Asia: Japan +2.7% to 17388. Hong Kong +1.4% to 20846. China +0.5% to 3053. India +1.5% to 26155.
Europe: London +2.1%. Paris +2.8%. Frankfurt +2.5%.
Futures: Dow +1.2%. S&P +1.3%. Nasdaq +1.4%. Crude -0.35% to $45.07. Gold -0.4% to $1222.50.
Ten-year Treasury Yield +5 bps to 2.10%.
7:00 MBA Mortgage Applications
8:15 ADP Jobs Report
9:45 Chicago PMI
10:30 EIA Petroleum Inventories
2:00 PM Janet Yellen speech
Global equities are higher this morning, set to end what’s been a brutal three months on a positive note. Many major markets have suffered their worst quarter for a number of years amid fears about China’s economy and the endless speculation about when the Fed will finally raise interest rates, and almost $11T has been wiped off the value of global shares. Emerging market currencies have been hit particularly hard.
Eurozone CPI has slipped back into negative territory in September, falling 0.1% vs. +0.1% in August and consensus of unchanged. Meanwhile, unemployment held steady at 11% in August vs. forecasts of 10.9%, with German jobless figures unchanged at 6.4%. However, German retail sales slumped 0.4% on month in August, after growing 1.6% in July, and came in well below expecatations for growth of 0.2%.
The Senate and the House are today expected to pass a short-term spending bill that will extend federal funding until December 11 and avoid a government shutdown by tonight’s midnight deadline. The measure comes amid a row over the financing of the women’s group Planned Parenthood. Following the votes, Republican leaders plan to start talks with President Obama about a two-year budget, although it’s unclear whether any successor to outgoing House Speaker John Boehner would be interested in such a deal.
Ferrari could launch its IPO on Friday and price the listing in two weeks, CNBC reports. The iconic sports car brand is looking to raise around $1B, a figure that could imply a $10B+ valuation. Fiat Chrysler (NYSE:FCAU) is set to own 80-81% of Ferrari (FRARI) post-IPO, Piero Ferrari 10% and public investors 9-10%. The company generated 2014 revenue of $3.09B and net income of $263M.
Glencore’s shares have continued their recovery from Monday’s 29% plunge, climbing 13.4% in London today, following a surge of 17% yesterday after the commodities trader put out a statement reassuring investors that it is financially robust and has no solvency problems. However, Bloomberg calculates that Glencore (GLCNF) will have to refinance a quarter of its $13.8B in bonds and credit lines by next May. While the company may be able to extend some of the deadlines, any bond refinancing is likely to be expensive.
Tesla (TSLA) last night launched its long-awaited Model X sports-utility vehicle, which features two electric motors, a range of around 250 miles and seating for seven people, as well as “falcon wing” rear doors that can open differently depending on conditions. Tesla CEO, Elon Musk, said around 25,000 people had ordered the SUV, but they’ll have to wait 8-12 months to receive their cars.
Nearly 50 years after founding the company that bears his name, Ralph Lauren (RL) is stepping down as CEO. Lauren will remain chairman and will continue to shape his company’s vision/strategy. Replacing Lauren, 75, is Stefan Larsson, 40, who until now was the president of Gap’s (GPS) Old Navy chain. The change will take place in November.
Activist investor Starboard Value has acquired a 3.7% holding in Advance Auto Parts (NYSE:AAP), The Wall Street Journal reports, and is pushing the company to boost margins, which, the New York activist investor says, lag behind those of rivals AutoZone (AZO) and O’Reilly Automotive (ORLY). The hedge fund wants management to improve distribution to service stations and to focus more on business customers. AAP closed yesterday at $170.53, giving it a market cap of $12.88B and making Starboard’s stake worth over $460M. The investor believes AAP’s price could top $360 a share.
Rio Tinto has agreed to sell its 40% stake in the the Bengalla coal mine in eastern Australia to New Hope (NHPEF) for $606M, in a deal that could signal Rio Tinto’s (RIO) eventual exit from coal amid soft demand, oversupply and low prices. Rio has also taken full control of its Coal & Allied subsidiary, which manages mines in the Hunter Valley region of Australia’s New South Wales state, from Japan’s Mitsubishi (MSBHY). The latter will swap its 20% holding in Coal & Allied for a 32.4% stake in the Hunter Valley operations.
ComScore has agreed to acquire Rentrak in an all-stock deal that is set to create a stronger rival to Nielsen in the market for measuring media content and ad campaigns across TV and digital devices. The transaction values Rentrak (RENT) at $732M, while ComScore’s (SCOR) market cap is $1.7B. The latter’s shares jumped 8.5% in after-hours trading, and Rentrak surged 12.9%.
Chesapeake Energy plans to lay off 15% of its total workforce, or around 750 employees, as it attempts to cope with lower oil prices. Chesapeake (CHK) estimates it will incur $55.5M in one-time charges during Q3.