October 16th – Top Stories
- U.S. lawmakers begin last-ditch effort on debt ceiling - Reuters – By Richard Cowan
The U.S. Senate prepared for a last ditch effort Wednesday to avoid a historic lapse in the government’s borrowing authority, a breach that President Barack Obama has said could lead to default and deliver a damaging blow to the global economy.
- China’s Stocks Fall Most in Three Weeks on Economic Concerns - Bloomberg – By Xiaoyi Shao and Koh Gui Qing
China’s stocks fell the most in three weeks after JPMorgan Chase & Co. advised reducing holdings and companies linked to Shanghai’s free-trade zone tumbled on concern valuations are excessive.
Shanghai International Port (Group) Co. and Shanghai Waigaoqiao Free Trade Zone Development Co. plunged more than 7 percent after more than doubling since Aug. 22. Aluminum Corporation of China Ltd. and Jiangxi Copper Co., the nation’s biggest producers of aluminum and copper, led declines for metal producers. Cosco Shipping Co. slumped 4 percent.
- Draghi Turns Judge on Europe Banks as ECB Studies Balance - Bloomberg – By Jeff Black & Boris Groendahl
The European Central Bank is sizing up just how tough it wants to get with the region’s lenders.
Policy makers at the Frankfurt-based ECB will this week try to agree on the ground rules of its three-pronged probe into the health of the 130 banks it will start supervising next year. The process will stress-test balance sheets for exposure to sovereign debt as well as push institutions to admit to more of their bad debt than they have before, according to three officials who spoke on condition of anonymity.
The check-up due in early 2014 is the ECB’s precondition for assuming the burden of overseeing banks from Deutsche Bank AG to Intesa Sanpaolo SpA (ISP), and the first assessment of the industry since a round of stress tests two years ago.