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Oct 25, 2014

Leaked document shows 25 banks failed ECB safety tests: Finance | The Telegraph - October 25, 2014.


The Telegraph
FINANCE

Leaked document shows 25 banks failed ECB safety tests
Tesco shares hit 11-year low as as retailer hit by double whammy
Monarch Airlines rescued as Mantegazzas take flight
UK Government relaxes tough Chinese visa rules

Negative interest rates threaten to destroy not just savers but IMF as well: GATA | THE GATA DISPATCH - October 25, 2014.

Negative interest rates threaten to destroy not just savers but IMF as well

Submitted by cpowell on  Saturday, October 25, 2014.
So the IMF enacts a new rule to save itself. Everyone else remains out of luck.
* * *
IMF Introduces Floor on Interest Rates
By Robin Harding
Financial Times, London
Friday, October 24, 2014
WASHINGTON -- The International Monetary Fund has been forced to change the calculation of its most important interest rate after aggressive monetary easing around the world threatened to turn it negative.
Late on Friday the IMF said it was introducing a floor of 0.05 per cent for the interest rate on Special Drawing Rights, its own form of international currency.
The IMF's move shows how global financial conditions are now easier than they have ever been, more than five years after the end of the Great Recession, leading to the lowest interest rates in its 68-year history.
Rate cuts, asset purchases, and forward guidance by central banks around the world continue to disrupt financial markets, forcing participants to adapt in new ways.
"In view of the prevailing interest rates today, the SDR interest rate for the next weekly period starting Monday October 27, will be established at the floor of 0.05 per cent," the IMF executive board said.
The SDR rate is what the IMF pays to its lending nations for the use of their funds. It then adds a margin to calculate the rate on its loans to Greece and other countries. The change will ensure lenders get a small positive return and fractionally raise costs to borrowers. The rate is calculated as a weighted average of the three-month risk-free rates in euros, yen, dollars, and sterling.
After staying positive throughout the financial crisis, that basket has threatened to turn negative in recent weeks, as both the euro and yen rates have fallen below zero. They were affected by the European Central Bank's move towards negative rates and continued easing by the Bank of Japan.
The most recent weekly calculation came in at 0.03 per cent. That reflected a euro rate of minus 0.02 per cent, a yen rate of minus 0.01 per cent, a dollar rate of plus 0.01 per cent and a sterling rate of 0.05 per cent. That rate will now be replaced by a 0.05 per cent floor from next week.
The possibility of negative rates caused several problems, according to a senior IMF official. There is no legal basis in its articles of association for paying a negative rate; it would have created a perverse situation where creditors were paying to lend money to the fund; and it would have frozen the SDR market as no country would have any reason to participate.
It would also have caused a breakdown in the IMF's "burden sharing" mechanism. Under that system, credit losses from countries that do not pay their IMF loans are shared between members, via a small deduction in the interest they receive.}

Bloomberg Exclusive News - October 25, 2014: Swedish Bitcoin Miner to Chase $2 Billion Coding Prize.

NYT | Today's Headlines: Top News: Cuomo and Christie Order Strict Ebola Quarantines.

The New York TimesMost Popular | Video | Subscribe: Digital / Home Delivery

Today's Headlines

Saturday, October 25, 2014


Top News
A passenger aboard the No. 1 train in Manhattan on Friday.
Cuomo and Christie Order Strict Ebola Quarantines

By MARC SANTORA

Gov. Andrew M. Cuomo of New York and Gov. Chris Christie of New Jersey said all people who had direct contact with Ebola patients in three West African nations would be quarantined.
Ebola Quarantines Seen as Barrier to Volunteers

By DAVID W. CHEN and LIZ ROBBINS

New requirements for isolating people who had contact with people infected with Ebola could dissuade Americans from working at the frontlines of the epidemic.
An image taken from social media of Michael Zehaf-Bibeau.
Ottawa Gunman's Radicalism Deepened as Life Crumbled

By MICHAEL WINES and WILLIAM YARDLEY

A portrait of the gunman shows he was an increasingly troubled, mentally unstable man who initially may have embraced religion not as a political cause, but as an attempt to scaffold a disintegrating life.
For more top news, go to NYTimes.com »
Editors' Picks
Alan Eustace ascending to 135,890 feet on Friday. He later plummeted to earth at speeds reaching 822 miles per hour, setting off a small sonic boom heard by people on the ground.

