Oct 1, 2013

NYT | Today's Headlines: Government Shutting Down in Impasse.

The New York Times

Today's Headlines

Tuesday, October 1, 2013

Top News
Harry Reid, the Senate majority leader, center, departed the Capitol early Tuesday.
Government Shutting Down in Impasse

By JONATHAN WEISMAN and JEREMY W. PETERS

The federal government will shut down for the first time in nearly two decades after last-minute moves in both chambers of Congress failed to break a bitter budget standoff over the president's health care law.
A currency exchange office in Tehran displaying rates in a window. Sanctions over nuclear efforts have starved Iran of cash.
Iran Staggers as Sanctions Hit Economy

By THOMAS ERDBRINK

A currency shortage, created by Western sanctions, appears worse than previously thought, increasing pressure on leaders seeking to negotiate a nuclear deal.
Eastleigh, a Somali enclave in Nairobi, is considered the financial hub for the Shabab group.
Somali Militants Mixing Business and Terror

By JEFFREY GETTLEMAN and NICHOLAS KULISH

The Shabab, which claimed responsibility for the deadly mall siege in Nairobi, Kenya, makes money through illegal endeavors and even employs a team of accountants. 


Editors' Picks

WORLD

Photographs Photographs: Inside Nairobi's Devastated Westgate Mall
More than a week after militants killed scores of people in the Westgate mall in Nairobi, Kenya, investigators sought clues to the attack. These are among the first pictures to emerge from inside the mall since the investigation began.

OPINION | Op-Ed Contributors

Keep Farmland for Farmers

By LINDSEY LUSHER SHUTE and BENJAMIN SHUTE

A move to strengthen protections for agricultural land.

QUOTATION OF THE DAY

"It looks like I'm working, right? No. In reality I am praying, either for a miracle to save our economy or for a fool to come in and buy my factory."
BAHMAN ESHGHI, owner of a business in Tehran that is suffering because of sanctions against Iran.

World
Pictures of some of the people arrested, tortured and killed by the Afghan Communist government on display in Kabul on Monday.
Old Atrocities, Now Official, Galvanize Afghanistan

By ROD NORDLAND

The details and names of nearly 5,000 people killed by the Afghan Communist government in 1978 and 1979 were unearthed by Dutch investigators and made public by the Netherlands national prosecutor's office.
Pope John Paul II, left, and Pope John XXIII will be canonized on April 27, 2014.
Francis Sets a Date in April for 2 Popes to Become Saints

By ELISABETTA POVOLEDO and ALAN COWELL

The decision to declare John Paul II and John XXIII saints on April 27, 2014, was seen as a gesture intended to promote unity within the church.
President Nicolás Maduro during a speech in which he ordered the expulsion of three officials from the United States Embassy.
With Accusations of Sabotage, Venezuela Expels 3 U.S. Embassy Officials

By WILLIAM NEUMAN

Accusing the officials of supporting efforts to sabotage the nation's electrical grid, President Nicolás Maduro announced the move on live TV.
For more world news, go to NYTimes.com/World »
U.S.
A memorial to Christopher Lane, who was fatally shot Aug. 16 in Duncan, Okla.
End of an Aimless Summer: 3 Youths Charged in a Killing

By SERGE F. KOVALESKI

Families and neighbors in Duncan, Okla., look at the town and the troubled lives of three young men who said they killed out of boredom.
. Photographs  Slide Show: Killing Shakes Small Town in Oklahoma
Two Marine Corps Generals Are Forced to Retire Over Fatal Security Breach

By THOM SHANKER

The punishment, considered unprecedented in modern Marine Corps history, came after an insurgent attack in Afghanistan in 2012 killed two Marines and destroyed six fighter jets.
Poll Shows Major Shift in Identity of U.S. Jews

By LAURIE GOODSTEIN

Rapid assimilation is sweeping through every branch of Judaism except the Orthodox, according to the results of a major survey.

Politics
Speaker John A. Boehner spoke Monday after a caucus of House Republicans gathered to plot their next move.
Conservatives With a Cause: 'We're Right'

By ASHLEY PARKER

As House Republicans hope to triumph in their push to repeal, or at least delay, the Affordable Care Act, the distance between the House and the White House has never seemed greater.
Obama Confident, but Wary of Economic Fallout

By JACKIE CALMES

President Obama's confidence that he was right to defy Republicans' demands was offset by concern over risks to the economic recovery.
Gary M. Cohen, director of the Center for Consumer Information and Insurance Oversight, oversees insurance exchanges.
Federal Official at Center of the Health Care Tumult Has Gone Against the Grain

By ROBERT PEAR

Gary M. Cohen, who oversees the health exchanges set up under the Affordable Care Act, has been a punching bag for Republicans and has been chided even by some Democrats.
For more political news, go to NYTimes.com/Politics »
Business
Hillary and Bill Clinton at a meeting of their foundation in June.
CNN and NBC Scrap Projects on Hillary Clinton

By AMY CHOZICK and BILL CARTER

Both sides of the political aisle registered objections to the projects, which would have explored the life of the former first lady and potential 2016 presidential candidate.
Financial Watchdog With Bite to Depart His Agency

DealBook

Financial Watchdog With Bite to Depart His Agency

By BEN PROTESS

The head of the Commodity Futures Trading Commission's enforcement unit, who has taken on the financial industry, is stepping down.
Activists have called for the exclusion of Cambodian sugar from duty-free treatment in Europe, saying that it triggers corporate land grabs. Above, a worker harvesting sugar at a Phnom Penh Sugar plantation.
Sugar Industry Highlights Conflicts Over Trade Pacts and Land

