Good morning! Here’s what you need to know in markets as the week begins.
UBS confirmed a massive boost in profits during Q2. Swiss bank UBS said on Monday second-quarter net profit rose 53 per cent on the year to 1.2 billion Swiss francs ($US1.25 billion, £805.1 million), releasing results one day early following a Swiss newspaper report on the figures on Sunday.
Euroz0ne money supply figures are coming. At 9 a.m. London time (4 a.m New York time) figures for Europe’s money supply and private lending will be released. Both the supply of money and bank lending have been picking up recently, underscoring the continent’s modest recovery.
Yanis Varoufakis was among Greek officials constructing a plan to hack Greek state websites in case of a Grexit. In a report in the conservative Kathimerini daily, Varoufakis was quoted as saying that a small team in Syriza had prepared plans to secretly copy online tax codes. It said the “Plan B” was devised to allow the government to introduce a parallel payment system if the banking system was closed down.
Chinese shares are sinking again. The Shanghai composite is down 3.38% as of 6:50 a.m. London time, and Hong Kong’s Hang Seng is down 2.7%. Japan’s Nikkei index is down too, falling 1.21%.
US Republican lawmakers want the the Federal Reserve’s policymaking process changed. Right now the New York Fed has a permanent seat on the Federal Open Market Committee, an internal monetary policymaking part of the Federal Reserve that will make the decision on when to increase interest rates. But if GOP lawmakers have their way, the New York Fed’s elevated influence will come to an end.
France is considering extending its green energy tax. The French government is considering a reform of the tax levied on power bills to fund renewable energy that would see it extended to natural gas and road fuels, the Journal du Dimanche newspaper said on Sunday.
Hedge funds are at their most negative about gold in at least 9 years. Data from the Commodity Futures Trading Commisssion, or CFTC, showed that hedge funds are net short gold for the first time since this data was first collected back in 2006, according to Bloomberg. The CFTC’s data collects all of the long and short bets being made by hedge funds and speculators, or bets that the price of something will go up or down from here.
British PM David Cameron is talking trade and extremism on a trip to south east Asia. British Prime Minister David Cameron said on Sunday he wanted to use a four-day trade mission to southeast Asia to spur lucrative business deals and to forge new political alliances to counter Islamist extremism.
And British Chancellor George Osborne is in Paris, talking about EU reform. According to the Financial Times, Osborne is meeting with economy minister Emmanuel Macron and foreign minister Laurent Fabius to discuss the British plans for EU renegotiation and reform. French ministers have previously expressed scepticism about London’s efforts to change Europe.
Italian bank Monte dei Paschi is still more exposed to Japan’s Nomura than it should be. According to Bloomberg, although Monte dei Paschi has cut its exposure considerably, from 49% at the end of March to between 25% and 28% now, that’s still above the 25% threshold for the European Central Bank.