The ECB has voiced support for imposing losses on the senior bondholders of Spain's most damaged banks - a significant change of sentiment for the central bank, albeit one that was rejected by Eurozone finance ministers. The WSJ cites people familiar with the discussions who said ECB president Mario Draghi made the position clear at the eurogroup meeting last week. The ECB had previously opposed such bondholder haircuts during the 2010 bail-out of Ireland's banks. The chief reason ministers rejected such a move was the Irish precedent, in which taxpayers bore the burden of repaying bondholders in the country's failed banks. The 9% "temporary buffer" capital ratio for European banks will become permanent, says the European Banking Authority chairman. Andrea Enria told the FT "We want the banks maintaining this capital level and gradually moving to the Basel III full implementation. GlaxoSmithKline is nearing a deal to acquire Human Genome Sciences for about $2.8 billion in cash after pursuing the U.S. biotech company for three months, two sources familiar with the situation said on Sunday. Speculation grew that more Chinese easing is imminent after Premier Wen Jiabao warned on Sunday that "the momentum for a stable rebound in the economy has not yet been established." G4S embattled chief executive Nick Buckles appeared to be fighting for his job after it emerged that a surprise shortage of security guards for the Olympic Games was exposed only during a dress rehearsal nine days ago. Newly-appointed chairman John Connolly warned against "knee-jerk reactions" but declined to express outright support for the chief executive. Referring to a suggestion by Buckles over the weekend that today's share price could decide his fate, he said: "Let's see what happens in the morning." Procter & Gamble has spoken to external advisers to help deal with the demands of activist investor Bill Ackman, said people familiar with the matter. Ackman is pushing for the company to jettison executives or assets. A settlement between HSBC and the US Justice Department on money laundering could come "within weeks," the WSJ says, citing people familiar with the investigation. HSBC executives are on Tuesday due to face US lawmakers keen to criticise the bank after an investigation yielded possible ties to money laundering connected to illegal narcotics in Mexico. Jerry del Missier, the third member of the trio of top bankers ejected from Barclays will appear before the UK's Treasury select committee Monday over the Libor scandal. Iran's Hormuz threats weakened by new pipelines: Saudi Arabia and the UAE have opened new pipelines bypassing the Strait of Hormuz, the shipping lane that Iran has repeatedly threatened to close, in a move that will reduce Tehran's power over oil markets. China will cut taxes on the profits that foreign companies take out of the country by up to 50%, in a bid to encourage more overseas investment. The changes could save companies billions of dollars worth of tax payments, which might initially lead them to repatriate more profits, but ultimately should provide incentives for more investments. Wolfgang Munchau reluctantly admits Has-Werner Sinn and the new eurosceptics have the better argument. Ed Luce: Evidence of global warming has never been stronger but the public appetite to respond has rarely been weaker; especially in the US. JP Morgan's blaming of traders for mis-marking trades makes little sense, say former JPM executives. How Barclays mis-handled the Libor fallout. Possibly the oddest story about Angela Merkel you'll read today. Asian markets Nikkei 225 up +4.11 (+0.05%) at 8,724 Topix down -1.15 (-0.15%) at 746.34 Hang Seng up +36.99 (+0.19%) at 19,130 US markets S&P 500 up +22.02 (+1.65%) at 1,357 DJIA up +203.82 (+1.62%) at 12,777 European markets Eurofirst 300 up +13.81 (+1.34%) at 1,043 FTSE100 up +57.88 (+1.03%) at 5,666 CAC 40 up +45.63 (+1.46%) at 3,181 Dax up +137.75 (+2.15%) at 6,557 Currencies €/$ 1.22 (1.23) $/¥ 79.09 (79.25) £/$ 1.56 (1.56) Commodities ($) Brent Crude (ICE) up +0.13 at 102.53 Light Crude (Nymex) down -0.21 at 86.89 100 Oz Gold (Comex) unchanged 0.00 at 1,592 Copper (Comex) down -1.65 at 348.40 10-year government bond yields (%) US 1.49 UK 1.55 Germany 1.26 CDS (closing levels) Markit iTraxx SovX Western Europe -2.65bps at 271.07bp Markit iTraxx Europe -2.21bps at 166.1bp Markit iTraxx Xover -1.2bps at 664.79bp Markit CDX IG -1.26bps at 111.91bp This entry was posted by Kate Mackenzie on Monday, July 16th, 2012 at 5:34 and is filed under Uncategorised.