On crossing the ECB interest-rate streams: If the ECB were to introduce negative rates, FT Alphaville has mostly focused on the idea that the it would do so primarily in its deposit rate. That's where market chatter has largely concentrated. What we never considered, however, is that the ECB could get really controversial and leave both its deposit and reserve account rate at zero, while setting its refinancing rate at a negative rate instead. Izzy does so now. Garthwaite: "Just buy stocks": Worried about the Fed's taper tactics? Maybe Abe's poisoned third arrow? Andrew Garthwaite's not. The Credit Suisse equity strategist has just hiked his S&P 500 forecast to 1,730 (from 1,640). For 2014 he's going for 1900. Yes, Garthwaite sees another 15 per cent... Paul's post has more. Abe unveils "third arrow" reforms of low tax and deregulation: Shinzo Abe, Japan's prime minister, said the government would relax rules governing the sale of non-prescription drugs and allow selected cities to experiment with lower taxes and deregulation as he finished outlining his economic reform plans on Wednesday. (Financial Times) (New York Times) The Nikkei did not react well, losing another 3.8 per cent bringing its losses since the 22nd of May to 16.7 per cent: Of note: Dollar-yen was less than impressed by news that "Japan will seek experts" views on whether public pensions and other public funds should seek higher returns by raising their investment in equities, and will aim to reach a conclusion by autumn, a draft government growth strategy showed on Wednesday." China takes tit-for-tat move against EU wine exports: China has launched a trade investigation into European wine exports, in apparent retaliation for Europe's proposed tariffs on Chinese solar panels, sharply escalating the dispute between two of the world's largest trading partners. (Financial Times) (Reuters) Brazil got rid of its tax on foreign investment in domestic bonds.Tuesday's cut in the "IOF" rate from 6 per cent to zero showed official concern that the real is weakening too quickly against the dollar. Tesco recovery stalls as sales fall: Underlying UK sales at Tesco fell 1 per cent in the past three months, raising questions about whether its domestic recovery plan is veering off-track. Tesco shares, which have risen nearly a fifth in the past year as hopes for the recovery took hold, fell 3.4 per cent on Wednesday to 352.1p. JPMorgan's Alabama debacle set to cost bank $1.5bn: "The biggest U.S. bank by assets agreed to forgive $842 million of debt owed to it by Jefferson County, Alabama, where it took the lead in arranging risky securities deals that pushed the county into the largest U.S. municipal bankruptcy. That comes on top of a $722 million settlement in 2009 with the U.S. Securities and Exchange Commission tied to Jefferson County deals. HSBC has been landed with a civil lawsuit from the state of New York,alleging that the bank failed to file paperwork in foreclosure cases where it could have settled with homeowners. IKEA founder steps aside: "IKEA founder Ingvar Kamprad has left the parent company of the furniture brand and his son has been appointed chairman, representing the latest step in the 87-year-old billionaire's continuing handoff of power." Markets: Markets are experiencing more volatility as news of Japan's structural reforms joins monetary policy headline risk to frazzle traders. US index futures suggest Wall Street's S&P 500, which hit a record intraday high of 1,687 last month, will slip 5 points to 1,626, on course for its lowest close in three weeks writes the FT's Global Market's yogi Jamie Chisholm.