Good morning New York,
FT ALPHAVILLE
Dan on that European optimism seeping through -- particularly, European banks.
NEWS
CME raised base margins for trading US interest rate swaps, in another sign of debt ceiling nervousness. The clearer told customers that it will apply four increases of 3 per cent over the next four days. "CME Clearing is closely monitoring the developments related to the US reaching its debt ceiling," a circular said. "Anticipating possible market moves specific to this event, CME will increase margin for all over-the-counter interest-rate swaps." (Financial Times)
The US Senate continued debt-limit dealmaking despite the collapse of a House Republican plan. House Speaker John Boehner would have to decide whether to allow a vote on a Senate plan without amendments, or whether to seek to change it -- and has so far failed to marshal all House Republicans behind a plan (Bloomberg).
WSJ: "in a replay of so many other previous showdowns, the more conservative members of the caucus rebelled—even after Mr. Boehner retooled the bill to appease the lawmakers—and party leaders abandoned plans Tuesday evening to bring the bill to the floor..." (Wall Street Journal)
Apple told two Taiwanese assemblers of the iPhone 5C that it is cutting orders for the fourth quarter. Pegatron, which makes two-thirds of the phones, was told that orders would be cut by less than 20 per cent, while Hon Hai was told that orders would be cut by a third. The 5C is a low-cost version of the phone, but Apple has faced price competition from Samsung and other makers of Google's Android phones (Wall Street Journal).
LVMH said that growth at its flagship Louis Vuitton stores was below that of its fashion and leathers division in the third quarter. Weaker-than-expected revenue numbers helped push LVMH shares down as much as 6 per cent in Tuesday trading (Reuters, Financial Times).
Germany's Greens pulled out of further coalition talks with Angela Merkel. The CDU will now approach the SPD again (Reuters).
Goldman "must turn over internal gender-bias complaints by female workers to lawyers representing women in a lawsuit alleging the firm discriminated against them in pay and promotions" after a Manhattan judge's ruling on Monday (Bloomberg).
