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Havas planning to stand alone rather than being integrated within the Vivendi group

Asian Mid-session Update: China Development Forum features a variety of plans and promises

***Economic Data***

- (NZ) NEW ZEALAND Q1 WESTPAC CONSUMER CONFIDENCE: 117.4 v 114.8 PRIOR; first rise in 4 quarters

- (TW) Taiwan Feb Unemployment Rate: 3.7% v 3.8%e

***Index Snapshot (as of 02:30 GMT)***

- Nikkei225 +1.1%, S&P/ASX -0.3%, Kospi +0.1%, Shanghai Composite +1.2%, Hang Seng +0.5%, Jun S&P500 +0.3% at 2,103

***Commodities/Fixed Income***

- Apr gold -0.1% at $1,181/oz, May crude oil -1.0% at $45.96/brl, May copper +0.9% at $2.78/lb

- SLV: iShares Silver Trust ETF daily holdings fall to 10,163 tonnes from 10,181 tonnes prior

- GLD: SPDR Gold Trust ETF daily holdings fall 5.4 tonnes to 744.4 tonnes; Lowest since Jan 26th

- (JP) BOJ offers to buy ¥300B in 1-3yr JGBs, ¥350B in 3-5yr JGBs and ¥400B in 5-10yr JGBs

- (KR) South Korea MoF sells 20-yr bonds at 2.365%

- USD/CNY: PBoC sets yuan mid point at 6.1448 v 6.1496 prior setting (strongest Yuan setting since Feb 26th)

***Market Focal Points/FX***

- Shanghai Composite is building on its 7% gains of last week, extending its rally above 3,600 to mark fresh 7 year highs. Coming on the heels of the National People's Congress and the People's Political Consultative Conference, Beijing-hosted China Development Forum offered an opportunity for more rhetoric from high-ranking State Council members as well as international dignitaries. Among the more notable remarks from local leaders, Vice Premier Zhang said China has "paid a price for very high growth of the past" and that it is not "sustainable", calling for even more focus on environment with zero tolerance" on air, water, soil pollution. PBoC Gov Zhou announced policymakers will conduct further reform in capital markets, improving foreign direct investment while also allowing "more space and freedom" for equity and debt financing. On the currency front, PBOC research bureau chief Lu saw the current Yuan level as appropriate just as the central bank restrained RMB depreciation again with a stronger setting. Also of note, a research report from China Academy of Social Sciences (CASS) warned Q1 and Q2 GDP would slow further to 6.85% and 6.80% levels.

- USD majors saw some fresh dollar-negative flows, particularly against AUD and NZD in the afternoon session. AUD/USD rose 50pips to 1-week highs above 0.7820, and NZD/USD took out stops above 0.7610 - a key technical level that marked support in Dec-Jan and resistance in Feb - to gain about 100pips from Friday's US close. USD/JPY traded in a range around the 120 handle despite speculation of a rift growing between PM Abe and BOJ Gov Kuroda which could jeopardize continued monetary policy easing. Report suggested Kuroda is frustrated over the persistent high debt levels and slow structural reform, unveiling an easing last October as an offset to 2nd round of consumption tax hikes that never materialized.

- Greek PM Tsipras and German Chancellor Merkel will hold more talks today to iron out their differences. Over the weekend, the former warned Greece may not be able to meet impending debt payments without financing help from the EU. On the German side, local press estimated that Athens has enough liquidity for roughly two more weeks, and that Greek finances would be deemed "critical" if it fails to submit viable reform plans. EUR/USD trading was relatively volatile for the Asian session, though the single currency was unable to recover more ground beyond Friday's 1.0880 high.

