Good morning New York,
FT ALPHAVILLE
Even more debt ceiling fun -- David ponders a US default decision-tree, Joseph looks at the Federal Reserve buying Treasuries which have... less than the full faith and credit.
NEWS
The Hong Kong exchange's clearing house increased its haircut on US T-bills. For bonds held with maturity of less than one year, the haircut would be raised from 1 per cent to 3 per cent, effective immediately, HKEx said in a circular to members (Financial Times, HKEx circular).
Chinese premier Li Keqiang said his country was "great attention to the US debt ceiling issue" in a meeting with US Secretary of State John Kerry (Financial Times).
Signs of a thaw in debt ceiling dealmaking? Paul Ryan, chairman of the House Budget Committee, proposed a plan to raise the ceiling for four to six weeks in return for deficit-reduction talks. House Republicans meet the President at the White House later on Thursday (Wall Street Journal).
China's central bank agreed a currency swap line with the ECB. At Rmb350bn ($57bn), it is China's third largest, after facilities with Hong Kong and South Korea (Financial Times).
Blackberry is more open to the idea of a break-up of the company if Fairfax Financial proves unable to line up financing for a $4.7bn bid (Bloomberg).