By KEITH BRADSHER

For Cambodia and other poor nations, trade agreements that foster exports can also encourage land grabs by wealthy, politically connected families.
For more business news, go to NYTimes.com/Business »
Technology
The F.A.A. recognized the necessity to update its policies on electronics on planes given the proliferation of electronic devices in recent years, particularly smartphones and tablets.
F.A.A. Panel Backs Easing of Device Rules

By JAD MOUAWAD

Passengers should be allowed to use the entertainment features on their phones and tablets throughout the flight, the panel said.
. Q. and A.: What the F.A.A. Is Considering
A Nokia store in Bhopal, India. Eager to tap into the country's affluent middle class, Nokia has been working in the country since the mid-1990s, and it has become an important market for the company.
India and Nokia in Tax Dispute Before Microsoft Deal

By MARK SCOTT

Nokia said the tax authorities froze all of its Indian assets, including bank accounts and factories, to ensure that the company could pay its future tax bill.
For more technology news, go to NYTimes.com/Technology »
Sports
Carmelo Anthony at media day Monday.

On Pro Basketball

Mixed Opening Lines in Knicks' Courtship of Anthony

By HARVEY ARATON

While Steve Mills, the Knicks' new top executive, made it clear during N.B.A. media day that signing Carmelo Anthony to a contract extension was a priority, the team's star was more circumspect.
Cincinnati players and fans after George Foster (15) scored the deciding run of the 1972 N.L.C.S. on a wild pitch by Pittsburgh.

On Baseball

Pirates and Reds Renew a Rivalry

By TYLER KEPNER

When Cincinnati and Pittsburgh play in Tuesday's wild-card game, the two franchises will try to add a new chapter to their shared history.
Chiefs tight end Kevin Brock being brought down by Giants safety Ryan Mundy and cornerback Prince Amukamara (20).
Nowhere to Look but Ahead for Winless Giants

By ZACH SCHONBRUN

After four games they would rather forget, the Giants are left to focus on what safety Antrel Rolle called the 12-game season remaining.
. Chiefs 31, Giants 7: Chiefs Deflate Giants' Momentum, Sending Them to Another Loss
. N.F.L. Roundup: Saints Hand Dolphins Their First Defeat
For more sports news, go to NYTimes.com/Sports »
Arts
Kate Nielsen is among artists whose work has been sold on Amazon's site.
Art Collections a Click Away

By WILLIAM GRIMES

Amazon's art venture seems to be doing well, as it has enticed more than 180 galleries to sell through its site.
Walter White, played by Bryan Cranston, in a scene from the fifth season of

The TV Watch

A Clear Ending to a Mysterious Beginning

By ALESSANDRA STANLEY

After so many lugubrious turns, "Breaking Bad" came to an end on Sunday on an almost uplifting note. But perhaps the best thing about it was the series actually ended.

Books of The Times

Battles Without End

By MICHIKO KAKUTANI

"Thank You for Your Service" is David Finkel's account of how soldiers scarred by war try to adjust to civilian life.
. ArtsBeat Q. and A.: David Finkel
For more arts news, go to NYTimes.com/Arts »
N.Y./Region
Marilyn Monroe over a Manhattan subway grate in
No Heel Hazards (or Gusts) as Subway Expands

By SAM ROBERTS

When the first phase of the Second Avenue subway makes its debut in 2016, metal sidewalk grates, the bane of women in pumps, will be absent.
CONTACT A video shows motorcycles surrounding a Range Rover Sport on the Henry Hudson Parkway on Sunday. When one slowed almost to a stop in the center lane, it was struck and its rider knocked to the ground.
After Motorcyclist Is Struck, Driver Is Pulled From S.U.V. and Beaten, the Police Say

By J. DAVID GOODMAN

The chase ended in violence after the S.U.V. got stuck in traffic on a side street in Washington Heights and several motorcyclists attacked its driver, the police said.
Some associated with the Occupy movement dislike a debit card idea.
Coming Soon? An Occupy Wall Street Debit Card

By COLIN MOYNIHAN

A Web site promoting the card suggests its use might represent a "protest with every purchase," but some in the Occupy movement are displeased with the idea.

ADVFN III Morning Euro Markets Bulletin October 1, 2013.


ADVFN III Morning Euro Markets Bulletin
Daily world financial news Tuesday, 01 October 2013


London Market Report
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Markets flat as investors digest US shutdown
UK markets opened broadly flat on Tuesday after the failure by US politicians to agree on a budget prompted the first partial government shutdown in Washington in 17 years.

The Senate last night voted down a House of Representatives-passed bill that had called for a one-year delay in President Barack Obama's flagship 'Affordable Care Act', something that the Democrats said they would have never agreed to.

As the start of the new fiscal year begins in the States some 800,000 federal employees will be placed on unpaid leave and sent home as the US government is forced to shut down non-essential agencies. The last time there was a government shutdown was back in the mid-90s.

"Clearly both the Democrats and Republicans are more concerned with gaining political points and pointing the finger than actually doing what they’re elected to do," said Market Analyst Craig Erlam from Alpari.

Economists are now trying to figure out what effect this will have on the US economic outlook after Obama said a shutdown would throw a "wrench" into the recovery and have a "real impact on real people right away". Moody's believes that a three-to-four-week shutdown could shave as much as 1.4 percentage points off of fourth-quarter gross domestic product growth.

