US Treasury sell-off, a Picasso record, Greece pays up

The daily briefing “FirstFT” from the Financial Times.

China’s bourses continued marching higher after the central bank cut rates on Monday to shore up the economy. But other Asian markets slipped down , taking their cue from Wall Street which reversed track after the payrolls report.

The US government bond market suffered its worst sell-off in more than two months as contagion from the European bond rout crossed the Atlantic. US borrowing costs are close to their highest closing levels this year. (FT)

In the news

Picasso record Women of Algiers (Version O) sold for $179.4m – the most ever paid for a work of art at auction. The record price reflects the trophy-hunting that is dominating the art market, with billionaires competing for the handful of masterpieces that come up for sale. (WSJ)

Greece pays IMF The finance ministry ordered the EUR750m payment, ending uncertainty over whether Athens would withhold its cheque as a bargaining chip in creditor negotiations. The political stakes are high for Prime Minister Alexis Tsipras, pitted between his leftist Syriza party and eurozone negotiators pushing for politically unpalatable terms. (FT)

Nomura and RBS misled investors A judge ruled that the banks had offered investors documents that failed to correctly describe mortgage loans. “The magnitude of falsity,conservatively measured, is enormous” said Judge Denise Cote. This is the first verdict in a case that has lasted almost four years and seen the world’s biggest banks pay more than $20bn to settle allegations of pre-crisis wrongdoing. (FT)

Cameron promises renewal The prime minister reshuffled his top team, with Thatcherite former banker Sajid Javid taking over as business secretary and a new batch of MPs united in their dissatisfaction with Brussels . In the wake of his election success, Cameron must curb his enthusiasm and avoid over-reach, says Janan Ganesh. “Britain, or at least England, does not feel like a country asking to be turned upside down by zealots. It is not leftwing or rightwing; it is just anti-Utopian.” (FT)

Nasdaq gets a bitcoin backbone It will start using the virtual currency’s blockchain technology to handle transactions – the first major financial market to do so. The blockchain currently acts as a central repository for details of bitcoin trades and banks – clearing houses and other intermediaries are all eliminated. Izabella Kaminska looks at why the great and good in financial services are suddenly extolling the virtues of the blockchain. (FT)

US approves Arctic drilling In a major victory for the oil and gas industry, the Obama administration has granted a division of Shell conditional approval to start drilling in the Arctic Ocean this summer. Other companies have delayed Arctic exploration in an attempt to save cash – despite the recent uptick, oil prices remain depressed. (FT)

Shadowy Iranian aircraft deal Iran has defied international sanctions and acquired nine large commercial aircraft through a complex web of deals with apparently unwitting companies across Europe. Western diplomats fear the aircraft could be used to ferry weapons to conflicts in Yemen and Syria. (FT)

It’s a big day for

US-Russia relations Secretary of state John Kerry visits Moscow to sit down with Vladimir Putin for the first time since the beginning of the Ukraine crisis. This comes after the head of Nato accused Russia of “blatant violation” of the ceasefire agreement. (FT, WSJ)

US trade The senate will vote on whether to give Barack Obama the authority he needs to complete ambitious trade deals in both the Pacific and Atlantic. Mr Obama needs this to guarantee that Congress will not rip up any deal the administration strikes. (FT)

Food for thought

Olive oil danger A bacterial outbreak has swept across the Salento, one of Italy’s most famous olive regions, posing a danger to European agriculture and leaving olive oil manufacturers in fear of ruin. Officials are trying to quarantine the outbreak and the European Commission is expected to demand swift culling in the case of new outbreaks. France is protecting its vineyards by banning the importation of certain plants from the Puglia region. (NYT)

Tomorrow’s advance man How Marc Andreessen plans to build the future : “He believes that tech products will soon erase such primitive behaviours as paying cash (bitcoin), eating cooked food (Soylent), and enduring a world unimproved by virtual reality (Oculus VR)”. (New Yorker)

GSK: Out of step The FT talks to Andrew Witty, the embattled chief executive of the underperforming pharma company, who questions the dealmaking of his rivals. “Some of these valuations look stretched… We’re not going to get drawn into the idea that just because money is cheap we can do anything.” (FT)

Video of the day

Chinese splurge on retirement The over 60s in China have a reputation for being penny-pinchers but that is changing fast as they find themselves with spare cash to spend on leisurely pursuits. After a lifetime of “eating bitterness”, they’re ready to spit it out and enjoy themselves. Patti Waldmeir spends the day with a group of retired Shanghai cyclists – people who used to have no alternative to biking to work but are now cycling for the sheer joy of it. (FT)

This article is published in collaboration with The Financial Times. Publication does not imply endorsement of views by the World Economic Forum.