Markets weaken again with global sell-offs
Economic uncertainty has prompted equity sell-offs and Asian and European markets are mostly in the red this morning. China has seen a slight gain today on news that lending increased slightly; a sign that consumer confidence may be up. After some early gains many European markets took a turn downwards after heavy losses yesterday while the UK’s FTSE100 and Germany’s DAX have been bucking the trend. The main concerns for investors include the drop in US retail sales announced yesterday, the Ebola crisis and the weakness of the Eurozone. After some scary falls yesterday US futures are higher this morning with some big data on the way; oil and gold are edging lower.
US Jobless claims figures at 8.30am ET
The Fed’s Industrial Production Index data at 9.15am ET
Bloomberg Consumer Confidence Index at 9.45am ET
Philadelphia Fed Survey at 10am ET
Housing market index at 10am ET
Google, Delta Airlines and Mattel are among those reporting earnings today.
AbbVie deal is almost certainly off
Just a day after AbbVie’s board announced that it was to reconsider its $55 billion takeover of Shire it is now recommending that its shareholders vote to scrap the deal. One of the key parts of the deal was the ability to reduce the combined firm’s tax liabilities by being domiciled in the UK, however the Obama administration’s clampdown on so called tax inversions has removed the benefits.
Tech firms’ mixed fortunes
As Apple prepares to launch their new iPad today (leaked pictures of which have been found in the iOS 8.1 guide in iBooks – a mistake apparently) there are some mixed fortunes for our biggest tech related firms. Google reports its Q3 figures after the closing bell and is expected to show a slowdown in growth but an increase in profit margins. Netflix shares plunged 20 per cent overnight after the online streaming service fell short on subscriber numbers. The company told shareholders that the slight price increases since last year seem to have slowed growth but it says there are no plans to reduce the cost as it is happy with revenue growth. eBay also delivered the disappointing news that its revenue growth fell 6 per cent in Q3, blaming a change in Google’s algorithm in reduced traffic to the online auction site and it was also hit with a security breach. In the PayPal part of the business though there was an increase of 20 per cent from a year earlier. eBay plans to split the two parts of the business. Amazon meanwhile is expecting a bumper holiday period and is hiring an additional 80,000 temporary staff; up 14 per cent on last year’s seasonal hirings.
Foreclosures hit 8-year low
Banks reclaimed fewer homes in September this year than in any month since 2006. RealtyTrac have released figures that show there were 106,866 foreclosure filings in the month; 8.6 per cent down on August and 18.6 per cent down from the same month last year. There were also fewer repossessions and default notices. Read the full story.