TOP NEWS: Economy: October 2nd, 2012
- ‘Fiscal cliff’ to hit 90% of US families
- US manufacturers defy global gloom
- J.P. Morgan Sued on Mortgage Bonds
- U.S. Leads in High-Frequency Trading, Trails in Rules
- Fed Chief Takes On Critics
Excerpts and More Top News and Analysis:
FISCAL CLIFF: ‘Fiscal cliff’ to hit 90% of US families - FT
The US “fiscal cliff” would raise taxes by $536bn next year, hitting nearly 90 per cent of American families, according to analysis by the Tax Policy Center.
FISCAL CLIFF: The ‘Fiscal Cliff’ Opportunity – NYT, OPINION
BRUCE BARTLETT – Letting the “fiscal cliff” spending cuts and tax increases take place, then addressing them, may be politically easier and more practical than trying to change them before
MANUFACTURING: US manufacturers defy global gloom - FT
US manufacturers bucked the trend last month, expanding even as peers in Asia and Europe continued to suffer the effects of the slowing world economy
MANUFACTURING: U.S. Manufacturing Expands - WSJ
U.S. manufacturing expanded in September after contracting for three months, according to ISM data. Construction spending fell 0.6%.
MANUFACTURING: US manufacturing activity lifts Fastenal - FT
S&P 500, which had dropped for two consecutive weeks, gains as analysts say that the stronger data lent some optimism to growth forecasts
MANUFACTURING: US manufacturing returns to growth - FT
ISM manufacturing index shows expansion in factory activity after three consecutive months of contraction, with new orders and employment picking up
WALL STREET: J.P. Morgan Sued on Mortgage Bonds - WSJ
New York’s attorney general filed a civil complaint against the company, alleging widespread fraud by the company’s Bear Stearns unit in the sale of mortgage-backed securities in the run-up to the financial crisis.
WALL STREET: Another Executive Departs J.P. Morgan’s Chief Investment Office - WSJ
Irene Tse, an executive in the J.P. Morgan Chase division that suffered $5.8 billion in trading losses earlier this year, is leaving the bank, according to an internal memo.
WALL STREET: How the Government Failed to Fix Wall Street - DAILY BEAST
In new accounts, insiders reveal why Wall Street big shots weren’t prosecuted and reforms faltered.
WALL STREET: The New Wall Street - FT
Banks are confronting a post-crisis world of tougher regulations and lower profits
WALL STREET: Merrill Plots Raid on a Vulnerable Rival - WSJ
In a raid that stands out even in Wall Street’s aggressive recruiting culture, Merrill Lynch is offering some top Morgan Stanley Wealth Management brokers $1.5 million bonuses to defect.
MARKETS: U.S. Leads in High-Frequency Trading, Trails in Rules - BLOOMBERG
Given the missteps that have prolonged and deepened the European debt crisis, one wouldn’t necessarily expect the continent to be home to far-sighted financial reform. But that is exactly what seems.
MARKETS: SAC places top manager on leave - FT
The portfolio manager at a division of hedge fund SAC Capital Advisors was put on paid leave after his name was raised in the government investigation into insider trading.
MARKETS: SAC Portfolio Manager Placed On Leave - WSJ
Michael Steinberg, a portfolio manager at a division of hedge fund SAC Capital Advisors, was put on paid leave after his name surfaced in the government’s broad investigation into insider trading in corporate America.
MARKETS: Lamy dismisses rise in US-China disputes - FT
WTO chief says increase just reflects growing trade.
MARKETS: US move raises Chinese investment fears - FT
Block on wind farm casts doubt on US openness to foreign businesses
*MORE MARKETS NEWS AND ANALYSIS BELOW
FED: Fed Chief Takes On Critics - WSJ
Bernanke pushed back against criticism that the central bank enables bad fiscal policy or is “monetizing the debt” and sowing the seeds for inflation.
FED: Bernanke pushes back on QE3 - FT
Chairman defends new, open-ended quantitative easing round, under which Federal Reserve will buy $40bn of mortgage-backed securities a month
ECONOMY/POLITICS: The Missing $1 Trillion - WSJ
President Obama’s campaign is trying to convince voters that the pace of economic growth is good enough. But is it?
ECONOMY/POLITICS: Romney Must Offer Americans A New Economic Contract - RCM, OPINION
JOHN CHAPMAN: It’s time for Mr. Romney to take command of the race, and control his destiny. He can win the election, but only by offering an alternative critique of our troubles and an intellectually confident and detailed vision of their remedy that’s rooted in a substantive free-market paradigm.
ECONOMY: A Dollar Deluge Disguises Deceitful Economic Data - RCP, OPINION
BILL FREZZA : Did someone slip Paul Krugman juice into The Wall Street Journal’s water cooler? That’s the only conclusion I can fathom after reading a pair of articles celebrating the long awaited return of prosperity.
HEALTHCARE: When Doctors Stop Taking Insurance - NYT
Many physicians no longer accept insurance and require upfront payment from patients.
