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U.K. inflation jumps, Goldman announces earnings, and Saudi Arabia would rather not mention the oil price. Here are some of the things people in markets are talking about today.
Consumer-price inflation in the U.K. rose to 1 percent in September, its highest level since November 2014, according to data from the Office for National Statistics. The pound rose, and was trading at $1.2280 at 5:55 a.m. ET. Economists surveyed by Bloomberg expect the Bank of England to cut the benchmark rate to 0.1 percent at the November 3 policy meeting. Inflation is also back on the radar in Asia, where bond yields in developed markets are rising to their highest levels since June as oil prices are predicted to drive consumer costs higher. CPI data for the U.S. is due at 8:30 a.m. ET.
Goldman Sachs Group Inc. reports earnings today, with all eyes on how the bank's fixed-income trading revenue stacks up against its peers, who have so far all beaten analyst estimates in the third quarter. In a report published this week, analysts at Goldman warned of a $1.1 trillion hit to bondholders if yields spike, as duration risk in U.S. bond markets has reached an all-time high.
Saudi's investor meetings
Saudi Arabia is meeting investors ahead of the kingdom’s first-ever international bond sale, with reports from those meetings suggesting that government officials would rather not talk about the oil price. The planned reforms, and recent spending cuts, in Saudi Arabia are already having an effect on other economies, particularly the Philippines, which is now seeing a influx of workers that had left to get jobs in Saudi construction. A barrel of West Texas Intermediate for November delivery was trading at $50.39 at 6:14 a.m. ET.
Overnight, the MSCI Asia Pacific Index rose 0.9 percent while Japan's Topix index added 0.3 percent as the yen slid against the dollar. In Europe, the Stoxx 600 Index was 1.1 percent higher at 6:13 a.m. ET as company earnings beat expectations and rising commodity prices lifted miners. S&P 500 futures advanced 0.5 percent.
Shares in Netflix Inc. rose by as much as 20 percent in after-market trading after announcing third quarter results that showed growth in subscriptions that exceeded analyst expectations. The company's subscriber growth is best outside of the U.S., while competition to become the 'Netflix of China' is heating up, with companies pouring billions of dollars into new digital content.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Why Americans work so much more than Europeans.
- Draghi's QE history lesson is that flexibility can backfire.
- Ryanair cuts profit guidance, blaming post-Brexit vote pound weakness.
- The Czech Republic passes Switzerland for world's lowest bond yields.
- Shares in the Swiss central bank have been on a huge rally, and nobody knows why.
- America's pork belly future is now.
- VWs diesel settlement might actually hurt electric cars.