Good morning! Here’s what you need to know.
Washington Backsliding. In the wake of Eric Cantor’s loss, commentators are saying conservative House members may now feel emboldened to avoid any form of compromise on their issues, leading the government back into a shutdown, BI’s Brett LoGiurato says. CNBC’s John Harwood, quoting a former GOP leadership aide, wrote on Twitter Wednesday that reauthorization bills on everything from the Highway Trust Fund to the Commodity Futures Trading Commission to the Export-Import bank could be in jeopardy. And, the aide added, “We may be staring at government shutdown a month before election.”
IMF Warns On Housing. The Washington body said housing prices are well above historical averages around the world, and that prices in major urban cores of Asia and Latin American “show signs of overheating.”
World Bank Cuts Forecast. The other Washington body slashed global GDP estimates to 2.8% from 3.2%, citing America’s harsh winter and the knock-on effect of the Ukraine crisis.
Oil Spikes. Instability in Iraq has finally caught up with oil markets, which spiked $US2 to $111.98.
Lululemon Is Falling. The yogawear makers announced earnings that topped estimates but issued weak guidance. Shares are down 6.5%.
“The Machine.” HP says it is rolling out an ultra-fast computer, which it is for now simply referring to as The Machine, that can process data instantly while using hardly any power, BI’s Julie Bort writes. HP shares are up 1.2% pre-market.
Australia’s Mixed Jobs Report. Employers unexpected cut payrolls, but the unemployment rate held steady.
New Zealand Raises Rates. The country’s reserve bank said the economy possessed considerable momentum, and gave no indication that tightening would end. The Kiwi jumped 0.8%.
Data. At 8:30 we get retail sales data. Expectations are for a gain of 0.4% MUM. Also at 8:30 we get weekly jobless claims. Consensus is for 310,000, down from 312,000 last week. At 10 a.m. we get business inventories, which are expected to have climbed 0.4%.
Markets. U.S. futures are flat. Stocks were down in Europe and Asia.