Bloomberg Business
-Chinese lowflation: Consumer inflation in China rose 1.3 percent in October, lower than the 1.5 percent median estimate in a Bloomberg survey. The lower-than-expected number was driven by a big drop in food prices. The producer-price index fell for the 44th straight month, coming in at -5.9 percent. The low inflation number, coupled with the trade drop announced on Sunday has opened the door to additional stimulus from the authorities. The Shanghai Composite Index ended its four-day rally, closing 0.2 percent lower.
-IEA see $80 oil: The International Energy Agency sees oil recovering to $80 a barrel by 2020 and OPEC’s share of global production expanding as the group’s tactic of maintaining output when prices are low hits rival suppliers such as U.S. shale oil. The IEA also projected that natural gas use in China and the Middle East will overtake European consumption by 2035. The IEA said that low-cost fossil fuels risk undermining efforts to reduce pollution as green technology will have difficulty competing against such a cheap alternative. West Texas Intermediate for December delivery rose 13 cents to $44.00 a barrel on the New York Mercantile Exchange at 10:50 a.m. London time.
-Cameron’s EU pitch, Obama on TPP: In a speech this morning U.K. Prime Minister set out his demands for negotiations with the EU ahead of an in-out referendum on Britain’s membership of the union to be held before the end of 2017. Separately, Barack Obama, president of the United States, has written an op-ed for Bloomberg explaining why he thinks the Trans-Pacific Partnership is a good deal for America.
-Euro-crisis: Following yesterday’s failure to agree an immediate release of bank recapitalisation funds to Greece, the dormant euro-crisis shows signs of stirring back to life, this time in Portugal. A coalition of leftist parties will present a motion today to reject the government program put forward by Prime Minister Pedro Passos Coelho’s administration. If they succeed, Coelho’s administration will fall and socialist leader Antonio Costa will be asked to form a government. Analysts are currently split as to how much market fall-out there will be from this action, with Portuguese sovereign debt under pressure in recent days.
-Ugly metals: Zinc traded near a five-year low, copper has dropped to its lowest since August 26 and nickel fell to its lowest in two months as miners remain under pressure. BHP Billiton Ltd. has seen nearly 13 percent of its share value erased in the last four sessions following a dam burst at its Brazilian joint-venture that resulted in at least three confirmed dead and another 25 people missing.
CNN Money
-Stock market overview: U.S. stock futures are looking a bit weak ahead of the open. European markets are mostly declining in early trading. The majority of Asian markets ended with losses. On Monday, the Dow Jones industrial average, the S&P 500 and the Nasdaq each shed 1%.
-Eyes on Europe: Investors are warily eying developments in Europe. U.K. Prime Minister David Cameron is outlining plans to renegotiate the country’s membership in the European Union. Britain is slated to have a referendum by 2017 to decide whether to remain in the EU or break away altogether. Investors are concerned about the many unknowns involved with a «Brexit.» The Portuguese parliament is holding a vote that will decide the fate of Prime Minister Pedro Passos Coelho. It’s widely expected he’ll be ousted by left-wing opponents who are challenging Portugal’s commitment to austerity. And Greece’s latest bailout payment of 2 billion euros ($2.2 billion) has been delayed by European officials who say the country isn’t making enough progress with agreed reforms.
-Stock market mover: Gap (GPS) shares are sinking about 5% in extended trading after the retailer posted its latest earnings update. The company, which also owns the Old Navy and Banana Republic brands, has been hurting for years and recently lost a prized executive to Ralph Lauren (RL).
-Not-so-fast food: Expect long lines and slower service at McDonald’s (MCD) and Burger King as workers warn they will be holding a massive strike to call attention to low wages. They are calling for a new minimum wage of $15 per hour and union rights.