Here is what you need to know.
India’s Wholesale Price Index is crashing. Wholesale prices in India fell 4.95% versus last year, and posted their 10th straight monthly decline. Both the food (-1.13%) and energy (-16.5%) segments saw prices decline. Within the food basket, vegetables (-21.1%) saw a notable decline. According to the FT, the “deflationary trend” puts pressure on the Reserve Bank of India to cut rates at its next meeting. The rupee is stronger by 0.3% at 66.3375 per dollar.
Chinese data was mixed. Industrial production rose 6.1% year-over-year in August, improving from the 6.0% print in July but missing the 6.4% gain economists were forecasting. Fixed asset investment also fell short of estimates. The August reading showed a gain of 10.9% so far this year, below the 11.2% that was expected. Retail sales was the lone bright spot, climbing 10.8% YoY, ahead of the 10.5% gain that was anticipated. The Chinese yuan strengthened 0.1% to 6.3679 per dollar.
Eurozone industrial production beat. July industrial production printed up 0.6% compared to June, topping the 0.3% gain that economists were forecasting. The reading showed marked improvement from the previous reading of down 0.3% and was the best since April. The euro is down 0.2% at 1.1316.
The polls are pointing to a tight election in Greece. Three polls conducted by Greek newspapers point to Syriza holding a slim lead ahead of the September 20 election, according to Reuters. The polls suggest former Prime Minister Alexis Tsipras’ Syriza party maintains a lead of less than one percentage point over New Democracy. A fourth poll shows the two parties neck and neck. Greece’s 2-year yield is up 10 basis points at 11.38%.
Germany has put border controls in place. The German government has reinstated border controls to deal with the waive of migrants entering the country. A government spokesperson said hundreds of officers have been mobilized at the border to impose passport checks. Germany’s vice chancellor, Sigmar Gabriel, announced one million refugees are projected to enter the country in 2015.
Vista Equity is buying Solera. The deal is worth about $US6.5 billion, including debt, according to the Wall Street Journal. Solera shareholders will receive $US55.85 per share in cash, a 53% premium over Friday’s closing price.
General Electric is trying to sell more assets. Bloomberg reports KKR and Apollo Global Management have made bids to acquire GE’s inventory finance arm. According to the report, a buyer for the unit with $US11 billion in assets could be announced by the end of the month. Earlier this year General Electric announced a plan to shed approximately $US200 billion worth of assets.
Gas prices are at a 6-month low. A Lundberg survey shows the price per gallon of regular gasoline averages $US2.44 nationally, down from $US2.71 on August 21. Drivers in Indianapolis are seeing the biggest relief at the pump with prices down $US0.73 per gallon to $US2.13 as production has come back online at BP’s Whiting, Indiana refinery, according to Lundberg. The survey found drivers in Los Angeles are paying $US3.31 per gallon, the highest in the country.
Stock markets around the globe are mixed. China’s Shanghai Composite (-2.7%) led markets lower in Asia and Britain’s FTSE (+0.4%) paces the gains in Europe. S&P 500 futures are up 5.75 points at 1966.00.
Economic data is absent. Data is heavy over the next few days with the highly anticipated Fed decision coming on Thursday. The US 10-year yield is down 1 basis point at 2.18%.
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