Good morning! Here’s what you need to know.
European PMIs are coming. From 8 a.m. London time (3 a.m. ET) European flash purchasing managers’ index (PMI) results for August will be released. These business surveys give an indication of the performance of an economy in a given month, with a score over 50 signalling growth. Analysts expect Europe to have cooled slightly, with a PMI of 53.9 falling to 53.8.
GfK German consumer confidence figures for the September survey are just out, and they’re a miss. The survey came in with a score of 9.9, lower than the 10.1 analysts expected. In the August survey (conducted in late July), the reading hit 10.1, following June’s 10.2, the highest recorded in 15 years.
Tension between North and South Korea spiked after an exchange of fire. North Korean leader Kim Jong-un ordered his frontline troops onto a war-footing today, as military tensions with South Korea soared following a rare exchange of artillery shells across their heavily fortified border.
Greece’s election is definitely coming. After reports by a number of outlets on Thursday, Prime Minister Alexis Tsipras confirmed his resignation yesterday evening. That will soon mean an election is called, probably for September 20.
China’s factory activity hit a six and a half year low in August, according to a business survey. Activity in China’s factory sector shrank at its fastest pace in almost 6-1/2 years in August as domestic and export demand dwindled, a private survey showed, adding to worries that the world’s second-largest economy may be slowing sharply. The preliminary Caixin/Markit China Manufacturing Purchasing Managers’ Index (PMI) stood at 47.1 in August, well below a Reuters poll median of 47.7 and down from July’s final 47.8.
Asian markets are slumping. As of 6:45 a.m. London time (1:15 a.m. ET), Hong Kong’s Hang Seng is down 2.27%, Japan’s Nikkei is down 2.78% and the Shanghai Composite is down 2.95%.
Oil prices are about to have their longest losing streak for 29 years. Oil prices resumed their downward trend on Friday pulled lower by weaker global stock markets and a sharp contraction in China’s manufacturing activity, with the US benchmark on track for its longest weekly losing streak since 1986.
A former Brazilian president has been charged with corruption. Former Brazilian president Fernando Collor de Mello was charged Thursday in connection with the huge Petrobras corruption scandal. The Supreme Court, which will consider the case, confirmed that the charges had been filed. But no details were provided.
Toyota is buying 13 million air bag inflators from a Takata rival. Toyota, seeking to reduce its risk from potentially lethal Takata Corp air-bag inflators, will buy millions of the component from smaller parts maker Nippon Kayaku, people familiar with the matter said.
HP layoffs will exceed 55,000 people. HP’s CFO Cathie Lesjak says the company will cut up to an additional 5% more people from its workforce than the 55,000 people it had planned to eliminate. This is a long-running layoff that began in 2012 with an initial target of 25,000 jobs, but grew until the target became 55,000 people.
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