The (early) Lunch Wrap | FT Alphaville

The (early) Lunch Wrap

Good morning New York,

FT ALPHAVILLE

It’s China, it’s bad loans, and it’s securitisation: It looks increasingly likely that China is gearing up for another round of bad-loan cleansing, says David. Asset management companies are seemingly being prepared for some more NPL absorption and a move towards what might be loosely termed market-based approaches to restructurings.

Jobs for twits, by twits: We are sure this is exactly what the wise legislators of the US had in mind when they passed the Jumpstart Our Business Startups Act last year, notes Dan. A small internet start-up gets to raise a little bit of capital from private investors without all that cumbersome regulation and public scrutiny so it can invest and hire people. You know, JOBS!

NEWS

Twitter fails to answer key IPO questions: A tweet running to 135 characters was all it took late on Thursday to launch one of the year’s biggest financial stories: that Twitter has taken the first steps towards an initial public offering. The complete absence of further information about the proposed share sale, however, left potential investors in the dark about key facts such as the state of the company’s business, how it plans to handle the share sale or how much money it hopes to raise. (Financial Times)

SEC calls for plan to beat exchange failures: Mary Jo White, Securities and Exchange Commission chairman, has asked the heads of exchange groups including NYSE Euronext and Nasdaq OMX to provide assessments on the robustness and resilience of US market infrastructure. (Financial Times)

Surveyors urge Bank of England to damp house market: Estate agents and surveyors have become so concerned about the dangers of another unsustainable housing boom that their trade body is urging the Bank of England to limit national house price growth to 5 per cent a year. (Financial Times)

Gold drops to five-week low: Gold slid 5.8%t this week, the most since June 21, as the threat of an imminent US attack on Syria eased. (Bloomberg)

Malaysia’s biggest fund buys stocks: Malaysia’s largest pension fund said it was a net buyer of the nation’s stocks during recent declines as foreign investors cut their holdings. (Bloomberg)

UK police thwart Santander cyber attack: London police arrested 12 men over an attempt to hack into Banco Santander SA (SAN) computers, preventing a theft potentially worth millions of pounds. (Bloomberg)

Pimco and Blackrock purchased more than a quarter of the debt sold in Verizon’s record $49bn offering — they “bought about $13 billion of the largest corporate-bond deal on record, said people familiar with the matter.” (Wall Street Journal)

Hilton Worldwide will look to raise $1.25bn from an initial public offering, expected in Q12014, as the hotel chain seeks a return to the US stock market six years after it was acquired by Blackstone Group. It is aiming for an enterprise value of around $30bn. (Financial Times)

Markets: The dollar held sway over global markets with stocks in retreat as investors focused cautiously on the US Federal Reserve’s far-reaching decision on whether to scale back extraordinary support policies for assets. Asian stocks sank for a second day as the US currency had its best session in more than a week, boosted by its haven appeal and bets that potential Fed moves will provide it with a significant boost. With just a few trading sessions before the Federal Reserve’s widely anticipated communiqué next Wednesday, in which the US central bank is expected to begin reducing – or “tapering” – its QE purchases, investors were taking profits. The FTSE Asia Pacific index sank 0.5 per cent – its worst day of trading in more than two weeks – while Europe’s markets also opened weaker, with the FTSE Eurofirst 300 down 0.2 per cent and the FTSE 100 in London slipping 0.3 per cent. The dollar index, which measures its strength against a basket of rivals, rose 0.2 per cent with the US currency ahead in most of the leading pairs. (Financial Times)