The IMF says the risks to the global financial system have subsided as a result of unprecedented policy actions and, more recently, a nascent global economic recovery, according to the latest Global Financial Stability Report (GFSR), which has been published today to coincide with the annual meetings of  the IMF (International Monetary Fund) and the World Bank. in Istanbul, Turkey. The Fund says rising global securities prices have cut its estimate of bank losses, but banks around the world — particularly in Europe — still are likely to face additional writedowns of $1.5 trillion by the end of 2010.

Principal news stories from the Irish Independent, Irish Times, Irish Examiner, Financial Times and New York Times.

German citizens put health care second only to the economy and jobs as a priority for government, ahead of education, the environment and crime in a poll carried out for the Economist Intelligence Unit before last Sunday’s election. Despite Germany’s relatively strong performance on various health indicators, just 38 per cent of Germans felt positive about the care they would receive if ill, far fewer than the other countries surveyed. After a deadlocked result four years ago, German voters remain split but there is a prospect of some change.

Latest data signalled that growth of the Chinese manufacturing sector was maintained in September. The headline HSBC China Manufacturing PMI (Purchasing Managers’ Index)  remained broadly unchanged from a month earlier, registering 55.0 after adjusting for seasonal factors, and has now remained above the neutral level of 50.0 for six consecutive months.

Japan’s factory output rose for the sixth straight month in August as stimulus measures across the world boosted global demand. Industrial production in the world’s second largest economy increased 1.8 per cent from July and “continues to show an upward movement,” the government said Wednesday. Also today, thee seasonally adjusted headline Nomura/JMMA Purchasing Managers’ Index (PMI) remained above the neutral level of 50.0 for the third successive month in September, posting 54.5, pointing to the most marked improvement in operating conditions in the Japanese manufacturing sector for three years.

Public opposition threatens to crush President Obama’s US health care reforms and wound his presidency, because his plans would do more harm than good.

Markets news on stocks, currencies and oil: Wednesday is the first anniversary of the State guarantee of all the debts and deposits of Irish banks and building societies. Anglo Irish had already received  several billion euros worth of short-term secret loans during September 2008 from Irish Life & Permanent and within hours of the agreement on the State guarantee,  IL&P gave a loan of €4 billion to Anglo - - which helped the latter to massage its accounting figures, on the last day of its financial year.

The US Conference Board Consumer Confidence Index, which had improved in August, posted a surprise dip in September. The Index now stands at 53.1 (1985=100), down from 54.5 in August. The Present Situation Index decreased to 22.7 from 25.4. The Expectations Index declined to 73.3 from 73.8 last month.

US S&P/Case-Shiller Home Price Indices: Data through July 2009, released today show that, although still negative, the annual rate of decline of the 10-City and 20-City Composites improved compared to last month’s outcomes. This marks approximately six months of improved results in these statistics, beginning in early 2009. Prices in the 12 -months to July are down -31.4% in Las Vegas; -28.5% in Phoenix and -24.6% in Detroit. On average, prices are back to 2003 levels.

Markets news on stocks, currencies and commodities; UK recession eased in Q2 2009 and  gross domestic product (GDP) in volume terms fell by 0.6% compared with the previous quarter, revised from a fall of 0.7% published last month, according to a report today from the Office for National Statistics.