US FINANCIAL MARKET
- U.S. stocks dipped slightly at the open on Tuesday despite signs of slight progress to resolve the fiscal standoff in Washington, although no agreement appeared to be likely soon.
- China and Japan, which together hold more than $2.4 trillion in U.S. Treasuries, raised pressure on the U.S. to resolve a political impasse on its debt ceiling that threatens to destabilize global financial markets.
- China had $1.28 trillion worth at the end of July, followed by Japan, which held $1.14 trillion.
- The U.S. Federal Reserve is the biggest single holder of Treasuries, with $2.1 trillion worth as of Oct. 2.
- The $12 trillion of outstanding U.S. government debt is 23 times the $517 billion Lehman owed when it filed for bankruptcy on Sept. 15, 2008.
- The shutdown cost $1.6 billion last week in lost economic output, according to IHS. As the showdown enters its eighth day, the office closures are now draining an average of $160 million each workday from the $15.7 trillion economy.
- Twitter’s share price could almost double in its first year as a listed company, a brokerage firm said, issuing a “buy” rating on the stock even before the online messaging service goes public.
- Traditional stores can take on e-commerce and keep their major role by reinventing themselves faster to best combine shopping in stores and online, top retailers said on Tuesday. Despite the challenge from players like Amazon, 68 % of retailers say stores remain the most important channel for shoppers and one in three plan to expand their footprint.
- The use of turbo chargers to boost power in smaller automotive engines is expected to increase rapidly over the next five years, with the greatest growth anticipated in China, according to Honeywell International, a major player in the sector. Honeywell, the world’s largest turbo charger manufacturer, forecasts that the devices will be installed on nearly 40 % of vehicles sold globally in 2018. That projection amounts to more than 32 million vehicles, up 33 % from about 24 million this year. Nearly one-third of those vehicles will be sold in China.
- Special Report: Many U.S. state-registered investment advisers, who manage between $30 million and $100 million, are failing to follow basic industry record-keeping rules, according to state regulators.
- One of the biggest problems: many advisers are not adequately documenting why their investment choices are appropriate for clients.
- Examination results compiled for a study conducted every two years by NASAA also revealed that some advisers do not have written contracts with clients or properly describe their formulas for calculating fees.
- Record-keeping problems topped the five most common violations at state-registered investment advisers who were examined during the project.
US ECONOMY & POLITICS
- U.S. small business optimism slipped in September as business owners worried about the economy’s near-term outlook, but remained fairly upbeat on sales and expansion prospects. The National Federation of Independent Business said on Tuesday its Small Business Optimism Index fell 0.2 point to 93.9 last month.
- A U.S. debt default is an unlikely event, but one that could have catastrophic consequences for the world, the IMF said.
- U.S. consumer credit rose more than expected in August, but a third straight month of decline in credit card usage was consistent with recent tepid consumer spending. Total consumer credit advanced by $13.63 billion to $3.04 trillion, Federal Reserve data showed on Monday.
- U.S. consumer delinquencies rose slightly in a range of loan categories in the second quarter of 2013 as a sluggish economy weighed on borrowers’ ability to pay down debt, the ABA said. Delinquencies on personal loans rose to 1.94 %, compared to 1.82 % in the first quarter. Delinquencies on bank card payments, which are not included in the composite ratio, rose to 2.42 %, compared to 2.41 % in the first quarter.
EUROPE & WORLD
- Two European scientists, Peter Higgs and Francois Englert, won the Nobel Prize in Physics for describing the Higgs boson, a theoretical particle that may explain where mass comes from and advances man’s understanding of how the world is constructed.
- The IMF trimmed its forecasts for global output for the sixth time since early last year, saying stronger growth in most advanced economies would fail to make up for a more sluggish expansion in the developing world. For 2013, the IMF now expects global output to expand just 2.9 %, down from its July estimate of 3.1 %.
- The United States is driving much of the global recovery and U.S. output should pick up further next year.
- Australian PM Tony Abbott said he is intent on finalizing a free trade agreement with China within the next 12 months.
- China Markit/HSBC services PMI for September dipped to 52.4 from August’s 52.8.
- Australian business confidence surged in September to the highest level in 3 1/2 years as majority government and lower interest rates encouraged companies, even as employment conditions remained poor.
- German factory orders dropped 0.3 % from July, when they fell a revised 1.9 %. However, German exports increased 1 % from July.
- A U.K. house-price index rose to the highest in more than a decade last month as government measures to boost homebuying lifted the outlook for sales to a record.
TODAY in HISTORY
- President Harry Truman announced the U.S. would share the secret of the atomic bomb only with Great Britain and Canada (1945)
Sources: Reuters, Yahoo Finance, Google Finance, Bloomberg, CNN Money.
This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S & P 500, are unmanaged and may not be invested into directly.