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• US admits surveillance on foreign governments ‘reached too far’ (FT)
• He must be so proud: Obama halted NSA spying on IMF and World Bank headquarters (RTRS)
• Obamacare website gets new tech experts; oversight pressure grows (Reuters)
• R.B.S. to Split Off $61 Billion in Loans Into Internal ‘Bad Bank’ (NYT)
• Draghi’s Deflation Risk Complicates Recovery (BBG)
• Abenomics: Nissan slashes full-year profit forecast 15% (FT)
• Credit Suisse Dismisses London Trader Over 'Unusual Trading' Losses (WSJ)
• RBS avoids break-up with 38 billion pounds 'internal bad bank' (Reuters)
• Twitter Said to Attract More Than Enough Interest for IPO (BBG)

• US Blasts Germany's Economic Policies (WSJ)
• Citigroup, JPMorgan Said to Put Currency Dealers on Leave (BBG)
• Watchdog: Syria Destroys Chemical-Arms Equipment (WSJ)
• Kynikos Alumni Start Hedge Fund Betting on Declining Stocks (BBG)
• China state media calls for stern action after Tiananmen attack (RTRS)
• IMF warns of financial shock risk to Africa (FT)
• Insurers Oppose Obamacare Extension as Danger to Profits (BBG)
• BoJ content to ignore Fed tapering and go its own way (FT)
• U.S. attorney wants DOJ to take civil action against BofA (RTRS)
• NSA Fallout Hits AT&T's Ambitions In Europe (WSJ)

• Contractors describe scant pre-launch testing of U.S. healthcare site (Reuters)
• Carney Says BOE Revamp Offers Wider Access to Cheaper Funds (BBG)
• Help wanted in Fukushima: Low pay, high risks and gangsters (Reuters)
• Merkel and Hollande to change intelligence ties with US (FT)
• Twitter IPO pegs valuation at modest $11 billion (Reuters)
• NSA monitored calls of 35 world leaders after US official handed over contacts (Guardian)
• Officials alert foreign services that Snowden has documents on their cooperation with U.S. (WaPo)
• Scottish Nationalists Lose Vote After Plant Threatened With Axe (BBG)
• Fernández contemplates a train wreck in Argentine elections (FT)
• Irish Government will consider ‘best options’ for bailout exit (Irish Times)

• The ice breaks; fiscal talks set (The Hill); Ryan steps up to shape a deal (The Hill), as predicted here yesterday
• Republicans consider short-term U.S. debt ceiling increase (Reuters)
• Shutdown Standoff Shows Signs of a Thaw (WSJ)
• JPMorgan Clients in Cash as Schwab’s Options Hedge Default (BBG)
• Mitch McConnell, Senate GOP search for way out (Politico)
• Meredith Whitney Winds Down Brokerage Unit After Setting Up Fund (BBG)
• Washington Budget Chaos Keeps Fed Rates Low for Longer (BBG)
• Chinese Premier Outlines US Debt Concerns (FT)
• Saudis brace for 'nightmare' of U.S.-Iran rapprochement (Reuters)
• Obama Urges Action on Yellen’s Fed Nomination (Reuters)
• Libyan Prime Minister Ali Zidan Freed After Kidnap (WSJ)

• Government Shuts Down as Congress Misses Deadline (WSJ); Shutdown starts, 1 million workers on unpaid leave (Reuters); Government Shutdown Begins as Deadlocked Congress Flails (BBG)
• This is not The Onion: Stocks Rise on U.S. Government Shutdown (BBG)
• Pentagon chief says shutdown hurts U.S. credibility with allies (Reuters)
• In historic step, Japan PM hikes tax; will cushion blow to economy (Reuters)
• Obama Says He Won’t Give Into ‘Ideological’ Budget Demand (BBG)
• More part-time warehouse workers: Amazon to Hire 70,000 Workers for the Holidays (WSJ)
• Less full-time legitimate workers: Merck to fire 8,500 workers  (BBG)
• Education cuts hit America’s poor (FT)
• Euro-Zone Factory Growth Slows (WSJ)
• Watchdog Warns EU Not to Water Down Insurance Rules (Reuters)

