REUTERS/Jonathan ErnstTelevision news personality Maria Bartiromo
Good morning! Here’s what you need to know.
- Markets in Asia closed mostly lower. China’s Shanghai Composite (-0.19%) and Hang Seng (-0.01%) both retreated after yesterday’s large gains. Japan’s Nikkei fell -0.25%. European markets were also down across the board, with France’s CAC 40 off most at -1.08%. U.S. futures were pointing lower.
- The OECD lowered its global growth estimates. 2013 GDP is now expected at 2.7% versus 3.6% forecast in May, and 2014 GDP is now expected at 3.6% versus 5.8% forecast in May. “Most of the emerging economies have underlying fragilities that mean they cannot continue growing as they used to,” OECD Chief Economist Pier Carlo Padoan said in an interview. “They used to be an important support engine for global growth in bad times. Now the reverse is true and advanced economies can’t be said to be in very good times again.”
- European auto sales climbed for the second straight month in October thanks to a cash-for-clunkers program in Spain and modestly improving economic conditions across the continent.
- Bitcoin prices continued to fluctuate wildly through the evening and into this morning, at one point breaching $US900 before rapidly falling back more than 30% to a bit under $US600. They’re now at $US693. The digital currency had at least three different forces pushing it higher yesterday: Ben Bernanke, who said digital currencies like Bitcoin “may hold long-term promise;” a bullish Senate hearing during the current moment in digital currencies was compared to the early days of the Internet and credit cards; and a column by the FT’s Izabella Kaminska suggesting many Bitcoin miners now need prices to move higher to justify the rising cost of production.
- The National Highway Transportation Administration says it’s opened a probe into recent Tesla Model S fires. The results would affect 13,000 vehicles.
- JPMorgan finalised its $US13 billion settlement with the Justice Department, the Wall Street Journal’s Devlin Barrett and Dan Fitzpatrick report. There’s still a bit of ambiguity over how Washington Mutual’s legal liabilities are resolved. The firm, “had previously said a FDIC receivership that liquidated the thrift should absorb any claims [but Attorney General Eric] Holder wanted to avoid a situation in which a government penalty of a bank is essentially extracted from another government agency, according to these people,” the pair report. The bank agreed it won’t go after the FDIC for any portion of the $US13 billion deal. But the bank’s $US4 billion FHFA settlement,”doesn’t contain any language preventing J.P. Morgan from seeking repayment from the FDIC receivership even though Justice Department lawyers had urged the FHFA to bar J.P. Morgan from going after the FDIC. It is possible J.P. Morgan would preserve the ability to go after the FDIC receivership for claims falling outside the Justice Department settlement,” WSJ says.
- Veteran business news reporter Mario Bartiromo is leaving CNBC for Fox News Business. Matt Drudge was the first to report it. Her CNBC contract expires this year. BI’s Julia LaRoche explained why this is great news for CNBC’s Kelly Evans.
- Tech darling Dropbox, a consumer cloud data storage business, is seeking a $US8 billion valuation for its latest round of funding, Businessweek’s Ashlee Vance reported. It would be more than double its last round in 2011.
- Home Depot just reported Q3 EPS of $US0.95/share beating consensus estimates bu $US0.06. The chain also boosted its FY13 outlook. Best Buy Q3 earnings came in at $US0.18/share, besting consensus by $US0.04. But comps were only up 0.3% versus 0.7% forecast.
- The BLS will release Q3 employment cost index data at 8:30 am, with no change expected from the prior quarter. Fed Chairman Ben Bernanke speaks at 7 pm eastern at the National Association of Business Economics. Chicago Fed President Charles Evans also speaks today.