Asian equity markets are mixed though the mood is generally that of disappointment, as G20 hardly broke any new ground on coordinating a global response to economic challenges. Nikkei225 is in marginal positive territory on the heels of JPY weakness on Friday that followed stronger US GDP revisions and inflation data, though USD/JPY has already erased most of those gains and retreated back below ¥113 handle. Shanghai Composite is down sharply, with weakness attributed both to the uneventful G20 in Shanghai and another weaker CNY fix sparking concerns over outflows. G20 meeting is perceived as a whimper with familiar vague rhetoric. Communique underscored members' "readiness to respond to emerging risks, explore policy options, and safeguard financial stability." There was some focus on Chinese Yuan, though IMF's Lagarde said the message is generally that there will not be a large-scale devaluation. Nevertheless, PBoC maintained its string of weaker CNY fixes for the 5th straight session with the highest midpoint since Feb 3rd. Also of note in China, Social Security Minister estimated as many as 1.8M jobs lost in coal and steel sectors this year to reduce overcapacity, while a local press report speculated that the govt may raise retirement age in 2017. Iin Japan, BOJ Gov Kuroda reiterated the central bank stands ready to lower rates further if necessary, monitoring the impact of negative rates on markets and real economy. With anticipated ECB meeting coming into focus in March, German and French board members sparred about the need for anticipated extra easing measures. Germany's Weidmann said it would be dangerous to further expand already highly accommodative monetary policy given the longer-term risks and side effects of negative rates. France's Villeroy said deflation remains the primary risk to the Eurozone, adding more action is warranted if low energy prices materialize into sustainable long-term effects. Bank of England's former governor King weighed in with a downbeat view of the entire euro zone union, stating EZ is doomed to fail as monetary union "created a conflict between a centralized elite on the one hand and the forces of democracy at the national level", producing dangerous consequences.
Nikkei -1% Hang Seng -1.32% Shanghai -3.33%
Eur$ 1.0944 CNH 6.5497 CNY 6.5477 JPY 112.93 GBP 1.3863 CHF 0.9963 RUB$ 75.7132 WTI $ 32.69 -0.27%
S&P -0.59% Eurostoxx -1.16% Dax -1.22% SMI -1.24%
Macro :
- U.S.’s Lew Agrees on Debt Relief for Greece ‘In Timely Manner’
- G-20 Strengthens Words on Competitive Devaluations: Dijsselbloem
- Brazil Convinced China to Avoid Competitive Devaluation: Barbosa
- Weidmann Says ECB Should ‘Look Through’ Energy-Price Slump
- U.S.’s Lew Says China Committed Not to Devalue to Boost Exports
- Moscovici says China Policymakers Were Reassuring at G-20
- ECB’s Villeroy Says Deflation, Not Inflation Is Main Risk: FAS
Keep an eye on :
- A2A IM : A2A Working to Conclude LGH Transaction: CEO Tells Il Sole
- ABE SM : Abertis Lines Up EU600m for Italy Purchase, Expansion Reports
- AIR FP : EU regulators open a probe into Airbus/Safran joint acquisition of Arianespace
- AIR FP : Embraer Says Republic Air Had 24 Jet Orders at Filing: Reuters
- AAL LN : Anglo American Hires Banks to Sell Brazil Nickel Mines: Times
- AZN LN : AstraZeneca May Clash With Investors Over Bonus Plans: Telegraph
- BSLN SW : Basilea FY Liquid Assets CHF364.7M vs CHF226.1m
- BLT LN : BHP May Seek M&A Opportunities in Current Weak Cycle: Jefferies
- BIFF LN : Chinese Buyer Eyeing U.K. Waste Disposal Firm Biffa: S. Times
- BBRY US : WhatsApp to Stop BlackBerry, Older OS Support by End-2016 (Fri.)
- EN FP : Martin Bouygues to Nominate Son, Nephew to Bouygues Board: JDD
- BING GY : Boehringer Ingelheim, Abbvie Said in Cancer Partnership Talks
- BMW GY : Germany Shouldn’t Subsidize Electric Cars, Kauder Tells Focus
- DAI GY : EPA Contacts Daimler Over U.S. Diesel-Emission Suit: Handelsbatt, Daimler Says It’s Cooperating With Authorities
- EDF FP : France’s Royal Says She’s Ready to Extend Life of Nuclear Plants
- EDF FP : EDF Approval for Hinkley Point Could Be Delayed a Year: FT
- ERF FP : Eurofins Raises Dividend; Achieves 2017 Revenue Objective
- FCC SM : FCC 2015 Net Loss Narrows to EU46.3 Million
- FERR IM : Ferrero to Reorganize Italian Business Structure, Sole Says
- FCA IM : FCA’s Altavilla Says European Car Mkt May Rise 3%: Corriere
- FRA GY : Fraport Ebitda May Exceed EU1 Billion, CFO Zieschang Tells BZ
- GSK LN : Glaxo Hires Headhunter to Find Replacement for CEO Witty: Times
- KUNN SW : Kuoni Says Board Backs EQT’s Takeover Offer; 2015 Ebit Rises
- LSCC US : Lattice Semiconductor Mulls Sale Amid Chinese Interest: Reuters
- M5z GY : Shanghai Electric to Buy Up to 92.9m Euros Stake in Manz AG
- MRL SM : Merlin 2015 Ebitda EU161.2m Vs EU38m a Yr Earlier
- NG/ LN : Global Infrastructure May Bid for U.K. Gas Network: Telegraph
- NESN VX : Nespresso App Machine to Go on Sale in Switzerland: Blick
- NHH SM : NH Hotel Can Grow More Than Expected, CEO Tells Expansion
- PWTN SW : Panalpina 4Q Net Forwarding Revenue Drops, Raises Dividend
- PNL NA : PostNL 2015 Rev EU3.46 Billion; Est. EU3.47 Billion
- PSG SM : Prosegur 2015 Net EU183.4m Vs EU182m Estimate
- RNO FP : Nissan Surges Most Since 2009 After 400b Yen Buyback Plan --> +5.46% in Tokyo
- ROG SM : Roche Says 1 of 2 Phase 3 Studies of Lebrikizumab Met Endpoint
- SAN FP : Sanofi Open to Deals ‘Up to Size of Genzyme,’ Meeker Tells FT
- SIOE BB : Sioen 2015 Net Income EU23.1m vs EU16.5m Y/y; Sales Stable
- SOP FP : Sopra Steria Posts 2015 Organic Growth of 2%; Pro Forma 6.4%
- SUN SW : Renova Rejects NZZ Report of Possible Sulzer Sale, Merger
- SUN SW : Sulzer CEO Says W. Europe to Be Affected by Savings Program: SZ
- SYNN VX : ChemChina Said to Seek $30b Loan for Syngenta Deal: WSJ
- UNA NA : Unilever CEO Expects Europe Business to Stay Difficult: NZZamS
- UTX US : UTX Adds Goldman Sachs as Adviser Against Honeywell Bid: CNBC
- VOW3 GY : VW’s Seat Can Be Profitable: Unit Chairman De Meo to Expansion
- VOW3 GY : Audi to Invest Additional EU1b in Sales Network: Handelsblatt
- VOW3 GY : VW Said to Unveil Entry-Level SUV Concept in Geneva: Reuters
- WEIR LN : Weir Group shares gain on talk of possible interest from Flowserve
- YOOX IM : Yoox Net-A-Porter Seeks to Boost Mobile Internet Sales: Il Sole