Good morning. Here’s what you need to know.
Calls for calm. “I look forward to further contacts between Ankara and Moscow and call for calm and de-escalation, Diplomacy and de-escalation are important to resolve this situation,” NATO chief Jens Stoltenberg said after Turkey shot down a Russian warplane near the Syrian border. “We have no intention to escalate this incident. We are just defending our security and the rights of our brothers,” Turkey President Recep Tayyip Erdogan said.
Russia remains incensed. “We are taking this incident in the most serious possible way and all means will be used,” Russian President Vladimir Putin said. Russian Prime Minister Dmitry Medvedev characterised the event as a “criminal action.”
Russia just cut off Ukraine’s gas supply. Gazprom, Russia’s biggest state-owned natural gas producer, said that the company has cut off gas supplies to Ukraine after the country failed to pay in advance for more energy. This as Russia-Ukraine relations remain tense after Moscow’s annexation of Crimea in 2014. “The refusal to buy Russian gas will create serious risks for the reliable transit of gas to Europe through Ukraine and for the supply of gas to Ukrainian consumers during the upcoming winter,” Gazprom CEO Alexei Miller.
The European Central Bank is considering more bond buys. “Euro zone central bank officials are considering options such as whether to stagger charges on banks hoarding cash or to buy more debt ahead of the next European Central Bank meeting, according to officials,” Reuters’ John O’Donnell and Frank Siebelt report. “Little over a week before the meeting to set the ECB’s policy course, numerous alternatives are open, from snapping up the bonds of towns and regions to introducing a two-tier penalty charge on banks that park money with the ECB. Officials, who spoke on condition of anonymity, said that even buying rebundled loans at risk of non-payment has been discussed in preparatory meetings, although such a radical step is highly unlikely for now.”
Markets are up. US futures are in the green with Dow futures up 47 points and S&P futures up 4.7 points. Europe is mostly higher with Britain’s FTSE 100 up 0.9%, Germany’s DAX up 1.5%, and France’s CAC 40 up 1.4%. US markets will be closed Thursday for the Thanksgiving day holiday.
Lots of data on deck. It’s a busy day. At 8:30 a.m. ET, we’ll get new reports on durable goods orders, personal income and spending, core PCE inflation, and initial jobless claims. That will be followed by the Markit US services PMI report at 9:45 a.m. ET. And at 10:00 a.m. ET, we’ll get the October new home sales report and the November University of Michigan consumer sentiment report. Read Business Insider’s full preview in the Monday Scouting Report.
HP earnings miss. Hewlett-Packard reported adjusted earnings fo $0.93 per share, which was below the $0.96 expected by analysts. This was on net revenue of $25.7 billion, which was lighter than the $26.6 billion estimated. This was the last earnings announcement before the company split into two companies: HP Inc. and Hewlett Packard Enterprise.
Shire is preparing a bid for Baxalta. “Drugmaker Shire is preparing to make a new takeover offer for US biotech firm Baxalta that if successful will create one of the world’s leading specialists in rare diseases, a source with direct knowledge of the situation said on Tuesday,” Reuters’ Joshua Franklin and Pamela Barbaglia report. “The London-listed group has asked its advisers to renew its bid effort, the source said, almost four months after Baxalta rejected an unsolicited $30 billion offer that it said significantly undervalued the company. Shire’s bid preparations come three weeks after it announced its $5.9 billion purchase of US rare disease specialist Dyax Corp.”
China’s biggest brokerage overstated business by $166 billion. CITIC Securities, China’s biggest brokerage, overstated some of its financial derivatives by more than 1 trillion yuan, or $166 billion. This is according to the Securities Association of China, which said the error involved swap deals during the summer stock market crash.
Uber is poaching Goldman Sachs’ staff. “Three mid-level bankers in Goldman Sachs’ technology investment banking group in San Francisco have left to take positions at ride service company Uber in recent months, people familiar with the matter told Reuters,” Reuters’ Olivia Oran and Heather Somerville report. “The bankers are the latest to leave Wall Street banks for Silicon Valley startups, where the lure of more flexible hours — and in some cases stock options and share grants — can be hard to resist.”
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