New York morning espresso

** FT News **

* StanChart warns of 20% profit fall | Emerging markets bank says operating profits for the first six months will be 20% lower, as it announces that its head of financial markets arm is to take a sabbatical

* Russian stocks stage remarkable turnround | Over the past three months, Russia’s RTS index is the third best-performing exchange worldwide, gaining 25 per cent from its mid-March lows

* Jordan acquits Abu Qatada of terror charges | Radical cleric acquitted on 1990s terror charges, but continues to be detained on separate charges relating to a 2000 plot to attack tourists

* Indonesia: The political outsider | As southeast Asia’s biggest economy prepares to elect a new president, many hope victory for Joko Widodo will consolidate its democracy and he will fix its finances

* Indonesia kicks off first eurobond sale | Indonesia is the latest in a long line of countries looking to tap euro markets, following issues this year from South Korea, Croatia, Brazil and Morocco

* Merkel toughens Russia sanctions talk | German chancellor warns Moscow could face ‘level three’ sanctions, bringing her position more closely into step with that of the US

* Singapore to launch gold contract | City-state unveils plans for an exchange-traded gold contract and adds to calls for gold pricing to be influenced more by Asian trade

* Ambani reopens markets to India’s tycoons | Successful share sale by the indebted telecommunications group may tempt other capital-starved Indian industrial groups to raise funds

** FT Opinion **

- Hong Kong’s democratic aims are real | Having made fortunes by cozying up to Beijing, the establishment is in no hurry to turn voting over to the great unwashed

- Isis should not top US foreign policy list | The terrorist group will prove self-defeating. Yet allies the US is sworn to defend are threatened by China and Russia

- Russia faces lose-lose in Yukos ruling | A decision is imminent in a litigation case brought by former controlling shareholders of the oil company against the Russian Federation

- Defend Argentina from the vultures | A creditor paid more to take on the risk of a default cannot then be surprised by it

- A conspiracy that saps Poland’s strength | The case against Russia is far from proved – it is not the KGB style to bug restaurants and send the tapes to a magazine

** BB recent & required reading **

- India: reading the tea leaves ahead of Modi’s first budget | The inaugural budget of Prime Minister Narendra Modi – scheduled for next week – is set to be scrutinised for signals on policy priorities to revive Asia’s third largest economy. Here are some potentially revealing tea leaves.

- Kenya: World Bank cuts growth forecasts | International bond investors may have given Kenya a vote of confidence when the east African regional hub launched the continent’s biggest debut Eurobond this month, but the World Bank has a decidedly less rosy view.

- Africa M&A activity edges closer to 2007 record | Mergers and acquisitions activity is on the increase in Africa, with the number of deals in 2013 close to the record high reached in 2007, an encouraging sign for private equity groups looking to exit investments on the continent.

- “Gringos” in Brazil: World Cup comic relief | In the months leading up to the World Cup, Brazilians became accustomed to muttering “imagina na Copa” or “imagine this happening during the World Cup” in response to every type of annoyance, irritation or problem facing the country, such as bad transportation, crime etc.

** From elsewhere **

World Cup Economics: Why Brazil’s Bashers Have Got It Wrong (Forbes)

China’s app leaderboard shows Tencent’s decisive edge over Alibaba in mobile (Quartz)

** Markets: mostly up **

Emerging Markets
MSCI Emerging Market Index up +0.54% at 1,047

Europe
FTSE down +0.14% at 6,743
RTS down -0.59% at 1,375
Warsaw Wig up 0.00% at 52,097
FTSE 300 Eurotop up +0.18% at 1,374

Americas
DJIA up +0.29% at 16,868
S&P 500 up +0.49% at 1,960
Bovespa down -1.58% at 53,426

Asia
Nikkei 225 up +0.27% at 15,308
Topix up +0.21% at 1,263
Hang Seng up +1.45% at 23,198
Shanghai Composite up +0.65% at 2,039
MSCI Asia ex-Japan up +0.99% at 487.34
CNX Nifty down -1.00% at 7,493

Currencies
€/$ 1.36 (1.36)
$/¥ 101.77 (101.86)

Commodities
Brent Crude (ICE) down -0.13 at 113.87
Light Crude (Nymex) down -0.05 at 106.45
100 Oz Gold (Comex) down -5.90 at 1,316