10 Things You Need To Know This Morning

Good morning. Here’s what you need to know.

  • Markets in Asia sold off in overnight trade, with Japan’s Nikkei off 1.6 per cent. Shares in Europe are lower and U.S. futures point to a negative open.
  • Manufacturing in China continued to contract in September, new data out of HSBC shows. The flash Chinese PMI reading improved 20 basis points to 47.8, below the neutral reading of 50. China Crash 2012: Here’s why it’s finally happening >
  • Japan’s trade deficit widened to ¥754.1 billion, or $9.62 billion, as exports declined 5.8 per cent from the year-ago period. The reading was better than expectations for a ¥829.3 billion deficit.
  • Spain successfully sold €4.8 billion worth of three- and 10-year bonds this morning, exceeding targets by €300 million. Yields on the 10-year fell to 5.666 per cent from 6.647 per cent a month earlier. Demand also improved, with a bid-to-cover ratio of 2.85 during the auction.
  • Eurozone PMI fell to a 39 month low as the region’s service sector weighed on the economy. Flash composite PMI fell to 45.9 from 46.3 a month earlier. Meanwhile, the manufacturing PMI sub-index for the eurozone improved to 46.0, a six month high.
  • U.K. retail sales declined 0.2 per cent in August, better than a 0.3 per cent drop economists were forecasting. The fall was attributed to the Olympics, which distracted consumers from online shopping.
  • Adobe missed earnings expectations yesterday and set guidance for the fourth quarter that was sharply below analyst forecasts. The company earned $0.58 a share in its third quarter and projected it would earn $0.53 to $0.58 in the fourth quarter. Analysts were looking for guidance of $0.67 a share. These are the stocks traders are shorting like crazy >
  • Nike announced an $8 billion share buyback program overnight. The new buybacks come on top of $5 billion worth of shares the company will re-purchase through the second quarter of 2013.
  • Bank of America is speeding up job cuts as it looks to cut its workforce by 16,000 employees by year’s end, the Wall Street Journal’s Dan Fitzpatrick reports. The company expects to have smaller mortgage operations and fewer branches. These are the 21 largest mass layoffs of the year >
  • Initial jobless claims missed expectations this morning, declining to 382,000 from a revised 385,000 a week earlier. Economists surveyed by Bloomberg were looking for a 375,000 print. At 10:00 a.m. the Philadelphia Federal Reserve will release its regional manufacturing report, with economists looking for an improvement to -4.5. Follow both live on Money Game >

Bonus: Shakira is expecting her first child.

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