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Oct 11, 2013

RTAmerica October 11, 2013: WikiLeaks releases video of Snowden in Moscow.


VOA Video October 11, 2013: IMF: Growth Prospects Weaken in Emerging Asia, Pacific Economies

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NYT | Global Update October 11, 2013: Netanyahu, Alone, but Undaunted, Presses Case Against Iran

The New York Times International Herald Tribune
October 11, 2013
Compiled 20:45 GMT

Global Update


TOP NEWS

Netanyahu, Alone, but Undaunted, Presses Case Against Iran

By JODI RUDOREN
As Western powers prepare for talks on Iran's nuclear program, an increasingly isolated Prime Minister Benjamin Netanyahu continues his push for stronger action.

G.O.P. Senators See Outline for Debt Deal After Obama Meeting

By JEREMY W. PETERS and ASHLEY PARKER
Republican senators emerged from their meeting at the White House expressing confidence that the shutdown could end in a matter of days, but cautioning that details, including the length of a debt limit extension, still needed to be resolved.

France Upholds Ban on Fracking

By DAVID JOLLY
The nation's highest court ruled against Schuepbach Energy, an American company that had challenged a government ban on the drilling technique.
Travel

Slide Show: Following Kerouac Through Mexico

The writer visited Mexico in the 1950s and '60s to experience greater freedom.
Opinion

Op-Ed Contributor

In Africa, Seeking a License to Kill

By DESMOND TUTU
African leaders must not be allowed to withdraw their countries from the International Criminal Court. It will only encourage greater government corruption.
WORLD

Chemical Weapons Watchdog Wins Nobel Peace Prize

By ALAN COWELL
The Norwegian Nobel Committee awarded the 2013 Peace Prize on Friday to the Organization for the Prohibition of Chemical Weapons, now working to destroy Syria's stockpile.

Syrian Civilians Bore Brunt of Rebels' Fury, Report Says

By ANNE BARNARD
Human Rights Watch said it had documented for the first time that rebel groups in Syria "systematically" targeted civilians in a massacre in August that left 190 dead.

Pakistanis Can't Decide: Is Malala Yousafzai a Heroine or Western Stooge?

By SALMAN MASOOD and DECLAN WALSH
There were mixed feelings in Pakistan as speculation grew that the teenager, who was shot by the Taliban for championing education for girls, might win a Nobel.
BUSINESS
Common Sense

Ransacking the Endowment at New York City Opera

By JAMES B. STEWART
Mismanagement at the now-bankrupt New York City Opera led it to raid its endowment to pay off its huge deficits.
The Media Equation

When Our News Is Gerrymandered, Too

By DAVID CARR
The government shutdown reflects a political system that reinforces extremism. The news media system isn't much different lately.
DealBook

Beset With Legal Costs, JPMorgan Posts Quarterly Loss

By JESSICA SILVER-GREENBERG
JPMorgan Chase reported a net loss of $380 million for the quarter, as the nation's largest bank grapples with a raft of regulatory and legal woes.
TECHNOLOGY

Google Sets Plan to Sell Users' Endorsements

By CLAIRE CAIN MILLER and VINDU GOEL
A change in its terms of service would let Google include users' names, photos and comments in ads across the Web.
DealBook

2 Founders of BlackBerry Weighing a Takeover Offer

By IAN AUSTEN and MICHAEL J. DE LA MERCED
Mike Lazaridis and Douglas E. Fregin say that they are weighing a bid for 92 percent of the company that they don't already own.
Bits Blog

Canadian Carrier Backtracks on BlackBerry Snub

By IAN AUSTEN
Rogers said the BlackBerry Z30 would be available for order online and through a service that ships orders to its stores and directly to business and government customers.
SPORTS

A Sleeping Giant in African Soccer Is Starting to Stir

By BENNO MUCHLER
The national soccer team of Ethiopia, Africa's second-most populous country, is two games from reaching the World Cup final round for the first time.
On Soccer

Serenity, and a Few Sly Smiles, for the U.S.

By SAM BORDEN
The squad appeared to be in disarray in March but has since won several qualifiers and clinched a berth in Brazil.

Make or Break Time for World Cup Contenders

By ROB HUGHES
England, Uruguay and Mexico are among the countries that have to win their matches over the next few days to play in Brazil next year.
U.S. NEWS

Health Act Embraced in California

By JENNIFER MEDINA
California is building the country's largest state-run health insurance exchange and has already expanded Medicaid coverage for the poor.