HEALTHCARE: J.D. Kleinke Is Wrong, Obamacare Isn’t Conservative - RCP, OPINION
DIANA FURCHTGOTT-ROTH: Not a single Republican member of the House or Senate voted for the Affordable Care Act, which President Obama had sponsored and signed into law in March 2010. Yet, a new, revisionist history has just emerged from American Enterprise Institute resident fellow J.D. Kleinke, published in The New York Times on Sunday.
HEALTHCARE: Washington Post Branches Into Health-Care - WSJ
Washington Post is buying a major stake in home health-care and hospice-services company Celtic Healthcare, branching out beyond its core media and education businesses.
COMMODITIES: America’s $5 Billion Steel Mill for Sale - WSJ
ThyssenKrupp is trying to sell the most technologically advanced steel plant in the U.S., likely ending the German company’s effort to establish itself in the Americas.
COMMODITIES: Gold soars on Chicago Fed easing remarks - FT
Prices rise after comments that monetary easing will continue until US economic conditions improve, but were also underpinned by South Africa unrest
COMMODITIES: The limitations of America’s petroleum reserve - FT
Diversifying SPR content from crude to include refined products could increase Washington’s flexibility in responding to commercial supply disruptions.
QE3: Banks reap profits on mortgages after QE3 - FT
The extent to which QE3 drives down new mortgage rates and either helps homeowners or is pocketed by banks will be crucial to prospects for growth in the US
QE3: How to Negotiate Peace With Honor in Currency Wars - BLOOMBERG
Brazil’s president, Dilma Rousseff, and her finance minister, Guido Mantega, are attacking the U.S. Federal Reserve for embarking on a third round of quantitative easing. By aggressively buying bonds, the Fed aims to push interest rates lower, and that will nudge the dollar down as well.
DEFENSE CONTRACTS: White House reassures defence contractors - FT
The White House has said it would cover legal costs related to mass lay-offs by defence contractors if automatic cuts to the Pentagon budget take effect next year.
PRIVATE EQUITY: More Money Than They Know What to Do With - NYT
Private equity executives, after spending the last several years largely on the sidelines amid the economic uncertainty, have begun to be anxious that they may need to go on a shopping spree.
MADOFF/PONZI SCHEME: Ex-Employees at Madoff Firm Hit With Additional Charges - WSJ
A federal grand jury returned additional criminal charges Monday against a group of former employees of convicted Ponzi scheme operator Bernard Madoff nearly four years after the massive fraud came to light.
U.S.P.S.: Distress Deepening, Postal Service Defaults on $5.6 Billion Benefits Payment - NYT
The post office, which has missed two deadlines on future retiree health benefits, said it expected net operating losses to be $15 billion for the fiscal year that ended Sept. 30.
UNIONS: Mallory Factor: How Public Unions Exploit the Ruse of ‘Official Time’ - WSJ
Government employees get paid to spend time on the job working on union projects that they don’t disclose to managers or the public.
BUSINESS NEWS & ANALYSIS
BUSINESS: American Express Says It Will Refund $85 Million - NYT
American Express will reimburse $85 million to about 250,000 customers to resolve accusations that the company violated federal law in its marketing, billing and debt collection practices, the company and the government said Monday.
BUSINESS: FAA Probes Seats on Two American Flights – WSJ
Federal regulators are investigating maintenance lapses that caused rows of passenger seats to come loose during a pair of flights on American Airlines jets over the past three days.
BUSINESS: One Big Step for Tesla, One Giant Leap for E.V.’s - NYT
The automobile has not undergone a fundamental change in design or use since Henry Ford introduced the Model T, but the Tesla Model S has the potential to be a game changer.
BUSINESS: Samsung files lawsuit over iPhone 5 - FT
Samsung Electronics file court papers accusing iPhone 5 of infringing its patents, as it seeks to regain ground after a $1bn US court defeat in August
BUSINESS: Zuckerberg Meets With Medvedev in a Crucial Market - NYT
The hoodie stayed back at the hotel when Mark Zuckerberg, the founder of Facebook, met Russia’s prime minister and former president, Dmitri A. Medvedev, on Monday.
BUSINESS: Judge Lifts Ban on Samsung Tablet - WSJ
The U.S. judge overseeing the patent dispute between Apple and Samsung lifted a sales ban on Galaxy Tab 10.1 after a jury in August found that the product didn’t infringe an Apple patent.
BUSINESS: Into the Cloud - NYT
James Glanz of The New York Times and Ken Brill, founder of the Uptime Institute, tour a data center and show what is required to keep it going around the clock.
BUSINESS: Google market cap tops Microsoft’s - FT
For the first time since its IPO Google’s stock market value surpassed that of rival Microsoft, as the search group gained 30 per cent last quarter
MORE MARKETS NEWS AND ANALYSIS:
MARKETS: Office Markets Stagnate on Soft Hiring - WSJ
Companies added office space at a slow pace in the third quarter, leaving vacancies in U.S. office markets at high levels amid sluggish growth in the labor force.
MARKETS: ‘Slice and dice’ credit card deals return - FT
Overseas lenders look to tap demand for asset-backed securities in the US, which offer better yields than the derisory rates available on Treasuries
MARKETS: A Speed Limit for the Stock Market - NYT, OPINION
ROGER LOWENSTEIN: The “liquidity” high-frequency trading provides is long past the point of being helpful.
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