Good morning New York,
FT ALPHAVILLE
Let a hundred moles be whacked: China, caught somewhere between futility and necessity, is attempting to once again regulate the whack-a-mole game that is its interbank market, notes David.
Monte dei Paschi di Siena suspended: Dan notes that the market does not seem to be keen on the announcement last night that the board will meet today to discuss non-specific "capital operations".
Will financial innovation find a way?: "Because the history of evolution is that life escapes all barriers. Life breaks free. Life expands to new territories. Painfully, perhaps even dangerously. But life finds a way." That's a quote from Jurassic Park, but Cardiff notes it could just as well apply to shadow banking.
NEWS
Monte dei Paschi di Siena expected to approve €3bn share increase: The board of Italy's third-largest bank by assets will on Tuesday vote to approve a €3bn capital increase to gain approval from Brussels for €4.1bn in Italian state bailout bonds. (Financial Times)
Pressure builds for tougher UK bank reform: George Osborne will on Tuesday face fresh demands to toughen up "inadequate" new banking regulation as public pressure mounts over the controversies plaguing Royal Bank of Scotland, the Co-operative Bank and payday lenders. (Financial Times)
Cost cutting drives up De La Rue's first-half profits: The supplier of notes to the Bank of England issued a profit warning last month, blaming tough competition from rivals in Europe. However, it reiterated on Tuesday that it would post operating profit for the full year of £90m – short of the £100m target set out in its three-year improvement plan. (Financial Times)
China said to plan crackdown on banks' loan limit evasion: "The rules drafted by the China Banking Regulatory Commission impose restrictions on lenders' interbank business by banning borrowers from using resale or repurchase agreements to move assets off their balance sheets, said the people, who asked not to be identified because they aren't authorized to discuss the rules publicly." (Bloomberg)
Minutes from the Bank of Japan's last meeting reveal tension: over how to frame the communiqué and meet its 2 per cent inflation target – arguably the chief goal of the central bank's aggressive easing programme it initiated in April. The Oct 31 minutes also reveal pessimism and show that some members believe the 2015 inflation target might be too ambitious. (FastFT)
Rémy Cointreau warns of 'sharp' slowdown in China sales: French liqueurs and spirits group Rémy Cointreau has warned that full-year operating profits will suffer from the twin-effects of economic uncertainty in Europe and a "sharp" slowdown in sales in China. (Financial Times)
RWE axes £4bn UK wind farm project: RWE, owner of Npower, the big six energy company, said the cost of overcoming "significant" technical challenges in the Bristol Channel, including the deep water and "adverse seabed conditions", meant the Atlantic Array project had become "prohibitive". (Financial Times)
Nine detained after China oil blast: Seven employees of China's second-largest oil company and two local government officials have been detained in connection with a crude oil explosion that killed at least 55 people in the eastern Chinese port city of Qingdao. (Financial Times)
"Singapore's DBS, ABN AMRO and Credit Suisse have submitted final round bids for Societe Generale's Asian private bank, which is being valued at around $400 million, people familiar with the matter said." (Reuters)
"The planned stock market listing of Fiat's U.S. unit Chrysler will not take place this year, the Italian carmaker said on Monday, prolonging the uncertainty over its chances of buying out the rest of the company." (Reuters)
Markets: European stocks were struggling for momentum having inherited a mixed Asian session, while oil prices were steadier after news of Iran's nuclear deal created volatility at the start of the week. The dollar was a tad softer as the yen recovered some ground, while Treasury prices were nudging higher in generally cautious trading ahead of the holiday season for many nations. US markets will be shut on Thursday for Thanksgiving and only partially open on Friday. The FTSE Eurofirst 300 was down 0.1 per cent, the FTSE Asia Pacific index was flat and US index futures showed the S&P 500 adding 4 points to 1,806.5. If the Wall Street benchmark holds that gain it will record a fresh record close, having risen 26 per cent so far this year, buoyed by a reduced financial system and eurozone tensions, improving global economic conditions and supportive corporate earnings. (Financial Times)
