Asian stocks were broadly higher and emerging market currencies strengthened but trading was mixed ahead of policy decisions by several key central banks and US jobs data due on Friday. The Nikkei and Topix were flat while the Hang Seng rose 1.2% and the Kospi was up almost 1%, with Samsung rising 1.9% after its electronic watch launch. The ASX was 0.4% lower on a greater than expected Australian trade deficit. The Korean won and the Philippine peso both gained 0.2% against the dollar. (Bloomberg)(Financial Times)
Today: BOE and ECB monthly policy meetings. US: ADP private sector jobs, factory orders, jobless claims, Fed's Kocherlakota (non-voting FOMC) speaks. Results: Dixons trading update.
US Treasury department likely to clear the $4.7bn acquisition of Smithfield Foods by Shuanghui International, moving it a step closer to what would be the largest ever Chinese takeover of a US company, according to people familiar with the matter. (Financial Times)
The chairman of Lloyd's of London has warned of the danger that a rush of capital into the insurance industry will cause "systemic problems" akin to those of the banking sector during the financial crisis. (Financial Times)
Microsoft has won the second stage of a landmark patent case against Google's Motorola unit, as a jury in Seattle concluded that the mobile handset maker had breached some its commitments to technology standards bodies. It concluded that Motorola had breached its undertakings to license its so-called standards essential patents on reasonable, non-discriminatory terms. The jury also handed Microsoft $15m in damages, around half of the amount it had claimed. The verdict follows a decision that also went in the software company's favour in the first part of the case, concluded in April. (Financial Times)
Rajan's low hanging fruit: On his first day at the helm of the Reserve Bank of India, Raghuram Rajan unveiled moves to liberalise banking and spread services across the nation of 1.3bn people. The measures announced by Mr Rajan – who will make his first substantial statement on monetary policy in two weeks – are aimed at freeing India's banks from the web of state controls that have stifled the sector since independence in 1947. One aim is to bring financial services to the poor for the ultimate benefit of the economy as a whole. (Financial Times)
EU proposes tough rules for money market funds: "The European Commission wants all Europe-based funds either to value their assets daily or build up capital buffers worth at least 3% of the assets they manage to absorb potential losses. " (Wall Street Journal)
ETFs 'godfather' to leave KCG: Reginald Browne, dubbed the "godfather of exchange traded funds," is leaving KCG, the trading company formed by Getco's takeover of Knight Capital. KCG said in a regulatory filing on Wednesday that managers of its listed derivatives group, one of the most profitable businesses at the company, will depart next week. KCG will pay about $15m in severance payments to the employees. (Financial Times)
The Bank of Japan has improved its assessment of the Japanese economy and said it will keep its main policy settings on hold after it completed a two-day meeting of its policy board today. (FastFT)
The Department of Justice is proving whether JP Morgan employees misled regulators in a previous investigation, as it probes the bank's alleged manipulation of energy markets, said people close to the case. (Wall Street Journal)
ON FT ALPHAVILLE
Fed exit options, table du jour
The value in vague
Beware the EM central bank FX swap trend
Warning Co-op Bank bondholders, redux
COMMENT & CURIOS
Fed's last chance to assess labour market (Financial Times)
China's record drop in credit growth has analysts worried (Bloomberg)
Don't blame the Fed for EM woes (Financial Times)
The Lehman moment for money market funds in US? (Bloomberg)
China finds drilling for shale gas in China isn't easy (Wall Street Journal)
Obama's uphill battle to win over the House (Financial Times)
OVERNIGHT MARKETS: MIXED
Asian markets
Nikkei 225 down -31.04 (-0.22%) at 14,023
Topix up +1.74 (+0.15%) at 1,158
Hang Seng up +274.22 (+1.23%) at 22,600
US markets
S&P 500 up +13.31 (+0.81%) at 1,653
DJIA up +96.91 (+0.65%) at 14,931
Nasdaq up +36.43 (+1.01%) at 3,649
European markets
Eurofirst 300 up +2.57 (+0.21%) at 1,215
FTSE100 up +6.33 (+0.10%) at 6,475
CAC 40 up +6.35 (+0.16%) at 3,980
Dax up +15.21 (+0.19%) at 8,196
Currencies
€/$ 1.32 (1.32)
$/¥ 99.69 (99.69)
£/$ 1.56 (1.56)
Commodities ($)
Brent Crude (ICE) up +0.19 at 115.10
Light Crude (Nymex) up +0.18 at 107.41
100 Oz Gold (Comex) up +3.60 at 1,394
Copper (Comex) unchanged 0.00 at 3.24
10-year government bond yields (%)
US 2.89%
UK 2.93%
Germany 1.94%
CDS (closing levels)
Markit iTraxx SovX Western Europe -0.14bps at 89.49bp
Markit iTraxx Europe -0.02bps at 105.17bp
Markit iTraxx Xover -2.31bps at 417.51bp
Sources: FT, Bloomberg, Markit
