The 6am Cut

London 6am Cut Posted 2013-06-11 05:50:33 by Cardiff Garcia Report urging bank shares handout 'well researched' says Treasury: "A report urging George Osborne to hand out shares in Royal Bank of Scotland and Lloyds to the public was described by the Treasury as "quite robust and well researched". Mr Osborne is expected to set out his ambition to return the two banks to the private sector next week, with the Treasury eyeing a possible start of that process with a disposal of 10 per cent of Lloyds shares this year." (Financial Times) Better news on economy boosts house sales, says Rics survey: "The number of homes sold in the UK has soared to its highest level in three and a half years over the past quarter, according to a property survey. The Royal Institute of Chartered Surveyors said on Tuesday that home sales rose to their highest level since January 2010 in the three months to May on the back of better news on the British economy." (Financial Times) World has 10 years of shale oil, reports US: "Global shale resources are vast enough to cover more than a decade of oil consumption, according to the first-ever US assessment of reserves from Russia to Argentina. The US Department of Energy estimated "technically recoverable" shale oil resources of 345bn barrels in 42 countries it surveyed, or 10 per cent of global crude supplies. The department had previously only provided an estimate for US shale reserves, which it on Monday increased from 32bn barrels to 58bn." (Financial Times) US to crack down on virtual currency tax fraud: "US officials are targeting virtual currencies due to fears that Americans are using them to evade taxes, opening a new front in the crackdown on tax fraud. Virtual currencies such as Bitcoin and the exchanges where they trade have come under increased scrutiny since last month's arrest of five individuals associated with Liberty Reserve, a Costa Rican-based digital currency business, on charges of running a $6bn money laundering scheme." (Financial Times) SAC Capital case nears breakthrough on laptop access: "US prosecutors are finalising an agreement with the University of Michigan that would give them access to computer files tied to an insider trading case against a former SAC Capital employee. The battle over the files of Dr Sidney Gilman, a former professor of neurology at the medical school, has become pivotal in the government's investigation of a former SAC Capital employee, Mathew Martoma, who is accused of participating in the biggest insider trading scheme on record." (Financial Times) G8 leaders braced for battle on evasion: "It has been billed by the British government as "a turning point" in the battle against tax evasion and avoidance. When world leaders gather in Northern Ireland next week, they will set out to end tax havens and stem the illicit flow of funds out of some of the world's poorest countries. The agenda – focused on the 'three Ts" of trade, tax and transparency – is both technically and politically challenging. Progress on the latter two will depend on costly changes, not just in the small states that are widely regarded as tax havens, but also by the G8 countries themselves. " (Financial Times) Lululemon chief executive to step down: "Christine Day is stepping down as chief executive of the sportswear retailer Lululemon Athletica three months after it was plunged into crisis over yoga pants that were excessively see-through. The announcement came on Monday as the company warned that the fallout from the crisis would continue to squeeze its profitability in the current quarter. The twin blows sent its shares down by as much as 15 per cent in after-hours trading." (Financial Times) Apple takes fight to rivals with its redesign: "Apple unveiled what its chief executive Tim Cook called the most radical redesign of its iOS software since the introduction of the iPhone six years ago, as the company looks to prove it has not lost the advantage in innovation to rivals. The new iOS7 has a minimalist new look and improvements that will make it easier for users to share documents and organise their photos. Apple's design chief, Sir Jonathan Ive, said the changes would define "an important new direction" for the original smartphone." (Financial Times) David Cameron rejects claims GCHQ broke law over US Prism data: "David Cameron on Monday rejected claims that the government's intelligence agency, GCHQ, might have acted illegally by receiving information from a US spy programme. The prime minister said the UK's secret services had acted in a "proper" and "fitting" way when he was questioned about revelations that the US was secretly snooping on personal data via internet companies such as Google and Facebook." (Financial Times) RBS restructuring options set to be curbed by EU rules: "UK options to restructure Royal Bank of Scotland are set to be constrained by EU rules that would effectively stymie any attempt to hive off toxic assets in a "bad bank", unless private shareholders are wiped out." (Financial Times) COMMENTS AND CURIOS - A backlash is brewing against iOS 7's new look. - "Without leaks, Barack Obama might never have been elected to begin with." - The soaring number of $100 bills. - "Paradox" redux. - Brad DeLong on confusion. OVERNIGHT MARKETS Asian markets Nikkei 225 down -124.28 (-0.92%) at 13,390 Topix down -5.81 (-0.52%) at 1,106 Hang Seng down -191.40 (-0.89%) at 21,424 US markets S&P 500 down -0.57 (-0.03%) at 1,643 DJIA down -9.53 (-0.06%) at 15,239 Nasdaq up +4.55 (+0.13%) at 3,474 European markets Eurofirst 300 down -0.99 (-0.08%) at 1,193 FTSE100 down -11.54 (-0.18%) at 6,400 CAC 40 down -8.23 (-0.21%) at 3,864 Dax up +53.01 (+0.64%) at 8,308 Currencies €/$ 1.33 (1.33) $/¥ 98.74 (98.76) £/$ 1.56 (1.56) Commodities ($) Brent Crude (ICE) down -0.21 at 103.74 Light Crude (Nymex) up +0.06 at 95.83 100 Oz Gold (Comex) down -2.30 at 1,384 Copper (Comex) unchanged 0.00 at 3.24 10-year government bond yields (%) US 2.22% UK 2.15% Germany 1.61% CDS (closing levels) Markit iTraxx SovX Western Europe -0.32bps at 87.34bp Markit iTraxx Europe +3.04bps at 107.32bp Markit iTraxx Xover +14.88bps at 451.54bp Markit CDX IG +2.88bps at 83.94bp Sources: FT, Bloomberg, Markit
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UK RICS Housing Price Balance

