Facing heavy pressure to step aside in a Libor manipulation scandal, Barclays CEO Bob Diamond resigned Tuesday as a new disclosure hours later dragged the Bank of England deeper into the scandal. Diamond's former management team at Barclays released a memo Diamond wrote in 2008 regarding a conversation with Bank of England Deputy Governor Paul Tucker. In the memo, Tucker appeared tolerant of Barclays' actions. 

China backs off plan for metals plant after major protests

After thousands rallied in a sometimes violent protest against a planned metals plant in the Sichuan Province city of Shifang, China's government backed off and said it wouldn't proceed. However, Beijing said it was dispatching teams to educate local residents about the project. The protest reflected a growing geographical awareness and concern over environmental threats from grand Chinese projects and drew widespread attention across the Internet.

U.S. factory orders beat expectations in May

A day after a report that U.S. manufacturing had turned negative in June for the first time in nearly three years, the Commerce Department reported that new orders for U.S.-made factory goods were up a higher-than-expected 0.7% in May. Gains were seen broadly through the sector, including orders for appliances, cars and aircraft. 

IMF urges U.S. to act soon to avoid "fiscal cliff," cuts forecast

The International Monetary Fund called on U.S. authorities to take positive steps to avoid a tax-and-spending disaster at the end of the year and lowered its growth forecast for the economy to 2.0%. "It is critical to remove the uncertainty created by the 'fiscal cliff' as well as promptly raise the debt ceiling, pursuing a pace of deficit reduction that does not sap the economic recovery," the fund said in its annual report on the U.S. economy. 

ECB rate cut is expected as eurozone inflation cools

With eurozone year-on-year producer price inflation at 2.3% in May, its lowest point in more than two years, the European Central Bank is expected to cut interest rates to their lowest ever Thursday. Producer prices across the zone in May were down 0.5% from April, and consumer price inflation is now expected to decline over the next several months. 

Bailout funds for Spain may go directly to banks

Contrary to objections expressed by Germany and other northern European countries last month, the $126 billion in aid designated for Spain will probably be funneled directly to Spanish banks, said Finance Minister Luis de Guindos. The arrangement, now being negotiated by Spain and the EU, would spare the country's sovereign fiscal status from further damage. 

JPMorgan faces new scrutiny, this time in power case

Already under U.S. regulatory scrutiny over billions in trading losses, JPMorgan Chase has been subpoenaed twice recently in regard to manipulation of power markets in California and the Midwest.

Market Activities
INTERNATIONAL MARKETS OVERVIEW

U.S. stocks advanced on better-than-expected May factory orders and strong auto sales in a session shortened ahead of the Fourth of July holiday. The S&P 500 Index ended the day up 0.6%. Earlier, European stocks rose amid hopes that generally slack economic numbers will prompt central banks in Europe and the U.S. to provide more stimulus. Here is a continuously updated list of global stock indexes. 

Economic Trends & Outlook
Lower-than-expected Chinese inflation may open way for more stimulus

Chinese authorities may have more room for economic stimulus if, as now expected, the nation's inflation rate comes in below 3% when reported later this month. The Bank of Communications now pegs the June figure at 2.4%, and Haitong Securities projects 2.3%. Separately, it was reported that China's "big four" banks extended a lower-than-expected 190 billion yuan in new loans last month. 

China's property market shows signs of life

Green shoots are showing up in China's recently dormant property market, as bigger developers over the past two months build up their land banks. The activity remains modest by historical standards but is seen as a way for developers "to diversify their operations to lower their exposure to any single region or business segment," said Kaven Tsang, an analyst for Moody's. 

Australia's central bank stands pat on cash rate

After two successive rate cuts, Australia's central bank left its main cash rate at 3.5% Tuesday as it continues to evaluate its most recent moves. Looking ahead, however, analysts say the bank may cut more in August if inflation figures prove as tame as expected. 

Economist sees Malaysia hanging in until world markets recover

Malaysia's domestic economy will provide stability in the short term as the global economy continues to improve slowly and possibly turn around late this year, according to Lee Heng Guie, economist with CIMB Investment Bank. "The growth locomotive is slowing but not collapsing," Lee said in his presentation on the resilience of the Malaysian economy at the Selangor government's Budget 2013 dialogue. 

No recovery for South Korean economy is seen in 2nd half

Little hope is held out for a pickup in South Korea's economy in the second half due in part to stagnant domestic demand, according to projections from the Hyundai Research Institute. As for exports, much depends on China and its economic policy over coming months while information technology exports to the U.S. are expected to lag. 

Philippines may get an upwardly revised forecast from ADB

Stronger-than-expected growth figures for the first quarter may lead the Asian Development Bank to boost its 2012 growth forecast of 4.8% for the Philippines. Though data are still under review, "it is worth noting ... that there is an upside momentum for the Philippines," ADB Country Director Neeraj Jain said. 

Capital Markets & Financial Products
Leading 50 Indian stocks nearly all up for the month

Nearly all of India's so-called Nifty 50 stocks have advanced into positive territory on a monthly basis over the past few trading days, lifted by a broadly buoyant market. The same brief period has seen most of the 9.1% gain recorded for the entire month. Nonetheless, a majority of the 50 leading stocks are still on negative ground for the past year. 

Demand for offshore funding in yuan may remain muted

Investor confidence shaken by the fact the yuan over the past few months hasn't risen as expected and the ability to raise debt more cheaply using the dollar have sapped enthusiasm for offshore funding in the Chinese currency. And with continued uncertainties in Europe cutting into once-vigorous demand, the so-called dim-sum market may not recover anytime soon.

Taiwan sees sharp drop in IPOs; outlook is dim

Capital raised on Taiwan's stock market in the first half of the year was down 52% from a year before, as reported by Ernst & Young. And looking ahead, the IPO landscape "appears rugged unless the eurozone shows signs of stabilization and concerns over unfavorable tax policy [in Taiwan] dissipate," said Ernst & Young assurance partner Ian Wang. 

Samsung loses U.S. bid to lift tablet sales ban while appealing case

South Korea's Samsung said it was disappointed that a U.S. court refused to lift a sales ban on its key Galaxy Tab 10.1 tablets in the country as it appeals a decision that favored rival Apple. Apple claims the device violates patents.

Knight Vinke joins Qatar in pressuring Glencore on Xstrata bid

Qatar Holdings now has an ally in its quest for better terms from Glencore International for its proposed takeover of Xstrata. Knight Vinke Asset Management is demanding that Glencore boost its bid by 16%. "An exchange ratio of 3.25 would represent more appropriate terms," the company said in a letter.

Survey: Asia-Pacific institutional investor assets at $32.8 trillion

The asset pool of the leading 300 institutional investors in Asia and the Pacific is now a collective $32.8 trillion, according to a survey by AsianInvestor magazine. "Our annual ranking should serve as a modest corrective to the gloom in the funds industry. It may be true that macro conditions have kept many investors on the sidelines, but that's a lot of money to leave in bank deposits," observed AsianInvestor Editor Jame DiBiasio.