Markets: Asia's main bourses were lower, responding to a lack of detail on economic reforms from China's leadership after the Communist party wrapped up its third plenum. (Financial Times)
Post-plenum China's pledge of big reforms cements era of market forces: China's ruling Communist party pledged a "decisive" role for the market as it outlined sweeping reforms at the close of a conclave intended to map the country's direction for the next decade. In a rare policy pronouncement from China's secretive ruling elite, a communiqué at the conclusion of the four-day meeting reinforced the reformist rhetoric of President Xi Jinping signalling an eventual end to state-mandated prices in the world's second-largest economy. (Financial Times)
"China's Communist Party plans to establish a state security committee that has the potential to cement President Xi Jinping's hold on the military, domestic security and foreign policy and help establish him as the country's most individually powerful leader since Deng Xiaoping. The move is another step toward granting Mr. Xi a level of authority that eluded his two predecessors and reverses the trend toward a collective leadership since Deng..." (WSJ)
CME Group has substantially raised transaction fees for the first time in four years as it flexes its pricing muscle as the dominant US futures exchange operator. The fee rises would hit traders in markets from Treasury to energy futures. Chicago-based CME attracted 84 per cent of US futures volumes in the first 10 months of 2013, according to the Futures Industry Association. (Financial Times)
Goldman's Blankfein rejects 'wholesale' change: "Weaker" investment banks may be embracing "larger strategic change" but Goldman Sachs does not need a wholesale overhaul and it can cope by means of tactical adjustments – such as cutting bonuses, Lloyd Blankfein said on Tuesday. (Financial Times)
Goldman Sachs is betting that the hedge fund industry can attract more investors despite its recent performance record – by raising money for a second incarnation of one of its highest-profile investment vehicles, Petershill. Like its predecessor, Petershill II will buy minority stakes in established hedge fund management companies, in order to take a slice of the profits they make from charging fees to their clients. According to investment docs the original fund has, despite some misstepts, returned an average of 10.8 per cent annually. (Financial Times)
Starbucks has been ordered to pay $2.7bn in compensation to Kraft Foods – a charge equal to the coffee chain's entire net income since the start of 2012 – for terminating a deal to let the food group distribute its coffee. Asked if Starbucks would appeal, a spokesman said: "We've just received the decision and we're still reviewing it." (Financial Times)
ICE seals $10bn takeover with plan to float Euronext, owner of the Paris and Amsterdam stock exchanges. Jeff Sprecher, chief executive of ICE, signalled the move as he prepared to formally take over NYSE Euronext on Wednesday. (Financial Times) (Reuters)
Dan Loeb, the activist hedge fund manager known for his coruscating attacks on company managers, has taken an undisclosed stake in FedEx, the $42bn US parcel delivery group. Mr Loeb – whose recent targets have included Sotheby's, Sony and Nokia – disclosed on Tuesday that he had met FedEx's chief executive, Fred Smith, to discuss ways to improve the company's performance. (Financial Times)
"AMR and US Airways reached an antitrust settlement with the U.S. government to allow their $17 billion merger to proceed with only limited concessions, paving the way for a new global airline colossus. US Airways and AMR, parent of American Airlines, agreed to give up space at several major airports across the U.S..." (WSJ)
South Korea and Russia will on Wednesday announce a $500m joint fund to stimulate trade and investment links between the two countries, as Vladimir Putin arrives for a one-day visit to Seoul. (Financial Times)
COMMENTS AND CURIOS
Why Draghi was right to cut rates (Financial Times Wolf)
Finding out where Janet Yellen stands (WSJ)
Rusal's LME dilemma (FT Lex)
Tony Hayward: Wildcatting on the edge of danger in Somalia (WSJ)
The rapidly accelerating FX probe (Financial Times) Now in long-read form (Financial Times)
Steven Cohen: The Gilded Age revisited (Reuters)
Europe turns to alternative venues for dark trading (Financial Times)
Carney's Irish citizenship (Financial Times)
OVERNIGHT MARKETS
Asian markets
Nikkei 225 down -24.34 (-0.17%) at 14,564
Topix down -2.42 (-0.20%) at 1,203
Hang Seng down -298.19 (-1.30%) at 22,603
US markets
S&P 500 down -4.20 (-0.24%) at 1,768
DJIA down -32.43 (-0.21%) at 15,751
Nasdaq up +0.13 (0.00%) at 3,920
European markets
Eurofirst 300 down -7.60 (-0.59%) at 1,291
FTSE100 down -1.58 (-0.02%) at 6,727
CAC 40 down -26.36 (-0.61%) at 4,264
Dax down -31.38 (-0.34%) at 9,076
Currencies
€/$ 1.35 (1.34)
$/¥ 99.47 (99.62)
£/$ 1.59 (1.59)
€/£ 0.8461 (0.8446)
Commodities ($)
Brent Crude (ICE) up +0.24 at 106.05
Light Crude (Nymex) up +0.08 at 93.12
100 Oz Gold (Comex) unchanged 0.00 at 1,271
Copper (Comex) at 3.24
10-year government bond yields (%)
US 2.76%
UK 2.81%
Germany 1.79%
CDS (closing levels)
Markit iTraxx SovX Western Europe +0.08bps at 64.47bp
Markit iTraxx Europe +2.49bps at 84.05bp
Markit iTraxx Xover +8.07bps at 349.07bp
Sources: FT, Bloomberg, Markit