Location: United Kingdom

Date: 10/06/2013

Time: 0:01 - 1:01

Strength: 2/3

Previous: 1%

Notes: The RICS Housing Price Balance survey released by the Royal Institution of Chartered Surveyors presents housing costs in the UK. It shows the strength of the UK housing market, which can be considered as the economy as a whole, as the housing market is sensitive to the business cycle. A high reading is seen as positive (or bullish) for the GBP, while a low reading is seen as negative (or bearish).

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EMU Sentix Investor Confidence

Location: European Monetary Union

Date: 10/06/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: -15.6 / Consensus: -10.0

Notes: With among 1600 financial analysts and institutional investors, the Sentix Investor Confidence is a monthly survey which shows the market opinion about the current economic situation and the expectations for the next semester. The index, released by the Sentix GmbH, is composed by 36 different indicators. Usually a higher reading is seen as positive for the Euro zone, that means positive, or bullish, for the Euro, While a lower number is seen negative or bearish for the unique currency.Review Alex Nekritin's Article - Trading Euro with ESI

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The 6am Cut

London 6am Cut Posted 2013-06-10 05:50:47 by Cardiff Garcia Japan revised up Q1 growth to annual 4.1%: "Japan has revised up its first quarter economic growth to 1 per cent, giving Prime Minister Shinzo Abe a boost as he seeks to strengthen his grip on power in next month's upper house elections. Government data released on Monday showed that the economy expanded at an annualised rate of 4.1 per cent between January and March, lifted by strong household spending and a pick-up in private residential investment. That was much higher than the preliminary estimate of 3.5 per cent, which was already the fastest rate recorded by any Group of Seven economy." (Financial Times) Backlash over US snooping intensifies: "The Obama administration came under mounting bipartisan pressure on Sunday to scale back electronic surveillance following revelations last week that have raised new questions about government intrusion into citizens' privacy. The calls came as the UK's Guardian newspaper revealed that the whistleblower who leaked information about US surveillance activities was Edward Snowden, a 29-year-old former CIA employee who has taken refuge in Hong Kong, setting up a potentially delicate political issue with the Chinese authorities about his fate." (Financial Times) SEC counsel faces whistleblower's claims: "The new chief counsel to the Securities and Exchange Commission chairman is the subject of a discrimination complaint from a former colleague at Deutsche Bank, who claims he was fired for blowing the whistle on fraud. Robert Rice joined the SEC last week, working directly for Mary Jo White, the new SEC chairman. He moved from Deutsche where he was head of governance, litigation and regulation for the Americas." (Financial Times) US jobs report lifts Asia markets but China data limit gains: "Asian shares rebounded as investors were encouraged by a better-than-expected US jobs report, but gains were limited by poor