Summit Hotel Properties' sale of 10 hotels to American Realty Capital Hospitality Portfolio SMT has fallen through, according to a regulatory filing. The transaction was one of the tranches in the $350 million sale of 26 hotels.
Japan's gross domestic product contracted by an annualized 1.6% in the third quarter, following a 7.3% contraction in the second quarter. Prime Minister Shinzo Abe is expected to put off an additional increase in the sales tax and call for an election.
Federal Reserve Chairman Ben Bernanke said Wednesday at a town hall meeting for teachers that during his tenure, the Fed has become more open about discussing its policy decisions with the public. "The complex challenges we face as a nation are best addressed in an environment of informed public discourse, which is only possible when policy decisions are made in as transparent a way as possible," said Bernanke, who is set to step down from the post in January.
In light of uneven economic performance and hard-to-interpret data due to the recent U.S. government shutdown, the Federal Reserve would be well advised to maintain its easy-money policy into the new year, two Fed officials said. "Even though the economy is growing, and we're making progress on unemployment, there are real concerns about whether the recent modest pace of GDP is enough to maintain employment momentum," said one of the officials, Dennis Lockhart, president of the Federal Reserve Bank of Atlanta.
A hypothetical 40.5% decline in Asian emerging-market equities is part of a scenario the U.S. Federal Reserve will use to test the resilience of six leading U.S. banks deemed systemically vital. The test also includes a 29.4% plunge in U.S. stocks and envisions high volatility in foreign-exchange markets, sovereign credit, private equity portfolios and commodities as well as 11.25% unemployment and a 25% drop in housing prices.