Russian warplane downed by Turkish military, Ackman doubles down on Valeant and Yellen defends seven years of low interest rates. Here are some of the things people in markets are talking about today.
Warplane shot down
Turkey has shot down a Russian jet near the Syrian border. In the immediate aftermath markets have reacted nervously, with the lira selling off, Russian stocks sliding and global government bonds climbing as investors move to safe havens. Bloomberg.com will have more on this developing story throughout the day.
Ackman increases Valeant stake
Bill Ackman’s Pershing Square fund raised its stake in Valeant Pharmaceuticals International Inc. to 9.9 percent in a series of transactions starting in October, the activist hedge fund disclosed in a filing on Monday. Shares in Valeant rose 3.7 percent to $90.60 in late trading after the filing was published. Separately, Carl Icahn said he has amassed a 7.13 percent stake in Xerox Corp., and may seek positions on the board of the company.
Yellen defends policy
Federal Reserve Chair Janet Yellen has defended seven years of zero interest rates in a response to a letter from a group including Ralph Nader. Yellen repeated her expectation for a gradual tightening of policy after liftoff. Futures this morning indicate a 74 percent chance that the Fed will raise rates at its December meeting.
Economic growth in Germany in the third quarter was led by private and government consumption as trade suffered from the global slowdown. Domestic demand increased 0.7 percent in the three months through September, with the economy expanding 0.3 percent, matching a Nov. 13 estimate. Business confidence unexpectedly rose to 109 in November according to the IFO institute's business climate index as the Volkswagen AG scandal fails to dent the outlook for the economy.
A big day for data in the U.S. with the second estimate of third-quarter GDP due from the commerce department at 8:30 a.m. ET, where economists are expecting a revision higher to 1.9 percent from the previously reported 1.5 percent. At 9:00 a.m. home price data from S&P/Case-Shiller is due, with economists looking for a faster pace of price growth in the 12 months to September. Then at 10:00 a.m. the Conference Board releases U.S. consumer confidence, with economists looking for a rebound from October's three-month low.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Odd Lots Podcast: The surprising story of the Beanie Baby bubble.
- Deutsche Bank Co-CEO says bankers are still paid too much.
- Looking for volatility? Try Germany's shift to renewable energy.
- Revealed: World football financing secrets.
- Bank of America warns of 'great divorce' between the U.S. and China.
- Go ahead, sell the peso, Mexico doesn't care what you do anymore.
- Making Lego, brick by brick.
Want to receive this post, and more, into your inbox every morning? Sign up here