Good morning New York,
FT ALPHAVILLE
Where have all the cowboys come from? Lisa poses the question and offers some must-read answers to why we have a plethora of scandals and misdeeds.
Know what to expect from Jackson Hole? Cardiff has the tl;dr version –> possibly not much, though the conference has sprung surprises before and there's an interesting paper being presented on Friday to watch for.
NEWS
US markets have dropped after a three hour technical snafu engulfed NASDAQ. The technical failure is the longest time trades were halted on the wholly electronic exchange since Hurricane Sandy hit in October last year (Financial Times).
Brazil's central bank is set to introduce a currency programme in order to ensure liquidity and reduce volatility in the nation's foreign exchange market. The $60bn programme follows a more than 15 per cent depreciation in the real against the dollar. This will be done through currency swap and repurchase agreements and will hope to stabilise the real, which closed at R$2.44 to the dollar on Thursday (Financial Times).
Moody's has warned that it could cut the credit ratings of the six biggest US banks, saying the federal government may be less likely to bail them out if they got into trouble in the future. The review follows a similar statement from rival Standard & Poor's in June, and comes as governments are reshaping the regulation of banking and trying to prevent a repeat of the bailouts of the credit crisis era. (Financial Times)
US Treasury secretary Jack Lew delivered his most extensive warning yet to Congress about the dangers of brinkmanship over the US debt ceiling, saying it would inflict broad damage to the economy in an "unnecessary self-inflicted wound". (Financial Times)
