Paving the way for a US rate rise and the upside to queueing

The daily briefing “FirstFT” from the Financial Times.

US Fed chairwoman Janet Yellen laid the groundwork for the end of zero interest ratesyesterday. She said the labour market had improved and the central bank will start tightening monetary policy when it is “reasonably confident” that inflation will move back to its 2 per cent objective. (FT)

US stocks rose to record highs after her comments, while Treasury bonds and the dollar saw some choppy trading. The momentum did not carry over into the Asia-Pacific region, where bourses were muted this morning. (FT)

In the news

Greek reforms approved Eurozone finance ministers approved Greece’s proposed economic reforms. Parliaments now have to approve the bailout extension before it expires on Saturday. Kerin Hope examines the key pledges to see where Greek finance minister Yanis Varoufakis has room for manoeuvre. (FT)

Eurozone banks need better capital Daniele Nouy, the ECB’s chief banking supervisor, said some of the bloc’s biggest banks will need to raise more and better-quality capital because of the clampdown on national exceptions to capital rules. She said fresh legislation from Brussels was likely to be necessary. (FT)

JPMorgan fees for big deposits The bank said holding large deposits has become too costly under new liquidity rules and is urging its biggest customers to take their cash elsewhere or be hit with fees. The bank expects the plan to result in clients pulling out about $100bn by the end of this year. (FT)

Chicago police “black site” Americans are denied access to basic constitutional rights when they are taken to an off-the-books interrogation compound run by Chicago police, according to a Guardian investigation. One person imprisoned there said at the time he thought, “they disappeared us and so we’re probably never going to see the light of day again”. Meanwhile, Rahm Emanuel failed to win more than 50 per cent of the vote in his bid to remain Chicago’s mayor and will face a run-off poll in April . (The Guardian, FT)

Venezuelans protest over the worsening economic crisis. A teenager was killed during a clash between protesters and police in the western city of San Cristobal. (BBC)

It’s a big day for 

HSBC Group chairman Douglas Flint and chief executive Stuart Gulliver will be grilled by UK MPs over alleged tax-dodging by clients of HSBC’s Swiss private banking arm. (FT)

Target The US retailer reports fourth-quarter results after axing its operations in Canada last month. Investors will be watching to see how new chief executive Brian Cornell plans to turn round the retailer that he took over in August. (FT, WSJ$)

The world’s biggest sim card maker Gemalto’s shares fell sharply on Friday after a report that US and British intelligence had hacked it systems. It will reveal the results of its own investigations into the report today. (The Intercept, Reuters)

Food for thought

The end of the British establishment A lack of trust in UK politicians and institutions is being filled by the “antis” – the anti-elite, the anti-European, the anti-immigrant and the anti-capitalist. “Many will bid a fond goodbye to the egregious bastions of self-perpetuating privilege,” says Philip Stephens, but Britain needs a new way of governing itself. (FT)

The benefits of queueing It’s a pain standing around to wait for your lunch or to see a gig, but Tyler Cowen argues that waiting in line means prices can stay low and gives more people the opportunity to attend. (NYT$)

The royalty of labour Joe Pinsker looks at the longshoremen at US ports and how they were able to cost the economy $2bn a day during their union-arranged slowdowns. (The Atlantic)

The world needs new ways to manage its economy, says Martin Wolf, “ones that support demand without creating unmanageable rises in indebtedness“. If better alternatives are not chosen then we should expect crises. (FT)

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

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Author: FirstFT is the Financial Times’ editors curated free daily email of the top global stories from the FT and the best of the rest of the web.

Image: Morning commuters are seen outside the New York Stock Exchange, July 30, 2012. REUTERS/Brendan McDermid.