economic data from China." (Financial Times) Bank reforms spur BNP Paribas to merge US units: "BNP Paribas is planning a full-blown merger of its US operations as it attempts to offset the impact of threatened US regulatory reforms for foreign banks, according to people familiar with the project. The French bank, which is one of the world's largest by assets, has drawn up detailed plans to combine BancWest, its US retail banking subsidiary, with its US corporate and investment banking operations in a move intended to improve its capital and funding efficiency in the country." (Financial Times) Hearing pits German monetary heavyweights against each other: "One of the bitterest fights in monetary policy lands in court this week as Germany's highest legal authority hears evidence over whether the European Central Bank's pledge to save the euro last year undermined the constitution. The hearing comes as crisis-weary Germans prepare to vote in a September general election that for the first time includes a eurosceptic party. But also of note are the star witnesses, two longstanding friends who have risen through the ranks to become arguably Germany's most powerful unelected officials. Both have been instrumental in framing the response to the eurozone crisis but are now fighting from opposing corners." (Financial Times) COMMENT AND CURIOS - Apple designer to showcase new vision for mobile devices. - Booz Allen grew rich on government contracts. - Hail the honesty about Greece's bailout. - If the NSA trusted Edward Snowden with our data, why should we trust the NSA? - Economic dynamism is still needed. - Do US tech companies have legal troubles in the EU? OVERNIGHT MARKETS Asian markets Nikkei 225 up +504.31 (+3.92%) at 13,382 Topix up +48.96 (+4.63%) at 1,106 Hang Seng up +95.99 (+0.44%) at 21,671 US markets S&P 500 up +20.82 (+1.28%) at 1,643 DJIA up +207.50 (+1.38%) at 15,248 Nasdaq up +45.17 (+1.32%) at 3,469 European markets Eurofirst 300 up +15.67 (+1.33%) at 1,194 FTSE100 up +75.88 (+1.20%) at 6,412 CAC 40 up +58.31 (+1.53%) at 3,873 Dax up +155.87 (+1.92%) at 8,255 Currencies €/$ 1.32 (1.32) $/¥ 98.05 (97.48) £/$ 1.55 (1.56) Commodities ($) Brent Crude (ICE) unchanged 0.00 at 104.56 Light Crude (Nymex) up +0.04 at 96.07 100 Oz Gold (Comex) up +2.80 at 1,386 Copper (Comex) unchanged 0.00 at 3.27 10-year government bond yields (%) US 2.16% UK 2.07% Germany 1.55 CDS (closing levels) Markit iTraxx SovX Western Europe +1.41bps at 87.66bp Markit iTraxx Europe -8.56bps at 104.28bp Markit iTraxx Xover -34.63bps at 436.66bp Markit CDX IG -3.01bps at 81.06bp Sources: FT, Bloomberg, Markit
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US Consumer Credit Change

Location: United States

Date: 07/06/2013

Time: 20:00 - 21:00

Strength: 2/3

Previous: $7.97B / Consensus: $12.00B

Notes: The Consumer Credit released by the Board of Governors of the Federal Reserve is an amount of money that individuals borrowed. It shows if consumers can afford large expenses, which can fuel economic growth. However, a high figure may also indicate that the economy is overheating, as consumers borrow in order to live beyond their means. A high reading is seen as positive (or Bullish) for the USD, whereas a low reading is seen as negative.

