Nicolas Sarkozy tells David Cameron: shut up over the euro (Guardian)
The bust-up between Cameron and Sarkozy held up the conclusion of the EU-27 summit for almost two hours, with the French president expressing rage at the constant criticism and lectures from UK ministers. Sarkozy bluntly told Cameron: "You have lost a good opportunity to shut up." He added: "We are sick of you criticising us and telling us what to do. You say you hate the euro and now you want to interfere in our meetings."
Banks Squabble With EU Over Greek Debt Losses (Bloomberg)
The world’s biggest banks are squabbling with European leaders over the size of losses on their Greek bonds as they seek a deal to cut the country’s debt load, two people with knowledge of the discussions said. The financial companies, represented by the Institute of International Finance, proposed a loss of 40 percent on Greek debt, said one of the people, who declined to be identified because talks are confidential. The European Union is calling on investors to forfeit as much as 60 percent, making a compromise at 50 percent possible, the person said.
Swiss Banks May Pay Billions To US, Disclose Client Names (Bloomberg)
U.S. and Swiss officials are concluding negotiations on a civil settlement amid U.S. criminal probes of 11 financial institutions, including Credit Suisse Group AG, suspected of helping American clients hide money from the Internal Revenue Service...Switzerland, the biggest haven for offshore wealth, wants an end to new U.S. probes while preserving its decades-old tradition of bank secrecy, the people said. The U.S. seeks data on Americans who have dodged U.S. taxes and a pledge by Swiss banks to stop helping such clients, according to the people.
CIC May Co-Invest With Blackstone In Loan Portfolio (WSJ)
In another sign of China Investment Corp.'s interest in overseas real estate, the sovereign wealth fund is considering teaming up with Blackstone Group LP to buy a stake in a portfolio of distressed property loans from Royal Bank of Scotland Group PLC, people familiar with the matter say.
Jobs Admired Zuckerberg For 'Not Selling Out' (Bloomberg)
“We talk about social networks in the plural, but I don’t see anybody other than Facebook out there,” Jobs told biographer Walter Isaacson in excerpts of an interview released online by 60 Minutes. “Just Facebook, they’re dominating this. I admire Mark Zuckerberg,” Jobs said of Facebook’s chief executive officer on the recording. “I only know him a little bit, but I admire him for not selling out, for wanting to make a company. I admire that, a lot.”
Economists: 'Miserable' Euro PMI Heightens Recession Risk (CNBC)
Nouriel Roubini wrote on Twitter after the data came out that euro zone politicians were "hell-bent to commit growth harakiri" as "financial engineering without growth soon will lead to defaults and euro zone break-up."
Vatican Calls For 'Central World Bank' To Be Set Up (Reuters)
The Vatican called on Monday for the establishment of a "global public authority" and a "central world bank" to rule over financial institutions that have become outdated and often ineffective in dealing fairly with crises. The 18-page document, "Towards Reforming the International Financial and Monetary Systems in the Context of a Global Public Authority," was at times very specific, calling, for example, for taxation measures on financial transactions. "The economic and financial crisis which the world is going through calls everyone, individuals and peoples, to examine in depth the principles and the cultural and moral values at the basis of social coexistence," it said. It condemned what it called "the idolatry of the market" as well as a "neo-liberal thinking" that it said looked exclusively at technical solutions to economic problems...It called for the establishment of "a supranational authority" with worldwide scope and "universal jurisdiction" to guide economic policies and decisions.
Volcker Rule Moves From Simple To Complex (NYTimes)
In numerous interviews this week with people across the political spectrum, I couldn’t find anyone who actually supports this behemoth — including Mr. Volcker, whose name it bears. “I don’t like it, but there it is,” Mr. Volcker told me in his first public comments on the sprawling proposal. “I’d write a much simpler bill. I’d love to see a four-page bill that bans proprietary trading and makes the board and chief executive responsible for compliance. And I’d have strong regulators. If the banks didn’t comply with the spirit of the bill, they’d go after them.”
Hedge Funds Face Investor Pruning (WSJ)
An Oct. 12 survey of 150 hedge-fund investors by Barclays Capital showed that 35% of those sampled either had redeemed recently or planned to soon redeem from managers who had performed relatively poorly. Another 20% said they were still on the fence.
Banks Are Back In Takeovers (WSJ)
Commercial and industrial loans, which include leveraged loans such as the one used by Kinder, grew by 4% in September and by 35% in the third quarter over the prior-year period, according to the Federal Reserve. Commercial loans by J.P. Morgan, the largest U.S. bank by assets, rose 9% to $107.4 billion in the third quarter.
German satellite crashed in southeast Asia (Telegraph)
A defunct German research satellite crashed into the Earth somewhere in southeast Asia on Sunday, a US scientist said – but no one is still quite sure where. Most parts of the car-sized ROSAT research satellite were expected to burn up as they hit the atmosphere at speeds up to 280mph, but up to 30 fragments weighing a total of 1.87 tons, could have crashed, the German Aerospace Center said.
Rick Perry says his new economic plan will include flat tax (LA Times)
Rick Perry previewed the economic plan he will roll out on Tuesday, saying he would call for trashing the current tax code and replacing it with a flat tax, ending all earmarks, enacting a balanced budget amendment and reforming entitlements. "It's time to get Washington out of the way in order for us to preserve the American way," Perry said. "The American people may be bruised but they're not broken and they want a new president who can deliver the hope and change that this one that we have today promised." "You learn a lot growing up on a farm, it doesn't make a difference whether it's Wilton, Iowa, or Paint Creek, Texas," he said. "There's just lots you learn growing up on a farm, it's universal. It's the value of hard work, it's duty to family, to country … Those values you learn on the farm are pretty good values for the president of the United States as well."