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16 October 2012
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  Top Stories 
 
  • Britain turns away from EU with no objections from Germany
    Under Prime Minister David Cameron, the U.K. is signaling reluctance to participate in further integration of the EU and seeks to withdraw from areas of cooperation with its neighbors. German Chancellor Angela Merkel's proposal to separate the budgets of the eurozone and the EU suggests she is willing see Britain and continental Europe go their separate ways. Der Spiegel (Germany) (English online version) (15 Oct.) LinkedInFacebookTwitterEmail this Story
  • Lehman Brothers says affiliates owe $45.2B
    In a regulatory filing, Lehman Brothers Holdings said it is owed $45.2 billion by various affiliates, with the largest sum claimed from the Lehman Brothers Inc. brokerage, at $15.2 billion. As of midyear, Lehman had $8.3 billion in cash and $13.6 billion set aside for disputed claims and debt. Bloomberg (15 Oct.) LinkedInFacebookTwitterEmail this Story
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  Market Activity 
 
  • Asian-Pacific markets advance, boosted by U.S. sales data
    Stock markets rose Tuesday in Asia-Pacific after investors were encouraged by an increase in U.S. retail sales. Japan's Nikkei 225 gained 1.4%. South Korea's Kospi added 0.8%. Australia's S&P/ASX 200 edged up 0.2%. Hong Kong's Hang Seng Index climbed 0.3%. Taiwan's Taiex advanced 0.7%. China's Shanghai Composite closed unchanged. India's Sensex was up 0.2% shortly before midday. The Times of India (16 Oct.), The Wall Street Journal (16 Oct.) LinkedInFacebookTwitterEmail this Story
  • Analysis: Price volatility for iron ore might be ahead
    Experts who predict many years of depressed prices for iron ore are overlooking uncertainty that surrounds bringing mines into production, according to The Economist. Many sources of iron ore are blocked by local opposition or government red tape. "The heady days of sky-high rewards for moving earth around the planet could well be at an end, but an era of volatile prices beckons," the magazine notes. The Economist (13 Oct.) LinkedInFacebookTwitterEmail this Story
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  Economics 
 
  • IMF's Lagarde voices concern about "fiscal cliff"
      
    Source: CNBC
    Christine Lagarde, managing director of the International Monetary Fund, said she is focused on uncertainty related to the U.S. "fiscal cliff." "The IMF has been warning for quite a while about the uncertainty risk associated with the fiscal cliff and the debt ceiling. ... This uncertainty is going to increase as we get closer to year-end," Lagarde said. CNBC (15 Oct.) LinkedInFacebookTwitterEmail this Story

  • Credit card issuers report increasing delinquency
    Data on credit card late payments and write-offs suggest an improvement in credit quality enjoyed by lenders in recent years is leveling off. Major credit card issuers are seeing rising delinquency. Capital One Financial's late payments increased from 3.37% in August to 3.52% in September, with net charge-offs rising from 2.58% to 3.93%. Reuters (15 Oct.), The Wall Street Journal (15 Oct.) LinkedInFacebookTwitterEmail this Story
  • Clients seek answers from advisers about dividend-tax increase
    Financial advisers are getting questions about how to prepare for a dividend-tax increase that will automatically take effect if Congress lets Bush-era tax cuts expire. As the law stands, a 15% dividend tax will increase to a top rate of 39.6%, and the wealthy will have to pay an additional 3.8% Medicare surtax. The Wall Street Journal (15 Oct.) LinkedInFacebookTwitterEmail this Story
Free Download: "Global Market Outlook" Paper
Download the "Global Market Outlook" paper now and see how you can earn up to 14 continuing education credit hours as a CFA charterholder while at the Annual Employee Benefits Conference. Join 5,000 multiemployer and public plan trustees, together with their plan advisors, to discuss the latest development in plan management.
  Geopolitical/Regulatory 
  • IOSCO aims to identify weakness in regulation
    The International Organization of Securities Commissions plans to assess regulatory regimes worldwide to detect weakness. The regulator will look at the maximum civil and criminal penalties for a range of financial misdeeds. "The reality is that I think there is a strong collective sentiment that current sanctions regimes in financial markets, in general, are too weak," Secretary General David Wright wrote in an e-mail. "They do not deter sufficiently, and the combination of a growing number of major financial scandals and public outrage requires that current systems be put now under the regulatory microscope." Financial News Online (U.K.) (subscription required) (15 Oct.) LinkedInFacebookTwitterEmail this Story
  • European regulators want more transparency from Google
    Regulators from more than 20 European countries are expected to call on Google to increase transparency in data collection and in some cases obtain user consent, sources said. Worldwide, regulators have intensified scrutiny of Google as it expanded beyond Internet search to online commerce, video, telecommunication and social media. The Washington Post (15 Oct.), Reuters (15 Oct.) LinkedInFacebookTwitterEmail this Story
  • CFPB could restrict lawsuits involving high-quality mortgages
    The Consumer Financial Protection Bureau is considering a rule that would effectively bar lawsuits involving some home mortgages made to borrowers with excellent credit ratings and plenty of resources to make payments, sources said. The rule reportedly would establish a U.S. definition of "qualified mortgage" and give lenders a legal shield against lawsuits involving loans that meet the standard. Slate/Moneybox blog (15 Oct.), The Wall Street Journal (15 Oct.) LinkedInFacebookTwitterEmail this Story
  • "Regulatory crush" worries investment firms, survey finds
    Regulatory changes worldwide are a source of rising anxiety among 24 investment firms surveyed by buy-side advisory Investit. Topping the list is the European Alternative Investment Fund Managers Directive, cited by 53% of respondents, followed closely by the U.S. Dodd-Frank Act, named by 51%. "We are facing a period of regulatory crush; the regulators are struggling to turn the politicians' promises into formal regulation, but in a number of cases, the dates for compliance are not moving," Investit consultant Sarah-Jane Dennis said. The Trade News (U.K.) (15 Oct.) LinkedInFacebookTwitterEmail this Story
Watch the European Investment Conference live wherever you are
On 18 October watch Anatole Kaletsky tackle ‘Europe’s Economy and the Way Forward’, then hear German eurosceptic Markus Kerber take on French academic Catherine Lubochinsky to debate ‘The Future of the Euro’. On 19 October Nobel Laureate Robert Merton will discuss a new approach to macrofinancial risk.
  Financial Products 
New Thinking in Taxable Asset Allocation
Niall J. Gannon and Robert N. Gordon

Join us for a live broadcast from the Asset Allocation for Private Clients Conference on 17 October 2012 at 1:30 p.m. ET
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