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US Average Hourly Earnings (YoY)

Location: United States

Date: 07/06/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: 1.9% / Consensus: 2.1%

Notes: The Average Hourly Earning released by the US Department of Labor is a significant indicator of labor cost inflation and of the tightness of labor markets. The Federal Reserve Board pays close attention to when setting interest rates. A high reading is also positive for the USD, while a low reading is negative.

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US Nonfarm Payrolls

Location: United States

Date: 07/06/2013

Time: 13:30 - 14:30

Strength: 3/3

Previous: 165K / Consensus: 170K

Notes: The nonfarm payrolls released by the US Department of Labor presents the number of people on the payrolls of all non-agricultural businesses. The monthly changes in payrolls can be excessively volatile. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or bearish).

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US Unemployment Rate

Location: United States

Date: 07/06/2013

Time: 13:30 - 14:30

Strength: 3/3

Previous: 7.5% / Consensus: 7.5%

Notes: The Unemployment Rate released by the US Department of Labor is the number of unemployed workers divided by the total civilian labor force. If the rate is up, it indicates a lack of expansion within the US economy. Therefore, a decrease of the figure is seen as positive (or bullish) for the USD, while an increase is seen as negative (or bearish).

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DE Industrial Production s.a. w.d.a. (YoY)

Location: Germany

Date: 07/06/2013

Time: 11:00 - 12:00

Strength: 2/3

Previous: -2.5% / Consensus: -0.8%

Notes: The Industrial Production released by the Federal Ministry of Economics and Technology, measures outputs of the German factories and mines. Changes in industrial production are widely followed as a major indicator of strength in the manufacturing sector. A high reading is seen as positive (or bullish) for the EUR, whereas a low reading is seen as negative (or bearish).

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UK Goods Trade Balance

Location: United Kingdom

Date: 07/06/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: -�9.056B / Consensus: -�8.800B

Notes: The trade balance released by the is a balance between exports and imports of goods A positive value shows trade surplus, while a negative value shows trade deficit. It is an event that generates some volatility for the GBP. If a steady demand in exchange for UK exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the GBP.Review Alex Nekritin's Article - Trading British Pound with UK Trade Balance

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UK Total Trade Balance

Location: United Kingdom

Date: 07/06/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: -�3.13B / Consensus: -�3.00

Notes: The trade balance released by the is a balance between exports and imports of goods A positive value shows trade surplus, while a negative value shows trade deficit. It is an event that generates some volatility for the GBP. If a steady demand in exchange for UK exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the GBP.

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UK Trade Balance; non-EU

Location: United Kingdom

Date: 07/06/2013

Time: 9:30 - 10:30

Strength: 2/3

Previous: -�3.47B / Consensus: -�3.60B

Notes: The trade balance released by National Statistics is a balance between exports and imports of total goods and services. A positive value shows trade surplus, while a negative value shows trade deficit. It is an event that generates some volatility for the GBP. If a steady demand in exchange for UK exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the GBP.Review Alex Nekritin's Article - Trading British Pound with UK Trade Balance

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DE Trade Balance s.a.

Location: Germany

Date: 07/06/2013

Time: 7:00 - 8:00

Strength: 2/3

Previous: �17.6B / Consensus: �17.2B

Notes: The Trade Balance released by the Statistiches Bundesamt Deutschland is a balance between exports and imports of total goods and services. A positive value shows a trade surplus, while a negative value shows a trade deficit. It is an event that generates some volatility for the EUR. If a steady demand in exchange for German exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the EUR. Review Alex Nekritin's Article - Trading the Euro with Germany Trade Balance