SCIENCE

Parachutist's Record Fall: Over 25 Miles in 15 Minutes

By JOHN MARKOFF

A helium-filled balloon lifted Alan Eustace, a Google executive, to more than 25 miles above the earth. Fifteen minutes after he cut himself loose, he was on the ground.

OPINION | OP-DOCS

'San Quentin's Giants'

By CLAYTON WORFOLK

At one of California's most notorious prisons, baseball teams take the field.

QUOTATION OF THE DAY

"A voluntary Ebola quarantine is not enough. This is too serious a public health situation."
GOV. ANDREW CUOMO OF NEW YORK, after announcing a quarantine of people who arrive in New York-area airports after being exposed to Ebola patients in West Africa.
Today's Videos
Video VIDEO: Ebola: Keep Calm, Carry On
On the subway lines and in the streets traveled by a doctor infected with Ebola, New Yorkers voiced some concern, but mostly went about their normal routines.
. Related Article
Video VIDEO: Bill Cunningham | Paying Respects
Is there an appropriate code of dress for memorial services today?
. Related Article
Video VIDEO: This Week's Movies | Oct. 24, 2014
The New York Times film critics review "Citizenfour," "Force Majeure" and "Laggies."
. Related Review: 'Citizenfour'
. Related Review: 'Force Majeure'
. Related Review: 'Laggies'
For more video, go to NYTimes.com/Video »
ADVERTISEMENT
World
Chow Yun-fat, an actor, has backed Hong Kong protesters.
Stars Backing Hong Kong Protests Pay Price on Mainland

By AMY QIN and ALAN WONG

Artists backing the pro-democracy movement are being punished by fans and companies in mainland China, on whose support many of their careers depend.
North Korean soldiers marched through Kim Il-Sung Square on Saturday during a military parade to commemorate the 60th anniversary of the Korean War armistice in 1953.
U.S. Commander Sees Key Nuclear Step by North Korea

By DAVID E. SANGER

Gen. Curtis M. Scaparrotti, the top American military leader in South Korea, says he believes the North is capable of making a nuclear weapon small enough to fit atop a ballistic missile.
31 Egyptian Soldiers Are Killed as Militants Attack in Sinai

By DAVID D. KIRKPATRICK

President Abdel Fattah el-Sisi convened an emergency meeting of Egypt's top generals and declared a state of emergency in parts of Sinai, including a curfew.
For more world news, go to NYTimes.com/World »
U.S.
Anti-abortion demonstrators outside a Planned Parenthood clinic in Memphis, one of two abortion clinics in the city.
Abortion Capital of Bible Belt? Tennessee Vote Tests That Idea

By RICHARD FAUSSET

Anti-abortion forces are trying to pass Amendment 1, which states that nothing in the Tennessee Constitution "secures or protects" a right to abortion.
Students were evacuated from Marysville-Pilchuck High School in Washington State and put into school buses after a fatal shooting on Friday.
2 Die, Including Gunman, in Shooting at Washington State High School

By KIRK JOHNSON, IAN LOVETT and MICHAEL PAULSON

A gunman killed one student and wounded four others in the cafeteria at a school in Marysville, Wash., before turning the gun on himself.
Law enforcement officers in Auburn, Calif., searched Friday for a suspect in four shootings, two of them fatal.
2 California Officers Are Killed in Rampage

By ROBERT B. GUNNISON

After a manhunt, the authorities arrested a suspect they identified as Marcelo Marquez in four shootings in Sacramento and Placer Counties in Northern California.
For more U.S. news, go to NYTimes.com/US »
Politics
George Neugent, the commissioner of Monroe County, on a residential dock in Key Colony Beach, Fla. The recent king tide brought seawater over the docks in the community.  
Pragmatism on Climate Change Trumps Politics at Local Level Across U.S.

