US
banks warn Fed interest cut could force them to charge depositors - (www.ft.com) Leading US banks have warned that they could
start charging companies and consumers for deposits if the US Federal Reserve
cuts the interest it pays on bank reserves. Depositors already have to cope
with near-zero interest rates, but paying just to leave money in the bank would
be highly unusual and unwelcome for companies and households. The warning by
bank executives highlights the dangers of one strategy the Fed could use to
offset an eventual “tapering” of the $85bn a month in asset purchases that have
fuelled global financial markets for the last year. Minutes of the Fed’s
October meeting published last week showed it was heading towards a taper in
the coming months – perhaps as soon as December – but wants to find a different
way to add stimulus at the same time. “Most” officials thought a cut in the
interest on bank reserves was an option worth considering.
Thailand
Unexpectedly Cuts Rate as Protests Crimp Outlook - (www.bloomberg.com) Thailand unexpectedly cut its key interest rate
for a second time this year, as escalating anti-government protests threaten
investor confidence and local demand, hurting the nation’s growth outlook. The
baht fell. The Bank of Thailand cut its one-day bond repurchase rate by
a quarter of a percentage point to 2.25 percent, with monetary policy committee
members voting six-to-one in favor of the decision, it said in Bangkok today.
All 19 economists in a Bloomberg survey predicted the rate would be held. Thai
protesters this week besieged government ministries and urged civil servants to
join a push to oust Prime Minister Yingluck Shinawatra, an escalation of
rallies that began a month ago against an amnesty for most political offenses
stretching back to the 2006 coup that ousted her brother Thaksin. The economy
expanded a less-than-estimated 1.3 percent in the third quarter from the
previous three months.
Obamacare
Small Business Health Market Delayed for 1 Year - (www.bloomberg.com) Small businesses won’t
be able to use the federal government’s health-insurance website until November
2014 in most U.S. states, the latest delay for the Obama administration’s
health-care system overhaul. Businesses can use brokers or enroll directly with
insurers in the meantime, the U.S. Department of Health and Human Services said
on a conference call today. The change applies to 36 states where the federal
government is running insurance exchanges. President Barack Obama has been
seeking to give consumers and insurers more time to adapt to the Patient
Protection and Affordable Care Act as this year’s rollout was beset by missed
deadlines, technology outages and public confusion. The National Federation of
Independent Business, which represents small companies, said the latest delay
isn’t building confidence.
War between Spain and Germany Erupts Over the
Hardness of Stress Tests - (www.elconfidencial.com) The new stress tests of European banks have
caused the outbreak of a new confrontation between the governments of Spain and
Germany. Until now, it was Spain who argued in favor of a tough exercise,
similar to what Spain had to undergo when seeking bailout funds. By
contrast, Germany (supported by France and Italy) preferred more lax exercises
that do not bring to light the shame of their banks balance sheets of billions
in toxic assets, including Spanish mortgage securitizations. But now the
German authorities found one flank to counterattack: the huge public debt
exposure of Spanish banks, which they believe should be penalized in these
exercises, which can be catastrophic for our financial system when it just
starts to lift head.
Majority in U.S. Say Healthcare Not Government Responsibility
- (www.gallup.com)
Percentage
Point Change Since 2006:
·
Since 2006, the share of
republicans who say healthcare is not the responsibility has increased from 57%
to 86%, a rise of 29 percentage points.
·
Since 2006, the share of
independents who say healthcare is not the responsibility has increased from
25% to 55%, a rise of 30 percentage points.
·
Since 2006, the share of
democrats who say healthcare is not the responsibility has increased from 10%
to 30%, a rise of 20 percentage points.
In 2006, the overall share was 69% to 28% in
favor of the view that healthcare was the responsibility! Now it is
56% to 46% against.This is a startling change in sentiment in 7 years,
especially among independents.
Exclusive
- JPMorgan tried but failed to satisfy Fed on metals warehousing: letters - (www.reuters.com)
Bitcoin
Surges to $1,000 as Virtual Money Gains Wider Acceptance - (www.bloomberg.com)
ECB Says Financial-Stability Risk From Market Turmoil Has Risen - (www.bloomberg.com)
ECB Says Financial-Stability Risk From Market Turmoil Has Risen - (www.bloomberg.com)
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