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Good morning. Here’s what you need to know.
- Asian indices were mostly up in overnight trading with the Bombay Stock Exchange up 3.58%. Europe is trading up and U.S. futures opened higher.
- China has increased its reserve requirements in a move to control liquidity and inflation. New reserve requirements are expected to remove $140 billion from the banking system over the next six months. The Shanghai Composite fell 1.37%. Now here are 18 facts about China that will blow your mind >
- Over the weekend European officials criticised Christine Lagarde for her ‘confused and misguided’ attack on the health of Europe’s banks. Lagarde had called for an “urgent recapitalization” of Europe’s weakest lenders. Meanwhile, ECB president Jean-Claude Trichet and Euro Group president Jean-Claude Juncker and EU ‘s Olli Rehn are testifying in front of the EU parliament today, over the euro area debt crisis. Check out the most miserable countries in Europe >
- UK home prices fell for a fourth month in August, with the average cost of a home falling 0.1% from July, and down 3.7% from a year ago. Demand for homes is expected to fall further this year because of pressure on household incomes and weak consumer sentiment.
- Pending home sales index for July declined a larger-than-expected 1.3%. Personal income in August rose 0.3%, in line with expectations, while spending was up 0.8% beating expectations >
- Anglo Irish sold its $9.5 billion pool of U.S. commercial real estate loans to Wells Fargo & Co., JPMorgan Chase & Co. and Lone Star Funds. The sale attracted over two dozen buyers and the total price paid for the loans was between $7 billion – $8 billion.
- Japan’s finance minister Yoshihiko Noda was chosen to become Japan’s new prime minister today. Democratic Party of Japan lawmakers voted 215 to 177 in favour of Noda who beat trade minister Banri Kaieda. Noda will be Japan’s sixth prime minister in five years.
- Italy will raise money in the bond market this week without support from the European Central Bank which has been buying Italian debt for three weeks. Italy will try to raise €3.75 billion of 10-year securities and €4.25 billion of bonds that mature in 2014 and 2018. Don’t miss: The sad story of how Italy got to be such a wreck >
- Two Greek banks, Eurobank Ergasias and Alpha Bank, will consolidate in order to tackle funding and debt challenges, and avoid borrowing from the emergency liquidity assistance the Bank of Greece made available last week. The two banks will also receive a capital injection from the Qatar Investment Authority.
- Hurricane Irene was downgraded to a tropical-storm but left parts of the east coast devastated. It has already killed 21 victims in eight states, and left millions without power and is expected to move to Canada today.
- BONUS – Beyonce Knowles is pregnant with her first child.