1. Goldman Sachs to pay $5 billion in risky mortgages settlement
Goldman Sachs has agreed to pay $5 billion to settle claims that it misled investors about residential mortgage-backed securities between 2007 and 2009, the Justice Department said Monday. The deal requires the investment bank to pay about $2.4 billion in civil penalties, and $1.8 billion to homeowners and other borrowers hit hard by the housing crisis. "We are pleased to put these legacy matters behind us," a Goldman spokesman said.
2. Fitch downgrades Saudi Arabia over low oil prices
Fitch Ratings downgraded Saudi Arabia's default rating from AA to AA- on Tuesday as low oil prices dampened the oil-rich kingdom's financial prospects. The major reason for the downgrade was Fitch's lowering of its assumptions for oil prices this year and next, from $45 a barrel down to $35 a barrel. The lower oil prices have "major negative implications" for Saudi Arabia's budget and trade balances. Fitch also gave the country a negative outlook, meaning further downgrades are possible.
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3. Stocks shake off Alcoa's lackluster earnings-season kick-off
U.S. stock futures pointed to a slightly higher open on Tuesday, as a jump in oil prices helped investors shake off a tough start to earnings season. On Monday, the three U.S. benchmark stock indexes lost earlier gains late in the day before aluminum giant Alcoa's closely watched quarterly earnings report started the season on a disappointing note, with a 92 percent drop in profit. Its shares dropped 4 percent in Tuesday pre-market trading. The earnings season kick-off came as President Obama and Federal Reserve Chairwoman Janet Yellen met in the Oval Office to discuss the health of the economy.
4. Texas attorney general charged with securities fraud
The U.S. Securities and Exchange Commission on Monday filed civil fraud charges against Texas Attorney General Ken Paxton on charges of defrauding wealthy high-tech start-up investors. Paxton is accused of helping Severgy Inc. raise $840,000, and failing to tell investors he was being compensated with stock. Paxton's attorney, Bill Mateja, said his client "vehemently denies" he did anything wrong. Paxton, a Republican, says he will plead not guilty, and won't resign.
5. Peru stocks rise as two pro-business candidates make presidential run-off
Two pro-business candidates appeared headed for a run-off in Peru's presidential election with two-thirds of the ballots counted on Monday. Keiko Fujimori, the conservative daughter of jailed former President Alberto Fujimori, led all candidates with 39 percent of the vote, with former World Bank economist Pedro Pablo Kuczynski in second with 24 percent. The strong showing by free-market candidates sent Peru's select stock index soaring by more than 10 percent, its biggest one-day gain since 2008.
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Political cartoons for December 13Cartoons Saturday's political cartoons include saving healthcare, the affordability crisis, and more
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Farage’s £9m windfall: will it smooth his path to power?In Depth The record donation has come amidst rumours of collaboration with the Conservatives and allegations of racism in Farage's school days
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The issue dividing Israel: ultra-Orthodox draft dodgersIn the Spotlight A new bill has solidified the community’s ‘draft evasion’ stance, with this issue becoming the country’s ‘greatest internal security threat’
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Femicide: Italy’s newest crimeThe Explainer Landmark law to criminalise murder of a woman as an ‘act of hatred’ or ‘subjugation’ but critics say Italy is still deeply patriarchal
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Brazil’s Bolsonaro behind bars after appeals run outSpeed Read He will serve 27 years in prison
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Americans traveling abroad face renewed criticism in the Trump eraThe Explainer Some of Trump’s behavior has Americans being questioned
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Nigeria confused by Trump invasion threatSpeed Read Trump has claimed the country is persecuting Christians
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Sanae Takaichi: Japan’s Iron Lady set to be the country’s first woman prime ministerIn the Spotlight Takaichi is a member of Japan’s conservative, nationalist Liberal Democratic Party
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Russia is ‘helping China’ prepare for an invasion of TaiwanIn the Spotlight Russia is reportedly allowing China access to military training
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Interpol arrests hundreds in Africa-wide sextortion crackdownIN THE SPOTLIGHT A series of stings disrupts major cybercrime operations as law enforcement estimates millions in losses from schemes designed to prey on lonely users
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China is silently expanding its influence in American citiesUnder the Radar New York City and San Francisco, among others, have reportedly been targeted
