Five Things You Need to Know to Start Your Day
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Markets are lower as investors await earnings and Yellen's Friday speech stokes a selloff in bonds. Here are some of the things people in markets are talking about today.
Government bond yields climbed around the world after Friday's comments by Federal Reserve Chair Janet Yellen fueled bets that U.S. policymakers may be prepared to tolerate faster inflation in the interests of a more emphatic economic recovery. The dollar traded near seven-month highs. Those frustrated by the diversity of readings of Yellen's speech will get yet more material to sink their teeth into this afternoon when Fed Vice Chair Stanley Fischer speaks at 12:15 p.m. in New York. Industrial output data are also expected at 9:15 a.m. ET.
The MSCI Emerging Markets Currency Index fell 0.3 percent by 5:50 a.m., heading for its weakest close since Sept. 16. and led lower by Turkey’s lira and South Korea’s won. Equity gauges declined across most of Asia as oil fell toward $50 a barrel, while the Stoxx Europe 600 Index fell for the fourth time in five days.
In the wake of the regulatory fine that's rattled investors in Deutsche Bank AG, executives are said to be considering shrinking the company's U.S. operations. Putting the travails of Germany's biggest lender to one side, other European bank executives say they will consider moving personnel to New York, given the uncertainty surrounding the U.K.'s post-referendum business landscape. Meanwhile, insiders in Prime Minister Theresa May's administration say the secret plan for Brexit may be that there is no plan.
Earnings begin in earnest
After earnings at JPMorgan Chase & Co. and Citigroup Inc. topped analysts’ estimates for the third quarter on gains in bond-trading revenue, Bank of America will release results ahead of the bell today. Goldman Sachs Group Inc. and Morgan Stanley are among the more than 80 members of the S&P 500 who report earnings this week, with those from IBM and Netflix Inc. also due today. Last week America's benchmark index registered a second-weekly decline for the first time since August.
After months of preparation, operations in Iraq to regain Mosul began on Sunday. Although the Islamic State has been losing ground in recent months its militants have controlled the city (which is Northern Iraq's most populous) for two years, and it's where their leader, Abu Bakr al-Baghdadi, declared the self-styled caliphate. As Iraqi and Kurdish troops advance with U.S. air support, the offensive is provoking disagreements between allies already at loggerheads over Syria, while humanitarian agencies warn that a civilian exodus from the city has the potential to stoke a new phase in the refugee crisis.
What we've been reading
This is what's caught our eye over the weekend.
- Earnings announcements are still important, ok?
- Zizek isn't just for hipsters, he can tell you about poker and the peso.
- Stress is building in Saudi Arabia.
- China's currency poses a policy bind.
- Once king, London risks becoming the U.K.'s slowest housing market.
- Stop reading the news: uncertainty's actual declining.
- Clinton and Trump will have to set aside the rancor over dinner.