October 11th – Top Stories

1/ US

 

- US debt ceiling crisis talks under way - FT - By Richard McGregor and James Politi in Washington and Michael MacKenzie in New York
 

The White House and Republicans held their first serious talks to resolve the fiscal impasse gripping Washington, as they discussed ways to approve a short-term extension of the US debt limit and avert a potential default by the world’s largest economy.
 
President Barack Obama did not immediately agree on a plan by House Republican leaders to extend the US borrowing authority by six weeks presented at a late-afternoon meeting at the White House. But Republicans leaving the meeting with Mr Obama described it as useful and constructive, and said further discussions would follow throughout the night.

 

2/ China

 

- China 2013 GDP growth to exceed 7.5%: central bank - MarketWatch – By MarketWatch

 

China’s economic growth will exceed the official target of 7.5% this year while some economic risks such as local-government debts and “shadow banking” remain under control, web portal Sina.com reported Friday, citing the vice governor of China’s central bank.
 
“There is no doubt that China’s [gross domestic product] growth will exceed 7.5% this year, or even will reach 7.6%,” the report cited Yi Gang as saying. In the foreseeable future, China’s economic growth will maintain at around 7%, he added.

 

3/ Eurozone

 

- Draghi Says ECB Guidance Allows Rate Cuts on Volatility - Bloomberg – By Jeff Black & Craig Stirling

 

European Central Bank President Mario Draghi said policy makers’ pledge to keep interest rates low explicitly allows for cuts in borrowing costs if market volatility resumes.
 
“The Governing Council has unanimously agreed to incorporate an easing bias that explicitly provides for further rate reductions, should the volatility in money market conditions return to the levels observed in early summer,” Draghi said at the Economic Club of New York yesterday.