SEC Probes Trades Ahead Of S&P Cut To US Rating (WSJ)
The SEC could face an uphill battle proving that anyone profited from the downgrade by using inside information. While the SEC has asked Finra officials to scrutinize trading in securities that track major indexes like the S&P 500 and Russell 2000, there are lots of other reasons why investors have bet against the stock market recently, including Europe's woes and the struggling economy.
Roubini: Greece Should Default And Quit The Euro (CNBC)
"Via nominal and real depreciation, the exit path will restore growth right away, avoiding a decade-long depression," said Roubini who warns that contagion for countries such as Italy and Spain is already a reality, and requires liquidity support from the European Central Bank or the European Financial Stability Fund. "Like a broken marriage that requires a break-up, it is better to have rules that make separation less costly to both sides" said Roubini.
Obama Tax Plan Swaps Conciliation For Confrontation (Bloomberg)
Both sides have pulled back from compromise offers Obama and Boehner made during unsuccessful negotiations in July seeking a broad deficit-reduction agreement. In announcing his proposal, Obama stressed the benefit cuts the middle class would sustain unless Republicans permit tax increases on the wealthy, saying he wouldn’t allow “any plan that puts all the burden for closing our deficit on ordinary Americans.” “This is not class warfare; it’s math,” Obama said at the White House yesterday. “The money’s going to have to come from someplace.”
UBS Loss Reveals Gaps (WSJ)
One avenue of the bank's inquiry, entering its seventh day, is examining whether the trader had knowledge of rules regarding how exchange-traded funds are settled in Europe, according to people familiar with the matter. A gap in trade reporting likely contributed to a breakdown in a paper or electronic trail that typically would reconcile cash and trading flows at UBS, people familiar with the situation said.
Charlie Sheen Offered $25 Million Settlement (MSNBC)
Warner Bros. is gearing up to pay Sheen roughly $25 million to get him to drop his wrongful-termination suit against the studio and "Men" cocreator Chuck Lorre. That sure sounds better than having one's body explode "like a balloon full of meat," like the fate that befell Sheen's killed-off character on tonight's season premiere of "Two and a Half Men."
Bank of China Halts Forex Swaps With UBS, BNP (WSJ)
State-run Bank of China Ltd. has told UBS AG and BNP Paribas SA that it won't trade with them in China's local derivatives markets, amid broader investor concerns over Europe's debt woes...Bank of China told UBS and BNP Paribas that they reached the limits of their trading credit lines with the bank, according to one person familiar with the matter. It wasn't clear Tuesday how large the credit lines were. The lender notified the banks about its decision last week, while the halt began Monday, the person said.
S&P Cuts Italy Rating on Weak Growth Outlook (Bloomberg)
S&P lowered its rating last night to A from A+, saying weak economic growth, a “fragile” government and rising borrowing costs would make it difficult to reduce Europe’s second-biggest debt.
Debit Or Credit? Citi Places Its Bets (WSJ)
Citi mailed an estimated 346 million card offers to North American customers in the third quarter...That is more than one for every man, woman and child in the U.S.
Netflix CEO Unbowed (WSJ)
If the CEO of Netflix Inc. were in a movie, the townspeople would be chasing him with torches and pitchforks.
For Stranded Chinese IPOs, Private Equity to the Rescue (Reuters)
An $80 million investment in a Chinese baby diaper producer normally wouldn't generate much buzz. But last week's deal for AAB China was interesting for a few reasons, among them the involvement of Richard Ong's new $2.3 billion private equity fund. The deal shows that private equity firms, like Ong's RRJ Capital, are stepping into China where hedge funds once roamed, pursuing deals that look more like short term financing than long term growth bets.
Old Ketchup Packet Heads For Trash (WSJ)
Some people rip off the corner of the packet with their teeth. Others, while driving, squirt the ketchup directly into their mouth, then add fries. Some forgo fries at the drive-through all together to keep from creating a mess in the car. After observing these and other "compensating behaviors," H. J. Heinz Co. says it spent three years developing a better ketchup packet. Heinz says the new "Dip and Squeeze" packets will begin replacing the traditional rectangular ketchup packets later this year at Wendy's Co. restaurants. As the name promises, "Dip and Squeeze" ketchup can be squeezed out through one end or the lid can be peeled back for dipping. The red, bottle-shaped packets hold three times the ketchup as traditional packets. The new containers are more expensive than the old sleeves, but Heinz hopes customers learn not to grab more than one or two. To develop the new packet, Heinz staffers sat behind one-way, mirrored glass, watching consumers in 20 fake minivan interiors putting ketchup on fries, burgers, and chicken nuggets.