Rumours that Friday's all-important US non-farm payrolls report could be released earlier or later than planned due to the shutdown also prompted investors to scale back risk appetite on equity markets this morning.

According to some observers that is exactly what happened back in 1995, as a budget impasse prompted the government to send out consumer price index data early.

Wolseley gains after "solid progress"

FTSE 100 plumbers merchant Wolseley gained after saying it experienced a year of "solid progress in varied markets" as it saw headline profits more than double in the year to July 31st due to lower impairments and exceptional items. The company also raised its dividend by a tenth and revealed a £300m capital return to shareholders via a special dividend and share consolidation.

Consumer products group Unilever was a heavy faller after markets reacted to a trading update released after the close last night which said that the company witnessed a weakening in the market growth of many emerging countries in the third quarter.

Other consumer staples stocks including SABMiller, Diageo, Reckitt Benckiser and British American Tobacco were also lower this morning,

Property investment and development business St. Modwen Properties rose after saying it has continued to perform strongly since the half year, buoyed by a strengthening housing market, and it remains confident of hitting full-year targets.




TSE 100 - Risers
Wolseley (WOS) 3,288.00p +2.85%
Experian (EXPN) 1,204.00p +2.29%
Rolls-Royce Holdings (RR.) 1,134.00p +1.98%
Aviva (AV.) 401.90p +1.29%
easyJet (EZJ) 1,294.00p +1.25%
Intertek Group (ITRK) 3,342.00p +1.12%
Barclays (BARC) 268.35p +1.07%
Mondi (MNDI) 1,054.00p +1.05%
BAE Systems (BA.) 458.70p +0.95%
CRH (CRH) 1,492.00p +0.95%

FTSE 100 - Fallers
Unilever (ULVR) 2,347.00p -3.81%
SABMiller (SAB) 3,070.00p -2.34%
Reckitt Benckiser Group (RB.) 4,448.00p -1.59%
Fresnillo (FRES) 961.00p -1.23%
Diageo (DGE) 1,943.00p -1.12%
Imperial Tobacco Group (IMT) 2,268.00p -0.83%
Aggreko (AGK) 1,593.00p -0.69%
Coca-Cola HBC AG (CDI) (CCH) 1,838.00p -0.65%
Tate & Lyle (TATE) 732.00p -0.61%
Royal Dutch Shell 'A' (RDSA) 2,028.50p -0.56%

FTSE 250 - Risers
Enterprise Inns (ETI) 149.00p +3.11%
Regus (RGU) 186.10p +2.25%
St. Modwen Properties (SMP) 310.00p +1.97%
BH Global Ltd. USD Shares (BHGU) 11.85 +1.89%
Diploma (DPLM) 665.00p +1.84%
BH Macro Ltd. EUR Shares (BHME) € 21.50 +1.61%
Pace (PIC) 257.90p +1.58%
Rank Group (RNK) 156.30p +1.49%
ITE Group (ITE) 275.80p +1.47%
Keller Group (KLR) 1,053.00p +1.35%

FTSE 250 - Fallers
Perform Group (PER) 540.00p -3.57%
Evraz (EVR) 124.90p -2.42%
Daejan Holdings (DJAN) 3,840.00p -1.92%
Dechra Pharmaceuticals (DPH) 705.50p -1.74%
Carpetright (CPR) 638.00p -1.62%
Xaar (XAR) 785.50p -1.57%
Thomas Cook Group (TCG) 151.00p -1.56%
Kenmare Resources (KMR) 28.08p -1.47%
Menzies(John) (MNZS) 789.00p -1.44%
Petra Diamonds Ltd.(DI) (PDL) 117.30p -1.43%

UK Event Calendar
INTERIMS
LiDCO Group, Walker Greenbank

INTERIM DIVIDEND PAYMENT DATE
Avesco Group, FBD Holdings, Jardine Lloyd Thompson Group, Portmeirion Group, Robinson

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Auto Sales (US) (15:00)
Construction Spending (US) (15:00)
ISM Manufacturing (US) (15:00)
ISM Prices Paid (US) (15:00)
PMI Manufacturing (EU) (09:00)
PMI Manufacturing (GER) (08:55)
Unemployment Rate (EU) (10:00)
Unemployment Rate (GER) (08:55)

FINALS
Ceres Power Holdings, James Halstead, Pure Wafer, St Ives, Wolseley

AGMS
Begbies Traynor Group

UK ECONOMIC ANNOUNCEMENTS
PMI Manufacturing (09:30)

FINAL DIVIDEND PAYMENT DATE
Park Group, PZ Cussons




Europe Market Report
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Stocks open higher despite US government shutdown
European stocks recovered slightly as investors digested news that the US government failed to meet its Monday midnight deadline for passing the budget bill.

The government began a partial shutdown on Tuesday for the first time in 17 years, potentially putting up to one million workers on unpaid leave. Congress was unable to break a political statement as they continued to disagree over President Barack Obama’s signature healthcare reform.

House Republicans floated a late offer to break the impasse but Democrats rejected the area. Senate Majority Leader Harry Reid said Democrats would not enter into formal negotiations on spending "with a gun to our head" in the form of government shutdowns.

On Monday fears over a shutdown sent stocks spiralling downwards. According to IHS Inc., a partial shutdown would cost the US at least $300m a day in lost economic output at the start. However, ETX Capital’s Head of Trading Joe Rundle said the market is betting on a deal to be reached in the coming days. “This morning, the risk tone improves somewhat as investors take the view that a partial shutdown, if resolved quickly, will do little damage to the overall health of the US economy,” he said.

