Demonstrators attend a protest against Brazil's President Dilma Rousseff, part of nationwide protests calling for her impeachment, in Sao Paulo, Brazil.
China released another batch of awful data. China's industrial production and retail sales data were terrible. While industrial production rose 5.4% year-over-year for January and December (two months due to the Lunar New Year), it was shy of the 5.6% gain that economists were forecasting. The number was a downgrade from the 5.9% print in December and the worst since November 2008. Retail sales might have even been more disappointing, climbing 10.2% in January against an expected gain of 10.8%. The December reading was reported at 11.1%.
Angela Merkel suffered a huge setback in regional elections. German Chancellor Angela Merkel's Christian Democratic Union party lost support in all three states that held regional elections on Sunday. The results were a sign of voter displeasure with Merkel's "open-door" policy towards refugees. That was evident as the far-right, anti-immigration party, Alternative für Deutschland (AfD) party made key gains in Saxony-Anhalt (24.2%), Baden-Württemberg (15.1%) and Rhineland Palatinate (12.6%). Germany's 10-year yield is down 2.2 basis points at 24.7 bps.
Iran won't freeze its oil production. Iranian Oil Minister Bijan Zanganeh says the country won't join the supply freeze implemented by Saudi Arabia, Russia, Qatar, and Venezuela until it doubles its post-sanctions output, according to a report from Iran's ISNA news agency cited by Reuters. "They should leave us alone as long as Iran's crude oil has not reached four million. We will accompany them afterwards," said Zanganeh, according to INSA. West Texas Intermediate crude oil is down 2% at $37.73 per barrel.
India's wholesale prices fell more than expected. India's Wholesale Price Inflation Index fell 0.91% YoY in January, far greater than the 0.19% drop that was expected by the Bloomberg consensus. The reading was little changed from the 0.90% drop recorded in December. The Reserve Bank of India's next policy meeting takes place on April 5. India's rupee is little changed near 67.0375 per dollar.
It's a busy week for central banks. The Bank of Japan gets things started on Monday evening as it announces whether or not it will expand its quantitative easing program. Then, on Wednesday, it's the Federal Reserve's turn to announce any policy changes. Currently, the market is pricing in just a 4% chance of a rate hike. Finally, both the Swiss National Bank and Bank of England opine on Thursday.
Blackstone is selling Strategic Hotels. The private equity firm has agreed to sell Strategic Hotels & Resorts to China's Anbang Insurance Group for $6.5 billion. Blackstone paid $3.93 billion for the high-end hotel chain in December, but that number rose to about $6 billion when taking into account debt. According to Reuters, the 16 properties owned by the chain include "Ritz-Carlton locations in California, the Fairmont Scottsdale in Arizona, and the Four Seasons Resort in Jackson Hole, Wyoming."
Deutsche Boerse might up its offer for LSE. German exchange Deutsche Boerse could increase its offer of more than £10 billion for the London Stock Exchange as soon as today, the Telegraph reports. The initial deal called for ownership of the combined entity at a 56%/44% split favor of Deutsche Boerse, but that might not be good enough considering the interest from rival Intercontinental Exchange. According to the Telegraph, "Under Takeover Panel rules Deutsche Boerse has until 22 March to make any formal bid while ICE has until 29 March."
Carl Icahn wants his son to succeed him. The New York Post reports Carl Icahn is in negotiations with his son Brett to have him stay at the company an eventually succeed him at the helm of Icahn Enterprises. Partner David Schechter is also said to be part of the plans, according to the Post. The two men manage a portfolio of about $7 billion for the firm. The Post also says the two men could opt to leave the company and start their own investment firm.
Stock markets around the world are mostly higher. China's Shanghai Composite (+1.8%) led the way in Asia after Beijing pledged it would support the market. In Europe, Germany's DAX (+1.7%) paces the advance. S&P 500 futures are lower by 4.00 points at 2016.00.
US economic data is absent. However, data flow for the week is heavy. Retail sales, Empire Manufacturing, CPI, housing starts and building permits, Philly Fed and University of Michigan Consumer Sentiment highlight the week's releases. The US 10-year yield is down 1 basis point at 1.98%.