Good morning! Here’s what you need to know.
The Euro Is Getting Hit. Poor inflation and unemployment data Tuesday morning have driven the euro down another 0.75% against the dollar, to $US1.26.
Hong Kong’s Pro-Democracy Protests Are Gaining Momentum. The massive demonstrations, led by China’s youth, could get even more dramatic on Wednesday when most of China celebrates its national day.
Apple’s Tax Headache Is Getting Worse. Apple could owe $US8 billion in back-taxes following The European Commission’s preliminary finding that the company’s tax deals with the Irish state breached rules over state aid.
Eurozone Inflation Is Still Crumbling. Prices are up just 0.3% in the year to September, the lowest recorded in five years.
Vanguard And Blackrock Could Reap Billions From PIMCO. The firms could be prime destinations for hundreds of billions of dollars in assets that may flee Pimco in the wake of the sudden exit of Bill Gross.
Consumer Confidence Comes Out Later. Case-Shiller house price index figures are out at 9 a.m. ET, with consumer confidence one hour later. Economists expect a 92.5 reading, the best since 2007.
Japanese Industry Is Struggling. The country’s industrial production dropped 1.5% between July and August, heightening concern that the economy is struggling after April’s sales tax hike.
Asian Markets Took A Beating. The Hang Seng closed down 1.28%, while the Nikkei dropped 0.84% from the previous day’s close, following the massive protests in Hong Kong. European markets are mixed, with France’s CAC 40 up 0.98%, Germany’s DAX up 0.47% and the UK’s FTSE 100 down 0.15%.
Lufthansa’s Pilots Are On Strike. The 15-hour strike will affect thousands of passengers, following the end of Air France’s pilot strike on Tuesday.
China’s Economy Is Holding Steady. HSBC’s PMI reading hit 50.2 for September, unchanged from last month and indicating modest growth.