In Florida, Opposition by the State and Snags in Signing Up on the Web

By LIZETTE ALVAREZ
Lawmakers refused to create a state insurance exchange, and the federal government's Web site is so error-prone that enrolling is a daunting task.

Blue Cross Plans Jump to an Early Lead

By REED ABELSON
In the exchanges created by the Affordable Care Act, Blue Cross and Blue Shield plans offer name recognition and price advantages.
OPINION

Gazprom on the Ropes

By ALAN RILEY
Gazprom, the world's biggest gas producer, is in trouble. Would the Kremlin break it up?
Editorial

Libya's Security Crisis

By THE EDITORIAL BOARD
The United States and Europe have a role to play in helping to build an army and a government in Libya.
Op-Ed Columnist

Dealing With Default

By PAUL KRUGMAN
There are no good choices if we hit that debt ceiling. Which bad choice would do the least harm?

DealBook P.M. Edition October 11, 2013: Weekend Reading: Wall Street's View of the Fiscal Crisis.



Friday, October 11, 2013
TOP STORY
Weekend Reading: Wall Street's View of the Fiscal Crisis As the budget shutdown in Washington continued, investors on Wall Street faced criticism that calm markets were encouraging House Republicans and making a default more likely. Here's a look at what some of the experts are saying about the fiscal crisis.

"A freak-out now would help stave off financial devastation later," Jesse Eisinger wrote. "By staying cool, the markets are making a crisis more likely."

Andrew Ross Sorkin wrote about "the perversity of Wall Street's psychology: The more Wall Street is convinced that Washington will act rationally and raise the debt ceiling, most likely at the 11th hour, the less pressure there will be on lawmakers to reach an agreement. That will make it more likely a deal isn't reached."

Some skepticism returned to the markets on Thursday after the White House signaled that it would reject a Republican proposal for a short-term fix.

"The political situation has gone from horrible to bad, but we're still a long way from a constructive resolution," said Michael Purves, chief global strategist at Weeden & Company.

While the Dow Jones industrial average was up for the week, investors did move their money out of the market for Treasury bills.

"These bills are like the center of gravity for the financial universe - they really are," said Lee Sachs, a former Treasury official who now runs the lending firm Alliance Partners. "Defaulting on these would be like the laws of physics being repealed."

While nervousness is growing, DealBook's Nathaniel Popper reported that the market reaction has been muted compared with past crises.

"We all tell ourselves, 'This is something that is not going to happen,' " said David Coard, the head of fixed-income trading at the Williams Capital Group. "This would be like a black swan event - it's not something that you would have thought that the U.S. could do in a million years."

