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Good morning. Here’s what you need to know.
- Asian markets were mostly down in overnight trading, with the Hang Seng falling 1.36%, after the end-of-the-day sell-off in the U.S. and the downgrade of Spain and global banks. Europe is higher though, and U.S. futures opened sharply higher.
- European officials are working on a rescue plan that could include deeper losses for holders of Greek bonds, higher bank capital levels and increased power for the EFSF. Greek investors are bracing for a 60% loss on their investments. European leaders could complete the plan at the October 23 summit. Meanwhile, ECB Executive Board member Juergen Stark said Greece exiting the Euro is not an option.
- China’s inflation rate eased to 6.1% in September, down from 6.2% the previous month. Food inflation however held steady at 13.4%. Bank lending in September was at its lowest since 2009. Meanwhile, India’s wholesale-price index rose 9.72% from a year ago, after 9.78% rise in August. Inflation stayed above the 9% mark for the 10th consecutive month, and central bank governor Duvvuri Subbarao previously said that it would maintain its anti-inflationary stance. Now here’s what’s really going on in BRICS economies >
- Euro-area inflation rose to 3% in September, up from 2.5% the previous month. Inflation in the euro-area rose at its fastest pace in 3 years, pushed by energy costs.
- September import prices rose 0.3%, against expectations of a 0.5% decline. Meanwhile, retail sales crushed expectations growing 1.1% month-over-month >
- Google posted a Q3 profit of $2.73 billion or $8.33 a share, on revenue of $9.72 billion, beating expectations. Meanwhile it is reportedly getting closer to launching a music download store again, after its Google Music Beta was considered too limited. Also in the tech world: Apple’s iPhone 4S gets released today. Now here are nine questions we desperately want answered during earnings season >
- Consumer confidence for October fell to 57.5 from 59.4. Meanwhile, August business inventories increased 0.5% month-over-month >
- Brookfield Properties, owners of Zuccotti Park, have reportedly withdrawn their request to have NYPD clean-up the park. Occupy Wall Street protestors were preparing to block the park from a police incursion, at the risk of being arrested. Check out what they’re chanting at Occupy Wall Street >
- U.K. average home prices fell 0.3% from August to $343,000. Prices fell for the first time in three months. The housing market is struggling as banks restrict lending and inflation is picking up faster than wage growth.
- Fitch threatened downgrades across the global banking system after U.S. markets closed yesterday. The banks impacted by the ratings include Goldman Sachs, Barclays, BNP Paribas, Morgan Stanley, Societe Generale, Credit Suisse and Deutsche Bank. Meanwhile, S&P downgraded Spain’s long-term credit rating to AA- from AA, and affirmed its short-term rating of A-1+. Don’t Miss: European banks praying for the PIIGS to get saved >
- BONUS – Gisele Bundchen and Tom Brady are selling their Boston penthouse for $10.5 million.