Markets: Australian equities were outperforming in an otherwise gloomy session in the Asia-Pacific region. (Financial Times)
Spike in China money rates raises cash-crunch fears: China's money rates shot up on Thursday after the central bank withdrew cash from the financial system, fuelling worries that the world's second-biggest economy might see a replay of a liquidity squeeze that rattled global markets earlier this year. The seven-day bond repurchase rate, a key gauge of short-term liquidity in China, opened at 5 per cent, a four-month high and up 150 basis points from the end of last week. But analysts said concerns of a cash-crunch redux were premature, with tightening moves by the central bank only mild so far and in large part directed at counteracting big inflows of cash from abroad. (Financial Times)
China: "The Markit/HSBC Purchasing Managers Index (PMI) stood at 50.9 in October, above September's final reading of 50.2 and marking a seven-month high. Ten of 11 sub-indices rose... New orders rose to 51.6, the highest in seven months and well above the 50 line separating expansion from contraction." (Reuters)
US taskforce probes 9 banks on mortgage securities: At least nine banks face investigations by the US Department of Justice into their sales of mortgage-backed securities as part of an effort by the taskforce that reached the $13bn pact with JPMorgan Chase, people familiar with the matter say. (Financial Times)
US Congress moves to tighten money laundering laws with two bills introduced in the US Congress on Wednesday, giving federal regulators enhanced powers to hold bank executives personally responsible for misdeeds. (Financial Times)
US jury rules against BoA in mortgage trial: Bank of America defrauded two government-backed mortgage companies by selling them defective home loans, a jury found on Wednesday, delivering the US government a resounding courtroom victory on a financial crisis case -- the jury found BofA's Countrywide Financial unit liable of civil fraud for defrauding Fannie Mae and Freddie Mac. (Financial Times)
Last-ditch scramble to save Grangemouth: Ministers in the Scottish and UK governments were scrambling to save Scotland's most important industrial complex after the owner of the Grangemouth petrochemical plant announced it would close with the loss of 800 jobs. (Financial Times)
Draghi warned that some European banks needed to fail a series of ECB health checks to prove the credibility of its year-long review of the region's biggest banks. The blunt comments by the ECB president raised pressure on EU leaders to earmark public money that could in extreme cases be used to recapitalise struggling lenders. (Financial Times)
Angela Merkel's mobile phone may have been the target of US surveillance, the German government said on Wednesday. (Financial Times) (NYT)
Japan's "Abe said on Thursday he plans to use higher-than-expected tax revenue to fund economic stimulus spending rather than relying on issuing new debt." (Reuters)
Berlusconi faces new trial on corruption charges of bribing a senator who alleges that Italy's former prime minister paid him €3m – including €2m in cash – to switch parties and help bring down the last centre-left government in 2008. (Financial Times)
"India, Asia's second-largest energy user, will spend $2.2 billion to more than triple its proposed emergency crude oil reserves as it seeks to protect the economy against supply disruptions." (Bloomberg)
Alcoa and Rusal Are beneficiaries of warehouse logjam: "Two of the world's largest aluminum makers reaped an estimated $1.4 billion in revenues from higher fees amid a logjam at London Metal Exchange warehouses, according to an analysis by The Wall Street Journal."
Walmart seeks expansion in China: In a rare press conference from Walmart CEO Mike Duke and Walmart China CEO Greg Foran, the two executives said the company soon expects to open 110 more stores in China as it accelerates its expansion into smaller cities. (FastFT)
Pinterest has seen its valuation soar by more than 50 per cent in just eight months after its latest fundraising round valued the company at $3.8bn -- it raised $225m in a round led by Fidelity Investments with participation from existing investors. (Financial Times)
"GlaxoSmithKline's pharmaceutical and vaccine sales in China fell 61% in the third quarter, as a high-profile bribery investigation into the company hurt its ability to sell drugs." (WSJ)
American Realty buys Cole Real Estate for $11.2bn as two of the largest US commercial property owners put to rest tensions that have festered for much of this year. (Financial Times)
Brevan Howard, the world's third-largest hedge fund, has moved most of its operations out of the UK, shifting dozens of jobs to the Channel Islands, Switzerland, Asia and the US to escape EU regulation and grow internationally. (Financial Times)
"The remnants of Lehman Brothers Holdings Inc. is suing the New York Giants for more than $100 million it says it is owed for a soured interest-rate swap tied to the financing of the football team's stadium." (WSJ)
COMMENTS & CURIOS
Interrogation in China: "If we continue dunking him in water, we might be effective..." (Reuters)
Time for real guidance from the BoE (Financial Times)
Plans for political union unravel in Europe (WSJ)
Trials and tribulations of Tepco (Financial Times)
Property bubble watch: Myanmar edition (Financial Times)
Eurozone recovery: A job half-done (Financial Times)
OVERNIGHT MARKETS
Asian markets
Nikkei 225 down -77.61 (-0.54%) at 14,348
Topix down -3.88 (-0.32%) at 1,192
Hang Seng down -204.27 (-0.89%) at 22,796
US markets
S&P 500 down -8.29 (-0.47%) at 1,746
DJIA down -54.33 (-0.35%) at 15,413
Nasdaq unchanged 0.00 (0.00%) at 3,907
European markets
Eurofirst 300 down -8.07 (-0.63%) at 1,280
FTSE100 down -21.18 (-0.32%) at 6,674
CAC 40 unchanged 0.00 (0.00%) at 4,261
Dax unchanged 0.00 (0.00%) at 8,920
Currencies
€/$ 1.38 (1.38)
$/¥ 97.32 (97.36)
£/$ 1.62 (1.62)
Commodities ($)
Brent Crude (ICE) up +0.13 at 107.93
Light Crude (Nymex) up +0.66 at 97.52
100 Oz Gold (Comex) up +0.60 at 1,335
Copper (Comex) unchanged 0.00 at 3.27
10-year government bond yields (%)
US 2.49%
UK 2.64%
Germany 1.77%
CDS (closing levels)
Markit iTraxx SovX Western Europe -1.31bps at 70.78bp
Markit iTraxx Europe +2.53bps at 86.23bp
Markit iTraxx Xover +7.4bps at 344.76bp
Sources: FT, Bloomberg, Markit
