The 6am London Cut | FT Alphaville

The 6am London Cut

Markets: Led by Japan, most Asian equity markets were recovering from Thursday’s poor performance after the Dow Jones Industrial Average in the US closed above 16,000 for the first time. The yen fell after Bank of Japan governor Haruhiko Kuroda said after the closing bell on Thursday that he wouldn’t hesitate to adjust policy if risks to the economy materialise. (Financial Times)

Democrats take ‘nuclear option’ on filibusters: Mitch McConnell, normally the most unflustered of individuals on Capitol Hill, seemed barely able to contain his fury as the Senate voted to curtail one of the chamber’s most storied procedural manoeuvres, the filibuster. “Some of us have been around here long enough to know that the shoe is sometimes on the other foot,” the Republican minority leader said. “You may regret this a lot sooner than you think.” The rule change passed by 52 to 48, in all likelihood transforming in a single vote President Barack Obama’s power for his troubled second term. (Financial Times) (WSJ)

Negotiators are poised to seal the first global trade deal for more than a decade, in a rare victory for the WTO, whose struggle to secure an international pact has increasingly threatened its relevance. The US and powerful developing-nation players have overcome differences in agriculture. (Financial Times) Tech trade deal talks not going so well. (Financial Times)

Dan Loeb builds $1bn-plus stake in Japan’s SoftBank: Speaking at the Robin Hood Investors Conference in New York, Mr Loeb said he had followed up his big share purchase – about 1 per cent of the company – with a meeting with SoftBank’s founder Masayoshi Son in Japan in recent weeks. (Financial Times)

Spotify has raised about $250m in new financing from an early backer of Netflix, in a deal valuing the Swedish digital music service at more than $4bn. Technology Crossover Ventures led Spotify’s latest financing, which follows a $100m investment led by Goldman Sachs at a $3bn valuation a year ago. (Financial Times)

The UK’s Co-op Bank is preparing for multiple investigations lasting for years as regulators try to get to the bottom of the failures that unhinged the mutual. As pressure mounts for the bank to finalise its restructuring plan, probes by UK regulators are expected to be announced imminently and the Treasury is preparing to order its own. (Financial Times)

Goldman defends currency trading performance: Goldman “did not suffer a loss in our currencies business” in the third quarter, the bank said on Thursday, seeking to reassure investors after reports that it had racked up more than $1bn in trading losses. It said the source for that statistic – a line in its quarterly filing to the SEC two weeks ago – had been misinterpreted. The bank said in the filing that it had lost $1.3bn in currencies but gained $1.5bn on interest rates. (Financial Times)

Cinda’s IPO prospectus due on Friday: The first of China’s former bad banks to list on a stock market is set to raise up to $2.5bn as bankers close in on a price range of HK$3.00-HK$3.58 for more than 5bn shares, according to people familiar with the deal. The prospectus is expected to reveal exactly how Cinda has made its money over recent years and what assets it holds. (Financial Times)

“A court in northeast China sentenced a former vice president of China Mobile’s state-owned parent to life in prison for accepting bribes, state media said on Friday, the latest executive at a state-owned firm to have his fate sealed as China tries to root out corruption.” (Reuters)

“Federal investigators are probing a subsidiary of Caterpillar to determine whether it was dumping train parts into the ocean near the Port of Long Beach, Calif., as part of a possible scheme to bill railroad companies for unneeded repairs, people familiar with the situation said.” (WSJ)

“The U.S. government said on Thursday it expected to sell its remaining shares of General Motors by the end of the year, a plan that may leave taxpayers saddled with a total shortfall of about $10 billion on the automaker’s 2009 bailout.” (Reuters)

“Sony will cut $250 million in costs at its entertainment units over two years, part of Chief Executive Officer Kazuo Hirai’s plan to boost profit and keep full ownership of the movie, TV and music businesses.” (Bloomberg)

“Nokia is seeking to remove a potential obstacle to the $7 billion sale of its handset business to Microsoft Corp. by asking an Indian court to unfreeze several assets, including one of its biggest factories, amid a lengthy tax feud.” (WSJ)

Dublin has a 50/50 chance of missing budget deficit targets in 2015 after it decided to ease planned austerity measures next year, Ireland’s budget watchdog warns. The Irish Fiscal Advisory Council also questioned Dublin’s decision not to negotiate a precautionary credit line from its international lenders. (Financial Times)

COMMENTS & CURIOS

India: Modi muscles in (Financial Times)

Trade trumps missiles in today’s global power plays (Financial Times)

The depth of an independent Scotland’s fiscal hole (Financial Times)

Just in time — banks ban traders from group chat rooms (Financial Times)

Ukraine serves Putin a foreign policy triumph (Financial Times)

Finra after “high-risk” brokers (WSJ)

India and the politics of the toilet (Bloomberg)

OVERNIGHT MARKETS

Asian markets
Nikkei 225 up +33.02 (+0.21%) at 15,399
Topix up +2.10 (+0.17%) at 1,248
Hang Seng up +87.46 (+0.37%) at 23,668

US markets
S&P 500 up +14.48 (+0.81%) at 1,796
DJIA up +109.17 (+0.69%) at 16,010
Nasdaq up +47.89 (+1.22%) at 3,969

European markets
Eurofirst 300 down -1.77 (-0.14%) at 1,296
FTSE100 up +0.25 (0.00%) at 6,681
CAC 40 down -14.47 (-0.34%) at 4,254
Dax down -5.99 (-0.07%) at 9,196

Currencies
€/$ 1.35 (1.35)
$/¥ 101.11 (101.15)
£/$ 1.62 (1.62)
€/£ 0.8317 (0.8321)

Commodities ($)
Brent Crude (ICE) down -0.20 at 109.88
Light Crude (Nymex) down -0.33 at 95.11
100 Oz Gold (Comex) at 1,244
Copper (Comex) at 3.20

10-year government bond yields (%)
US 2.78%
UK 2.82%
Germany 1.75%

CDS (closing levels)
Markit iTraxx SovX Western Europe -0.03bps at 64.63bp
Markit iTraxx Europe +1.2bps at 82.74bp
Markit iTraxx Xover +4.46bps at 335.44bp

Sources: FT, Bloomberg, Markit