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% interest rate overnight. June’s trade surplus widened to $8.2 bn, failing to meet expectations of 8.8.

In Japan, consumer inflation 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 investment 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 point 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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