10 things you need to know before European markets open
Good morning! Here's what you need to know.
UK lending and money supply figures are coming. At 9:30 a.m UK time (4:30 a.m. ET) figures for private lending and the money supply for the UK economy in August will be released. Analysts expect mortgage approvals and consumer credit to have picked up slightly from July.
Glencore got slammed in Hong Kong after its worst day ever in London. Shares in mining giant Glencore crashed 27.5% in Hong Kong Tuesday, hammered by weak commodity prices as Chinese demand stumbled while a brokerage warned about the group's future. The slump follows a near 30% dive in its London-listed arm and comes as an economic crisis in China convulses global markets, with stocks, commodities and emerging market currencies tumbling.
Fed rate-setters are giving a lot of speeches, and some contradictory messages. William Dudley, head of the New York Fed, and John Williams, head of the San Francisco Fed, both signaled the likelihood of an interest rate hike this year. But Charles Evans, head of the Chicago Fed, took a far more dovish view, calling for rates to stay near zero until mid-2016. The Fed's 17 policymakers have scheduled 16 separate speeches or public appearances this week.
Germany's economy minister thinks the EU-US trade deal won't be finished this year. German Economy Minister Sigmar Gabriel expressed doubts on Monday that the European Union and the United States would reach an agreement in trade talks by Chancellor Angela Merkel's December target date.
Asian markets are getting hosed. The Shanghai Composite is down 1.74%, Hong Kong's Hang Seng is down 3.22% and Japan's Nikkei is down 3.94%.
Xi Jinping is coming to the UK. Chinese President Xi Jinping will make his first state visit to Britain next month, the British government said on Tuesday, 10 years after the last such visit by a Chinese president.
And Xi says he's prioritising his energy relationship with Iran. China will prioritize its energy and financial cooperation with Iran, as the recent nuclear deal means there is now even more opportunity to work together, Chinese President Xi Jinping told his Iranian counterpart Hassan Rouhani.
Yahoo will spin off its share in Alibaba even if it's not tax-free. Yahoo said on Monday that it will go forward with plans to spin off its Alibaba shares into a separate company even if the IRS doesn't provide a "favorable ruling" on the tax-free transaction. Yahoo said the transaction is still on track to close by the end of the year, sending Yahoo's shares up in after-hours trading on Monday.
GM wants to expand car-sharing services. General Motors Chief Executive Mary Barra said the automaker plans new efforts to capitalize on the connectivity built into its cars, expanding car sharing services, offering more autonomous driving features and enabling services through smartphone apps.
Energy Transfer is buying rival Williams for $33 billion (£21.75 billion). Pipeline giant Energy Transfer Equity LP will buy rival Williams in a deal valued around $33 billion (£21.75 billion), nearly a third less than the same offer Williams had rejected in June for being too small. The takeover ends a pursuit stretching back to January and marks the first major buyout of a midstream company since oil prices crashed.