JPMorgan Chase reports quarterly loss on legal costs
JPMorgan Chase has reported a loss in the third quarter after setting aside $9.2bn (£5.8bn) to cover legal bills.
The bank lost $380m during the quarter, compared with a profit of $5.7bn in the same period last year.
JPMorgan is currently in talks with the US government over a potentially huge settlement relating to the sale of mortgage-related investment products in the run-up to the financial crisis.
Last month, it paid $920m to settle charges related to a trading scandal.
JPMorgan's chief executive, Jamie Dimon, said: "We continuously evaluate our legal reserves, but in this highly charged and unpredictable environment, with escalating demand and penalties from multiple government agencies, we thought it was prudent to significantly strengthen them."
He stressed that the bank's underlying business was strong.
Stripping out one-off charges, the bank made $5.8bn over the three months to the end of September.
Wells Fargo, the biggest US mortgage lender, also reported results on Friday.
It reported a record net income of $5.3bn in the third quarter, up 13% on the same period in 2012.
That rise came despite a fall in income at its mortgage business, where revenue fell 43% to $1.6bn.
The fall was offset by lower expenses and a reduction in funds set aside for loans going bad.
JPMorgan now has a contingency fund of $23bn to cover legal expenses. It also said that it could face litigation-related expenses of another $6.8bn.
It is currently in talks with the Justice Department over a potentially huge settlement, related to the mis-selling of mortgage related products during the US housing boom.
It is thought the settlement could cost as much as $11bn.
Mr Dimon stressed on Friday that much of the case related to deals done by Bear Stearns and Washington Mutual, companies that JPMorgan Chase bought during the financial crisis.
"The Board continues to seek a fair and reasonable settlement with the government on mortgage-related issues and one that recognises the extraordinary circumstances of the Bear Stearns and Washington Mutual transactions, which were undertaken at the request or encouragement of the US government," he said.
Last month, JPMorgan paid $920m to settle a case related to disastrous trades by Bruno Iksil, who earned the nickname the "London Whale" for his big bets on the financial markets.
Last year, the bank admitted to losses of $6.2bn resulting from his activities.
As part of the settlement deal, JPMorgan admitted violating US federal securities laws.
Royal Mail shares jump sharply on market debut
Royal Mail shares rose 38% to 455p in their first day of conditional dealings on the London Stock Exchange.
The hugely oversubscribed sale was priced at 330p a share, valuing the 500-year-old firm at £3.3bn. At one point, the price hit 459.75p.
Private investors received 227 shares each. In all, more than 225 million shares were traded on Friday.
Business Secretary Vince Cable told Channel Four News he could have charged a higher price for Royal Mail shares.
Asked if he could have raised the sale price when he saw the level of demand for shares, Mr Cable said: "I could have done and I could have joined the speculators and spivs.
"I'm not interested in doing that," he said.
The shares are listed officially next Tuesday, but City institutions began conditional dealings on Friday.
Some 10 million shares were traded in the first 30 seconds when the market opened. Stockbroker Hargreaves Lansdown reported that its website was having "intermittent problems" due to the "unprecedented interest" in Royal Mail.
Tom McPhail, the firm's head of pensions research, said it was "extremely sorry for the delays", but was making "significant progress in clearing the backlog" and hoped to have all systems running normally again soon.
"We have experienced demand this morning which has gone off the scale," he said.
"We now have six times the normal number of staff working on our dealing lines. We know we are not the only broker affected by such problems this morning."
The price rise is likely to fuel debate over whether the sale of Royal Mail has been undervalued. Mr Cable has insisted that the taxpayer has not been short-changed by the privatisation.
Obama would sign short-term debt rise
US President Barack Obama is willing to sign a "clean" short-term increase to the US borrowing limit that is free from Republican budget and policy demands, his spokesman has said.
Jay Carney's remarks came amid talks aimed at ending the twin fiscal crises threatening the US and world economies.
The US is in the 11th day of a partial government shutdown.
But the Statue of Liberty, the Grand Canyon and Mount Rushmore, closed by the shutdown, will now re-open.
The funding will be provided by the states of New York, Arizona and South Dakota, however, with other national parks and monuments remaining closed due to the deadlock in Washington.
As the well as the shutdown, the US is heading towards default if it does not raise its debt limit by 17 October.
"If the Congress were to pass a clean debt ceiling of short duration to avoid default, the president would sign that," Mr Carney said, following rounds of talks among Mr Obama and Senate and House Republicans.
But Mr Carney reiterated the White House would not accept a debt ceiling rise with conditions attached, saying the right thing to do was to "remove that gun from the table".
And the White House spokesman said there was still "no acceptable reason to keep the government shut down".
The partial government shutdown, which has sent home hundreds of thousands of government workers on unpaid leave, began on 1 October after Republicans refused to pass a new budget unless Mr Obama and the Democrats agreed to delay Mr Obama's signature healthcare reform law of 2010 or eliminate its funding.
