Good morning! Here’s what you need to know.
UK retail sales are coming. At 9:30 a.m. London time (4:30 a.m. ET) we’ll get July’s retail sales figures for the UK. Analysts are expecting a 0.4% rise month-on-month and a 4.4% boost year-on-year.
Hong Kong stocks are officially in a bear market. After falling by a further 1.65% this morning, Hong Kong’s Hang Seng index has now fallen over 20% from its April 27 high of 28,558.
Other Asian markets are suffering too. The Shanghai Composite is down 1.63% and Japan’s Nikkei is down 0.73%.
Federal Reserve meeting minutes leaked. After details the Minutes were released by accident by Bloomberg, they indicated that the Fed is still looking to have more confidence in the inflation outlook before raising rates, but saw conditions for a rate hike approaching.
Citi cut its growth forecasts for China, and expects Beijing to do the same. The bank’s economics team now expects China’s economy to grow by 6.3% in 2016, down from 6.7% seen previously. For 2017, growth is forecast to accelerate to 6.5%, although this is significantly below the 7.1% pace previously forecast by the bank.
Fed rate-setter Kocherlakota is floating the idea of a higher US inflation target. Minneapolis Fed President Narayana Kocherlakota floated the possibility of increasing the Federal Reserve’s inflation target as a way to reduce financial stability risks and make it easier for the Fed to achieve price stability and full employment.
A large car bomb went off at an Egyptian state security building. At least six people were wounded early on Thursday in a car bombing near a state security building and courthouse in a Cairo suburb, security sources said. The sources, who inspected the site of the blast in Shubra al-Khaima, said there was a burned-out vehicle and crater.
Valeant is nearing a deal for the company that’s created a “female viagra.” Canada’s Valeant Pharmaceuticals International Inc is nearing a deal to pay $US1 billion £637 million for Sprout Pharmaceuticals, the company that just won approval to sell the first drug that aims to boost a woman’s libido, the Wall Street Journal reported.
Brazil’s senate passed Rousseff’s austerity bill. Brazil’s Senate approved a bill to roll back payroll tax breaks on Wednesday that is a key measure in President Dilma Rousseff’s efforts to reduce a gaping fiscal deficit and restore confidence in her government’s accounts.
BNY Mellon is getting sued for $US2 billion (£1.28 billion) by a US regulator. A US regulator sued Bank of New York Mellon Corp on Wednesday over more than $US2 billion (£1.28 billion) in mortgage-backed securities purchased by a failed Texas bank, claiming BNY Mellon breached its duties as bond trustee to protect investors.