Markets: The continued government shutdown in Washington remained the overarching story, with Asia Pacific markets generally lower despite some small momentum from Wall Street, where equities broke a two-day losing streak. (Financial Times)
Yellen's hard task highlighted by the minutes: "Policy makers at the US Federal Reserve were split over the merits of slowing its $85bn a month asset purchases in September, highlighting the difficult task facing Janet Yellen as she prepares to take chairmanship of the central bank." (Financial Times)
Obama steps up discussions with Congress to end budget stand-off: "Barack Obama is stepping up discussions with Congress as US political leaders seek a way out of a budget crisis that could leave the country without the money to pay its bills before the end of the month. The president will meet about 20 senior Republicans from the House of Representatives at the White House on Thursday, after talks with members of his Democratic party on Wednesday evening." (Financial Times)
"Armed men have kidnapped Libyan Prime Minister Ali Zeidan from a hotel in Tripoli, two Arab television channels reported on Thursday." (Reuters, Al Jazeera -- breaking at pixel)
"Fidelity Investments, the nation's largest money market mutual fund manager, has sold all of its short-term U.S. government debt — the latest sign that investors are increasingly nervous about the possibility of a government default." (AP)
More than two dozen parties have expressed interest in JPMorgan Chase's physical commodities operations. Offer documents value the assets of the physical commodities business at $3.3bn and indicate that it produces $750m in annual income before compensation costs. (Financial Times)
Meredith Whitney told Finra that she had set up a business called Kenbelle Capital. "I am the managing principle/chief investment officer for a long/short fund," she wrote in a filing. (Financial Times)
FX Concepts, once the largest frim of its type, closing asset-management business: "The New York firm, whose assets under management shriveled to $660 million last month, from $14 billion at the dawn of the financial crisis, will close its asset-management business over the next few weeks and return money to investors, the company said in a statement." (WSJ)
US to suspend a large part of the $1.5bn in aid it gives to Egypt every year as a result of the military takeover in July and the violent crackdown on supporters of ousted President Mohamed Morsi. (Financial Times)
Brazil raises rate for fifth straight time since April bringing it close to double digits and raising questions about how much longer the tightening cycle has left to run. (Financial Times)
China is raising the hurdles for foreign banks, more than tripling the amount of capital that new entrants to the country must post and limiting the derivatives operations of those already on the ground. But at the same time, the Chinese regulator also has offered foreign lenders much-desired clarification about how they can sell bonds in the domestic market, issue credit cards and offer overseas investment products to their clients on the mainland. (Financial Times)
"U.S. Air Force expects to finalize a $2.2 billion contract with Lockheed Martin for two more advanced military communications satellites in coming weeks, a top Air Force general told Reuters on Wednesday." (Reuters)
"Men's Wearhouse rejected a $2.3 billion cash takeover offer from Jos. A. Bank Clothiers, saying the bid undervalued the company and wasn't in the best interest of investors. It also adopted a shareholder rights plan." (Bloomberg)
MasterCard to acquire Turkish rival Provus. Terms not disclosed. (FastFT)
Australia's unemployment rate fell to 5.6 per cent from 5.8 per cent: The drop wasn't anticipated, but it was caused by the labour participation rate decreasing to 64.9 from 65.0 per cent, rather than from job gains. (FastFT)
"Japan's machinery orders jumped to 819.3 billion yen ($8.4 billion) in August, the highest since the collapse of Lehman Brothers in 2008 and a sign of a strengthening economic revival." (Bloomberg)
Private investors have flocked to buy shares in Royal Mail, with 700,000 individual applications leaving the retail offer seven times subscribed in an echo of the privatisation frenzies of the 1980s. (Financial Times)
Home Office looks at 'bounty' plan for corporate whistleblowers: "The Home Office will consider the case for incentivising whistleblowing, including the provision of financial incentives to support whistleblowing in cases of fraud, bribery and corruption," it said, in a paragraph buried deep in a policy document announcing the launch of the new "FBI-style" National Crime Agency this week. (Financial Times)
COMMENTS & CURIOS
Forget the fiscal policy obsession – understanding the supply issue is what matters (Financial Times)
Republicans using shutdown to stake positions for potential 2016 bids (NYT)
IMF says start of Fed tapering threatens $2.3tn bond losses (Financial Times)
EU bank bailout tax debate heats up in Germany as SPD enters fray (Financial Times)
Turkey's spymaster and an evolving relationship with the west (WSJ)
Dijsselblowem, Rehn, Asmussed, Regling and Hoyer write things about Europe's crisis response (WSJ)
India gold premiums soar as festival season begins (WSJ)
OVERNIGHT MARKETS
Asian markets
Nikkei 225 up +98.24 (+0.70%) at 14,136
Topix up +7.69 (+0.66%) at 1,175
Hang Seng down -189.46 (-0.82%) at 22,845
US markets
S&P 500 up +0.95 (+0.06%) at 1,656
DJIA up +26.45 (+0.18%) at 14,803
Nasdaq down -17.06 (-0.46%) at 3,678
European markets
Eurofirst 300 down -6.56 (-0.53%) at 1,225
FTSE100 down -27.92 (-0.44%) at 6,338
CAC 40 down -6.48 (-0.16%) at 4,127
Dax down -39.20 (-0.46%) at 8,517
Currencies
€/$ 1.35 (1.35)
$/¥ 97.70 (97.33)
£/$ 1.59 (1.60)
Commodities ($)
Brent Crude (ICE) up +0.03 at 109.09
Light Crude (Nymex) up +0.15 at 101.76
100 Oz Gold (Comex) down -3.50 at 1,303
Copper (Comex) unchanged 0.00 at 3.22
10-year government bond yields (%)
US 2.67%
UK 2.73%
Germany 1.81%
CDS (closing levels)
Markit iTraxx SovX Western Europe -0.06bps at 81.57bp
Markit iTraxx Europe +1.53bps at 101.69bp
Markit iTraxx Xover +4.32bps at 401.05bp
Sources: FT, Bloomberg, Markit
