Kuroda's BoJ nomination confirmed: Haruhiko Kuroda, president of the Asian Development Bank, has been confirmed as the government's choice to become the next governor of the Bank of Japan, as Prime Minister Shinzo Abe seeks a more aggressive regime to overturn more than a decade of growth-sapping deflation. Abe also announced two nominations for deputy governor: Kikuo Iwata, an economics professor at Gakushuin University in Tokyo, and Hiroshi Nakaso, currently in charge of international affairs at the BoJ. Asian markets were higher on Thursday, as the Italian government bond sale and comments from Mario Draghi reassured investors about the eurozone amid Italy's chaotic election results. The MSCI Asia Pacific was 1% higher with the Nikkei rising 1.9%. (Bloomberg) (Dow Jones) European bonus caps approved: The European parliament late on Wednesday night secured agreement on a mandatory 1:1 ratio on salary relative to variable pay, which can rise to 2:1 with explicit shareholder approval. The bonus cap would go into effect on January 1, 2014. The effect on the City will be softened by favourable treatment to long-term pay linked to the health of a bank, such as equity or bonds that are written down when an institution fails. The $85bn in sequestration cuts look set to commence on Friday as positions hardened on Wednesday between the White House and Republican congressional leaders over the budget crisis. Last-ditch talks to prevent harsh automatic spending cuts will be held on Friday, but expectations on both sides are low that a deal will be reached in time to avert the cuts. Grillo kills move to break Italy deadlock: Beppe Grillo announced on Twitter on Wednesday that his movement would not give a vote of confidence in parliament to a government led by either the centre-left or Silvio Berlusconi's centre-right party. Vivendi may put GVT sale on hold after low bids: France's Vivendi SA could put the sale of its Brazilian phone and broadband Internet company GVT SA on hold as bids are coming short of the asking price of 7 billion euros to 8 billion euros, two sources familiar with the situation told Reuters. Shell suspends Arctic activities for 2013: Royal Dutch Shell said it would "pause" Arctic exploration activities for 2013, "to prepare equipment and plans for a resumption of activity at a later stage." Chinese provinces cut growth targets: "Fourteen provinces have set lower targets for gross domestic product expansion this year than in 2012 and the other 17 left their goals unchanged, according to Nomura. The weighted average target has dropped to 9.9 percent from 10.3 percent, Citigroup calculates. Trial hears BP misrepresented vital data: "Alan Huffman, a petroleum geophysicist, said a comparison of BP's internal records with the data submitted to the Minerals Management Service, the former oil industry regulator, showed a "consistent picture of misreporting" that would give a "very misleading impression" of the condition of the well." Two former UBS traders sue bank: "UBS was sued for wrongful dismissal by two former traders in Singapore who claimed they were fired in a bid by the bank to cover up its role in allegedly manipulating key reference rates." Goldman electronic trading chief to join Getco: "Greg Tusar, head of electronic trading at Goldman Sachs, will become the latest banker to leave a big investment bank and join high-frequency trading firm Getco, people familiar with his decision said." Marissa Mayer and the return of Taylorism. Jeffrey Sachs says Obama had a Faustian bargain on tax and expenditure. AUD overvalued; held by 34 central banks. Pemex chief says Mexico is the "new Middle East." Expectations high for new Man Group chief. Venezuela plans its next currency move. Asian markets Nikkei 225 up +287.55 (+2.56%) at 11,542 Topix up +20.71 (+2.17%) at 974.43 Hang Seng up +312.53 (+1.38%) at 22,890 US markets S&P 500 up +19.05 (+1.27%) at 1,516 DJIA up +175.24 (+1.26%) at 14,075 Nasdaq up +32.61 (+1.04%) at 3,162 European markets Eurofirst 300 up +10.33 (+0.90%) at 1,161 FTSE100 up +55.44 (+0.88%) at 6,326 CAC 40 up +69.57 (+1.92%) at 3,691 Dax up +78.72 (+1.04%) at 7,676 Currencies €/$ 1.31 (1.31) $/¥ 92.26 (92.23) £/$ 1.52 (1.52) Commodities ($) Brent Crude (ICE) up +0.11 at 111.98 Light Crude (Nymex) up +0.26 at 93.02 100 Oz Gold (Comex) up +0.90 at 1,596 Copper (Comex) up +2.65 at 357.15 10-year government bond yields (%) US 1.90% UK 1.97% Germany 1.47% CDS (closing levels) Markit iTraxx SovX Western Europe +0.46bps at 105.59bp Markit iTraxx Europe -4.07bps at 117.73bp Markit iTraxx Xover -18.44bps at 454.62bp Markit CDX IG -2.21bps at 87.25bp