10 Things You Need To Know This Morning

Fighter jetsREUTERS/Sergei KarpukhinSukhoi Su-27 jet fighters release flares as they perform during the ‘Russia Arms Expo 2013’ 9th international exhibition of arms, military equipment and ammunition, in the Urals city of Nizhny Tagil, September 25, 2013.

Good morning. Here’s what you need to know.

  • Markets in Asia were mixed in overnight trading. The Japanese Nikkei 225 rose 1.2%, the Hong Kong Hang Seng fell 0.4%, and the Shanghai Composite fell 1.9%. European markets are in the red across the board, led lower by Italy, currently down 1.7%. In the United States, futures point to a positive open.
  • British GDP rose 0.7% in Q2 according to the final reading, in line with previous estimates. The Q2 expansion marks the fastest pace of growth in three years. Business investment, however, unexpectedly plunged 2.7%. The previous estimate of Q2 GDP showed a 0.9% rise in business investment.
  • Barclays plans to shutter its wealth management business in about 130 countries by 2016 in a plan to cut costs at the U.K. investment bank. “This is part of our new strategy, focusing on reducing complexity and competing where we can win,” a Barclays spokesman said.
  • Japanese Prime Minister Shinzo Abe attempted to reassure investors of his economic turnaround plan, saying in a speech that referred repeatedly to fictional character Gordon Gekko from the movie Wall Street, “Today, I have come to tell you that Japan will once again be a country where there is money to be made, and that just as Gordon Gekko made a comeback in the financial world… so too can we now say that ‘Japan is Back’.”
  • The final estimate of Q2 U.S. GDP growth is released at 8:30 AM ET. Economists predict the report will reveal that the American economy grew 2.6% annualized in Q2, better than the previous 2.5% estimate. Q2 personal consumption growth is expected to clock in at 1.9%, up slightly from the previous 1.8% estimate, and core PCE is expected to be unchanged at 0.8%.
  • Weekly jobless claims figures are also out at 8:30. Economists predict initial claims rose to 325,000 in the week ended September 20 from 309,000 in the previous week. Continuing claims in the week ended September 13 are expected to have risen to 2.818 million from 2.787 million the week before.
  • August pending home sales data are released at 10 AM. Economists predict sales fell 1.0% last month after a 1.3% drop in July, bringing the year-over-year growth rate down to 6.3% from 8.6%.
  • Rounding out the data is the Kansas City Fed’s monthly report on regional manufacturing, due out at 11 AM. Economists expect the headline index remained unchanged at 8 in September, suggesting a continued expansion of business activity in the region. Follow all of the data LIVE on Business Insider »
  • At 10:10 AM, Fed governor Jeremy Stein gives a speech titled: “Yield-Oriented Investors and the Monetary Transmission Mechanism” at Goethe University in Frankfurt, Germany. A Q&A will follow.
  • At 12:15 PM, Minneapolis Fed president Narayana Kocherlakota will speak on a topic to be decided to the Houghton Rotary in Michigan, also with a subsequent Q&A.

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