Former Treasury Secretary Lawrence Summers predicted that the U.S. will avoid another round of the political gridlock that last month brought the world’s largest economy to the edge of a record default.
The European Central Bank can stop the region’s sovereign debt crisis “almost immediately” by carrying out a “massive” round of government-bond purchases, said Guillermo Ortiz, the chairman of Grupo Financiero Banorte SAB and Mexico’s former central bank governor.
Mexico’s peso has turned from the world’s strongest major currency into the weakest of the past month amid growing investor concern the economy will slow as demand diminishes from the U.S., its biggest trading partner.
“Cascading default, bank runs and catastrophic risk” lie ahead for the world economy unless Europe resolves its festering debt crisis, Timothy F. Geithner told global finance chiefs on the morning of Sept. 24.
Mexico may increase financing for the IMF; The credit-defaults swaps market, which shows Mexico is a riskier credit than Brazil, is wrong, according to a Mexican finance ministry official; Leaders of Brazil, Russia, India and China will probably press the case that their 15 percent share of the world economy and 42 percent of global currency reserves should give them more clout; Wreckage from the Air France plane crash will arrive in Brazil today.
Federated Investors Inc., the third- largest manager of U.S. money-market mutual funds, is planning legal action to block rule changes being contemplated by the U.S. Securities and Exchange Commission that the company said could destroy the $2.7 trillion cash-management industry.