• Bernanke Resets Policy by Doing Nothing as Markets Soar (BBG)
• Stocks Jump to Five-Year High as Metals Rally on Fed (BBG)
• Centre-left bigwig says hard to stay allied with Berlusconi (ANSA)
• J.P. Morgan 'Whale' Fine Put at Over $900 Million (WSJ)
• Banks’ $10 Billion Sweet Spot Sets Off Buying Spree for Lenders (BBG)
• Time to taper? Not if you look at bank loans (Reuters)
• Mortgage Lending Reaches 5-Year High (WSJ) ... and then plunges as Fed gives "all clear" for a few months
• Yellen Chances Grow as Obama Aides Test Senate Support (BBG)

• Syrian Rebels Hurt by Delay (WSJ), U.S. seeks quick proof Syria ready to abandon chemical weapons (Reuters)
• Lavrov Brings Acerbic Pragmatism to Syria Meet With Kerry (BBG)
• Five years after Lehman, risk moves into the shadows (Reuters)
• U.S. shares raw intelligence data with Israel, leaked document shows  (LA Times)
• Japan to raise sales tax, launch $50 bln stimulus (AFP) - so 1) lower debt by sales tax, then 2) raise debt through stimulus.
• Blackstone’s Hilton Files for $1.25 Billion U.S. Initial Offer (BBG)
• Second Life Bankers Thrive in Dubai as Boutiques Boost Fees (BBG)
• Brussels probes multinationals’ tax deals (FT)
• Wall Street's Top Cop: SEC Tries to Rebuild Its Reputation (WSJ) ... and fails
• Tablet sales set to overtake PCs (FT)
• The end of angst? Prosperous Germans in no mood for change (Reuters)

• Obama Holds Fire on Syria, Waits on Russia Plan (WSJ)
• China Shadow Banking Returns as Growth Rebound Adds Risk (Reuters)
• Not one but two: Greece May Need Two More Aid Packages Says ECB’s Coene (WSJ)
• BoJ insider warns of need for wage rises (FT) ... as we have been warning since November, and as has not been happening
• California city backs plan to seize negative equity mortgages (Reuters)
• Home Depot Is Accused of Shaking Down Suspected Shoplifters (BBG)
• Most-Connected Man at Deutsche Bank Favors Lightest Touch (BBG)
• Norway Pledges to Limit Oil Spending (BBG)
• China Shadow Banking Returns as Growth Rebound Adds Risk (BBG)
• Gundlach Says Fed Is Mistaken in How It's Ending Easing (BBG)

• Hedge Funds Cut Back on Fees (WSJ) as we predicted would happen in May
• Syria's Assad denies chemical weapons use; U.S. presses case for strike (Reuters)
• Unemployment Falling for Wrong Reason Creates Fed Predicament (BBG)
• U.S. tapped into networks of Google, Petrobras, others (Reuters)
• Chinese Zombies Emerging After Years of Solar Subsidies (BBG)
• Monte Paschi doubles planned capital hike to 2.5 billion euros (Reuters)
• Loan Size to Be Cut for Fannie, Freddie (WSJ)
• Japan Growth Revision Opens Door to Sales Tax Rise (FT)
• Inside the End of the U.S. Bid to Punish Lehman Executives (NYT)
• Financial Crisis: Lessons of the Rescue, A Drama in Five Acts (WSJ)
• Time Warner Joins IBM in Health Shift for Retirees (WSJ)
• Mideast Derails Key Issues in Congress (WSJ)

