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Good morning. Here’s what you need to know.
- Asian markets were mixed in overnight trading but the Shanghai Composite tumbled 1.74 per cent, after Chinese industrial profits dropped 5.4 per cent. Europe is modestly higher and U.S. futures are modestly higher as well.
- Chinese premiere Wen Jiabao called for measures to boost export growth and help meet full-year targets during a tour of Guangdong province. Soft exports and a decline in industrial profits have added to signs that China’s slowdown is deepening. Don’t Miss: China is entering the ‘danger zone’ >
- Samsung’s shares plunged 7.5 per cent in Seoul, the most in four years. This was after an American jury ruled in favour of Apple at the Apple-Samsung infringement suit. The ruling raised concerns that some of Samsung’s products could be banned in the U.S. for violating Apple’s patents.
- The mid-October European Union summit is expected to be a ‘showdown over Greece’ according to Der Spiegel. Meanwhile, German chancellor Angela Merkel has warned officials in her coalition to ‘weigh their words very carefully’ when talking of a Greek exit from the euro.
- Angela Merkel’s government wants a new treaty that would call for more political integration among the 27 members of the European Union. Der Spiegel reported that talks on a treaty would start at the December summit. An expert explains how the next shock will shatter the global economy >
- In M&A news, car rental company Hertz Global Holdings is buying Dollar Thrifty Automotive for $2.3 billion. Meanwhile, Barry Diller’s IAC has acquired About.com from the New York Times company for $300 million in cash.
- The Dallas Fed manufacturing survey for August will be released at 10:30 a.m. ET. Consensus is for a business activity index reading of -6. Follow the release at Money Game >
- German business confidence eased to 102.3 in August, from 103.2 the previous month. This was the fourth consecutive decline.
- In earnings news, luxury retailer Tiffany just missed expectations when it announced earnings of $0.72 per share, against expectations of $0.73. The company lowered its full-year earnings forecast and now expects earnings of $3.55 – $3.70 per diluted share, down from $3.70 – $3.80. The world’s biggest companies explain what’s happening to the global economy >
- UK home prices eased 0.1 per cent in August from the previous month according to the latest report from Hometrack Ltd.. The nation’s property sector is struggling, as the economy is trying to recover from a recession.
- Bonus – Rihanna was seen go-karting with Rob Kardashian this weekend.