October 3rd – Top Morning Stories

1/ US

 

- White House Meeting Doesn’t Break Congress Budget Impasse - Bloomberg - By Richard Rubin, Roxana Tiron & Kathleen Hunter

 

The first face-to-face talks between President Barack Obama and congressional leaders failed to break the budget logjam as a partial U.S. government shutdown entered its third day.
 
The Oval Office meeting yesterday evening ended with both sides reiterating their positions and the points they’ve been making for days, raising the prospect of a prolonged standoff over the government shutdown and raising the U.S. debt limit.

 

- Layoffs and Production Disruptions Loom at Firms Tied to U.S. - WSJ - By JAMES R. HAGERTY, DOUG CAMERON And JOHN W. MILLER

 

The partial shutdown of the federal government is leading to layoffs and production disruptions at defense contractors and some manufacturing companies.
 
*** BAE Systems – who may lose some contract work, and could potentially affect around 4300 pf their US employees
*** Navistar – Department of Defense contracts halted, and payment from goverment had been delayed
*** Huntinton Ingalls Industries – notes no disruptions so far
*** Boeing – 787 Dreamliners may be delayed due to inability to get FAA final authorisation
*** Arch Coal – federal permits may be delayed

 

2/ China

 

- China official services PMI hits six-month high, supported third-quarter pickup - Reuters – Reporting by Li Hui and Kevin Yao; Editing by Eric Meijer

 

Activity in China’s services sector expanded at the fastest pace in six months in September as demand grew, cementing a modest pickup in the world’s second-largest economy.
 
The official purchasing managers’ index (PMI) for the non-manufacturing sector rose to 55.4 in September – the highest reading since March – from 53.9 in August, the National Bureau of Statistics (NBS) said on Thursday.

 

3/ Eurozone

 

- Italy’s Letta Survives but Challenges Loom - WSJ - By DEBORAH BALL

 

Italian Prime Minister Enrico Letta won the fight to keep his government alive Wednesday. But the bigger battle will be to revive a sclerotic economy that is emerging as a major threat to the euro-zone recovery.
 
After days of political chaos, Mr. Letta won confidence votes in both houses of parliament when conservative leader Silvio Berlusconi at the last minute abandoned his bid to topple the government. But the near-death of the coalition, just five months after its formation, illustrates the challenges of pursuing an ambitious economic overhaul amid a fragmented and quarrelsome political scene.