Markets: The dollar weakened against all its major peers while Asian stocks climbed with U.S. index and Treasury futures as Lawrence Summers withdrew his bid to become Federal Reserve chairman. Crude oil fell after the U.S. and Russia agreed on a plan to eliminate Syria's chemical weapons. (Bloomberg) (Financial Times)
Today: EU: CPI, US: Industrial Production; NY Fed Empire Manufacturing Survey for September
Summers has taken himself out of the running to be the next Fed chair after a bloc of key Democratic senators indicated they would oppose his nomination. Janet Yellen, the Fed vice-chair, is now the frontrunner to replace Ben Bernanke in January, in an appointment that would make her the first woman to hold the post. (Financial Times) (Alphaville) (Wall Street Journal)
US bond investors expect the Fed to announce small 'taper' at Wednesday's policy meeting: A bullish surprise for the Treasury market may loom in the form of a smaller taper, about $10bn or less, as the central bank tries to manage a reduction in QE3 against the backdrop of modest growth and low inflation. (Financial Times) And, is it ready? (Financial Times)
Obama stands firm on refusal to negotiate over US debt ceiling, increasing the chance of a crisis, with the US due to hit its legal borrowing limit some time after mid-October: "What never happened in the past was the notion that in exchange for fulfilling the full faith and credit of the United States, we are wiping away major legislation like the healthcare bill," said Mr Obama in an interview with ABC's This Week . (Financial Times)
Bank lending to emerging markets soars to record: Cross-border lending to emerging markets surged by $267bn, to an estimated $3.4tn, in the first quarter of 2013, the Bank for International Settlements said on Sunday. The BIS said the 8.4 per cent increase was by far the highest recorded, with the amount of interbank lending rising by almost $200bn, or 12 per cent. (Financial Times)
Cash held on balance sheets of largest companies at record high of £166bn, according to analysis by Capita Asset Services. (Financial Times)
Repsol hunts for oil-firm acquisition in North America as it seeks to up investment in politically stable regions and take advantage of the US energy boom. It has apparently "told investment bankers in recent months that it is ready to spend $5 billion to $10 billion for a U.S. or Canadian exploration and production company, preferably one that produces much more oil than natural gas." (Wall Street Journal)
India and US retreat from WTO battle over food security: Developing nations have made securing a WTO deal to allow government food-buying and distribution programmes for the poor a priority this year. They argue that developing countries need greater flexibility than allowed under WTO rules in setting the prices they can pay to poor farmers and what governments can do with any surplus grains. (Financial Times)
Chrysler goes for IPO after majority owner Fiat and the healthcare trust that owns the rest of the US carmaker failed to agree a market price in a long-running dispute. The listing, which could take place this year, is an unwelcome last resort for chief executive Sergio Marchionne and his plans to merge the two carmakers allowing them to compete better against industry leaders Toyota, Volkswagen and General Motors. (Financial Times)
"Enthusiasm over China's plans for a free-trade zone in Shanghai has reached fever-pitch levels..but officials are staying mum on details, and major stumbling blocks remain. Analysts say while companies operating in the 29-square-kilometer zone may benefit from looser capital controls and fewer barriers to trade and investment, it will be years before the testing ground in Shanghai has a more meaningful impact on the world's second-largest economy." (Wall Street Journal)
"More than 2,300 passengers and crew were stranded on an South Korean island after a court ordered their Chinese cruise ship detained in a $58 million debt dispute." (Bloomberg)
"Westfield, the world's biggest shopping-center operator by assets, will sell seven malls in the U.S. for $1.6 billion to an affiliate of Starwood Capital, as the company consolidates its U.S. portfolio to fund higher-return activities." (Bloomberg)
ALPHAVILLE
Summers to Obama: "I am writing to withdraw my name for consideration…"
Retro AV, looking back five years…
COMMENTS & CURIOS
Summers has done everyone a favour by withdrawing (Financial Times)
Angela Merkel – lame duck or saviour of the euro? (Financial Times - Davies)
Syria chemicals deal weakens Assad despite short-term gains (Financial Times)
Karachi, where armed robberies, shoot-outs and kidnappings "don't make the headlines any more" (Financial Times)
Batista: "Living in a country that has these gigantic oil discoveries, why shouldn't I have been blessed with one?" (Wall Street Journal)
A lack of confidence in China's financial markets inflates a housing bubble (Bloomberg)
"I don't care about the food or other amenities, my sole purpose is to gamble" says casion boat fan (Bloomberg)
Inflation adds to headaches for Indian central bank chief's first meeting (Reuters)
OVERNIGHT MARKETS:
