Good morning New York,
FT ALPHAVILLE
Step one in zombie prevention: pants on: Picking securities is hard, so you pick a hedge fund manager to do it for you, notes Dan. But picking hedge fund managers turns out to be just as hard, and you have to constantly monitor what they are up to as well, so you pay someone to pick them for you. What it illustrates to us is the Russian doll problem of selection.
As an entire country of Postpeople dance up the front path: Royal Mail is off to a good start, notes Dan.
Why the level of government debt may not matter: A new NBER paper notes that the absolute level of government debt may not matter, it's how that government debt is distributed among people relative to society's attitudes toward unequal allocations of consumption and work that does.
NEWS
Hopes rise of averting US debt default: The White House and Republicans held their first serious talks to resolve the fiscal impasse gripping Washington, as they discussed ways to approve a short-term extension of the US debt limit and avert a potential default by the world's largest economy. (Financial Times) "Mr. Obama "didn't say yes, he didn't say no" to the GOP plan, said House Budget Committee Chairman Paul Ryan after the meeting with Mr. Obama. "We put an offer on the table. We had a long, frank conversation about it, and we agreed to continue talking and to continue negotiating."" (WSJ)
Fed officials are having prelimenary talks on potential changes to how the government releases sensitive economic data, "including eliminating the current system, which releases data via embargoed news releases to the media; building a single, technologically secure facility for all government agencies to use to distribute data; and publishing economic data directly on the Internet." (WSJ)
US rethinks how to release sensitive economic data: US moves to enforce $470m Barclays energy prices fine: "The US electricity markets regulator has filed a lawsuit in California to try to enforce a $470m fine against Barclays for allegedly manipulating US energy prices, setting the stage for a protracted court battle." (Financial Times)
Carmen Segarra is suing the New York Fed and three of its officials in federal court in New York, claiming that her superiors interfered with her work examining Goldman and expressed concern that the bank would be harmed by her criticism. (Financial Times)
BlackBerry co-founders explore bid: Michael Lazaridis and Douglas Fregin have hired Goldman Sachs and Centerview to review their options, according to the filing. Together they hold an 8 per cent stake in BlackBerry, worth $338m based on its current market capitalisation. (Financial Times)
Google funnelled €8.8bn of royalty payments to Bermuda last year, a quarter more than in 2011, underlining the rapid expansion of a strategy that has saved the US internet group billions of dollars in tax. (Financial Times)
Regency Energy agrees to purchase PVR Partners for $5.6bn: The Texas-based natural gas gathering and processing group, has agreed to buy PVR Partners for $5.6bn, including debt, in a deal that represents a vote of confidence in the continuing growth of US shale gas production. (Financial Times)
"A pipeline owned by Tesoro Logistics has leaked more than 20,000 barrels of crude oil into a wheat field in North Dakota, the largest spill in the prolific Bakken shale since the drilling boom started there in 2006." (WSJ)
Infosys missed estimates, reporting second quarter net income of INR 24.1bn, representing a humdrum 1.7 per cent increase on this time last year. Analysts surveyed by Bloomberg had expected INR26.6bn.(FastFT)
Top global hedge fund Brevan Howard takes emerging markets hit: Brevan Howard's "dedicated emerging markets hedge fund with $2.8 billion under management is down 12 percent for the year as of October 4, according to marketing material reviewed by Reuters."
Markets: Global stocks are rallying amid hopes Washington is finally nearing a deal to lift the US debt ceiling and avoid a technical default by the world's largest economy. "The tide appears to be turning in the ongoing US shutdown saga," says the forex team at Citi. Analysts reckon sentiment is also being underpinned by expectations central banks will remain supportive. "Perceived political risks are falling. Economic data are weak enough to restrain the hawks on the Federal Open Market Committee and embolden the doves at the European Central Bank," says Guy Foster, head of portfolio strategy at UK broker Brewin Dolphin. The FTSE All-World equity index, which on Wednesday hit a five-week low as fears grew about the financial system turmoil that could be unleashed by the US bilking on its commitments, is up 0.5 per cent, taking its gains over the last two days to 2.1 per cent. (Financial Times)
