REUTERS/Rick WilkingA stuffed teddy bear chair lies slumped over in the flooded Eastwood Village in Evans, Colorado September 23, 2013.
Good morning. Here’s what you need to know.
- Markets in Asia were lower in overnight trading. The Japanese Nikkei 225 fell 0.1%, the Hong Kong Hang Seng gave up 0.8%, and the Shanghai Composite dropped 0.6%. European markets are rising, with the French CAC 40 and Italian FTSE MIB currently leading the way, both up 0.5%. In the United States, futures point to a flat open.
- Data from China’s National Energy Administration revealed that Chinese industrial power consumption grew 12% year over year in August, up from July’s 8.1% rise. Heavy industrial power consumption rose 13.1% year over year in August, up from 7.7% in July, while light industrial power consumption growth fell to 6.8% year over year from 10% in July. “We attribute industrial power consumption growth in August to higher temperatures,” say KGI analysts. “Another factor was that the manufacturing sector’s power consumption began to rebound from the bottom in July on economic recovery.”
- The headline index of the German IFO Business Climate sentiment survey ticked up to 107.7 in September from 107.6 the month before, but failed to reach consensus estimates for a larger gain to 108.0. The current assessment sub-index unexpectedly fell to 111.4 from 112.0, missing estimates for a gain to 112.5, but the expectations sub-index rose to 104.2 from 103.3, beating estimates for a smaller advance to 104.0. “Despite the small disappointment this is the fifth consecutive improvement of the ifo index and the highest level since April 2012,” say Deutsche Bank economists.
- Chrysler Group has filed for an IPO. JPMorgan is the lead underwriter, according to the prospectus, and the offering will see the UAW’s VEBA Trust cash out on its 41.5% stake in the company. Italian automaker Fiat, which owns the other 58.5%, would like to make Chrysler a wholly-owned subsidiary.
- Citi announced layoffs of 1000 workers in its mortgage unit, mostly in Texas and Las Vegas. “In response to decreased demand for mortgage originations and refinancing, CitiMortgage is eliminating some positions,” said a spokesman in a statement. “These actions reflect our ongoing efforts to increase operation efficiency, adapt to changes in the marketplace, and position the business for the future.”
- Out at 9 AM ET is the S&P/Case-Shiller 20-City Home Price Index. Economists predict the index advanced 0.8% from the previous month in July, bringing annual appreciation to 12.4%, after rising 0.89% (12.07% year over year) in June.
- Also released at 9 is the FHFA House Price Index. Economists expect that measure of prices to have risen 0.8% in July after advancing 0.7% in June.
- The results of the Conference Board’s monthly consumer confidence survey are released at 10 AM. Economists predict the headline index of confidence fell to 80.0 in September from 81.5 in August, indicating a slight decrease in consumer confidence.
- The Richmond Fed’s monthly report on regional manufacturing is also out at 10 AM. Economists expect the headline index to fall to 12 from August’s 14 reading, indicating a continued expansion in regional business conditions in September, albeit at a slower pace than in August. Follow all of the data LIVE on Business Insider »
- This week’s loaded Fedspeak calendar continues today with speeches from two Fed presidents: Sandra Pianalto of the Cleveland Fed, who speaks at the Chicago Fed’s Payments Symposium at 9:30 AM, and Esther George of the Kansas City Fed, who at 1 PM will give an introduction to a keynote speech by Boston Consulting Group’s Carl Rutstein at the same event.