IMF Cuts Global Outlook While Warning of U.S. Default Threat (Bloomberg)
“Advanced economies are gradually strengthening” while “growth in emerging-market economies has slowed,” IMF chief economist Olivier Blanchard wrote in a foreword to the World Economic Outlook report. “This confluence is leading to tensions, with emerging-market economies facing the dual challenges of slowing growth and tighter global financial conditions.” The IMF’s forecasts factor in a short U.S. government shutdown and an agreement on the nation’s debt-limit before an Oct. 17 deadline. A stalemate that causes a default “could seriously damage the global economy,” the fund said.
Worsening Debt Crisis Threatens Puerto Rico (NYT)
Puerto Rico has been effectively shut out of the bond market and is now financing its operations with bank credit and other short-term measures that are unsustainable in the long run. The biggest concern is that the territory, which has bonds that are widely held by mutual funds, will need some sort of federal lifeline, an action for which there is no precedent. In a meeting with bond analysts in New York on Monday, the president of the Puerto Rican Senate, Eduardo Bhatia, said officials in the United States Treasury and White House had been analyzing the situation carefully, “wondering how they can help Puerto Rico send a very strong signal of stability right now.”
No end in sight for debt addiction: Paul Singer (CNBC)
“Confidence could be lost if some combination of a rise in the price of commodities or gold, the conscientiousness of inflationary potential, a continued lack of accelerating growth, social unrest, an acceleration of” quantitative easing, Singer said. “It will matter.” “The s– hits the fan when markets wake up and focus on it,” Singer added in response to a question about when debt will become too much of an economic burden. “No growth rate and tax rate can fix this. It needs to be fixed by restructuring. There’s no inflating out of it.”
CFTC Set For Battle With JP Morgan (NYP)
The Commodity Futures Trading Commission isn’t letting the “London Whale” slip away. The regulator is at loggerheads in its settlement negotiations with JPMorgan Chase and is prepared to haul the bank to court over the monstrous wrong-way bet, according to sources. Last month, JPMorgan disclosed that it had received a so-called Wells notice, which informed the financial giant that the CFTC intends to recommend enforcement action against the bank in connection with the Whale trade. While such a notice is usually a prerequisite to settlement negotiations, it appears to have set the stage for a clash between the banking giant and the newly emboldened regulator.
Seal Escapes Great White Shark By Balancing On Its Nose (NYDN)
Photographer, David (Baz) Jenkins, 41, spotted the near-death battle while on board a Great White shark tour boat off the coast of Cape Town, South Africa…one seal escaped the jaws of death after balancing on the massive shark’s nose just inches from rows and rows of razor sharp teeth. David, 41, from Dublin said “The seals were making their way back to ‘Seal Island’ after feeding out at sea and the sharks travel below them. “The sharks are really well-camouflaged due to their dark backs and when the seal looks down it is hard to make out the shark in the dark below. “When the shark picks its time to attack, it can accelerate at around 40km/h (about 25 mph) upwards, which can send both the shark and the seal flying up out of the water. “I have seen a shark lose a tooth on a decoy breach before but never when attacking and killing a real seal. “The breaching sharks are amazing, the speed and agility just takes your breath away as they can explode from below without warning. “This seal was one lucky pup.”
Judge Nixes Cuban’s Bid To Have Lawsuit Dismissed (AP)
The insider-trading lawsuit against Mark Cuban will continue after a federal judge turned down the billionaire Dallas Mavericks owner’s attempt to dismiss the government’s case as unproven. U.S. District Court Judge Sidney Fitzwater’s ruling late Monday means that the case is likely to be decided by a jury of seven women and three men who heard Cuban testify for two days. The Securities and Exchange Commission charges that Cuban violated a confidentiality agreement and unloaded his shares in a Canadian search-engine company in 2004 after learning that the company planned a stock offering that would reduce the value of his $7.5 million stake. The government says Cuban avoided $750,000 in losses by selling his shares before the offering was announced.
Exclusive: EU lawyers warn of limits in building banking union (Reuters)
Parts of Europe’s proposals for a banking union may fall foul of European Union law, lawyers have said in a fresh setback to plans aimed at strengthening the financial system after the debt crisis. The opinion from the European Council’s legal service is a blow to efforts to break the link between indebted European countries and their banks via the creation of a banking union that would jointly deal with stressed lenders. Setting up such a system raises an array of political and legal complications, including who should decide when an ailing bank must be closed and who pays the bill, an issue of particular concern to Germany, the euro zone’s largest economy.
Zoellick Returns To Goldman Sachs (NYP)
Goldman Sachs has appointed former World Bank Group President Robert B. Zoellick as an adviser. Zoellick, who will be based out of Washington D.C., will be chairman of the firm’s international advisers. He will advise Goldman Sachs Group Inc. on global strategic issues and oversee 16 international advisers.
Twitter’s Valuation Seen Exceeding $20 Billion After IPO (Bloomberg)
Those targets are fueled by the firms’ expectations that Twitter can increase revenue at a rapid clip, as it expands globally and draws advertising dollars from companies seeking access to its more than 200 million monthly active users. Twitter has more than doubled revenue annually as companies advertise on the service, the filing showed.
Holyoke PD: Woman Removes Clothes After Attacking Dunkin Donuts Slushy Machine (WGGB)
Holyoke Police Capt. Denise Duguay says that around 6:45 a.m. Sunday, Brenda Diaz went into a convenience store at 225 Whiting Farms Road, allegedly jumped the counter of the Dunkin Donuts inside, and began to attack the machine that made slushy beverages. Diaz reportedly then went outside and ran towards a nearby hotel, where she proceeded to remove her clothes. Officers had to use pepper spray and a stun gun to subdue Diaz and took her into custody. Jose Cruz, a witness to what happened, says, “She came in, started hitting the wall over there, came over here, and knocked the machines down…went outside, started taking her clothes off, running around the cops chasing her, then she put them back on and they started tasing her.”