By JOHN SCHWARTZ

Even as politicians at the national level steer clear of the politically charged topic, officials who live where its effects lap at residents' doorsteps are embracing the issue.
President Clinton in 1998. He and his aides have compared his effectiveness during his time in office versus President Obama's.
Toxic Partisanship? Bill Clinton Says He Had It Worse, Yet Got Things Done

By AMY CHOZICK

The former president argues that the personal attacks were even harsher when he was in the White House, raising the question of whether a bitter atmosphere should be an excuse for political gridlock.
Hillary Rodham Clinton with Martha Coakley, right, a candidate for governor of Massachusetts.
With Praise, Hillary Clinton Keeps an Adversary Close

By KATHARINE Q. SEELYE and AMY CHOZICK

At a rally in Boston, Mrs. Clinton praised Senator Elizabeth Warren, a liberal Democrat some see as a potential future rival, but did not appear onstage with her.
For more political news, go to NYTimes.com/Politics »
Business

YOUR MONEY

Combating a Flood of Early 401(k) Withdrawals

By RON LIEBER

Millions of people are clearly not using 401(k) and similar plans as retirement accounts at all, and it's a threat to their financial health.
White House Will Review Auto Safety Regulator

By REBECCA R. RUIZ and JULIE HIRSCHFELD DAVIS

The inquiry into the National Highway Traffic Safety Administration comes during a record year for recalls, in which the agency's role has been scrutinized by Congress.
Bananas in London distributed by Fyffes.

DEALBOOK

Chiquita Will Not Buy Fyffes, Clearing the Way for Its Own Takeover

By DAVID GELLES

Chiquita Brands said it was entering into talks with a group of Brazilian bidders offering about $680 million, a deal that is expected to be agreed on by Monday.
For more business news, go to NYTimes.com/Business »
Technology
The Roku 3 can be used for video, apps and games.

DEALBOOK

Roku, Video Streaming Service, Is Said to Consider I.P.O.

By MICHAEL J. DE LA MERCED

Founded in 2002, Roku has become one of the most popular makers of set-top boxes that let consumers stream Internet video onto their TVs.
A cellular tower in Oakland, Calif. Federal regulators said more time was needed to deal with a lawsuit and to recruit bidders.
F.C.C. Delays Auction of TV Airwaves for Mobile

By EDWARD WYATT

A lawsuit challenging the sale said that the commission's initial rules would cause some stations to lose some of their coverage area and viewers.
A malicious email purported to be from the World Health Organization, inviting people to download an attachment for more information about Ebola.

BITS BLOG

Malicious Ebola-Themed Emails Are on the Rise

By NICOLE PERLROTH

Criminals are attempting to install malicious programs on computers using false Ebola advisories as bait.
For more technology news, go to NYTimes.com/Technology »
Sports
The Giants' Brandon Belt after striking out in the seventh. The Royals' bullpen, essential to their postseason success, recorded the final 12 outs.

ROYALS 3, GIANTS 2

Reshuffled Royals Find Familiar Winning Recipe

By TIM ROHAN

The Kansas City Royals took a two-games-to-one lead in the World Series with a 3-2 win over the Giants in San Francisco.
Joe Maddon has twice won the American League Manager of the Year award with the Tampa Bay Rays.

ON BASEBALL

A Manager Opts Out to Test Free Agency

By TYLER KEPNER

Joe Maddon, 60, has left his job as manager of the Tampa Bay Rays in a move that follows the departure of General Manager Andrew Friedman to the Los Angeles Dodgers.

THE UPSHOT

How Rex Ryan Can Save His Job and Help Reinvent the N.F.L. <
...