“What’s more is that this shutdown means Federal Reserve Chairman Ben Bernanke will be more inclined to hold back from tapering quantitative easing at the October policy meeting – in fact, as it stands, the US labour department has closed along with other agencies which means payrolls data will not be complied or released.”

In other political messiness, Italy’s government is on the verge of collapse as the European Central Bank pledged to keep the nation from brink. Silvio Berlusconi, leader of centre-right People of Freedom, sent the ruling coalition into disarray after ordering the resignation of his ministers over the weekend.

Prime Minister Enrico Letta is now trying to rally up support ahead of a confidence vote on Wednesday to avoid an election. Letta's survival appears to depend on some 20 senators from Berlusconi's party who are displeased with his shock decision.

However, ECB President Mario Draghi has promised to do whatever it takes to backstop the euro and Italian officials are banking on the fact that no matter what happens, the monetary authority will bail it out in the end.

The Italian 10-year bonds has risen 19 basis points in the past week. It was up 15 basis points to 4.58% on Tuesday morning.

Eurozone unemployment

The Eurozone unemployment rate is expected to hold steady at 12.1% when the report for September is released.

Germany’s jobless rate is also forecast to remain unchanged at 6.9% in September. Also in Germany, the purchasing managers index for manufacturing is expected to show a reading of 51.3 in September, while Eurozone PMI is pegged to come in at 51.1, above the 50 mark that signals expansion.

The data comes a day after ECB member Jozef Makuch said the monetary authority stands ready to pump more liquidity into the market if needed.

Wolseley, Unilever, Experian

Wolseley advanced after the distributor of plumbing and heating products posted full-year earnings that beat analysts’ estimates.

Unilever dropped after the world’s second-largest consumer-goods maker said sales growth slowed in the third quarter.

Experian gained after announcing the acquisition of US fraud detection company The 41st Parameter for $324m.




US Market Report
Stocks fall ahead of government shutdown
Dow Jones: -0.84%
S&P 500: -0.60%
Nasdaq: -0.27%

Wall Street closed with moderate losses on Monday after US politicians failed to agree on a budget to avert a partial government shutdown, the first in 17 years.

In an afternoon vote, the Senate shot down a House of Representatives-passed bill agreed over the weekend that had called for a one-year delay in President Barack Obama's flagship Affordable Care Act, something that the Democrats said they would not agree to. Lawmakers had until midnight on Monday to pass an emergency measure before the start of the 2014 fiscal year.

"Clearly both the Democrats and Republicans are more concerned with gaining political points and pointing the finger than actually doing what they're elected to do," said Market Analyst Craig Erlam from Alpari.

According to reports, some 800,000 federal workers could be out of work from Tuesday as a result of the shutdown. Moody's estimates that a three-to-four-week shutdown could shave as much as 1.4 percentage points off of fourth-quarter gross domestic product growth. The last time there was a government shutdown was in 1995 and 1996.

Meanwhile, without an agreed increase in the debt ceiling, investors are concerned that the US could reach its borrowing limit of $16.7tn by October 17th, by which time the government could run out of cash to fulfil its debt obligations.

A Bloomberg poll on Monday showed Americans narrowly blame Republicans for stalling on a budget deal. A CNN/ORC International poll also revealed that 46% would blame congressional Republicans for a shutdown, while 36% hold President Barack Obama responsible.

Economic news beats forecasts

The Chicago manufacturing sector purchasing managers' index (PMI) rose to a seasonally adjusted 55.7 in September from a reading of 53 in August. Economists had pencilled in a reading of 54. A reading above 50 signals expansion in the industry.

Meanwhile, the index measuring regional manufacturing activity from the Dallas Fed rose from 5 to 12.8 in September, ahead of the 5 mark expected.

Business

Consumer-staples companies were heavy fallers such as Procter & Gamble and Coca-Colar, as well energy stocks Devon Energy and Tesoro as oil prices fell.

Tech giant Apple was pulling back after a strong performance in recent days following record first-weekend sales for its new iPhone models.

Retailer JC Penney was in the red, extending losses after last week's 30% drop after it kicked off a share offering to raised around $932m and cut its full-year liquidity target.

Achillion Pharmaceuticals plummeted after confirming that its experimental drug for hepatitis C has not received necessary approval by the FDA .

Other medical stocks gained includingIntuitive Surgical, St Jude Medical, Regeneron Pharmaceuticals, Boston Scientific and Edwards Lifesciences, which were among the best performers on the S&P 500.


S&P 500 - Risers
Intuitive Surgical Inc. (ISRG) $376.27 +2.40%
St Jude Medical Inc. (STJ) $53.64 +2.39%
Regeneron Pharmaceuticals Inc. (REGN) $312.87 +2.36%
Chipotle Mexican Grill Inc. (CMG) $428.80 +2.34%
Tenet Healthcare Corp. (THC) $41.19 +2.13%
Boston Scientific Corp. (BSX) $11.74 +1.91%
Apollo Group Inc. (APOL) $20.81 +1.76%
Edwards Lifesciences Corp. (EW) $69.63 +1.22%
Jabil Circuit Inc. (JBL) $21.68 +1.21%
H&R Block Inc. (HRB) $26.66 +1.14%

