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Good morning. Here’s what you need to know:
- Asian markets were mostly higher in overnight trading, with the Nikkei up 1.47%. European markets are slightly higher, and U.S. futures suggest a positive open. Now see 10 Unusual Stocks Attracting Huge Interest In The Pre-Market Right Now >
- The ISM non-manufacturing index is released at 10 AM ET. Consensus is for a 52. Follow up to the minute coverage of the release at Money Game >
- The Bank of Japan has expanded its quantitative easing program to include ETFs and REITs as well as other assets. The impact on the yen has been muted, but gold has risen sharply on the news.
- AIG’s IPO of its Asian division, AIA, may reach a $20.5 billion valuation. The deal has been structured in such a way that, if demand is higher than expected, more stock will be offered. Check out 12 snapshots of China’s wild IPO market >
- The European Union is pushing China to allow the yuan to appreciate as the region suffers in the international currency devaluation war. The EU is concerned that its goods are becoming less competitive globally as a result of China’s currency stance.
- A U.S. attack along the Pakistan-Afghanistan border has killed 5 German citizens training with Al Qaeda. The individuals are believed linked with the recent terror plot to strike European capitals. Here are the threats the U.S. Air Force is really worried about >
- Eurozone PMI data for the region’s services sector hit 54.1 in September. This number is below previous months, but indicates the eurozone recovery is continuing. The euro rose on the news against other currencies. Here’s why it may be time to be bullish on Europe >
- Jerome Kerviel, the Societe Generale trader, has been convicted on charges associated with his trading activities at the bank and sentenced to 3 years in prison. Kerviel cost the bank nearly €5 billion, and he now has to pay €4.9 billion for his actions.
- Ireland may be in for yet another ratings cut, this time from Moody’s, as it suggests the country’s debt rating is continuing to deteriorate. The agency cites the bank bailouts, declining economic conditions, and the increase in costs for the country to borrow as reasons for a downgrade. Check out how Ireland got into this bailout mess >
- Brazil is increasing its tax on foreign fixed income investment to 4% in an effort to stem the flow of capital into the country. This is a sharp increase from the previous 2% tax and is intended to stop the rise in the value of the real.
- Bonus: The woman accused of cheating with David Beckham, Sherry Shabani, says Victoria Beckham should no believe the allegations as Shabani’s husband, the accuser, is a “lunatic.”