OGX, headed by Eike Batista, files for
bankruptcy - (www.cnbc.com) OGX,
the Brazilian oil company controlled by former billionaire Eike Batista, sought
court protection from creditors on Wednesday in Latin America's largest-ever
corporate bankruptcy filing, a source with direct knowledge of the situation
told Reuters. If a bankruptcy court approved the request, OGX would have 60
days to come up with a corporate restructuring plan. The company's
creditors—which include Pacific Investment Management, the California-based
bond fund known as Pimco, and U.S.-based investment fund BlackRock, among others—would then have 30 days to
endorse or reject the plan. Brazilian tycoon Eike Batista, who less than 18
months ago owned the world's seventh-largest fortune is now one of the biggest
wealth losers in history after his $33 billion fortune faded when his oil
company, OGX, failed to produce any oil.
Obamacare can't make health care cheaper:
Langone - (www.cnbc.com) The
Affordable Care Act known as Obamacare "defies the whole concept" of
its intended purpose to make health insurance more affordable for more people,
billionaire entrepreneur Ken Langone told CNBC on Wednesday. "Insurance is
a fairly simple," Langone said in a "Squawk Box" interview. "It's spreading risk.
It's sharing risk." "You're not going to bring 35 million more people
into the pool for care and say, 'We're going to do it cheaper,'" he
argued. "We're living longer. The longer we live, the more health care we
need." Langone, a Republican, added that his party should not have fought
to delay the law, because only a few days after the government reopens "we
find out we can't run this thing." The GOP-controlled House Energy and
Commerce Committee will hold another Obamacare hearing Wednesday with Health
and Human Services Secretary Kathleen
Sebelius on the hot seat over
the federal exchange's website troubles and the cancellation
notices going
out to people who bought health insurance on their own.
Brazil
love affair turns sour for Pimco - (www.ft.com) US
group is the biggest holder of bonds in Eike Batista’s OGX. As the largest
holder of bonds in Eike Batista’s oil company OGX,
the US fund manager Pimco faces heartache in Brazil, after a love affair with
the country stretching back more than a decade. The California-based investment
house piled into Brazilian debt when most major fund managers were running the
other way during the country’s financial crisis of 2002, and it rode the
economic expansion under President Luiz Inácio Lula da Silva. But amassing more
than 17 per cent of the $3.6bn of bonds issued by Mr Batista since 2011 has
proved a disaster. While BlackRock and
other major institutional money managers moved to cut their losses this year,
Pimco increased its bet on OGX bonds due for repayment in 2018 and 2022, even
as the company spiralled towards bankruptcy. The Pimco Income Fund, one of at least half a
dozen of its funds to take on OGX debt, was still adding to its positions in
the second quarter of this year, according to Bloomberg data and fund
documents.
NAR
picketed in Arizona - (www.azcentral.com) About
a dozen protesters, including a Scottsdale councilman, gathered in downtown
Scottsdale on Monday to rally against hefty contributions made by Realtor
groups supporting the city’s Nov. 5 bond election. Realtor groups, including a
national association, have doled out $100,000 to persuade voters to approve the
bond funding for new projects. Additionally, the Scottsdale city attorney has
found the groups committed campaign finance violations that could cost one group upwards of $258,000 in fines. On Monday morning, protesters demonstrated
outside the Scottsdale Association of Realtors headquarters, near Third Avenue
and Scottsdale Road, flashing signs that read “Keep Chicago Politics out of
Scottsdale!” and “Where did the 100k really come from?”
Fed
stimulus: No end in sight - (www.money.cnn.com) Central
bank decides to keep buying $85 billion in bonds each month. There's still no
end in sight for the Federal Reserve's stimulus program -- known as
quantitative easing -- after the central bank met this week and decided to
continue buying $85 billion in bonds each month. In a statement released after
the conclusion of its policy meeting, the Fed pointed to fiscal policy (a.k.a.
government spending cuts, the shutdown and debt ceiling debate)
as "restraining economic growth." While the Fed continued to
characterize the overall economy as expanding at a "moderate pace" --
the same as at its prior meeting -- it did downgrade its assessment of the
housing market slightly. "The housing sector slowed somewhat in recent
months," the statement said.
BlackRock’s
Fink Says There Are ‘Bubble-Like Markets Again’ - (www.bloomberg.com)
U.S. debt problems 'casting global shadow': EU's Barroso - (www.reuters.com)
U.S. debt problems 'casting global shadow': EU's Barroso - (www.reuters.com)
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