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The 6am Cut

6am Cut London Posted 2013-06-07 05:35:24 by Joseph Cotterill Bear market for the Nikkei. The index entered bear territory after the strong yen pushed it down more than 1.3 per cent on Friday, bringing the decline since its May 23 peak to around 20 per cent. (Wall Street Journal) The Topix is down 18 per cent from its May high, but remains up 22 per cent for 2013. Japan's finance minister ruled out immediate intervention in the yen despite its 2.2 per cent jump against the dollar on Thursday and continued strength on Friday. "We are carefully watching, but we don't have any immediate intention of taking any action, such as intervention," Taro Aso said. (Bloomberg) The US dollar had at one point on Thursday dipped 3 per cent against the yen, a sell-off attributed to investors reversing views on how long the Fed will maintain QE3. (Financial Times) Apple, Google, Facebook, Microsoft and Yahoo denied all knowledge of secret US government efforts to tap their central servers for users' data. The National Security Agency programme, codenamed PRISM, boasted of collection "directly from the servers of these U.S. Service Providers: Microsoft, Yahoo, Google, Facebook, PalTalk, AOL, Skype, YouTube, Apple," according to documents leaked to the media. (Washington Post, Guardian.) PRISM was created in 2007 to replace domestic surveillance policies of the Bush administration, and has provided data used in one in every seven daily intelligence briefings submitted to the President. (Bloomberg, Financial Times) The NSA has also logged phone-call data from the US networks of AT&T and Sprint, in addition to Verizon. The recent leak of a secret US court order to Verizon for millions of records revealed the extent of the surveillance, which has also been extended further to data on credit-card transactions. (Wall Street Journal) Prosecutors in the US and UK are close to bringing criminal charges over the Libor scandal. Former Barclays employees are likely to be charged later this summer. Barclays itself settled with regulators a year ago over allegations it attempted to manipulate Libor, but it has taken time since then for the authorities on both sides of the Atlantic to coordinate their cases against individuals. (Wall Street Journal) S&P blamed "ambiguous policy signals" for putting a negative outlook on Brazil's credit rating. The agency also pointed to a third year of "modest" economic growth as a reason for the cloud over its long-term BBB and short-term A2 grading of the country. (Financial Times) Apple will start offering trade-in for iPhones next month. Brightstar will run the exchange programme for Apple, which is trying to get more consumers to upgrade to iPhone 5s to combat the decline in its sales growth. (Bloomberg) Dalian Wanda is close to snapping up Sunseeker for £300m. "We bought the best yacht company in the UK," said Wang Jianlin, chairman and founder of the Beijing-based property group. Sunseeker's yachts -- built in Poole, Dorset -- would add another top brand to the armoury of western luxury assets being compiled by Chinese companies. (Financial Times) COMMENT AND CURIOS - Fixing banks is the real priority for Britain, says Martin Wolf. (Financial Times) - It should be the eurozone's too, Stephen Fidler argues. (Wall Street Journal) - And Australia's fastest-growing mortgage lender is... (Bloomberg) - Why a US-China grand bargain is needed to stop the IMF becoming irrelevant. (Financial Times) - If this is Turkey's 1968, where's its De Gaulle? (Financial Times) OVERNIGHT MARKETS: DOWN Asian markets Nikkei 225 down -256.42 (-1.99%) at 12,647 Topix down -22.23 (-2.08%) at 1,048 Hang Seng down -288.74 (-1.32%) at 21,549 US markets S&P 500 up +13.66 (+0.85%) at 1,622 DJIA up +80.03 (+0.53%) at 15,040 Nasdaq up +22.57 (+0.66%) at 3,424 European markets Eurofirst 300 down -14.18 (-1.19%) at 1,178 FTSE100 down -83.20 (-1.30%) at 6,336 CAC 40 down -38.16 (-0.99%) at 3,814 Dax down -97.37 (-1.19%) at 8,098 Currencies €/$ 1.32 (1.30) $/¥ 96.38 (99.16) £/$ 1.559 (1.53) Commodities ($) Brent Crude (ICE) up 0.16 at 103.77 Light Crude (Nymex) up 0.08 at 94.84 100 Oz Gold (Comex) down 3.10 at 1,412 Copper (Comex) unchanged at 3.31 10-year government bond yields (%) US 2.07% UK 2.02% Germany 1.52% CDS (closing levels) Markit iTraxx SovX Western Europe at 84.67bp Markit iTraxx Europe +4.8bps at 112.4bp Markit iTraxx Xover +24.6ps at 468.6bp Markit CDX IG -1.8bps at 83.6bp Sources: FT, Bloomberg, Markit
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US Initial Jobless Claims

