Markets: Asian stocks rose, with the regional benchmark index on course for its biggest three-week advance in two years, as a weaker yen boosted Japanese shares. Volumes were below average with markets in Hong Kong, China, South Korea and Taiwan closed for holidays. (Bloomberg)
Hank Paulson warns of regulatory conflict, the risk that competing financial regulations could "devolve into financial protectionism". The former US Treasury secretary said reforms put in place after the 2008 crisis could lead to "walling off markets, constricting cross-border access to capital and conflicting requirements for global firms" while supporting "regulators, exchange, clearing houses or national financial institutions". (Financial Times)
Fed's decision has triggered a backlash among Republican lawmakers unhappy with the protracted easy-money policy, and raised pressure from the right on Janet Yellen, the frontrunner to take the helm of the central bank. (Financial Times)
"The European Union and Singapore submitted for approval on Friday one of the world's most comprehensive free trade agreements, which the EU sees as a stepping stone towards a wider deal with southeast Asia... Subject to approval in Singapore and by the 28 EU member states and the European Parliament, the agreement should enter into force in late 2014 or early 2015." (Reuters)
Goldman Sachs suffered a loss when a clerical error by the New York Federal Reserve left the bank without any of the three-month Treasury bills it had ordered at a government debt auction, people familiar with the matter said. As a result of the over-allotment of the six-month bills, Goldman went over the 35 per cent Treasury limit that a bidder can acquire in an auction. The Treasury waived that rule while letting the results of the auction stand, and there will likely be no additional remedies for the bank, a person familiar with the matter said. (Financial Times)
"House Republicans narrowly pushed through a bill on Thursday that slashes billions of dollars from the food stamp program, over the objections of Democrats and a veto threat from President Obama." (NYT) (And an NYT editorial lambasting the move)
US and UK steer clear of Brazil oil auction: The auction drew only a quarter of bidders expected by the government, as concerns rise over onerous state controls in the industry. (Financial Times)
Criminal networks blamed for Nigeria oil theft: Criminal networks stole at least 100,000 barrels a day of oil in Nigeria in the first quarter of 2013 and sold it to buyers in west Africa, Europe, Asia and the Americas, according to a new report. The large-scale theft of crude and related pipeline sabotage reduced output in Africa's largest oil producer to below 2m b/d this summer, a four-year low. It also helped drive up the global oil price and cut the Nigerian government's revenues, nearly 80 per cent of which come from petroleum. (Financial Times)
Empire State Realty, whose properties include New York's Empire State Building, files for $1bn IPO: The company aims to offer 71.5m shares priced at between $13 and $15 each, and expects to list on the New York Stock Exchange, according to a Securities and Exchange Commission filing. (Financial Times)
Admin costs for BP spill settlement soar above $600m, meaning that the programme has paid more than a dollar in administration for every six it distributed in compensation. The settlement administrators have received more than 221,000 claims, and about 12,000 more are coming in every week. The office has employed about 2,200 full-time equivalent staff. Compensation payments have reached $3.6bn, and are on course to exceed by far BP's original estimate of $7.8bn for the total cost of the settlement. (Finanial Times)
Justice Department charged a former Halliburton manager Thursday with destroying evidence in the aftermath of BP's 2010 Gulf of Mexico oil spill. The former cementing technology director for Halliburton from Katy, Texas, is accused of directing two other Halliburton employees to delete computer-simulation data in May and June 2010. The data related to how BP constructed the well that blew out in April 2010, leading to a deadly explosion and massive oil spill. (WSJ)
S&P warns exchange glitches could trigger downgrade: "We account for some operational risk in our ratings already, but as technical problems occur more frequently, operational risk is becoming a more important in our analysis and could result in downward pressure on ratings over the next few years," analysts at S&P said. (Financial Times)
At least five (unnamed) clubs competing in this season's Uefa competitions risk breaching the European football's governing body's new financial break-even rules if their losses over the last two seasons exceed €45m, its general secretary has warned. (Financial Times)
"The president of Belarus hinted for the first time Thursday at a possible resolution in a cross-border fight over potash that has rocked global fertilizer markets, by suggesting he is open to the idea of sending the jailed chief executive of potash miner Uralkali back to Russia for prosecution there." (WSJ)
Onion prices in India may extend a record rally as heavy monsoon rains delay harvests and worsen a shortage, potentially accelerating food inflation in Asia's third-largest economy. Retail prices of the vegetable used in everything from soups to curries soared to 70 rupees ($1.13) a kilogram (2.2 pounds) in New Delhi this week from 20 rupees three months earlier, according to the Consumer Affairs Ministry. Prices may increase further as farmers are unable to pick the crop due to monsoon rains" (Bloomberg)
Univision in talks with banks about 2014 IPO according to sources: "New York-based Univision was taken private by a group of buyout firms including Madison Dearborn Partners, Providence Equity Partners, TPG Capital and Thomas H. Lee Partners for $12.3 billion in March 2007." (Reuters)
Egypt returns $2bn to Qatar, after the failure of negotiations to convert it into a three-year bond, in sign of worsening bilateral ties. (Financial Times)
FT ALPHAVILLE
Freudian, sorry, Fantasy M&A
How to make a Whale fine, with the FCA
COMMENTS & CURIOS
West's debt explosion is real story behind Fed QE dance (Financial Times)
Fed gives EM time to fix what needs fixing (Financial Times)
Obama's lucky new position with Syria and his approach to Iran (Financial Times)
Matt Levine: What JP Morgan was actually fined for (Bloomberg)
Hilsenrath questions the Fed's guidance and communications nous (WSJ)
The US 'Saudi Arabia' myth (Bloomberg)
Editorial: Neither side can claim high ground in Argentine debt restructuring (Financial Times)
OVERNIGHT MARKETS:
Asian markets
Nikkei 225 down -31.15 (-0.21%) at 14,735
Topix up +0.14 (+0.01%) at 1,216
Hang Seng up +385.06 (+1.67%) at 23,503
US markets
S&P 500 down -3.18 (-0.18%) at 1,722
DJIA down -40.39 (-0.26%) at 15,637
Nasdaq up +5.74 (+0.15%) at 3,789
European markets
Eurofirst 300 up +7.52 (+0.60%) at 1,266
FTSE100 up +66.57 (+1.01%) at 6,625
CAC 40 up +35.64 (+0.85%) at 4,206
Dax up +58.12 (+0.67%) at 8,694
Currencies
€/$ 1.35 (1.35)
$/¥ 99.24 (99.43)
£/$ 1.60 (1.60)
Commodities ($)
Brent Crude (ICE) down -0.07 at 108.69
Light Crude (Nymex) down -0.29 at 106.10
100 Oz Gold (Comex) unchanged 0.00 at 1,369
Copper (Comex) unchanged 0.00 at 3.35
10-year government bond yields (%)
US 2.74%
UK 2.94%
Germany 1.93%
CDS (closing levels)
Markit iTraxx SovX Western Europe -2.22bps at 88.61bp
Markit iTraxx Europe -1.1bps at 92.93bp
Markit iTraxx Xover -2.09bps at 374.38bp
Sources: FT, Bloomberg, Markit
