Lorcan Rochemonetary policy announcement at 7:00 a.m. ET this morning. Every economist surveyed by Bloomberg predicts no change in policy following last month's stronger-than-expected reaction to the Brexit vote. With data, including today's retail sales figures, continuing to show resilience there seems to be little need for further easing at the moment. The pound, which has acted as something of a safety valve for the British economy since the referendum, was holding steady at $1.3235 at 6:05 a.m. ET.
Risky betsIt is eight years today since Lehman Brothers Holdings Inc. collapsed under the weight of losses incurred due to the subprime mortgage crisis. There are some signs that the lessons learned in the crisis that followed the largest bankruptcy filing in U.S. history are being forgotten as the search yield encourages some funds load up on risk.
Oil holds below $44A barrel of West Texas Intermediate for October delivery was trading at $43.83 at 6:07 a.m. ET after the commodity lost 5.9 percent in the previous two sessions. Concerns over the oil glut are increasing as Nigeria and Libya are set to add hundreds of thousands of barrels to global supply as production restarts following conflict-related shutdowns. Jeff Currie, head of commodities research at Goldman Sachs Group Inc., sees oil trading between $45 and $50 for the next 12 months.
Asia stock fall continues
Coming up...There is a raft of U.S. economic data due today. At 8:30 a.m. retail sales and PPI data for August are released. At the same time, we also get weekly initial jobless claims numbers, with economists expecting 265,000, or a small increase from last week's 259,000. Industrial production data for August is due at 9:15 a.m. ET, with expectations for a drop of 0.2 percent.
What we've been readingThis is what's caught our eye over the last 24 hours.
- Warren: Next administration should investigate — and possibly jail — Wall Street bankers.
- This bond market selloff looks a lot like 'taper tantrum,' the sequel.
- Cheap burgers are giving the Bank of Japan a headache.
- Why China's debt levels are all about property prices.
- Holding gold is getting scary for this former bull.
- Behind Bayer-Monsanto, an odd couple out to rule the world.
- When did charts become so popular?