Good morning. Here’s what you need to know.
- Asian markets were up in overnight trading with the Bombay Stock Exchange up 2.79%. Europe is moderately higher, and U.S. futures opened higher after the jobs report.
- The European Commission is expected outline how countries should recapitalize banks next week. Germany and France disagree on how the EFSF should be used, with German Chancellor Angela Merkel thinking of them as a measure of last resort. Meanwhile, Merkel and French president Nicolas Sarkozy are meeting this weekend for their eighth bilateral summit in the past 20 months. Don’t Miss: The 13 banks with the most exposure to the PIIGS >
- Moody’s downgraded debt and deposit ratings of a dozen UK banks. Government controlled Royal Bank of Scotland was downgraded by two notches to A2, and Lloyds TSK Bank was downgraded one notch, to A1. Moody’s said the downgrades came on concerns that government would be unlikely to support the banks if they needed more capital. Check out the 16 strongest banks in the world >
- September non-farm payrolls added 103,000 jobs against expectations for 60,000 jobs. Unemployment rate held steady at 9.1% but U6 jumped to 16.5% >
- The Canadian jobs report blew past expectations this morning. The country added 60,900 jobs, against the 15,000 expected, and the unemployment rate fell from 7.3% to 7.1%. Now check out 10 charts on the labour situation in America >
- German industrial production fell 1% in August from July, when it surged 3.9%. The decline was at a slower pace than expected. Production of consumer goods fell 4.9% and construction activity slid 1.2%.
- UK factory output prices rose 0.3% from August, while input prices rose 1.7%, because of an increase in crude oil prices. Output prices rose as firms tried to protect their profits from a surge in costs of raw material over the year.
- The Bank of Japan voted unanimously to keep its overnight lending rate between zero and 0.1%. It also left Japan’s $652 billion credit and asset-buying program unchanged, but extended a loan program in areas impacted by the earthquake earlier this year. Don’t Miss: The 10 worst central bankers in the world >
- Sony Corp. is in talks to buy Ericsson’s stake in their 50-50 mobile phone joint venture. The deal could reach $1.3 billion and Sony hopes to regain ground it lost to Apple and Samsung.
- Consumer credit report for August will be released at 3 PM ET. Consensus is for $8 billion month-over-month advance in consumer credit. Follow the release at Money Game >
- BONUS – Blake Lively is rumoured to be dating co-star Ryan Reynolds after splitting with Leonardo DiCaprio.