Just when the market thought it had priced in a new equilibrium without (or with - it is not quite clear) a Syria war, here comes Thursday with a data dump that will make one's head spin. Central bankers are once again on parade starting overnight, when the BOJ announced no change to its QE program and retaining its monetary base target of JPY270 trillion. The parade continues with both the BOE and ECB, the latter of which is expected to address the recent pick up in Eonia rates and take praise for the recent very much unsustainable "recovery" in the periphery even as Germany continues to slide lower (this morning's factory orders plunged 2.7% on exp. -1.0%), which in turn lead the Bund to pass above 2.0% for the first time since March 2011. Speaking of bonds blowing out, the US 10Y is now just 6 bps away from 3.00%, the widest since July 2011, and likely to breach the support level, taking out a boatload of stops and leading to the next big step spike in rates as the second selling scramble ensues. And just to keep every algo on its binary toes, today we also get a NFP preview with the ADP private payrolls at 8:15 am (Exp. 180K, down from 200K), Initial Claims (Exp. 330K), Nonfarm Productivity and Unit Labor Costs (Exp. 1.60% and 0.9%), Factory Orders (Exp. -3.4%), Non-mfg ISM  (Exp. 55), Final Durable Goods, EIA Nat Gas and DOE Crude Inventories, oh and the G-20 meeting in St. Petersburg where Putin and Obama are not expected to share much pleasantries, and where John Kerry's swiftboat may not be allowed to dock.

• Mediterranean 'Ballistic Targets' Were Part of Israeli Test – Defense Ministry (RIA)
• Microsoft to Buy Nokia’s Devices Unit for $7.2 Billion (BBG)
• Long-Term Jobless Left Out of Recovery (WSJ)
• Swiss banks apologize for assisting tax cheats (Reuters)
• As Obama pushes to punish Syria, lawmakers fear deep U.S. involvement (Reuters)
• India Looking to Expand Rupee-Payment System (WSJ)
• Citigroup Dialing Back Its 'Alternative' Holdings (WSJ)
• Libya Seeks New Solutions to Oil Crisis (WSJ)
• Lenovo Chief Yang Shares Bonus With Workers a Second Year (BBG)

The television industry is exploring new business models with the Internet as Internet companies prepare to eat their lunch, just like the classified ad industry. When did you last use paper classifieds?

• Libor Settlements Said to Ease CFTC’s Path in Rate-Swaps Probe (BBG)
• Manhattan Homes Under $3 Million Never Harder to Buy (BBG)
• Just two years late: Abe Pledges Government Help to Stem Fukushima Water Leaks (BBG)
• Chesapeake drops energy leases in fracking-shy New York (Reuters)
• Hedge Fund Magnetar Won't Face Charges Tied to Mortgages (WSJ)
• U.S. envoy leaves Cairo after talks declared over (Reuters)
• Credit-Crisis Oracle Rajan to Head India’s Central Bank (BBG)
• Bank of England Changes Policy Tack (WSJ)

• Washington Post Company Chairman and CEO Donald Graham talks about the sale, what it means for the future of The Post (WaPo)
• Private-equity firms are adding debt to companies they own to fund payouts to themselves at a record pace (WSJ)
• U.S., U.K. Urge Citizens to Leave Yemen (WSJ)
• India Names Rajan Central Bank Governor as Rupee Plunges (BBG)
• Family Offices Chasing Wealthy’s $46 Trillion in Assets (BBG)
• UK 'bad bank' repays $2.9 billion to taxpayers in first half (Reuters)
• Sony rebuffs Daniel Loeb’s push for entertainment spin-off (FT)
• Public Pensions Up 12% Get Most in 2 Years as Stocks Soar (BBG)
• Hidden Billionaire Found With Food Fortune in California (BBG)
• Fonterra under fire over milk scare; more product recalls (Reuters)
• Crédit Agricole Profit Rises After Greek  (WSJ)

• Botulism toxin? There's an apology for that - Fonterra CEO apologizes, sees China dairy curbs lifted within days (Reuters)
• Patent troll-In-Chief strikes again: Veto of Apple Ruling Likely to Upend Big Patent Battles (WSJ)
• Because scapegoating means justice FTW - SEC Gets ‘Shot in the Arm’ With Victory in Tourre Case (BBG)
• Insider-Trading Probe Caught in a Washington Knot (WSJ)
• Miners return to hedging as gold  (FT)
• Toyota’s $37 Billion Cash Pile Means Turning Point for Abenomics (BBG)
• Inside the battle at Germany's Siemens (Reuters)
• ‘One million’ UK workers on zero hours contracts (FT)
• Wag the dog, part 1984: Iran Seen Trying New Path to a Bomb (WSJ)
• Tokyo Cheap to Hong Kong Luring Asian Bargain Hunters (BBG)