The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
from Stories I’d like to see:
Conventional wisdom is that House Speaker John Boehner has been afraid to defy the Ted Cruz-inspired House members who have insisted on closing the government and holding the debt ceiling hostage unless President Obama agrees to delay or defund Obamacare. The assumption is that Boehner fears that the most zealous Republicans in his caucus would turn on him and remove him as speaker. With that in mind, there’s one story I’ve been waiting for and still haven’t seen: Why haven’t the Democrats offered to protect Boehner if he runs into trouble by allowing the full House to vote to reopen the government and extend the debt ceiling?
from Global Investing:
By Philip Baillie
Emerging equities may have significantly underperformed their richer peers so far this year (they are about 4 percent in the red compared with gains of more than 6 percent for their MSCI's index of developed stocks) , but almost a third of high net-worth individuals are betting on a rebound in coming months.
Just how big is the benefit that too-big-to-fail banks receive from their implicit taxpayer backing? Federal Reserve Chairman Ben Bernanke debated just that question with Massachusetts senator Elizabeth Warren during a recent hearing of the Senate Banking Committee. Warren cited a Bloomberg study based on estimates from the International Monetary Fund that found the subsidy, in the form of lower borrowing costs, amounts to some $83 billion a year.
Pennsylvania may have suffered more damage from municipalities using interest rate swaps than any other state in America. Many cities and school districts were sold these “hedging” instruments after former governor Ed Rendell pushed legislation allowing their use in 2003. The fallout for the state has been devastating.
from Unstructured Finance:
By Katya Wachtel
For Omega Advisors' Steve Einhorn, the window of sleep-able hours is narrowing.
"One needs to know whats going on around the world. I turn in around midnight so I can monitor what's going on in China and Japan," Einhorn, vice chairman at Leon Cooperman's $7billion fund, said at the Reuters Global Investment Summit last week. "A decade ago, did I and most others focus on what's going on in China? No. Now we wait for the November manufacturing index for China to come out. The day is longer because of that. I am up around 6 in the morning; I review what has gone on overnight in Asia and in Europe. I spend an hour in front of the machine at home, going through data and news releases" before he's out the door.
from Global Investing:
Emerging market currencies have been a source of frustration for investors this year. With central banks overwhelmingly in rate-cutting mode and export growth slowing, most currencies have performed poorly. That has been a bit of a dampener for local currency debt -- while returns in dollar terms have been robust at 13 percent, currency appreciation has contributed just 1.5 percent of that, according to JP Morgan.