***Equities***

US equities/ADRs:

- LOW: Approves new $5B buyback program (6.8% of market cap)

- TM: Expected to approve construction of its first car plant in Mexico for production of Corolla models within weeks - Japan press

- SNP: Reports FY14 Net CNY47.4B v CNY53.3Be, Rev CNY2.83T v CNY2.86Te; Issues profit warning for Q1

- DAI: BAIC Motor Co plans to take a 35% stake in Daimler's leasing subsidiary Mercedes-Benz Leasing; Terms not disclosed - financial press

- AAPL: Said to halve Apple Watch monthly shipment target - Taiwan press

- THC: Said to acquire United Surgical Partners International for over $2.5B valuation - financial press

Notable movers by sector:

- Consumer Discretionary: Yue Yuen Industrial 551.HK -5.1% (FY14 results)

- Financials: China Vanke 000002.CN +2.6%, China Merchants Property 000024.CN +4.8%, Poly Real Estate 600048.CN +2.4% (VAT reform); Premier Investments PMV.AU +12.3% (H1 results)

- Materials: Zhaojin Mining Industry 1818.HK -1.6% (FY14 results); Saracen Mineral Holdings SAR.AU +2.4% (provides exploration update); Newcrest Mining NCM.AU +3.7% (to sell asset)

- Energy: China Coal Energy 1898.HK -1.7% (FY14 results)

- Industrials: Great Wall Motor 2333.HK +2.6 % (FY14 results); Orica Ltd ORI.AU +3.1% (provides outlook)

- Technology: Sharp Corp 6753.JP +3.4% (Hon Hai to consider a stake)

Greece’s leader warns Merkel of ‘impossible’ debt payments

Alexis Tsipras, the Greek prime minister, has warned Angela Merkel that it will be “impossible” for Athens to service its debt obligations due in the coming weeks if the EU fails to distribute any short-term financial assistance to the country.

The warning, contained in a letter sent by Mr Tsipras to the German chancellor and obtained by the Financial Times, comes as concerns mount that Athens will struggle to make pension and wage payments at the end of this month and could run out of cash before the end of April.

The letter, dated March 15, came just before Ms Merkel agreed to meet Mr Tsipras on the sidelines of an EU summit last Thursday and invited him for a one-on-one session in Berlin, scheduled for Monday evening.

In the letter, Mr Tsipras warns that his government will be forced to choose between paying off loans, owed primarily to the International Monetary Fund, or continue social spending. He blames European Central Bank limits on Greece’s ability to issue short-term debt as well as eurozone bailout authorities’ refusal to disburse any aid before Athens adopts a new round of economic reforms.

“Given that Greece has no access to money markets, and also in view of the ‘spikes’ in our debt repayment obligations during the spring and summer . . . it ought to be clear that the ECB’s special restrictions when combined with disbursement delays would make it impossible for any government to service its debt,” Mr Tsipras wrote.

He said servicing the debts would lead to a “sharp deterioration in the already depressed Greek social economy — a prospect that I will not countenance”.

“With this letter, I am urging you not to allow a small cash flow issue, and a certain ‘institutional inertia’, to not turn into a large problem for Greece and for Europe,” he wrote.

Mr Tsipras was rebuffed in efforts to secure quick financing from either the ECB or eurozone lenders at Thursday’s Brussels meeting with Ms Merkel and a small group of other EU leaders — including French president François Hollande and ECB chief Mario Draghi.

In an interview, Luis de Guindos, Spanish finance minister, said his eurozone counterparts would not sign off on any new bailout funding until a full set of approved reforms was passed and implemented by Greek authorities, a process that could take months.

Mr Tsipras’s five-page letter is particularly critical of the ECB, which he said had forbidden Greek banks from holding more short-term government debt than they did when they requested an extension of the current bailout last month — a cap that has prevented Athens from relying on Treasury bills to fill its urgent cash needs because Greek banks have become nearly the only buyer of such debt.

The Greek prime minister insisted the ECB should have returned to “the terms of finance of the Greek banks” that existed immediately following his government’s election — when ECB rules were more lenient — once the deal to extend Athens’ €172bn bailout through June was agreed last month.

Far from going easier on Athens, the ECB is considering whether to give its guidance to Greek banks more authority by making it a legally binding requirement not to add to their T-bill holdings. A decision is expected this week.

He also criticised the ECB for only increasing the amount of emergency central bank loans to Greek lenders “at shorter intervals than normal and at rather small increments”, arguing such drip-feeding continued to “incite speculation and spread uncertainty vis-à-vis Greece’s banking system”.

Although Mr Tsipras wrote that Athens was “committed to fulfilling its obligations in good faith and close co-operation with its partners”, he also warned Ms Merkel that a failure to find short-term funding could lead to much bigger problems.

Tinder’s hot for a new CEO

Tinder’s hot for a new CEO