Good morning New York,
FT ALPHAVILLE
Dan explores the world of sticky risk.
NEWS
Major central banks agreed to make permanent bilateral swap lines introduced during the crisis. "The existing temporary swap arrangements have helped ease strains in financial markets and mitigate their effects on economic conditions," the G7 central banks said in a joint statement. The Fed first used the swap lines in 2007 as a global dollar shortage mounted (Financial Times, BoE statement).
Eurozone inflation reached a four-year low in October. Annual inflation crawled forward at 0.7 per cent, compared to expectations of 1.1 per cent (Reuters).
Weak fixed-income trading at banks in the third quarter also hit BNP Paribas. The French bank 'was able to partly make up for declines in its fixed-income division with gains in equity trading and advisory, but still pre-tax income in the investment bank was down 24 per cent on the same quarter last year, to €552m...' (Financial Times)
Profits tumbled at Shell. Third-quarter net profit fell 31 per cent to $4.25bn, on weak refining margins and rising production costs (Wall Street Journal).
Profit warning at Sony. The company cuts its full-year net profit forecast 40 per cent to Y30bn, well below the Y50bn envisaged in August (Financial Times).
The UK government is considering making foreign investors pay capital gains tax on property for the first time, partly to address the rise in prime London prices (Sky News).
