Markets: Equities across the Asia-Pacific region drifted on Tuesday after US markets retreated from the record-highs reached early on Monday. But oil prices found some stability after initial weakness following the weekend deal to curb Iran's nuclear programme. (Financial Times)
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)
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. Banks are also required to take provision charges on such assets before their maturity... The proposed regulations would also limit a bank's total lending to other financial institutions to 50 percent of its total deposits, and cap loans to non-bank financial companies at 25 percent of its net capital, according to the people. The rules, once approved, would take effect in February, they said." (Bloomberg)
"Repsol and Argentina reached a preliminary deal on Monday for the Spanish oil major to get paid for the 51 percent stake in the South American's country's main energy company YPF that the Argentine government seized in 2012... Spain's government was proposing Repsol receive $5 billion in compensation and that both Repsol and YPF each name investment banks to advise on the valuation of the stake seized, said one source." The deal is to be approved by Repsol on Wednesday. (Reuters) (Financial Times)
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. A variety of peers want a robust licensing regime for senior bankers below board level, draconian sanctions for banks that undermine the new "ringfence" separating high street lending from investment banking and other new powers for regulators. (Financial Times)
Eric Noll, an executive at Nasdaq OMX, has unexpectedly quit the exchange operator to become chief executive of brokerage firm ConvergEx. Nasdaq said on Monday the move was effective immediately and it would seek a replacement for Mr Noll, who oversaw Nasdaq's trading businesses in the US and western Europe, by the end of March 2014. (Financial Times) He had been pegged as a frontrunner to one day replace current CEO Robert Greifeld making the succession that bit muddier. (WSJ)
"Oaktree Capital Group , the world's biggest distressed-debt investor, is joining with the Chinese government-backed China Cinda Asset Management Co. to buy soured loans and troubled assets in Asia's biggest economy. The venture will be equally owned by Oaktree and Cinda, according to a statement today. The firms plan to invest as much as $1 billion, with half of the money coming from funds run by Los Angeles-based Oaktree, and may increase that amount depending on the success of the deals, said a person familiar with the agreement, who requested anonymity because those details aren't public. " (Bloomberg)
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)
"At least six major private equity groups are competing to buy the industrial packaging segment of Illinois Tool Works, in a deal that could fetch more than $3 billion, according to people familiar with the matter. Carlyle Group, Blackstone Group, Apollo Global Management , Bain Capital, Ares Management and a consortium of Onex Corp and the Canada Pension Plan Investment Board are among the firms that advanced to the second round of bidding, the people said." (Reuters)
"The planned stock market listing of Fiat's U.S. unit Chrysler will not take place this year, the Italian carmaker said on Monday, prolonging the uncertainty over its chances of buying out the rest of the company." (Reuters)
COMMENTS & CURIOS
There is no easy escape from secular stagnation (Financial Times King)
The Iran deal, worse than Munich apparently (WSJ)
Obama needs to take on the Israel lobby over Iran (Financial Times Rachman)
Affordable Care Act: In need of resuscitation (Financial Times)
Robin Leigh-Pemberton, 1927-2013 (Financial Times)
M&A: US companies are paying the lowest takeover premium since at least 1995 (WSJ)
Breaking up with the Pritzkers (WSJ)
Wall St considering taking CFTC to court (Bloomberg)
India: Vacancy rates in the financial center of Mumbai and capital New Delhi topped 20 percent in the third quarter (Bloomberg)
Bloomberg header du jour: Speed traders meet Nightmare on Elm Street with Nanex (Bloomberg)
OVERNIGHT MARKETS
Asian markets
Nikkei 225 down -90.43 (-0.58%) at 15,529
Topix down -3.32 (-0.26%) at 1,256
Hang Seng up +32.64 (+0.14%) at 23,717
US markets
S&P 500 down -2.28 (-0.13%) at 1,802
DJIA up +7.77 (+0.05%) at 16,073
Nasdaq up +2.92 (+0.07%) at 3,995
European markets
Eurofirst 300 up +5.32 (+0.41%) at 1,302
FTSE100 up +20.32 (+0.30%) at 6,695
CAC 40 up +23.44 (+0.55%) at 4,302
Dax up +80.91 (+0.88%) at 9,300
Currencies
€/$ 1.35 (1.35)
$/¥ 101.41 (101.66)
£/$ 1.62 (1.62)
€/£ 0.8374 (0.8364)
Commodities ($)
Brent Crude (ICE) down -0.14 at 110.86
Light Crude (Nymex) up +0.38 at 94.47
100 Oz Gold (Comex) at 1,241
Copper (Comex) at 3.24
10-year government bond yields (%)
US 2.72%
UK 2.77%
Germany 1.73%
CDS (closing levels)
Markit iTraxx SovX Western Europe -0.56bps at 63.62bp
Markit iTraxx Europe -1.64bps at 78.11bp
Markit iTraxx Xover -5.84bps at 322.83bp
Sources: FT, Bloomberg, Markit
