Good morning! Here’s what you need to know.
- Markets were mostly higher around the world. Korea’s Kospi was up 1.02%. Japan’s Nikkei climbed 0.26%. London’s FTSE was leading European markets at 0.80%. US futures are up very modestly.
- Day 15 of the government shutdown begins today. Many House Republicans are balking at the latest deal being drafted in the Senate, which would fund the government through Jan. 15 and raise the debt ceiling through mid-February. From our Brett LoGiurato: “Sources close to Boehner have given no inclination as to whether he’s leaning a certain way. A Democratic Senate aide told Business Insider earlier Monday that it’s up to McConnell to sell the deal to Boehner — no sure thing. ‘Our job is to get the best deal we can get that House Dems can support,’ the aide said.”
- The New York Fed’s manufacturing survey fell to 1.52 in October from 6.29 prior, missing expectations for a print of 7. Laobr market conditions were steady.
- It’s a big earnings day: Citi is already in, and they missed expectations. The stock is drifting lower. Coke has also posted, printing in-line expectations. The stock is up more than 1% in premarket trading. Intel ($0.53/share expected), and Yahoo! *$0.33/share expected) all report today. BTIG’s Dan Greenhaus has a new note out arguing stocks have mostly carried their 2013 momentum through the crisis in Washington: “Despite broader concerns about Washington, equities in general have recouped almost all of the modest losses; the Russell 2000 stands at a new record high, the Nasdaq is all but at its post crisis high and the S&P 500 stands just shy of making the same claim. Admittedly, some sectors did have difficulties today. Household durables suffered from weakness in homebuilders and WHR, mortgage REITs traded lower on average and EXPE’s troubles worsened after a downgrade (TDC got hit hard after the close after lowering guidance). But generally it’s been a fairly positive four days.”
- In what seems to be a huge poach, Apple has hired Burberry’s CEO to be its new SVP for retail and online stores. Burberry shares trading in London were off -4% on the news.
- German economic sentiment hit its highest reading since April 2010. The Zew centre for European economic research index rose 3.2 points for October to 52.8. The DAX had already hit a record high earlier in the day. But sentiment for the broader Eurozone decreased.
- The UK’s home price index hit a record high, surpassing their Jan. 2008 peak, driven largely by an 8.7% YOY increase in London. British inflation data missed expectations, holding at 2.7% versus 2.6% expected.
- A new study from Macroeconomic Advisers says sham crises in Washington like the fiscal cliff and the current shutdown have robbed Americans of about one million jobs. “Partisan divided government has failed to address our long-term fiscal challenges sensibly, instead encouraging policy that is short-sighted, arbitrary, and driven by calendar-based crises,” said Joel Prakken of Macroeconomic Advisers. “Based on this report’s findings, we can assert confidently that the crisis-driven fiscal policies of the last several years have damaged our still-struggling economy. One can only hope that our policymakers will implement more sensible policy in the future.”
- Japan’ conglomerate took a 51% stake worth $US1.5 billion in a Finnish gaming firm offering two popular “freemium” games similar to Candy Crush. The FT says this “confirms the dizzying rise of the Finnish mobile gaming company.”