Good morning. Here’s what you need to know.
- Asian markets were lower in overnight trading with the Nikkei falling 2.17%. Europe is higher and U.S. futures have opened higher.
- Talks between IMF and Eurozone officials are slowly leading to the creation of a rescue plan. It is expected to involve a 50% write-down of government debt and the eurozone bailout fund is expected to increase to €2 trillion. The plan could be finalised in five – six weeks. Meanwhile, German chancellor Angela Merkel has said euro-region leaders need to create a barrier around Greece to shelter the eurozone. Check out the complete guide to eurozone government debt burdens >
- As the eurozone debt crisis continues, there are mixed messages from the ECB about a possible rate cut. First, Bank of America said the ECB was planning a 50 bps rate cut on October 5, but the rumour was denied by ECB member Yves Mersch. ECB governing council member Ewald Nowotny however said talks of an interest rate cut can not be excluded.
- German business confidence fell less than expected to 107.5 in September, from 108.7 in August. Momentum in Europe’s biggest economy is slowing, as the number dropped for the third consecutive month and is at its lowest since June 2010. Don’t Miss: The 15 most bizarre economic indicators >
- Italian consumer confidence for September fell to 98.5 from 100.3 the previous month, and is at its lowest level in more than three years. This comes after prime minister Silvio Berlusconi pushed through two rounds of deficit cuts since July, to the tune of €100 billion.
- New home sales for August came in line with expectations at 295K seasonally adjusted annual rate >
- In commodities news, gold crashed to $1,532 an ounce before bouncing back and silver declined 16% to $26.07 an ounce, its lowest price since November.
- In tech news, Apple has cut its Q4 iPad orders from its Asian supply chain partners by 25% according to JP Morgan. Meanwhile, Netflix has signed a deal with Dreamworks to stream movies and television specials, and is expected to pay $30 million per movie. Now here are 15 stocks that everyone is shorting >
- UBS CEO Oswald Gruebel resigned Saturday after the board failed to back his plan to overhaul the bank’s strategy and corporate governance. This comes amidst the rogue trading scandal that cost the bank $2.3 billion. Europe head Sergio Ermotti will be stepping in as interim CEO.
- Boeing delivered its first revolutionary 787 Dreamliner yesterday which had already been three years behind schedule. The company has 821 orders for the aircraft in all. Meanwhile, Lockheed Martin, Boeing and Eurofighter have all submitted bids to supply Japan with fighter jets in a deal that could cost up to $4 billion.
- BONUS – Molly Sims married Hollywood film producer Scott Stuber in Napa valley yesterday.
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