S&P 500 - Fallers
Leidos Holdings Inc (LDOS) $45.52 -29.01%
J.C. Penney Co. Inc. (JCP) $8.81 -2.71%
Frontier Communications Co. (FTR) $4.18 -2.56%
Iron Mountain Inc. (IRM) $27.02 -2.53%
Johnson Controls Inc. (JCI) $41.50 -2.42%
Cliffs Natural Resources Inc. (CLF) $20.50 -2.38%
Nabors Industries Ltd. (NBR) $16.06 -2.19%
Raytheon Co. (RTN) $77.07 -2.12%
Procter & Gamble Co. (PG) $75.59 -2.10%
EMC Corp. (EMC) $25.56 -1.96%

Dow Jones I.A - Risers
Cisco Systems Inc. (CSCO) $23.43 +0.41%
Microsoft Corp. (MSFT) $33.28 +0.03%

Dow Jones I.A - Fallers
Procter & Gamble Co. (PG) $75.59 -2.10%
United Technologies Corp. (UTX) $107.82 -1.41%
Coca-Cola Co. (KO) $37.88 -1.35%
Walt Disney Co. (DIS) $64.49 -1.07%
JP Morgan Chase & Co. (JPM) $51.69 -1.05%
Boeing Co. (BA) $117.50 -1.04%
Exxon Mobil Corp. (XOM) $86.04 -0.99%
Alcoa Inc. (AA) $8.12 -0.98%
McDonald's Corp. (MCD) $96.21 -0.94%
International Business Machines Corp. (IBM) $185.18 -0.93%

Nasdaq 100 - Risers
Intuitive Surgical Inc. (ISRG) $376.27 +2.40%
Regeneron Pharmaceuticals Inc. (REGN) $312.87 +2.36%
Tesla Motors Inc (TSLA) $193.37 +1.29%
Maxim Integrated Products Inc. (MXIM) $29.82 +1.12%
Charter Communications Inc. (CHTR) $134.76 +0.89%
Avago Technologies Ltd. (AVGO) $43.08 +0.89%
Baidu Inc. (BIDU) $155.18 +0.88%
Comcast Corp. (CMCSA) $45.12 +0.84%
Sba Communications Corp. (SBAC) $80.46 +0.79%
Twenty-First Century Fox Inc Class A (FOXA) $33.51 +0.75%

Nasdaq 100 - Fallers
Catamaran Corp (CTRX) $45.95 -3.28%
Facebook Inc. (FB) $50.23 -1.97%
Biogen Idec Inc. (BIIB) $240.76 -1.66%
Monster Beverage Corp (MNST) $52.25 -1.55%
Autodesk Inc. (ADSK) $41.17 -1.48%
CH Robinson Worldwide Inc (CHRW) $59.59 -1.42%
CA Inc. (CA) $29.67 -1.30%
Liberty Media Corporation - Class A (LMCA) $147.15 -1.25%
Apple Inc. (AAPL) $476.75 -1.24%
Mondelez International Inc. (MDLZ) $31.42 -1.19%




Tuesday Newspaper Round Up
Shutdown, Help to Buy, SSE
The US government will start to shut-down numerous agencies on Tuesday and send tens of thousands of workers home after Republicans and Democrats failed to bridge their differences over the budget. A series of votes in the Republican-controlled House of Representatives and the Democratic Senate left the two sides stuck at the same position at midnight in which they had started the day, with conservatives refusing to pass a short-term budget without a delay in Barack Obama's health law, the Financial Times reports.

A think tank has upgraded its forecasts in figures that will trigger yet more concern about the long-term effects of the Government's Help to Buy cheap credit scheme to kick-start the property market. The Centre for Economics and Business Research (CEBR) said prices across the country will rise 2.9% to an average of £225,000 this year, followed by a 3.9% jump in 2014. Between now and 2018, the average UK price will jump 23.7% to a record of £278,000. In London house prices will leap 43.5% by 2018, pushing average values in the capital up to a staggering £566,000, The Daily Telegraph writes.

The boss of one of Britain's biggest energy companies has threatened to scrap billions of pounds of investment in new power stations and electricity networks if Ed Miliband's plan to freeze utility bills goes ahead. The written warning from Keith Anderson, the Chief Corporate Officer of ScottishPower, to the Labour leader is the industry's most explicit threat yet over the consequences of the Opposition's controversial policy announced last week, The Times says.

Japan's economic recovery will face a major test early next year after Shinzo Abe, the Prime Minister whose expansionary "Abenomics" has underpinned the country's Group of Seven-leading growth, overnight announced he would authorise an increase in the national sales tax. He will raise the combined national and regional consumption tax rate from 5% to 8% on April 1st 2014. Earlier, the quarterly "Tankan" survey from the Bank of Japan, which takes the pulse of about 10,500 companies of all sizes across the country, showed that the headline measure of confidence among large enterprises was at its highest level since the final quarter of 2007, the Financial Times explains.

George Osborne has vowed to establish Britain's first budget surplus in more than a decade in a move praised by business leaders as being "ambitious" and "important". The Chancellor said the "rainy day" measure, requiring Britain to generate more in revenues and tax yields than it spends, would act as "insurance against difficult times ahead". "Provided the recovery is sustained, our goal is to achieve that surplus in the next Parliament," he added, according to The Daily Telegraph.

Scottish Hydro parent company SSE has warned that its ­retail arm has fallen into the red because of rising wholesale gas prices and a dip in energy ­demand during the summer. SSE also suffered a setback in its attempts to persuade the UK government to delay a costly ­energy-efficiency initiative, which critics fear could add more than £100 to bills. The Perth-based utility had been pushing for an 18-month reprieve to meet its targets under the Energy Companies Obligation (Eco) scheme, which is aimed at cutting vulnerable customers' power bills, but the Department of Energy & Climate Change (Decc) said on Monday that it had no plans to grant an extension to the programme, which has so far benefited almost 174,000 properties, according to The Scotsman.

