Good morning New York,
FT ALPHAVILLE
The third arrow's lofty aim: the cases for and against optimism: Cardiff cites a Credit Suisse strategist note on the extended case for third arrow pessimism (significant governance problem, economic constraints) and third arrow optimism (could surprise everyone on the labour, restructuring and special enterprise side).
The FOMC minutes are out!: Cardiff wraps up the highlights, noting that the key line is probably that "many members indicated that further improvement in the outlook for the labor market would be required before it would be appropriate to slow the pace of asset purchases".
NEWS
BoJ says Japanese economy is 'recovering': The Bank of Japan talked of recovery for the first time since before the 2011 earthquake and tsunami, and maintained its asset purchasing programme as widely expected at its July board meeting ended today. The BoJ maintained its forecast from April that prices would rise 1.9 per cent by April 2015, excluding effects of a planned sales tax hike. (Bloomberg)(Financial Times)
South Korea's central bank kept rates on hold: The central bank kept its key benchmark at 2.5%, as widely expected. (Wall Street Journal)
China accuses GSK of bribing officials: GlaxoSmithKline on Thursday was accused by the Chinese government of being at the centre of a "huge" scheme to raise drug prices in China illicitly and bribing government officials and doctors in three of the country's biggest cities. (Financial Times)
China's big four banks extended a lot of credit so far this month: The banks loaned Rmb170bn in new yuan-denominated credit, the official Shanghai Securities News said today. That compared to an estimated Rmb270bn for all of June, the newspaper said. (Reuters)
US banks to shuffle assets over leverage rules: US banks are planning to meet the new leverage ratio by moving assets between subsidiaries, shortening the duration of derivatives and reducing credit commitments. (Financial Times)
US swap regulator close to deal on cross-border rules: The CFTC is close to a compromise on swaps rules for foreign companies dealing with US banks. A source said an internal split between commissioners is close to being resolved ahead of a Friday deadline for a decision on the issue. (Reuters)
PC shipments fall for fifth consecutive quarter: Shipments dropped to 76m units, a nearly 11 per cent decline for the second quarter compared to last year, as consumers turned to inexpensive tablets over desktop or laptop computers, especially in new markets, according to a report released on Wednesday by Gartner, the research company. (Financial Times)
Quebec train set too few brakes, with deadly result: The operator of the train that exploded in Quebec acknowledged that an inadequate number of handbrakes were applied. "A Reuters review of Canadian and U.S. regulations found that rail operators are given considerable leeway to decide how many handbrakes are sufficient for any given train, depending on track conditions and the weight of the cargo." (Reuters)
Chevron foresees lower output: The oil major said its oil and gas business is set for a year-over-year drop in the second quarter as lower crude prices and equipment maintenance. The second-largest US oil company's interim report, released Wednesday, is seen as a bellwether for the sector. (Wall Street Journal)
Markets: Stocks and gold were rallying while the dollar and Treasury yields slumped, following what traders perceived as unexpectedly dovish comments from Federal Reserve chairman Ben Bernanke. The FTSE All-World equity index was up 1 per cent as the FTSE Eurofirst 300 gained 0.9 per cent and after the Asia-Pacific region surged 1.8 per cent. US index futures suggested the S&P 500 would advance 18 points to 1,671, leaving the benchmark on course to close at a record high. The move by Wall Street towards virgin territory completed a swift turnround in market sentiment over the northern hemisphere summer. The dollar index, which early this week hit a three-year high of 84.73, was down a further 0.4 per cent to 82.95. Gold, which by mid-session on Wednesday was changing hands around the $1,250-an-ounce mark, was up another $22 to $1,285. (Financial Times)
