Finance Update – The Ennui SetUp

Asia – Japanese FO headed to UK talks

Asian markets are taking yesterday’s cue with only the Shenzhen Composite down 0.96%. Australia’s S&P/ASX leads with a 1.95% surge after the nation’s central bank decided to maintain its 0.25% interestThe cost of accessing money not owned. rate overnight. June’s trade surplusA trade balance that is positive as a result of income (exports on the national level) being greater... widened to $8.2 bn, failing to meet expectations of 8.8.

In Japan, consumer inflationThe rise in prices for goods and services, resulting in the deterioration of a currency’s purchasi... rose beyond expectations to double the previous month – 0.6% for July. The country’s foreign minister, Toshimitzu Motegi, is expected to land in the UK this month for trade and investmentAn asset (usually money or work) provided to another in expectation of receiving a cash return or be... talks.

Reuters this morning reports that China purchased only 5% of its required $25 bn in energy products from the US, based on its Phase-1 trade agreement.

Europe – German cars reigniting

European benchmarks all thrived yesterday, the Dax reading a 2.71% increase.

Manufacturing PMIs exceeded expectations throughout the continent, except in the UK where it dropped 3 ticks to 53.3 in July.

In Germany, the IFO Institute this morning reports that car manufacturing is back on the rise.

Americas – FEDs – WH must send more funds

Indices closed in the green yesterday, the Russel 2000 leading with a 1.8% gain.

The dollar index lost 40 cents after Markit’s manufacturing PMI showed a 0.4 pointThe unit of price change for bonds (1%), futures (0.01%), shares ($1) and mortgage fees (1% of the p... contraction rather than the expected 0.7 point increase. Gain returned, however, when the Institute for Supply Management returned with a better-than-expected 1.6 point increase to 54.2.

FED officials Kaplan, Bullard, Evans and Barkin said through several publicly broadcast venues that US households will require increased government spending ahead of a meeting between the administration and lawmakers, which are locked in a dispute over further measures. The treasury yesterday announced it expected to borrow an additional $2.16tn in H2 of this year.

Corporate – GM accuses Fiat/Chrysler of racketeering

Leaprate yesterday revealed that Apple (+2.52%) had purchased Mobeewave, a Canadian electronic payments tech company that will enable iPhones as payment devices. And Google yesterday issued $10mn worth of investment-grade bonds with a record-low 0.45% coupon.

Meanwhile, GM has called for reopening racketeering charges against Fiat/Chrysler, saying the company had hidden bribe payments to GM unions.

In earnings, Bayer this morning reported a 2.5% decrease in revenues to €10.05 bn, while BP reported a $6.7 bn loss. Yesterday, AIG reported a $7.9 bn net loss, posting 66 cents in earnings per share, and Ferrari missed expectations with €9 mn net profits – 95%

Today, Rolls Royce reports alongside Disney, Prudential, Western Union, Devon Energy, Sony, Ralph Lauren, Exelon, Transdigm, Microchip and Fox.

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