BP made the 2010 Gulf of Mexico oil spill worse by telling "outright lies", a New Orleans court heard at the resumption of a trial that could see the firm slapped with £11bn in environmental fines. The second phase of the trial will examine whether BP's response to the spill was adequate and will also fix the volume of oil deemed to have poured into the Gulf from the stricken Macondo well. And BP came under immediate attack over allegations that it misled federal officials about how much oil was escaping and how successful its efforts to staunch the flow were likely to be, The Daily Mail reports.

Mining Sector Top Stories October 1, 2013: Newmont bids for Las Bambas to beef up copper assets - CEO Goldberg

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Featured Podcast

Petmin, the coal market and SA labour issues - Cockeril

Petmin Executive Chairman, Ian Cockeril discusses Petmin's FY results, the need for better communication between labour and management and the current state of the steel cycle.

Top Stories | Tuesday , 01 Oct 2013

Newmont bids for Las Bambas to beef up copper assets - CEO Goldberg

Newmont, which began as a copper-gold miner in the early 1900s, is seeking to increase its copper mining operations as “pure gold plays” appear to be losing favor with investors. Tuesday , 01 Oct 2013

A different animal! Long term South African platinum game changer?

Canada’s Platinum Group Metals is hugely excited about its Waterberg palladium/platinum/gold discovery in South Africa to the north of the Bushveld Complex. Monday , 30 Sep 2013

Investors roll snake eyes in $2.4m Vegas precious metals scam

Retail investors doing business with Lions Wealth Capital, 20/20 Precious Metals, and entrepreneur Bharat Adatia learned investing in precious metals can be a big gamble. Tuesday , 01 Oct 2013

US gold coins demand down 81% in September

Demand fell 81% as political turmoil in Syria failed to rekindle retail buying that has slowed after months of exceptional bargain hunting. Tuesday , 01 Oct 2013

Why good economic news should send gold to new heights - Coxe

"Gold rose along with the Fed balance sheet for years. The two have decoupled in the last two years," says BMO Asset Management's Don Coxe. Tuesday , 01 Oct 2013

Mongolia confident of resolving Oyu Tolgoi disputes by Dec

The government is confident it can resolve disputes with Rio Tinto over the expansion of the Oyu Tolgoi mine by December 31. Tuesday , 01 Oct 2013

Gold ETF outflows resume – will they continue?

Has selling resumed from the gold ETFs? The latest figures suggest it may have, but volumes are perhaps not strong enough to discern a definitive trend – yet. Monday , 30 Sep 2013

Cash heavy but project light, Chalice Gold reshaping begins

Chalice Gold makes a bid for Coventry Resources and entry into territory around New Gold's Rainy River gold project in Ontario. Monday , 30 Sep 2013

Absa’s palladium ETP may not attract same demand as platinum

The South African bank reckons its planned platinum ETP may not attract the same demand as its NewPlat platinum product. Monday , 30 Sep 2013

India current account gap below estimates as gold imports curbed

The deficit was $21.8 billion in April through June, compared with $18.1 billion in the previous quarter, the Reserve Bank of India said. Tuesday , 01 Oct 2013

PBOC mulls expansion of qualified gold importers list

Under draft rules released by the central bank yesterday, financial institutions and companies that produce more than 10 metric tons of gold a year, may be considered for the list. Tuesday , 01 Oct 2013

Nyrstar agrees European zinc marketing deal with Noble

Under the agreement, Nyrstar will set aside 200,000 tonnes per year of commodity grade and continuous galvanising grade zinc for Noble. Tuesday , 01 Oct 2013

Norilsk Nickel agrees to possible lower 2013/14 dividend

The company has already paid $1.9 billion in dividends for 2012 and was expected to declare at least $3 billion this year. Tuesday , 01 Oct 2013

Peru exports more illegal gold than cocaine - Quartz

According to a recent report by international labour watchdog Verité, over 20% of the gold being mined in Peru is produced illegally. Tuesday , 01 Oct 2013

Miners rally as Amplats strike enters fourth day

Around 2,000 striking miners from Anglo American Platinum’s South African mine rallied on Monday to protest planned job cuts. Monday , 30 Sep 2013

Chile's copper output rises up 7.6% in August

The country is struggling with dwindling ore grades in many of its ageing deposits, although new mines have helped increase output this year. Monday , 30 Sep 2013

SA union signs wage deal in coal sector, averts strike

NUM has signed the coal wage agreement, averting a possible strike that could have hit exports and supplies to power utility Eskom. Monday , 30 Sep 2013

DRC mine operators risk losses due to power shortages

The government says mine operators risk “enormous losses” because of power shortages in copper and cobalt-rich Katanga province. Monday , 30 Sep 2013

Yesterday's top story: Junior cash crisis mounts. No quick turnaround.

Calling them zombies is being kind as cash stores under $200k dwindle for a near majority of Venture equities. What can you do with that? Friday , 27 Sep 2013

Podcasts / Radio

SA gold miner silicosis class action moves forward

With upwards of 27,000 current claimants, public interest attorney, Richard Spoor discusses the current state of the pending silicosis class action suit against SA's gold producers.