A look back on our reporting of the past week's highs and lows in finance.
Friday, Oct. 11
Beset With Legal Costs, JPMorgan Posts Quarterly Loss
Beset With Legal Costs, JPMorgan Posts Quarterly Loss JPMorgan Chase reported a net loss of $380 million for the quarter, as the nation's largest bank grapples with a raft of regulatory and legal woes.
Wells Fargo Quarterly Earnings Jump 13%
Wells Fargo Quarterly Earnings Jump 13% The nation's largest home lender reported a new record in profits on Friday even as a slowdown in the mortgage market muted the bank's growth.
Thursday, Oct. 10
Traders on the floor of the New York Stock Exchange on Thursday.
Stocks Rally, Talks Stall, Then Skepticism Returns Stock prices surged as signs of a compromise emerged in Washington, but the air quickly went out of Wall Street's balloon after it remained clear that a deal was not yet at hand.
Carmen Segarra worked at the New York Federal Reserve Bank after a career on Wall Street that included jobs at Citigroup and Bank of America.
Suit Revives Goldman Conflict Issue In a lawsuit, a former Federal Reserve Bank of New York worker raises questions about the success of Goldman Sachs in policing potential conflicts.
Mike Lazaridis, the former chief of BlackBerry.
2 Founders of BlackBerry Weighing a Takeover Offer Mike Lazaridis and Douglas E. Fregin say that they are weighing a bid for 92 percent of the company that they don't already own.
Two Brazilian Brothers to Pay Nearly $5 Million in Insider Trading Case
Two Brazilian Brothers to Pay Nearly $5 Million in Insider Trading Case The S.E.C. says that Rodrigo and Michel Terpins of Brazil acted on inside information about the H.J. Heinz takeover to turn $90,000 into $1.8 million.
After High Demand, Royal Mail Shares Are Priced at High End
After High Demand, Royal Mail Shares Are Priced at High End The offering was oversubscribed seven times, with several brokerage offices staying open until the deadline for investors to register to buy the stock.
Wednesday, Oct. 9
A pressman picks up stacks of $20 bills at the  Bureau of Engraving.
Government Standoff Shakes Trust in U.S. Debt Investors are wary of the government's ability to pay its debt on time, shifting the market for short-term Treasury bills and potentially having long-term effects.
John A. Boehner, the House speaker, and President Obama are at an impasse over budget negotiations, but the market remains calm.
The Trade: Complacency on Wall Street Could Be Worse Than a Panic Market participants don't think that the government will default on its debts, but the ideological fissures in Washington are deeper than investors grasp, writes Jesse Eisinger.
Madoff Trustee Asks Supreme Court to Let Him Sue Banks
Madoff Trustee Asks Supreme Court to Let Him Sue Banks Lawyers for Irving Picard argue that a ruling that he lacks standing to sue banks on claims that they abetted the fraud contradicts other court decisions.
Men's Wearhouse Rejects $2.3 Billion Offer by Jos. A. Bank
Men's Wearhouse Rejects $2.3 Billion Offer by Jos. A. Bank Men's Wearhouse rejected an unsolicited $2.3 billion takeover bid by Jos. A. Bank Clothiers on Wednesday, calling the proposed deal "highly opportunistic" and likely to draw antitrust scrutiny.
Tepid Opening for Promoter of Electronic Dance Music
Tepid Opening for Promoter of Electronic Dance Music The company's goal is to make money from the world of dance music, which has existed on the margins of the music industry for decades but has lately become its hottest genre.
Tuesday, Oct. 8
SAC Is Said to Weigh Plea Deal in Insider Trading Case
SAC Is Said to Weigh Plea Deal in Insider Trading Case Prosecutors are said to have offered the fund a deal to plead guilty and pay a penalty of about $2 billion. If SAC does not accept, a much larger fine is threatened.
New Corporate Tax Shelter: A Merger Abroad
New Corporate Tax Shelter: A Merger Abroad More large American corporations are reducing their tax bill by buying a foreign company and effectively renouncing their United States citizenship.
Deadlock Worry Jolts the Market for T-Bills
Deadlock Worry Jolts the Market for T-Bills The yield of a one-month bill rose to its highest level since 2008, a sign that investors are worrying more about the stalemate in Washington.
In Twitter's I.P.O. Filing, Signs of a Start-Up That Has Matured
Deal Professor: In Twitter's I.P.O. Filing, Signs of a Start-Up That Has Matured Twitter's initial public offering appears to be the first one from a big technology company that simply prepared a thorough filing without pushing the boundaries, writes Steven M. Davidoff.
Monday, Oct. 7
Jacob Lew, the Treasury secretary. The Obama administration and House Republicans are at an impasse over the debt ceiling.
Little Fear on Wall St. of Default, at Moment The relative calm on Wall Street is worrying some investors, who fear the markets will not signal to politicians the true danger of hitting the debt ceiling until it is too late.
Andrew Ross Sorkin, columnist and editor for DealBook.
DealBook Column: No Way U.S. Would Allow Debt Default? Don't Bet on It The more Wall Street is convinced that Washington will act rationally and raise the debt ceiling, the less pressure there will be on lawmakers, writes Andrew Ross Sorkin.
A closed shop in San Juan.
Worsening Debt Crisis Threatens Puerto Rico Mired in debt, Puerto Rico has been effectively shut out of the bond market and is financing its operations with bank credit and other short-term measures.
Legal Side Effect in Admission of Wrongdoing to the S.E.C.
Legal Side Effect in Admission of Wrongdoing to the S.E.C. A New York regulator used an admission of wrongdoing to the S.E.C. by the billionaire Philip A. Falcone to punish him in an unrelated case.
Cuban Says He Was Taken Aback by S.E.C. Charges
Cuban Says He Was Taken Aback by S.E.C. Charges The owner of the Dallas Mavericks said he was cooperating with the S.E.C. in an inquiry, and was surprised to learn that he was being charged with insider trading.
More Setbacks in Deal for U.S. Tire Maker
More Setbacks in Deal for U.S. Tire Maker The proposed buyout of Cooper Tire and Rubber by Apollo Tyres has been delayed by labor opposition in two countries, and now Cooper has filed suit against its suitor.