The White House has repeatedly said it would not undermine the law, known as Obamacare, nor negotiate over larger budget matters, until Republicans vote to end the threat of default and reopen the government.
Mr Carney also condemned a proposal floated by the House Republicans for a six-week debt limit increase in exchange for broader budget negotiations.
He said it would "put us right back where we are today in just six weeks, on the verge of Thanksgiving and the obviously important shopping season leading up to the holidays, and that would create enormous uncertainty for our economy... We don't think that's the right way to go".
The Democratic-controlled Senate is set to vote on Saturday on a 15-month extension of the debt ceiling, which would remove the issue from next year's congressional campaigns.
CARICOM Member States urged to move to CCJ
Secretary-General of the Caribbean Community (CARICOM), Ambassador Irwin LaRocque, has called on CARICOM Member States that have not taken the necessary steps to make the Caribbean Court of Justice (CCJ) their final court of appeal, to do so.
Ambassador LaRocque was speaking during a conference at the University of the West Indies, Regional Headquarters in Kingston, Jamaica on Tuesday hosted by the Sir Arthur Lewis Institute for Social and Economic Studies (SALISES).
The conference, which was hosted under the theme `Rethinking Regionalism: Beyond the CARICOM Integration Project’ sought to “engage participants in a sweeping review of the region taking account of how the complex problems of the contemporary reality are likely to shape CARICOM in the future”.
He said the most recent judgement by the CCJ in the case of Shanique Myrie and the Government of Barbados, would cause a shift in the way affairs in the Community were conducted.
“It has also cemented the Community’s rules-based system and continues to engender a high level of confidence” the Secretary-General said of the judgement.
He stated further that the decision was far-reaching, addressing decision-making in the Community, the nature and effect of Community law, obligations of Member States and rights of Community nationals.
St Lucia on ‘high alert’ following suspected dengue death
St.Lucia’s Health Ministry has put the country on high alert for dengue fever and has already reported one suspected death from the disease.
Chief Medical Officer Dr. Merlyn Fredericks said her Ministry is awaiting confirmation that a child may have succumbed after suffering from dengue like symptoms.
Fredericks held a news conference on Wednesday, to express concern about the increased vulnerability of St.Lucians to the disease, following the discovery of an increase in the number of reported cases .
She noted that while there is a reported increase, the situation has not reached epidemic proportions, nonetheless the public is being urged to be cautious.
“Dengue fever is endemic in St.Lucia, which means that we do have some cases year round, but mainly during the rainy season when the unsupervised collection of water becomes breeding ground for the Ades aegypti mosquito which transmits the infection.
This year we have seen quite a significant increase for the month of September, although its not yet at the level that we realised in 2011 when we experienced an epidemic, but we do believe the public needs to placed on an alert,” she noted.
The Ministry official has advised that the most effective means of preventing the spread of the disease is to avoid breeding places for the vector that causes the illness.
-Caribbean Media Corporation
Countries urged to invest in girl’s education
The United Nations Secretary General Ban Ki-moon has called on countries to work together to invest in education so that girls worldwide can advance in their personal development and contribute to our common future.
In his message to commemorate International Day of the Girl Child, which is being celebrated today, 11th October, he said empowering girls, ensuring their human rights and addressing the discrimination and violence they face are essential to progress for the whole human family.
“One of the best ways to achieve all of these goals is to provide girls with the education they deserve”.
However, he noted that too many girls in too many countries are held back simply because of their gender.
“Those whose mother was also deprived of an education, who live in a poor community, or who have a disability face an even steeper climb. Among girls who do make it to school, many face discrimination and violence”.
This is part of the reason why the Global Education First Initiative was launched, in an effort to accelerate progress in getting every child into school, especially girls.
“We are aiming to teach more than reading and counting; we are striving to raise global citizens who can rise to the complex challenges of the 21st century. To achieve meaningful results, we need fresh solutions to girls’ education challenges and we must heed the voices of young people,” he said.
He also resolved to ensure that Global Education First mobilizes all partners to respond to their powerful call for empowerment, having heard from girls around the world through consultations for the new Girl Declaration.
“More broadly, our campaign to reach the Millennium Development Goals by 2015 and shape a vision beyond that date must address the concerns and potential of the world’s girls. On this International Day of the Girl Child, let us work together to invest in education so that girls can advance in their personal development and contribute to our common future,” he stated.
-Dominica Vibes News
Brazil landowner jailed for 115 years over landless deaths
A Brazilian landowner has been given a 115-year prison term for the killing of five landless farm workers in the south eastern state of Minas Gerais, in 2004.
Adriano Chafik Luedy, and his employee Washington Agostinho da Silva, who was sentenced to 97 years, were found guilty over the "Felisburgo massacre".
