Good morning! Here’s what you need to know.
Deutsche Bank announced a massive write-down. The bank said it expects a third-quarter loss of 6.2 billion euros ($US6.96 billion). The board will recommend a cut to, and a possible elimination of, the dividend for the full year of 2015. The bulk of the write-down is based on goodwill impairments driven by the effects of regulation on the bank.
And it fell by 6.5% in after-hours trading. Investors took the news badly, and the stock fell by as much as 7% in New York after-hours trading. A similar slump is likely to come when markets open in Europe.
Volkswagen’s top US exec learned about its emissions scandal in 2014. Volkswagen’s top U.S.-based executive Michael Horn is expected to testify before Congress Thursday that he first learned in 2014 of emissions problems with the German automaker’s four-cylinder diesel cars.
Dell has entered massive merger talks. Dell is in talks to merge with $US50 billion storage giant EMC, The Wall Street Journal reports, citing anonymous sources. It’s unclear if this would be a full merger or if Dell would just buy parts of EMC’s business. Either way, it would be a huge deal between two of tech’s biggest companies.
Morgan Stanley has gone bullish on big mining companies. Morgan Stanley thinks it’s time to buy mining giants BHP and Rio Tinto. So far, 2015 has been a year to forget for the mining giants, as commodity prices have tumbled and concerns have mounted about what exactly is going on in China. BHP and Rio have lost 9% and 10% respectively in response. But Morgan Stanley thinks they’re now good value.
The French and German leaders called for unity in the face of existential crises for the European Union. German Chancellor Angela Merkel and France’s Francois Hollande, in a rare joint address to the European Parliament, called for unity across the continent to tackle the refugee crisis, sluggish economic growth, a shaken single currency, and confrontations with Russia and Islamic State.
The Bank of England interest rate decision is coming at 12 p.m. UK time (7 a.m. ET). The BOE’s base rate has been stuck at 0.5% since 2009 and is very unlikely to shift this month. Central bank watchers will be looking to see if the number of dissenting voices on the nine-member monetary policy committee changes from last month. The analyst consensus is that the MPC will vote 8-1 to keep the rate at 0.5%.
Portugal is facing political stalemate. The Communist party is ready to support a government led by the center-left Socialists, it’s leader said. The Communists’ stance could further complicate efforts by Portugal’s outgoing center-right administration in forming a new government after it won the most votes, but lost its majority in parliament, at an election on Sunday.
The Brazilian President is facing a crisis. Dilma Rousseff failed to get enough support in Congress for a vote on public spending despite a cabinet reshuffle last week aimed at bolstering her support. “It’s as if the government has ceased to exist,” said congressman Pauderney Avelino of the opposition Democrats party.
Amazon is considering creating its own online TV service. The company is said to have reached out to CBS and NBC Universal about including their channels. The talks are currently in preliminary stages, according to a Bloomberg report.