Markets: Trading in markets across Asia was fairly muted as the stand-off continued in Washingtonover budget cuts and raising the US debt ceiling. Even though there are just a few days until the October 17 deadline when the Treasury has said the US will run out of cash to pay its bills, markets in Asian nations dependent on external trade, while under pressure, have remained relatively calm. (Financial Times)
With just four days left before the country faces the risk of default, senate leaders were locked in talks on Sunday in a desperate attempt to resolve the stalemate amid warnings of a global recession should the US run out of money to pay its bills. Harry Reid, the Democratic majority leader in the Senate, and Mitch McConnell, the chamber's top Republican, have taken over the negotiations after talks broke down between the White House and conservatives in the House on Saturday. However, Senate talks also hit an impasse in a dispute over a Democratic push to unwind sequestration. Whatever emerges, the Republican-dominated House, which does not convene until Monday evening, would have to approve any Senate compromise. (Financial Times I) (Financial Times II) (WSJ) (NYT)
Lloyds warns of Help to Buy bubble unless steps are taken to free up planning restrictions and boost the supply of new housing. António Horta-Osório, chief executive, also said: ""I think the scheme should be focused outside London and the southeast," he said. "[In the rest of the country] you have nothing close to a housing bubble." (Financial Times)
Twitter squeezes banks on IPO: "The fees banks are set to collect for selling the shares—at 3.25% of the money raised, said people familiar with the deal—would be the lowest percentage paid on a U.S.-listed IPO in more than a year, according to Ipreo... What's more, the microblogging service is nearing completion of a $1 billion credit line from its bankers..." (WSJ)
Higher vegetable prices helped fuel Chinese inflation in September: China's consumer price index for September rose 3.1 per cent compared with a year earlier, accelerating from August's 2.6 per cent year-on-year increase. (Financial Times)
Gulf oil production hits record, defying expectations that the US shale revolution would break their 40-year grip on the global oil market and diminish their importance to the world's consuming nations. (Financial Times)
Europe's financial institutions are more exposed to their domestic government bonds than at any time since the eurozone crisis started. It has yet to be decided exactly how the European Banking Authority's stress test of about 150 banks next summer will treat sovereign bond holdings. (Financial Times)
Iran has drawn a red line in critical talks with world powers over its nuclear programme, insisting that it will not allow its current stocks of enriched uranium to be shipped out of the country as part of any deal. (Financial Times)
"Netflix is in talks with several U.S. pay-television providers including Comcast and Suddenlink Communications to make its online video service available as an app on their set-top boxes, people familiar with the matter say." (WSJ)
Aim-quoted Russian oil explorer Urals Energy says that it has received a cash bid that values it two-thirds higher than its closing price on Friday. The approach is pitched at 12.25p, compared with Friday's closing share price of 7.5p. (Financial Times)
COMMENTS & CURIOS
"Unlike a sovereign default, the costs of government sclerosis fall mostly under the radar." (Financial Times)
The economics of Janet L. Yellen (Financial Times - Davies)
BuzzFeed, now in French, Spanish and Brazilian Portuguese thanks to human computation (WSJ)
"You can't be a murderer and keep getting paid," says Mr. Tsiakiris despite evidence to the contrary (WSJ)
Muni bargains (WSJ)
A a textbook case of the absurd results that India's 1970s-era coal supply laws can produce (Reuters)
OVERNIGHT MARKETS
Asian markets
Nikkei 225 up +210.03 (+1.48%) at 14,405
Topix up +19.22 (+1.63%) at 1,197
Hang Seng up +267.02 (+1.16%) at 23,218
US markets
S&P 500 up +10.64 (+0.63%) at 1,703
DJIA up +111.04 (+0.73%) at 15,237
Nasdaq up +31.13 (+0.83%) at 3,792
European markets
Eurofirst 300 up +5.76 (+0.46%) at 1,251
FTSE100 up +56.70 (+0.88%) at 6,487
CAC 40 up +1.87 (+0.04%) at 4,220
Dax up +39.06 (+0.45%) at 8,725
Currencies
€/$ 1.36 (1.35)
$/¥ 98.30 (98.56)
£/$ 1.60 (1.60)
Commodities ($)
Brent Crude (ICE) down -0.08 at 111.20
Light Crude (Nymex) down -0.18 at 101.84
100 Oz Gold (Comex) up +5.90 at 1,274
Copper (Comex) unchanged 0.00 at 3.27
10-year government bond yields (%)
US 2.69%
UK 2.74%
Germany 1.87%
CDS (closing levels)
Markit iTraxx SovX Western Europe -2.8bps at 77.88bp
Markit iTraxx Europe -3.23bps at 93.02bp
Markit iTraxx Xover -13.23bps at 371.7bp
Sources: FT, Bloomberg, Markit
