http://ftalphaville.ft.com/blog/2012/07/05/1071951/the-6am-cut-london-74/
The 6am Cut London
5.7.12, Kate Mackenzie
Asian stocks were slightly lower today as investors await central bank decisions. The ECB is anticipated to cut rates to a record low, while the Bank of England is also expected a new bond buying programme. The Shanghai Composite was the biggest mover, down 1.19%. Crude oil and the Australian dollar also fell. US markets were closed on Wednesday. Gold was close to a two-week high on easing expectations. (Bloomberg, Reuters, Financial Times)
Volkswagen has agreed to buy the remaining half of Porsche’s carmaking operations that it does not already own for €4.46bn. (Financial Times)
Investors are pumping record sums into exchange trade products. Inflows in the first half of 2012 were $105bn, 16% up on 2011, mainly due to growth in fixed income ETPs, according to BlackRock’s ETP Landscape. Gold vehicles were also popular. (Financial Times)
European banks have rushed to raise funding amid positive sentiment after last week’s Eurozone summit. Société Générale, Danske Bank and Intesa Sanpaolo are among those taking advantage of narrowed spreads and stronger appetite for debt issues. (Financial Times)
The premium for physical aluminium delivery in Europe has reached record highs, suggesting a big disconnect from regional supply and demand. (Reuters)
“Brics are priced for a meltdown: The biggest emerging markets are contributing more than ever to the global economy as their proportion of the world stock market shrinks, leaving investors with the widest valuation gap in seven years.” (Bloomberg)
Research in Motion’s CEO said there’s “nothing wrong” with the Blackberry-maker although he acknowledged it’s facing big challenges. (Reuters)
One less hurdle for Glenstrata: Australia’s regulator won’t block the Glencore-Xstrata merger. (Wall Street Journal)