Location: United States

Date: 06/06/2013

Time: 13:30 - 14:30

Strength: 2/3

Previous: 354K / Consensus: 345K

Notes: The Initial Jobless Claims released by the US Department of Labor is a measure of the number of people filing first-time claims for state unemployment insurance. In other words, it provides a measure of strength in the labor market. A larger than expected number indicates weakness in this market which influences the strength and direction of the US economy. Generally speaking, a decreasing number should be taken as positive or bullish for the USD.

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EMU ECB Interest Rate Decision

Location: European Monetary Union

Date: 06/06/2013

Time: 12:45 - 13:45

Strength: 3/3

Previous: 0.5% / Consensus: 0.5%

Notes: ECB Interest Rate Decision is announced by the European central Bank. Usually, if the ECB is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the EUR. Likewise, if the ECB has a dovish view on the European economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.Review Alex Nekritin's Article - Trading the Euro with the ECB Rate Decision

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UK BoE Asset Purchase Facility

Location: United Kingdom

Date: 06/06/2013

Time: 12:00 - 13:00

Strength: 3/3

Previous: �375B / Consensus: �375B

Notes: The Asset Purchase Facility is the value of money the BoE plans to create and inject into the economy through open market bond purchases as a way to influence long-term interest rates. This monetary policy tool is also called Quantitative Easing.

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UK BoE Interest Rate Decision

Location: United Kingdom

Date: 06/06/2013

Time: 12:00 - 13:00

Strength: 3/3

Previous: 0.5% / Consensus: 0.5%

Notes: BoE Interest Rate Decision is announced by the Bank of England. If the BoE is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the GBP. Likewise, if the BoE has a dovish view on the U.K. economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.Review Alex Nekritin's Article - Trading British Pound with BoE Rate Decision

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DE Factory Orders n.s.a. (YoY)

Location: Germany

Date: 06/06/2013

Time: 11:00 - 12:00

Strength: 2/3

Previous: -0.4% / Consensus: -0.2%

Notes: The Factory orders released by the Deutsche Bundesbank is an indicator that includes shipments, inventories, and new and unfilled orders. An increase in the factory order total may indicate an expansion in the German economy and could be an inflationary factor. It is worth noting that the German Factory barely influences, either positively or negatively, the total Eurozone GDP. A high reading is positive (or bullish) for the EUR, while a low reading is negative.

