CHINESE MANUFACTURING WEAKEST SINCE 2012
Chinese manufacturing ebbed in January to its lowest in more than three years, a possible sign of further weakness in the world’s No. 2 economy after posting its slowest annual growth in a quarter century. An index based on an official survey of factory purchasing managers fell to 49.4 last month from December’s 49.7, marking the sixth straight month of deteriorating conditions in China’s massive manufacturing sector.
BARCLAYS, CREDIT SUISSE REACH SETTLEMENT ON “DARK POOL” FRAUD
Two major global banks, Barclays and Credit Suisse, are paying a combined $154.3 million to settle government investigations that they misled clients about being able to safely trade on their “dark pool” financial exchanges. The banks left their customers on these private exchanges vulnerable to “predatory, high-frequency traders” that could intercept and profit off their financial transactions, despite assurances by Barclays and Credit Suisse to the contrary, according to a statement by the New York Attorney General.
GREECE ENTERS NEW ROUND OF BAILOUT TALKS
Greece’s leftwing-led government is entering a new round of negotiations with its creditors over progress on the latest bailout program, amid angry union reactions to proposed pension reforms — a key part of the talks. Following pressure from bailout creditors, the government has committed to overhaul the country’s pension system, which, it admits, is otherwise moribund.
GLOBAL STOCKS MIXED ON ECONOMIC OUTLOOKS
European stocks fell Monday after a weak manufacturing report sent Chinese markets lower, but Japan extended gains following its central bank’s introduction of a negative interest rate policy to boost lending and spur growth. Germany’s DAX fell 0.4 percent to 9,761.33, futures augured a lackluster start for Wall Street, Japan’s Nikkei 225 rose 2 percent to 17,865.23 and the Shanghai Composite in mainland China lost 1.8 percent to 2,688.85.
DATA WATCH: CONSUMER, CONSTRUCTION SPENDING REPORTS EXPECTED
The Commerce Department issues its December reports on consumer spending and construction spending. Meanwhile, the trade group the Institute for Supply Management issues its index of manufacturing activity for January.