Good morning New York,
FT ALPHAVILLE
Izzy continues to expand her theory of money entanglement, a look at the relationship between banks, money and the central monetary authorities.
NEWS
The Chinese central bank has made an emergency money injection after a surge in interbank rates, trying to prevent a repeat of the cash crunch that rattled global markets earlier this year. In a highly unusual move, the People's Bank of China said it had conducted a "short-term liquidity operation" to provide credit to banks in need of money (Financial Times).
AstraZeneca is to buy out US partner Bristol-Myers Squibb from the pharmaceutical groups' diabetes drug alliance in a deal worth up to $4.1bn. At the same time the UK Pharma group said it would take a $1.7bn charge related to lower than expected sales of Bydureon – an injectable treatment acquired when the two groups last year took control of US biotech Amylin in a $7bn deal (Financial Times, Bloomberg).
Etihad Airways and Alitalia are in advanced talks that would see the Abu Dhabi airline take a stake of between 30 per cent and 49 per cent in Italy's cash strapped national carrier. A capital injection of as much as €350m, is possible, according to two people familiar with the discussions (Financial Times).
Shares in Saab soared 27 per cent on Thursday after Brazil chose the small Scandinavian defence company to supply its next generation fighter jet. Saab beat larger rival Boeing to secure one a deal worth up to $4.5bn in 2023 (Financial Times).
Gold fell below $1,200 an ounce in London and New York for the first time since June. Prices are down 28 percent this year, heading for the first annual drop in 13 years (Bloomberg).
Markets: European bourses are playing catch up with Wall Street's surge to record highs as traders celebrate the Federal Reserve's move to rein back stimulus while promising to favour a dovish monetary bias for the foreseeable future (Financial Times).
