Asian shares rise while US and Europe are flatter
Asia’s markets were higher on Tuesday following an announcement by the governor of the Bank of Japan that a weaker yen was actually a good thing for the economy. There were however concerns from the bank that some areas of the economy were not doing as well as hoped. Australia’s central bank also announced that it was sticking to its 2.5 per cent interest rate. Europe’s markets are firmly in the red so far this morning with all major indexes trending lower after a second day of weak German manufacturing data, fuelling worries of a recession in the Eurozone’s largest economy with wider implications. The US dollar is down slightly while oil and gold are both seeing some recovery. US stock futures are lower.
Major retail chains index from the International Council of Shopping Centers due at 7.45am ET
US Labor Department’s Job Openings and Labor Turnover Survey at 10am ET
Consumer credit data released at 3pm ET
International Speedway A and YUM! Brands report earnings today.
US banks to face new investigations
The Justice Department is about to start a new round of investigations into the actions of some of the biggest names in banking over evidence that around a dozen banks colluded to alter foreign currency prices. It’s reported that at least one bank will face charges before the end of the year and it’s expected that those investigated will plead guilty. Regulators have handed out record penalties to financial wrongdoers in the last year or so and this latest investigation is likely to mean high costs for guilty parties. Meanwhile US prosecutors are considering whether to press Deutsche Bank for a guilty plea for the rigging of Libor interest rates. Read the full story.
Waldorf Astoria to be sold to Chinese insurance firm
Hilton Worldwide Holdings is selling its world famous Waldorf Astoria hotel in Manhattan to a Chinese insurance company. With a price tag of $1.95 billion, the highest ever for a US hotel, the iconic building will be acquired by the Anbang Insurance Co. but the hotel business will continue to be run by Hilton under a 100 year management contract. Read the full story.
Pimco outflows continue
The level of outflows from Pimco following Bill Gross’ departure two weeks ago could escalate as investors decide whether to stick with the firm. The Total Return Fund that Gross had personally managed for almost three decades saw $23.5 billion of withdrawals in September and across all of Pimco’s funds some experts expect to see an increase in outflows in the coming months. Read the full story.