China markets are leading the selloff in the Asia Pacific, tracking another down day on Wall Street on Friday. Industrial profits decline and some profit-taking going into this week's Fed meeting are also cited behind the cautious sentiment, even though commentary from local officials was optimistic. State Information Center expects foreign trade stabilizing in H2 of this year, with 4% y/y rise in exports and imports falling just over 10%. Unemployment rate is seen at just above 4%, lower than 4.5%. Former PBoC adviser Li also anticipating economic slowdown to be short-lived, with medium term growth estimated around 7%. Lastly, National Energy Administration (NEA) forecast 2015 power consumption - one of Premier Li's preferred indicators to rise 3%, down from 3.8% last year. Controversial expansion of authorization for use of Japan's defense capacity continues to bear heavy political cost for PM Abe and his cabinet. On the monetary front, BOJ Dep Gov Nakaso reiterated the central bank is prepared to adjust policy if needed based on upside and downside risks. Nakaso also pointed to lower oil prices slowing recovery in inflation, noting CPI would be 1% higher if oil price did not decline. Of note in Greece, former Fin Min Varoufakis denied speculation that he and other left-wing members of Syriza govt plotted on raiding Greek central bank reserves and hacking taxpayer accounts to pave the way for return of Drachma currency. Separately, ECB has rejected proposals by Greece to reopen financial markets on Monday and will likely set some temporary trading restrictions on funds from Greek bank accounts before stock trading can resume.
Nikkei-1.13% Hang Seng -2.62% Shanghai-2.76%
Eur$ 1.1004 JPY 123.54 GBP 1.5520 EURCHF 1.05711 RUB $58.35 WTI $47.96(-0.37%)
S&P +0.05% EuroStoxx -0.47% Dax-0.44% SMI-0.04%
Macro :
- Saudi Arabia-Led Coalition to Start Yemen Cease-fire Sunday: SPA
- Egypt in Talks to Buy 2 Corvette Warships From France: AFP
- Italy GDP Seen Rising 0.7% This Yr, ABI Banking Association Says
- Germany Will Help Fund Euro-Region Budget: Schaeuble in Spiegel
- Estonia Affirmed by Moody’s, Outlook Stable
- Greece Seeks New Loan Facility From the IMF: Finance Ministry
- Greece Said to Still Wait for ECB View on Bourse Reopening
Keep an eye on :
- ABBN VX : ABB CEO Declines to Comment on Talks With Shareholder Cevian: SZ
- AAL LN : Anglo American may sell more assets if market toughens - Reuters Link : http://bit.ly/1TZoyEc
- AGN US : Allergan Said to Be Exploring Breaking Up Into 2 Businesses
- ALU FP : Alcatel Says Nokia Deal May Close Earlier Than Planned: Re/code Link ; http://on.recode.net/1KqongS
- BARC LN : UK Banks Hold Out For Bumper Visa Price Tag - SkyNews Link : http://bit.ly/1SHFYmh
- BPTY LN : GVC Teams With Cerberus to Bid for Bwin, S. Times Reports
- CIG US : Cigna push for more Anthem equity was key in deal talks - Deal Reporter
- CNA LN : Centrica to Cut Costs as British Gas Profits ‘Soar’: Telegraph
- CSGN VX : Credit Suisse Shouldn’t Blindly Cut Inv. Bank, Herro Tells F&W
- DAI GY : Daimler Seeks to Test Self-Drive Trucks on Highway This Yr: FAS
- DB1 GY : Deutsche Boerse in Definitive Pact to Buy 360T for EU725M
- EDF FP : EDF Board Is Said to Approve Talks on Areva’s Nuclear Business
- EDF FP : French Electricity Bills Could Fall 10% After Tax Reform: JDD
- EXO IM : Exor Confirms Discussion for Possible Economist Stake Increase
- F2i (not quoted) : F2i Raises EU1.25b for Infrastructure Investment Fund: Corriere
- FB US : Facebook’s Marcus Tells Le Temps WhatsApp Will Stay Separate
- FCA IM : Fiat Chrysler to Recall 1.7 Million Trucks for Air-Bag Faults, May Face $105m NHTSA Fine for Recalls: WSJ http://on.wsj.com/1LJnqTT
- FNC IM : Finmeccanica Reverses Decision to Sell DRS Technologies Unit: FT
- GE US : GE Books $2.5 Billion African Orders From Oil to Locomotives (1)
- NOK1V FH : Baidu CEO Says ‘Still Interested’ in Nokia Mapping Unit: Re/Code Link : http://on.recode.net/1S0TXIV
- ORA FP : Orange Buys Additional 9% of Meditel, Raises Stake to 49%
- PSON LN : Pearson Confirms Talks With Economist on Sale of 50% Stake
- PSON LN : Economist Shareholders in Talks to Buy Out Pearson: FT
- UG FP : Peugeot, Santander Extend Financing Partnership to Brazil
- PHIA NA : Philips 2Q Adj. Ebita Beats Estimates
- RYA LN : Ryanair 1Q Net In Line; Sees FY Profit at Upper End of Forecast
- SAN FP : Sanofi, Regeneron Set Praluent Price at $1,120 Every 28 Days Link : http://1.usa.gov/1eoCtne
- SKY LN : Apax in Talks With Advisers on Options for Top Right Group: Sky
- TEVA IT : Teva in Talks to Buy Allergan Generics Business for $40b-$45b
- UBSN Vx : UBS to Post 2Q Profit of About CHF 1.5b, SonntagsZeitung Reports
- FR FP : Valeo 1H Net Rises 34%, Sees FY Margin Growth
- VOW3 GY : VW Considering Cutting Output at China Factories: Spiegel
Press Digest : (all in your inbox)
- FT : Greece bailout monitors question access to ministries
- FT : Oil groups have shelved $200bn in new projects as low prices bite
- FT : Finmeccanica changes tack on US sale
- Reuters : Iran launches charm offensive among wary Gulf Arabs
- FT : More than half of FTSE 350 companies have risky pensions
- FT : Worst-performing hedge funds of the year revealed
- FT : DHL braced for home turf fight with FedEx after TNT deal
- NY Post : Is Apple relying too heavily on the iPhone?
- WSJ : Teva in Advanced Talks to Buy Allergan’s Generic-Drug Unit
- (Barron's) The Slow Economic Recovery Has a Surprising Culprit
- (Recode.net) Baidu CEO: We’re Still Interested in Nokia’s Here Maps
- (Re/code.net) Alcatel-Lucent CEO Says Nokia Deal Could Close Earlier Than Planne