The Traderszone Network

Total consumer credit rose $13.5 billion to $3.25 trillion in August, the Federal Reserve said on Tuesday. Economists polled by Reuters had expected consumer credit to increase $20 billion in August. The weak reading could bolster the view that economic growth downshifted in the third quarter from the pace clocked in the prior three months. The slowdown in credit growth in August was due primarily to a $207.5 million drop in revolving credit, which mostly measures credit card use.

Goldman Sachs has been ordered to pay the Libyan Investment Authority (LIA) 200,000 pounds ($321,820) in legal costs as part of a lawsuit brought by the fund over $1 billion in trades that ended up worthless. The LIA filed the suit against Goldman in London’s High Court in January, alleging the Wall Street investment bank exploited a position of trust by encouraging the fund to invest in a series of equity derivatives trades that expired as worthless in 2011. Goldman has called the case without merit and said that it intends to contest it vigorously.

Actavis Plc plans to approach Allergan Inc again about a potential merger, as the Botox maker warms up to the possibility of a sale, people familiar with the matter said on Tuesday. Allergan, which has …

The world’s largest retailer said it would raise health insurance premiums for its entire U.S. In addition, Wal-Mart will end coverage for employees who work fewer than 30 hours a week, a change that will impact 2 percent of U.S. Starting then, companies with 50 or more employees will have to offer health insurance to those working at least 30 hours a week, a mandate that has drawn criticism from some companies worried about higher costs. Wal-Mart, which announced the change in a blogpost on Tuesday, had cited health care expenses as a problem in August, when it cut its 2014 profit forecast.

Growth in China’s services sector weakened slightly in September as new business cooled, a private survey showed on Wednesday, reinforcing signs of a slowdown in the world’s second-largest economy that could prompt more stimulus measures. “Overall, the services sector held up in September, despite the downward pressure seen in the manufacturing sector. We think risks to growth in the near term are still on the downside, and warrant accommodative monetary as well as fiscal policies,” said Qu Hongbin, chief China economist at HSBC.

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A much-needed pruning of banks across the world could stifle lending and dampen economic recovery, the International Monetary Fund said on Wednesday. To boost profits, banks need to raise prices in certain business lines, pull out of others altogether, and put their money where it yielded more, the Fund said. After the devastating 2007-09 financial crisis, regulators across the world have forced banks to raise more shareholder equity as a buffer against losses, and to pull out of the riskiest investments and loans.

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Eighteen banks, ranging from Credit Suisse Group AG (CSGN.VX) to Goldman Sachs Group Inc (GS.N), have agreed to give up the right to “close out” deals on derivatives contracts if a financial institution runs into trouble, the newspaper said, citing people familiar with the matter. The International Swaps and Derivatives Association (ISDA), the body leading the negotiations with regulators on behalf of the industry, said last month that a contractual solution for a temporary stay on derivatives “close outs” was progressing well.

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