HSBC plans huge job cuts, emerging market stocks are on a 12-day losing streak and Greece's new plan sounds a lot like the old plan. Here are some of the things that people are talking about in markets this morning.
Fuel for the China stock fire
$6.5 trillion has been added to the value of Chinese equities in just 12 months: That's enough to buy Apple Inc, eight times over. Even if the Chinese stock market doesn't need a new reason to go higher, it might get one anyway. Later today MSCI will decide whether to add China's locally traded shares in its global indexes, potentially opening up the door to even more money.
Greece's 'new' plan
The Greek delegation in Brussels is said to have submitted two three-page documents to creditors. One is a proposal which covered only fiscal targets. The other is a separate note asking to use funds from the European Stability Mechanism to pay the European Central Bank when about €6.7 billion worth of debt is due to be repaid in July and August. An international official says the revised plan is just a vague rehash of earlier plans. The new plan sounds a lot like the old plan.
Europe's largest bank is planning to shrink its global workforce by about 10 percent as CEO Stuart Gulliver seeks to slash annual costs by as much as $5 billion in an effort to reverse profit declines. Gulliver said that in the U.K. up to 8000 jobs will be cut. HSBC is also reviewing whether to move its headquarters away from London. The bank says the review will be completed by the end of this year.
As HSBC considers an exit from the U.K., British lawmakers will debate an exit from the EU. The House of Commons will have its first debate and vote on a bill to hold a referendum on EU membership by the end of 2017. The debate comes the day after Prime Minister David Cameron had to deny claims he said Tory ministers would lose their jobs if they campaigned for an exit. Here's one way the Brexit campaign could be successful.
Markets on a big losing streak
European stocks are coming off a 5-day losing streak, the longest so far in 2015. At the time of writing, they are heading for a 6th. If you think the pullback in Europe is bad, then checkout emerging markets. The MSCI Emerging Markets Index is poised for a 12th straight day of declines, the longest stretch of losses in 24 years. Concern continues to grow that once the Federal Reserve starts to tighten monetary policy, it will rip through the EM space.
What we've been reading
Here's what caught our eye over the last 24 hours.
- The real winner in Turkey’s election was the party that came fourth.
- More warnings about the severity this year’s El Nino event.
- The European Central Bank takes a look at home bias, before and after the crisis.
- If Europe cannot bend it will break, says Gideon Rachman
- The BRICs hit a wall.
- After almost seven years, Iceland is finally set to lift capital controls.
- The BBC is trying to make sense of Kim Jong-un.