Gold, China and manipulation - Eric Sprott

Speaking just ahead of a round table discussion on where the global market is headed, Eric Sprott discusses the current state of the gold market and the shift from west to east.

Gold may edge its way towards $1,500 early next year - O’Connell

"We can see the potential for the market to edge its way towards $1 500 towards the start of next year", says Rhona O’Connell, head of metals research forecasting at Thomson Reuters.

Gold, Syria and a receding sense of crisis

Adrian Ash discusses the impact of the crisis in Syria on gold prices and what he expects from the last quarter of the year.

The Telegraph City Briefing October 1, 2013.

 
The Telegraph
 


 
Citybriefing  
LOUISE ARMITSTEAD
CHIEF BUSINESS CORRESPONDENT
Follow Louise on Twitter
LOUISE ARMITSTEAD
TOP OF THE AGENDA

The US Federal Government is shutting down. In the past few hours President Obama lost a high-stakes game of brinkmanship as the Republicans refused to pass the Budget unless he scrapped his signature healthcare reforms. For the first time in 17 years, more than 700,000 Federal workers will stay home and a million more  will work from home without pay as non-essential services are closed. The President said there would be "economic consequences for all." Stockmarkets on Wall Street fell and the dollar dropped before the deadlock though Treasury bills held firm. With the world's powerhouse economy in crisis, traders here are braced for falls. In two weeks time, there's the debt ceiling deadline and the prospect of a US default just got bigger. We'll have the updates on our live business blog here

In company announcements today Wolsey has said its annual pre-tax profits jumped to £473m last year to £198m. The plumbing and building suppliers, which has been boosted by a strong housing market in the US, has raised its total dividend by 10pc and announced a special dividend of £300m which chief executive Ian Meankins said "reflects the group's strong financial position." Experian has announced a $324m acquisition of 41st Parameter, a US-based provider of fraud protection services. Rangers International Football Club has announced £1.3m in annual pre-tax profits.

It's the end of an era at the Royal Bank of Scotland as Ross McEwan takes over as chief executive from Stephen Hester. For the avoidance of rows, Mr McEwan will not receive a bonus for two years but he's getting paid £1m a year. Marius Kloppers officially retires from BHP Billiton today, Andy Ransom takes over as chief executive of Rentokil Initial,  Sir Roger Carr starts as chairman designate of BAE Systems, and Stobart Group gets Iain Ferguson as chairman.

The number of advertised UK jobs rose to its highest level for four years in September, according to the Reed Job Index today. The index showed vacancies jumped to 24pc on an annual basis. The latest manufacturing PMIs will be released at 930am. The Financial Policy Committee, the Bank's risk watch-dog, is publishing the record of its latest meeting. And Paul Tucker, the deputy governor of the Bank of England, is speaking at the Oliver Wyman conference in London.

The National Minimum Wage is going up as a raft of Government measures come into force today. The adult rate is now £6.31 an hour, up 1.9pc, and £5.o3 for 18-20 year olds. The Government's radical new pay rules start so from today, shareholders will have a binding vote on public company pay policies. Newly built commercial property completed from today until September 2016 will be exempt from empty property rates for 18 months under measures announced by the Chancellor in the Autumn Statement last year. And the Competition and Markets Authority is legally established, replacing both the Competition Commission and the Office of Fair Trading.

In Europe, Italy remains in limbo with Encrico Letta's government facing a vote of confidence tomorrow. Market reaction has been muted so far as traders hoped that an internal revolt against Silvio Berlusconi could stave off another general election in Europe's third biggest economy. Meanwhile, troika officials are off to Ireland for their latest quarterly visit. 

The political drama almost makes the Chancellor's promise of bringing Britain back to budget surplus look relatively easy. Today in Manchester Boris Johnson's speech is the highlight of this morning's agenda at the Conservative Party Conference. The Mayor of London will be followed by Eric Pickles and then Iain Duncan Smith who will speak on the Government's key back-to-work scheme.  In the fringe today Patrick McLaughlin will speak on High Speed 2, Lord Kirkham, the founder of DFS is speaking on entrepreneurialism, and there's a debate on the privatisation of Royal Mail. We'll have all the updates live here.

QUOTE OF THE DAY

I know the sacrifice you make - the 60-hour weeks, juggling family life and staying awake at night worrying about how you are going to pay the next wage bill.Karren Brady, vice-chairman of West Ham, is appointed the Government's Small Business Ambassador.

FIGURE OF THE DAY

23.7pcThe amount average UK house prices will jump by 2018, to a record £278,000, according to the Centre for Economics and Business Research.

IN THIS MORNING'S TELEGRAPH

Jeremy Warner believes that George Osborne's rhetoric on the deficit is a million miles away from the reality.
Emily Gosden reports that small energy suppliers have warned they could be put out of business by Labour's planned price freeze.

Nathalie Thomas writes that Eurostar and a company controlled by France's national railway are planning a joint bid to run Britain's East Coast Main Line.

BEST OF THE REST

Financial Times (£): Hedge funds' bets on falling share prices have dropped to their lowest level in years as traders predict an extended bull run for equities over the coming months.

The Guardian: German supermarket Aldi is aiming to open 50 new stores in the UK this year after sales soared 40pc to £3.9bn in 2012.

The Mail: Directory enquiry firm 118 118 is moving into a new market - personal loans.

THE EQUITY MARKETS

In London, the FTSE 100 yesterday fell 50.44 points to 6,462.22.

In the US, the Dow Jones Industrial Average closed down 128.57 points at 15,129.67. The S&P 500 fell 10.20 points to 1,681.55.