Eight other landless workers were injured in the incident in which 27 shelters and a school were burned down.
Workers from the landless movement were occupying an area claimed by Chafik.
Chafik and Silva have been told they are to remain free while a court considers their appeal.
"The defence is obeying but is not agreeing with the sentence," the defendants' lawyer, Sergio Habib, told newspaper Folha de Sao Paulo.
Another 12 defendants are awaiting trial in connection with the attack, which took place in November, 2004, and became known as the "Felisburgo massacre".
The killings took place after a group of landless farm workers connected to Brazil's Landless Workers Movement (MST) invaded an area of the Nova Alegria farm, in the region of the Jequitinhonha valley in Minas Gerais state.
They set up a camp on a piece of land that had allegedly been seized by Chafik's family years before, but later repossessed by the state.
The landowner, however, is still fighting a court battle over the ownership of the area.
In 2004, a group of armed men attacked the camp.
Violent disputes over land are common in Brazil.
Correspondents say that remote rural communities frequently complain Brazil's security forces are rarely present to intervene in rows between powerful land owners and landless farmers.
Derrick Rose did not play in Saturday's preseason game
Chicago Bulls star point guard Derrick Rose did not play in Saturday's preseason game against the Washington Wizards because of soreness in his surgically repaired left knee.
Rose developed the soreness during Friday's practice. The Bulls said the decision to hold him out of the game, which was played in Rio de Janeiro, was precautionary.
"We wanted to see where he was today, but he wasn't as well as we would have liked," coach Tom Thibodeau said. "He still had the soreness. So we anticipated giving him time off. We view our training camp as the entire month. So if he needs a day, or a couple of days, we'll do that."
Kirk Hinrich started at point guard in Rose's absence and finished with eight points and three assists in the Bulls' 83-81 win.
"It's more, I think, just a precaution. He's coming off a really big injury. We're not too worried," Hinrich said. "He's been good all camp, and I'm assuming everybody is expecting him to be ready.
"Coming back from a big injury like that, you don't want to push it too hard, too fast."
Rose missed all of last season after tearing the ACL in his left knee during the playoffs in April 2012. The former NBA MVP appeared in each of Chicago's first two preseason games this month, scoring 13 points while playing at least 20 minutes in each contest.
-ESPN/AP
Kerry Leaves Afghanistan
U.S. Secretary of State John Kerry left Afghanistan late Saturday after two days of talks with Afghan President Hamid Karzai.
The top U.S. diplomat and the Afghan leader said after their talks they were closer to an agreement on bilateral security, but differences remain over the question of immunity for U.S. troops.
The two officials commented in Kabul following extended talks on a possible U.S. presence in Afghanistan after the NATO-led military mission ends next year.
President Karzai said the question of which country had jurisdiction over any crimes committed by U.S. forces after 2014 would have to be resolved by the Afghan parliament and an assembly of elders.
Kerry said the U.S. could prosecute any wrongdoing by American forces.
The U.S. has been pushing for an agreement with Afghanistan by the end of this month.
The talks between Washington and Kabul have been in progress for over a year.
However, they have repeatedly stalled on issues of Afghan sovereignty, the expected role of U.S. forces, and Mr. Karzai's demand for American guarantees against future foreign intervention. If there is no agreement, U.S. forces will leave by the end of 2014.
Jamaica’s World Cup dreams end with 2-0 defeat to the US
Jamaica’s dream of qualifying for next year’s world cup in Brazil ended with a two-nil defeat against USA on Friday night.
Second half goals from Midfielder Graham Zusi and forward Jozy Altidore rocked Jamaica after both teams were tied nil all after an evenly contested first half at Sporting Park.
Jamaica pressed the attack in the opening minutes, dominating possession and pestering goalkeeper Tim Howard. But the Americans turned up the heat in the second half and finally broke through with 13 minutes left in the game. Zusi, a halftime substitute for Landon Donovan, delighted his hometown fans, cutting a low shot into the lower left corner off an assist from Alejandro Bedoya. Altidore sealed Jamaica's fate with an 81st-minute goal, easily finishing a left-footed shot into a wide open net after Edgar Castillo calmly crossed the ball in from the left side with a rolling pass just above the six-yard box.
Jamaica's best scoring threat actually came on the final shot of the game as Theo Robinson's close-range blast from the right side was batted away. It was another bitter defeat to the U.S. for Jamaica, which lost 2-1 on June 7 in Kingston when Brad Evans scored in second-half stoppage time.
The defeat means that Jamaica has now officially been eliminated from the FIFA World Cup Qualifying contention. The Reggae Boyz entered the game against the U.S. still mathematically in the running for a fourth-place playoff spot to face Oceania region winner New Zealand.
The US had already qualified for Brazil 2014, heading the CONCACAF table with 16 points while Jamaica sit at the bottom with a mere four points.
-CMC