10 things you need to know before European markets open

Good morning! Here’s what you need to know

UK inflation figures are coming. At 9:30 UK time (4:30 a.m. ET) the Office for National Statistics will release consumer price index (CPI) data for August, with analysts expecting that prices in the UK will not have grown at all.

The leaders of Greece’s top political parties won’t work together. In the final televised debate before Sunday’s national ballot, leftist Syriza party leader Alexis Tsipras and his conservative rival Vangelis Meimarakis said they would broadly honour the country’s bailout commitments while fighting to cushion their impact, but neither with serve with the other as Prime Minister.

Brazil announced a major austerity programme. Brazil announced a massive $US17 billion (£11.02 billion) austerity package Monday in a bid to revive confidence in its ailing economy amid a deepening crisis that has already caused a shock downgrade of its credit rating.

A bill to water down trade union rights in the UK passed its first hurdle. A bid to curb strike action cleared its first hurdle in Britain’s parliament on Monday, despite fierce criticism from opposition Labour party and its new leader Jeremy Corbyn.

Some emerging markets just want the Fed to get it over with and raise rates. Already hit by a commodities crash sparked by the slowing of China’s once-booming economy, the mere prospect of the US Federal Reserve raising interest rates — perhaps as soon as Thursday — has battered the emerging giants that were once the world’s top performers. Central bankers from Indonesia, Peru and India have all suggested the Fed should go ahead and get it over with.

But PIMCO thinks there’s a less than 50% chance they do it. Pacific Investment Management Co, one of the world’s largest asset managers and advised by former Federal Reserve chairman Ben Bernanke, puts a “below 50 per cent chance” the Fed will raise short-term interest rates this week, Pimco Group Chief Investment Officer Dan Ivascyn told Reuters on Monday.

Asian markets are mixed. China’s Shanghai Composite is down 2.2% and Hong Kong’s Hang Seng is down 0.18%, while the Nikkei is up 0.76%.

New Australian Prime Minister Malcolm Turnbull says he’ll focus on the economy. Australian prime minister elect Malcolm Turnbull promised to focus on improving the country’s faltering economy as the public woke up on Tuesday to its fourth leader in two years.

GM’s agreement with a major auto union has continued past its deadline. The current four-year hourly worker labour contract between General Motors Co and the United Auto Workers union was extended on Monday night beyond its midnight expiration, the company said.

Hong Kong’s leader has played down controversial comments from Beijing. Hong Kong leader Leung Chun-ying said on Tuesday some people had misunderstood controversial comments by Beijing’s top representative in the Chinese-ruled city that the chief executive was above the law.

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