Markets: Asia-Pacific markets were higher across the board, with Japanese stocks in the lead, joining a relief rally that began in the US in response to an agreement to end the budget impasse in Washington. (Financial Times) (Bloomberg)
US eleventh hour deal averts default:The Senate and then the House of Representatives both voted to end the partial government shutdown and extend the debt ceiling into early next year while Democrats and Republicans start negotiations on a new budget. The Senate approved the agreement on Wednesday night with a vote of 81 to 18, and the House followed, approving the measure 285 to 144, although a majority of Republicans in the chamber voted against it. (Financial Times) The agreement, crafted by two Senate leaders, offers only a temporary reprieve from the brinkmanship that has become a hallmark of divided government. (WSJ)
Carlos Slim has admitted defeat in a €7.2bn takeover battle for KPN after the intervention, via poison pill, of an independent foundation linked to the Dutch telecoms group. Bernstein estimates that Slim's América Móvil is nursing a €900m loss on its investment in KPN, although shares in the group have traded higher since the bid. (Financial Times)
Mark Cuban cleared in insider trading case after a jury said he did not violate insider trading laws when he sold his stake in Mamma.com. After the hearing, Mr Cuban said from the steps of the courthouse: "I'm glad I'm able to be the person who can afford to stand up to [the SEC]." (Financial Times)
Chinese nuclear hopes and the UK: George Osborne will hail a new dawn for Britain's civil nuclear programme on Thursday as the chancellor announces a deal between Chinese investors and EDF Energy to build the first nuclear power station in the UK in a generation. (Financial Times) (Financial Times II)
Buffet's Marmon Group, a Berkshire Hathaway company, has agreed to pay $1.1bn in cash for two units of IMI, the UK engineering group, including its drinks dispenser division that supplies Coca-Cola, PepsiCo and McDonald's. (Financial Times)
IBM blamed stalling sales in China, caused by uncertainty ahead of the country's pending economic reform plan, for a large part of an unexpected slide in revenues in the latest quarter, wiping 6 per cent from its market value late on Wednesday - sales fell by 9 per cent in the quarter. (Financial Times)
Ebay expects to struggle through the holiday shopping season after growth in online shopping rates in the US suddenly decelerated, causing the company to issue lower than expected guidance for the fourth quarter. (Financial Times)
Regulator suggested shift for Dimon at JPM sub: "The move, which happened July 1, didn't affect Mr. Dimon's status as chief executive or chairman of J.P. Morgan's parent company. The suggestion, this person said, came from the Office of the Comptroller of the Currency as a way to improve governance at the bank." (WSJ)
"Jos A. Bank Clothiers has received support for its $2.3 billion takeover bid for Men's Wearhouse from the majority of the shareholders with big stakes in both companies, Jos A. Bank chairman Robert Wildrick said in an interview on Wednesday." (Bloomberg)
Twitter has hired "J.J. Hirschle, who directed media and entertainment advertising at Google" to be head of retail. (Bloomberg)
DoJ and SEC prepare to charge ConvergEx: "US authorities are preparing to bring civil and criminal charges against ConvergEx, a leading transaction services provider to pension funds and institutional investors, for allegedly overcharging its clients, people familiar with the matter say. The Department of Justice and Securities and Exchange Commission are in advanced settlement talks with ConvergEx in which the broker may admit to wrongdoing as part of a civil settlement. The settlement talks are still going on and the terms of a resolution with the DoJ are still being negotiated, these people said. " (Financial Times)
COMMENTS & CURIOS
Costing the clown-show (NYT) (Financial Times)
"Shutdown could certainly use a couple of hot young senators with high-octane sex drives and entrenched positions on deficit funding." Amen. (Financial Times)
Starr's efforts to question Bernanke "have all the appearances, and vices, of a fishing expedition" (Bloomberg)
China may be in much better shape than it looks (Financial Times)
Peking university's purge (WSJ)
"Even after five or six years of massive infrastructure development, China's infrastructure is only at a level similar to that of Japan in the 1960s or 1970s." (Bloomberg)
In Argentine politics, sickness and death are key players. (NYT)
Draghi should use disinflation threat to try to boost growth (Financial Times editorial)
OVERNIGHT MARKETS
Asian markets
Nikkei 225 up +149.31 (+1.03%) at 14,616
Topix up +9.86 (+0.82%) at 1,207
Hang Seng up +53.39 (+0.23%) at 23,282
US markets
S&P 500 up +23.48 (+1.38%) at 1,722
DJIA up +205.82 (+1.36%) at 15,374
Nasdaq up +45.42 (+1.20%) at 3,839
European markets
Eurofirst 300 up +2.41 (+0.19%) at 1,266
FTSE100 up +22.48 (+0.34%) at 6,572
CAC 40 down -12.30 (-0.29%) at 4,244
Dax up +41.56 (+0.47%) at 8,846
Currencies
€/$ 1.35 (1.35)
$/¥ 98.60 (98.76)
£/$ 1.60 (1.59)
Commodities ($)
Brent Crude (ICE) down -0.03 at 110.56
Light Crude (Nymex) down -0.10 at 102.19
100 Oz Gold (Comex) unchanged 0.00 at 1,282
Copper (Comex) unchanged 0.00 at 3.30
10-year government bond yields (%)
US 2.66%
UK 2.83%
Germany 1.93%
CDS (closing levels)
Markit iTraxx SovX Western Europe -0.66bps at 72.79bp
Markit iTraxx Europe -1.26bps at 87.59bp
Markit iTraxx Xover -1.6bps at 354.75bp
Sources: FT, Bloomberg, Markit
