Bloomberg Business
-Japan Post IPO: The privatization of Japan’s postal service and its banking and insurance units has raised the maximum 1.44 trillion yen ($11.9 billion) sought by the government in the country’s biggest initial public offering since 1998. The Nikkei 225 Stock Average climbed 0.7 percent to 18,947.12 at the close in Tokyo with speculations mounting that the Bank of Japan will add to stimulus at its policy meeting on Friday.
-German resilience: The Ifo institute’s business climate index declined to 108.2 in October from 108.5 a month ago, a reading that was ahead of the median expectation for a drop to 107.8 in a Bloomberg survey of economists. The euro was little changed at $1.1025 at 10:56 a.m. London time following the report.
-Elections: Over the weekend there were elections in Argentina, Poland, Guatemala, Tanzania, Ivory Coast and Haiti. Argentina’s presidential election is headed for a second round in November as no candidate gained an outright majority. In Poland, the opposition Law and Justice party is on course to be able to form a government alone after projections show it will win 232 seats in the 460 seat parliament. The party, which ran on a platform of a tough stance on refugees and increased government control over the economy, is set to form the first single-party government since Poland reintroduced democracy in 1989.
-China shares: Shares on China’s Shanghai Composite Index closed 0.5 percent higher in their first session since Friday’s PBOC rate cut. “The impact was perhaps not as large as it should have been as some investors already priced in a interest-rate cut before the end of the year,” said Gerry Alfonso, a sales trader at Shenwan Hongyuan Group Co. in Shanghai. China’s leaders gather this week to map out a five-year plan for the world’s second-largest economy.
-Valeant: Valeant Pharmaceuticals says that its audit and risk committee has reviewed the company’s accounting treatment of its Philidor arrangement and have “confirmed the appropriateness” of related revenue recognition. This follows the company’s loss of $10.4 billion of market value following recent allegations of irregularities in its accounting practices. Shares in the company have tumbled in German trading ahead of a planned conference call by the company to rebut the allegations at 8 AM Eastern Time.
CNN Money
-China downplays growth target ahead of political meeting: China is downplaying its own economic growth target, in an attempt to defuse persisting concerns over slowing growth, as a major political meeting kicks off on Monday. «We have never said that we would defend a certain percentage point to the death,» said Chinese Premier Li Keqiang in a speech Friday, according to a summary posted on a government website. Government officials are under pressure to reboot confidence in the country’s ability to deliver steady growth and commitment to economic reform. Experts say simply setting the road map could go a long way in dialing back concerns over the world’s second-largest economy at home and abroad.
-China’s slowdown is killing thousands of steel jobs: The global steel industry is feeling the chill from China’s economic slowdown. The world’s biggest steel producer stands accused of dumping its unwanted steel on other markets, forcing rivals to close their plants and put thousands of people out of work. China produces half of the world’s steel, more than the United States, European Union, Russia and Japan combined. The country’s construction boom of the last decade meant its steelmakers could rely on steadily growing demand at home. But the building bonanza is over, and China’s economy is experiencing a broader slowdown. The World Steel Association expects China’s demand for steel will drop 3.5% this year, and by a further 2% in 2016.
-Saudi Arabia to run out of cash in less than 5 years: Not even the mighty Middle East can survive cheap oil forever. If oil stays around $50 a barrel, most countries in the region will run out of cash in five years or less, warned a dire report from the International Monetary Fund this week. That includes OPEC leader Saudi Arabia as well as Oman and Bahrain. Low oil prices will wipe out an estimated $360 billion from the region this year alone, the IMF said. Huge budget surpluses are quickly swinging to massive deficits as oil prices have crashed to around $45 currently from over $100 last year. Many of these countries are being forced to tap into rainy day funds to weather the storm.