The Nikkei rose 0.2pc this morning, closing at 14,484.72.

BEST OF THE BROKER NOTES

Michael Gapen, director of US economic research at Barclays, warns of big problems if a US government shutdown dragged on:
There could be knock-on effects if confidence wanes or a prolonged shutdown signals something worse. It says something about our ability to govern.

COMMODITIES

Brent crude oil fell 0.24pc to $108.37 a barrel. Gold dropped 1.08pc to $1,327 an ounce. More here.

THE MONEY MARKETS

Sterling rose 0.58 cents against the euro to €1.1963 and climbed 0.72 cents against the dollar to $1.6194. More here.

Government Shuts Down After Lawmakers Fail to Agree on Funding Bill: ABC Breaking News On September 30, 2013.


Government Shuts Down After Lawmakers Fail to Agree on Funding Bill


After an all-day game of legislative ping pong that stretched into the early morning hours of Tuesday, Democrats and Republicans failed to reach an agreement on how to keep the government funded, forcing the country into its first government shutdown in nearly two decades.
"This is a very sad day for our country," Senate Majority Leader Harry Reid said shortly after the government shutdown Tuesday morning. "This is an unnecessary blow to America."
Congress engaged in a game of political hot potato over the past few days as House Republicans have tried to tie the defunding or delay of Obamacare to the government funding bill, and Senate Democrats have insisted they will only accept a clean continuing resolution.
"The House has voted to keep the government open but we also want basic fairness for all Americans under Obamacare," House Speaker John Boehner said in a news conference shortly after 1 a.m. 

Proposed legislation would forbid minting U.S. gold and silvercoins in current format: GATA | THE GATA DISPATCH ON SEPTEMBER 30, 2013.

Proposed legislation would forbid minting U.S. gold and silver coins in current format

11:55a HKT Tuesday, October 1, 2013

Legislation that has been proposed in Congress to prevent the minting of U.S. coins whose manufacturing cost exceeds their denomination would stop the U.S. Mint's issuance of gold and silver coins, Mike Zielinski notes in commentary at Coin Update. This is probably an oversight on the part of the legislation's drafters, but imagine if the bill was amended not to exempt gold and silver coins but to require imprinting an honest denomination on them. Zielinski's commentary is posted at Coin Update here:

http://news.coinupdate.com/would-save-ii-act-also-prohibit-bullion-and-n...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Dutch pension fund defeats central bank, wins right to invest in gold: GATA | THE GATA DISPATCH ON SEPTEMBER 30, 2013.

Dutch pension fund defeats central bank, wins right to invest in gold

By Den Haag
De Rechtspraak
The Hauge, Netherlands
Tuesday, September 10, 2013

http://www.rechtspraak.nl/Organisatie/CBb/Nieuws/Pages/DNB---aanwijzing-...

Tuesday, September 10, saw the final ruling of the Board of Industry Appeals (College van Beroep voor het Bedrijfsleven) on the gold case brought by the Dutch pension fund Vereenigde Glasfabrieken against De Nederlandse Bank (DNB, the Dutch central bank) in 2011. The pension fund objected to an earlier directive of DNB.

This ruling is in favor of the pension fund, because the judges of this college, following an earlier decision in March 2012, not only ruled that a fund may decide how to implement its investment policy, but also ruled that DNB failed to underpin its concerns as expressed in the directive imposed [onto the pension fund].

By contrast, the underpinning of the pension fund was so clear that the judges fully agreed. They agreed with the pension fund that there may be circumstances that justify deviation from ordinary investment policies. Such circumstances included the financial crisis that began in 2008 and the euro crisis that was an extension of this financial crisis.

 These crises were indeed at the root of the defensive investment of the pension fund. DNB turned a blind eye to these circumstances and considered only an ALM study (Assets & Liability Management), a study that ignored any negative factors in an economy. Furthermore, DNB did not present relevant examples on gold investment other than a blurred report by JP Morgan, which stated that one should invest only 1 percent in a commodity. That study -- rather dubious and lacking detail -- turned out to be their sole defense.
It is also noticeable that the supervisors at DNB have not the slightest idea of gold's function in finance and economy. They are in good company, because most economists in the Netherlands dont know either. Gold is the de-facto foundation of our economic system and it is therefore essential for any pension fund (or any other investment fund) to have gold in the portfolio as a hedge against unforeseen system risks. In the world of financial investment, gold is insurance and the return on that investment is not in interest or dividends but protection against inflationary measures of the government. The return on that investment is the safety of the portfolio.
Risks such as high monetary inflation, collapse of the system, war, and other major events are fully hedged in this way. Especially in high-risk times like today, gold is a buffer and a safe haven for many investors.
Unfortunately, this knowledge is not yet widespread, as DNB and large investment companies still blindly trust completely outdated studies like ALM. It is a tragedy that many funds have already incurred considerable losses due to this one-sided approach.
The great advantage of this final ruling (no further appeal is possible) is that pension funds again are free in their investment policy without the need to anticipate improper intervention by DNB. The ruling clearly indicates that DNB needs to substantiate its decisions carefully and that lax directives without valid arguments will no longer be tolerated.
This is truly a revolution: DNB is a supervisor, not an investment adviser. A supervisor should limit its directives to cases of clear malpractice or destructive financial policy. In other words, as the judges also indicated, supervision needs to keep its distance.
-----
Thanks to Louis Boer for the translation from Dutch to English.

* * *

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