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The 6am Cut

6am Cut London Posted 2013-06-06 05:36:10 by Joseph Cotterill Asian shares fell back towards their 2013 lows. The MSCI Asia Pacific index fell 0.7 per cent, towards its level in January. Japan's Nikkei swung to a loss from a 1.7 per cent increase earlier, and the Topix fell more than 1 per cent, down 15 per cent from the five-year high it set in May. (Bloomberg) The ESM will likely have a €50bn-€70bn limit on direct investments in banks. The condition on the bailout fund's draft direct recapitalisation tool was outlined in a policy paper following six months of talks on breaking the "vicious circle" between sovereigns and banks. The limit to recapitalisation funds reflects the higher provisions on this kind of investment compared to the ESM's more normal practice of lending to governments. (Reuters) France is threatening to upstage talks on the EU-US trade pact. Paris is said to have made "l'exception culturelle" -- protection of subsidies for local film, music and television -- a "red line" in advance of the talks' scheduled launch at this month's G8 summit. (Financial Times) The French government has also led the charge over a budding EU trade war over tariffs on Chinese solar-power exports. Beijing retaliated with an investigation into imports of French wine. (Wall Street Journal) Libor might become confused about its L under EU plans to supervise the rate from Paris. "Critical union benchmarks" including Libor and Euribor would come under the direct oversight of the France-based European Securities and Markets Authority under the draft proposal, which is due to be released this summer. (Financial Times) The IMF conceded major mistakes over its handling of the Greek bailout. Failures to restructure Greece's debt earlier and to forecast the extent of its economic collapse have dogged the programme since its beginning, the fund said in a paper published late on Wednesday. (Wall Street Journal) SAC Capital told employees it expects to stay open following a wave of client redemptions. Although the fund will not release a number for the amounts withdrawn by investors after a deadline this week, it will remain open to outside money and does not plan large reductions of staff. Some investors may reconsider their redemption requests if the legal situation becomes clearer over the fund's targeting by a government insider trading probe SAC founder Steve Cohen's "decision not to throw in the towel is in keeping with his personality". (Bloomberg) Gabon is taking back assets from a subsidiary of Sinopec and two other international oil companies. The reclamation of a major onshore site from China's Addax Petroleum comes before a licensing round for deep offshore discoveries in the Gabon Basin, said to rival the deep-water reserves lying off Brazil's coast for size. (Financial Times) Finra in the US has increased its scrutiny of dark pools. The requests for information from operators of the off-exchange share-trading venues are part of assessing whether their customers are being told how orders work, and to find out more about a fast-growing area of trading that remains relatively lightly-regulated. (Wall Street Journal) The UK's Help to Buy policy helped sell 4,000 new homes in its two months of existence, according to industry-produced data. The Home Builders Federation said it had received about 500 registrations a week under the scheme, which gives buyers a five-year interest-fee loan for up to 20 per cent of the value of a new-build home priced below £600,000. An extension of Help to Buy beyond new homes launches next year, allowing housebuyers to borrow with only a 5 per cent deposit with a government guarantee. (Financial Times) A Kiev court has frozen local assets of Bank of Cyprus and Laiki after claims were filed by Ukrainian depositors hit by losses imposed as part of the Cypriot bailout. (Reuters) COMMENT AND CURIOS - A Chinese econblogger, the secret police, and a "tea chat". (Bloomberg) - Why Google today is like "General Electric in the late 19th century". (Financial Times) - Gerhard Schröder tells France to make German-style reforms. (Financial Times) - Ford car parts, ultrasound devices, Barbie dolls: all 3D-printed. (Wall Street Journal) - Robert Shrimsley on this year's Bilderbergers: "Watford is often overlooked among Europe's glamour sites..." (Financial Times) OVERNIGHT MARKETS: DOWN Asian markets Nikkei 225 down -8.40 (-0.06%) at 13,006 Topix down -18.64 (-1.71%) at 1,071 Hang Seng down -252.25 (-1.14%) at 21,186 US markets S&P 500 down -22.48 (-1.38%) at 1,608 DJIA down -216.95 (-1.43%) at 14,960 Nasdaq down -43.78 (-1.27%) at 3,401 European markets Eurofirst 300 down -18.57 (-1.53%) at 1,192 FTSE100 down -139.27 (-2.12%) at 6,419 CAC 40 down -73.39 (-1.87%) at 3,852 Dax down -99.78 (-1.20%) at 8,196 Currencies €/$ 1.30 (1.30) $/¥ 99.16 (100.19) £/$ 1.53 (1.53) Commodities ($) Brent Crude (ICE) down 0.06 at 102.98 Light Crude (Nymex) up 0.11 at 93.85 100 Oz Gold (Comex) up 0.60 at 1,399 Copper (Comex) down 0.01 at 3.36 10-year government bond yields (%) US 2.09% UK 2.01% Germany 1.51% CDS (closing levels) Markit iTraxx SovX Western Europe at 84.67bp Markit iTraxx Europe +3.3bps at 107.5bp Markit iTraxx Xover +19ps at 443.4bp Markit CDX IG +4.1bps at 85.5bp Sources: FT, Bloomberg, Markit
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