/y; Vessel availability rate 92% v 87% y/y, Guides FY15 net debt $2.50B v $2.54B q/q
- CNHI IM : Deere Still Sees FY16 Equip. Ops Net ~$1.4b, Sales Down ~7 y/y
- CRH LN : CRH confirms EUR 1bn disposals in 2015, including 25% stake in Mashav
- DBK GY : Deutsche Bank Said to Sell London Bullion Vault to ICBC: Reuters
- DLG GY : Reports Prelim Q4 Rev $397M (prior guidance $390-400M) v $435M y/y, Guides FY16 Rev up single digit
- FCA IM : Fiat Chrysler’s Goal for Alfa Romeo Slipping - WSJ
- GSK LN : GSK break-up urged by star fund manager Neil Woodford
- HLE GR : Hella 2Q Sales Rise 10%; EPS Down 5%; Confirms FY16 Outlook
- HOME LN : Home Retail Group shareholders want at least GBP 1.6bn from Sainsbury
- ITALGAS : Italgas and 2i Rete Gas may merge and list Il Corriere della Sera
- KER FP : Pressure Builds on Gucci Designer to Translate Buzz Into Sales
- LRD LN : Amphenol Is Assessing Laird for Possible Takeover: Telegraph
- LHA GY : Lufthansa Sees 2016 Earnings Growth as Fuel Costs Decline
- ML FP : Michelin Plans EU150m Buyback Between Jan. 11-June 15
- PRS SM : El País owner faces activist pressure for board shake-up, An activist hedge fund (Amber Capital) is pressing for a corporate governance upheaval at the owner of Spain’s El País newspaper ahead of the company’s board being put up for renewal.
- PSM GY : ProSiebenSat.1 Pulls International OTT Service: BroadbandTVNews
- QIA GY : Qiagen 2015 Adj. Net Sales Rise 3%; Sees 6% Growth in 2016
- RNO FP : France Won’t Sell Renault Shares in Coming Weeks, Echos Says
- SAN FP : Sanofi, Warp Drive Bio to Collaborate in Oncology
- SAN FP : Sanofi Teams With Innate Pharm in Deal to Develop Cancer Drugs
- SHP LN : Baxalta agrees to terms of GBP 22bn sale to Shire, $48 per share and include a cash component of up to 40%, or GBP 8.8bn
- GLE FP : SocGen CEO Says France Needs Fast Reforms on Employment: Europe1
- SPD LN : Sports Direct Holder Crispin Odey Cuts Its Stake: Telegraph
- STL NO : Two Norway Conservative MP’s Argue for Lower Statoil Div: DN
- SYNN VX : ChemChina to Acquire Machinery Maker Kraussmaffei From Onex
- TSCO LN : Asda CEO Says Supermarket Is Slashing Prices Further: Telegraph
- TFI FP : BFMTV Files Appeal Over LCI Free-To-Air Decision: AFP
- HO FP : Thales Alenia Space Had ‘Extraordinary’ Year in 2015: Tribune
- TNTE NA : FedEx, TNT Express Extend Acceptance Period
- FP FP : Total Reports Steam Loss at Texas Petrochemical Refinery Unit
- UNICAJA IPO : Spain’s Unicaja to Hold EU800M IPO in May: El Confidencial
- VONN SW : Vontobel Plans to Stay Independent, Board President Tells NZZ- VOW3 GY : Volkswagen to Unveil 3 New Models at Delhi Auto Expo Next Month