The Economist Group | Management Thinking Digest October 11, 2013.



Global insurers are operating in an increasingly complex environment. The continued fallout from the global financial crisis is leading insurers to rethink their investment portfolio risks and opportunities. In light of these factors, our new report commissioned by Blackrock, Global Insurance: Investment Strategy at an Inflection Point?, examines how insurers have shifted towards more tactical strategies that diversify across asset classes to generate returns and protect against specific market risks.

On our blog site Richard Harrison, managing director of Reputation.com, explains why SMEs are the most vulnerable to reputational risk. Yamina Saheb, former building energy efficiency analyst at the International Energy Agency, argues that enforcing a global mandatory building energy code should become a priority.

Finally on October 17th we're hosting The EU-Balkan Summit in Sofia. Bringing together politicians, decision-makers, business executives and analysts, the summit will demonstrate how the Balkan countries can pave the way to recovery and growth.

Denis McCauley
Editorial Director, EMEA
EIU

CMI | Spot Prices as of Close of Trding in New York October 11, 2013.

CMI Gold and Silver
Spot Prices as of close of trading in New York
Friday, October 11, 2013
Updated 10/11/2013 Today Change Week Ago Month Ago Year Ago
GOLD $1,269.15 -$28.60 $1,310.95 $1,364.35 $1,768.90
SILVER $21.27 -$0.63 $21.77 $23.16 $34.13
PLATINUM $1,378.30 -$20.40 $1,379.10 $1,476.30 $1,688.00
PALLADIUM $716.20 +$1.10 $707.00 $699.40 $654.00
GOLD/SILVER RATIO 59.67

Wall Street at Close Report by MarketWatch October 11, 2013: U.S. Stocks Rise on Hopes for Budget Deal.


By Kate Gibson, MarketWatch

Reuters Enlarge Image
Washington, D.C., residents protest city cutbacks outside the U.S. Capitol. 
 
NEW YORK (MarketWatch)U.S. stocks climbed on Friday, adding to Wall Street’s largest single-day percentage gain since Jan. 2, after the Associated Press reported House Republicans were proposing a deal that would avert default and end the 11-day-old government shutdown. 

Poll: Republicans blamed for shutdown
The new WSJ/NBC News poll finds the Republican party more to blame for the shutdown. Photo: Getty Images 
“Investors are getting a little bit of daylight with respect to the political landscape,” said Lawrence Creatura, portfolio manager at Federated Investors. “The market is concluding that some sort of resolution is more likely now than it has been in recent days,” Creatura added. 

The AP cited officials speaking on condition of anonymity in reporting senior aides to House Speaker John Boehner and Majority Leader Eric Cantor detailed the plan at a late-night White House meeting on Thursday with senior administration officials.
 
President Barack Obama has said he wants to see the government reopened as quickly as possible without Republicans demanding any conditions for doing so. The government has been partially closed for 11 days as Republicans sought to defund the Affordable Care Act, or health-care legislation passed into law in 2010. 

“There has undoubtedly been economic impact,” said Creatura, referring to the partial government closure. “However, the markets will correctly perceive this as a temporary one-off event and will look through it in valuing equities. Any company that comes up slightly light on the quarter now gets a pass, it’s ‘the government ate my homework excuse,’” Creatura said. 

A day after its largest point jump since December 2011, the Dow Jones Industrial Average DJIA +0.73% advanced 111.04 points, or 0.7%, to 15,237.11, a two-week high. 

The Standard & Poor’s 500 index SPX +0.63%  gained 10.64 points, or 0.6%, to 1,703.20, its first finish above 1,700 in nearly three weeks. 

The Nasdaq Composite COMP +0.83% climbed 31.13 points, or 0.8%, to 3,791.87.
Both the Dow and the S&P 500 posted their first weekly gain in three, the former up 1.1% for the week and the latter rising 0.8% from last Friday’s close. 

The Nasdaq Composite fell for its fist week in six, off 0.4% for the week. 

For every stock falling, roughly three gained on the New York Stock Exchange, where nearly 635 million shares traded. Composite volume surpassed 2.9 billion.