The Fed puts December back in play, Deutsche Bank announces losses and staff cuts, and there's lots of news out of China. Here are some of the things people in markets are talking about this morning.
December still in play
Federal Reserve officials pivoted toward a December rate hike in a statement released in Washington yesterday and which referred to the bank's "next meeting" as it discussed the timing of lift-off. Market-based expectations for a rate rise in 2015 now stand at 46 percent this morning, up from 34 percent before the release of yesterday's statement. Emerging market stocks and currencies have sold off as the dollar strengthened in the aftermath of the statement.
Germany’s biggest lender posted a loss of €6 billion ($6.58 billion) for the third quarter as the company increased provisions for legal costs and wrote down the value of its investment bank. As part of co-Chief Executive Officer John Cryan's turnaround plan, Deutsche Bank also announced that it will be exiting 10 markets and shrinking its workforce by 26,000. Shares in the bank were trading at €25.95, down 5.6 percent, at 10:10 a.m. London time.
More China babies
Chinese Premier Li Keqiang floated the idea of a new five-year growth minimum of 6.5 percent per year, lower than the current 7 percent target. The country also said that it is dropping its one-child policy for all couples. The move sent stocks of companies including Danone, Nestle, Mead Johnson and P&G up sharply this morning. The announcement comes as The Communist Party’s big policy meeting is almost complete.
Europe's big oil reports
Royal Dutch Shell Plc reported its biggest net loss in more than a decade, Total SA posted a third-quarter profit that beat analysts’ forecasts and Eni SpA, Italy’s largest oil producer, reported a net loss as the slump in crude prices continues to take its toll on producers, with higher refiner margins the only silver lining. Here is what to watch for from the oil companies as low prices continue.
Euro-area economic confidence
Confidence in the euro-area economy unexpectedly increased for a fourth consecutive month in October, climbing to 105.9, ahead of economist expectations of a drop to 105.1 in a Bloomberg survey. Separately, Spanish retail sales grew at the fastest pace in nine months, adding to a run of 14 monthly increases, while inflation in the country remained negative. In Germany unemployment declined more than expected.
What we've been reading
This is what's caught our eye over the last 24 hours
- 700 years of inflation in one chart.
- No sign of winter respite as October sets EU refugee record.
- Airbus signs a deal to sell $17 billion of aircraft to China.
- Take a no-frills cruise on a freighter.
- Dong to build world's largest offshore wind farm in the Irish Sea.
- The tiny pharmacy at the center of Valeant's money mystery.
- Some advice for Twitter.
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