Wall Street leaders expressed mounting fears on Wednesday over the prospect of the first default by the US of its debt obligations as the impasse continued on Capitol Hill on the second day of the government showdown, reports the Financial Times.

"There is precedent for a government shutdown, but there is no precedent for a default,” said Lloyd Blankfein, the chief executive of Goldman Sachs, after a meeting between president Barack Obama and top Wall Street chief executives. He was citing the threat of default if Washington’s feuding lawmakers fail to agree to extend the borrowing limit by October 17.

K recovery cannot depend on London, says Mark Carney
Britain will not be able to claim a lasting recovery until regions outside London and the south east are growing strongly, the Bank of England Governor has warned, reports the Daily Telegraph.
Mark Carney said "the economy is beginning to pick up”, but he stressed that a durable recovery would need to be built on growth outside the capital.

Central banks joined EM asset sell-off
Central banks sold emerging markets assets in the second quarter of this year, mirroring a sharp sell-off by private sector investors, according to the latest International Monetary Fund data on reserves, reports the Financial Times.
The IMF’s quarterly Cofer data, the best record available of reserves’ currency composition, show that central banks’ holdings of "other currencies” – much of which is likely to consist of the more liquid EM currencies, such as the Mexican peso, South African rand and Brazilian real – fell 30 per cent, from $201.2bn to $172.9bn.

China’s $50bn spending spree on new Silk Road
China has spent more than $50bn (£31bn) in the past three months on energy and infrastructure deals in central Asia as Beijing seeks to establish a "new Silk Road” through the region, reports the Independent.
Chinese outbound investment totalled just more than $100bn in the third quarter of 2013 with roughly half of that sum spent in the central Asian states visited by the Chinese president Xi Jinping on an official tour last month.

Payday lenders face new curbs
The City regulator is expected to announce a crackdown on advertising by payday lenders and the way the firms collect and extend loans when it announces new rules for the sector on Thursday morning, reports The Guardian.

The Financial Conduct Authority (FCA) will outline how it intends to regulate the short-term loans market when it takes over stewardship of the sector from the Office of Fair Trading next April. At the same time, the government will release the results of a survey it carried out among borrowers to find out if lenders are meeting voluntary codes of practice.
1202 reads | 03.10.2013

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