Good morning. Here’s what you need to know.
- rumours that Eurozone members couldn’t agree on a haircut for private creditors caused yesterday’s rally to fade. Asian markets were mixed in overnight trading, with the Shanghai Composite down nearly 1%. Europe is mixed and U.S. futures are moderately higher.
- The troika consisting of the EU, IMF and European Central Bank will go to Greece tomorrow for more austerity inspections. The EU announced another Eurogroup meeting in October that would focus on Greece and is expected to make another announcement later in the day. Markets moved up on the news. Now here’s who will get crushed if Greece defaults >
- Seven of 17 Eurozone members are demanding that private creditors take bigger haircuts on their Greek bond holdings. Germany and the Netherlands expect private creditors to take a hit, while France and the ECB are against such a move since they anticipate another huge sell-off in European banks, instead they want a bigger bailout. Don’t Miss: 11 rumours that have kept markets cartwheeling for weeks >
- The EU has proposed a financial transaction tax that would set minimum tax rates for financial transactions in all 27-countries, but would insulate households and small businesses from the tax. It would become effective in 2014 and raise €57 billion a year. The proposal will be reviewed again, before being presented to G20 nations in November.
- Fed. Reserve chairman Ben Bernanke is speaking at 5 PM ET today, at the Cleveland Clinic Ideas for Tomorrow speaker series. He will speak on “lessons from emerging market economies on sources of sustained growth.” There will be a press conference after, and markets could expect an announcement.
- French President Nicolas Sarkozy presented a 2012 budget that kept spending the same as 2011, as higher debt and pension charges are adding pressure to the country’s deficit. The deficit in 2012 will be €81.8 billion, down from €95.5 billion in 2011.
- A pair of polls from Quinnipiac University have turned disastrous for President Obama, showing that he is tied with Texas Gov. Rick Perry and former Massachusetts Gov. Mitt Romney in Ohio. And in Pennsylvania, President Obama only has a slight lead over Perry. The poll also revealed that a majority of voters in both states don’t believe Obama deserves another term. Check out the 14 most corrupt members of Congress >
- Ford’s profits and CEO Alan Mulally’s $26.5 million pay package have stirred resentment amongst its factory workers, which has reportedly complicated contract negotiations. Workers are angry that the company is trying to cut labour costs after nine profitable quarters.
- Amazon is revealing its 7-inch Kindle Fire tablet in New York city today, and at $249 it’s expected to become an instant hit. It is also expected to announce a new tablet next year.
- Durable goods orders for August fell 0.1% after rising 4.1% in July >
- BONUS – Penelope Cruz and husband Javier Bardem were spotted on a boat in Croatian waters as she filmed Venuto al Mondo.
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