What to watch for today
First Data prices the biggest IPO of 2015. The electronic payment-processing company is expected to raise more than $3 billion, selling 160 million shares at $18 to $20 each. The company is owned by private equity firm Kohlberg Kravis Roberts.
Nike holds an investor day. The company will lay out long-term plans and financial goals at its Oregon headquarters. Analysts are hoping for intel on its ongoing partnership with Apple and specialized gear for women, which is seen as a major growth category.
Earnings: Wells Fargo and Bank of America both report before the markets open; analysts are predicting $21.8 billion in revenue for Wells Fargo and $20.8 billion for BofA. Also reporting: Netflix and Delta Air Lines.
While you were sleeping
US Democratic presidential candidates faced off. Hillary Clinton, former secretary of state, dominated the debate against Vermont senator Bernie Sanders and three other candidates. Sanders missed opportunities to attack Clinton, while Clinton launched into Sanders for not being tough enough on the gun lobby. Both seemed to think the US should be more like Denmark.
China’s inflation cooled off. Consumer prices rose by 1.6% in September from a year earlier, falling short of the expected 1.8% gain and furthering concerns over a slowing economy. Producer prices fell for the 43rd consecutive month (paywall), reflecting overcapacity in heavy industry and raw materials.
Israel announced plans to “seal off” parts of Jerusalem. Prime minister Benjamin Netanyahu’s office said soldiers would be sent to assist police in enforcing a curfew and closing off parts of the city, after multiple attacks killed three Israelis and injured 20 yesterday. They follow almost daily attacks that have left dozens of Israelis dead or wounded.
JPMorgan Chase had a poor quarter. The biggest US bank by assets reported a third-quarter net income of $6.3 billion, but earnings-per-share missed expectations after a one-time tax-related boost was stripped out. Revenue declined 6.4% on the year, and its assets shrunk by 4%, the second consecutive quarterly decline.
London got the nod to sell Chinese government debt. The People’s Bank of China will issue yuan-denominated treasury bonds in the British capital to try to increase international demand for its currency, according to the Financial Times (paywall). Chinese president Xi Jinping arrives in London, the first city outside of Greater China to offer such services, next week.
Quartz obsession interlude
Gideon Lichfield on why business leaders like Jack Dorsey should wean themselves off business jargon. “In a memo to the staff released today, he wrote, ‘Emails like this are usually riddled with corporate speak so I’m going to give it to you straight.’ For its genre, Dorsey’s memo is indeed admirably brief and to the point. But it’s still riddled with jargon. Why is it so hard for executives to write in a truly straightforward manner? Here is Dorsey’s memo, with our suggested cuts in strikethrough and additions in bold.” Read more here.
Matters of debate
Central bankers can’t save the world anymore. Trillions of dollars are no longer a magic wand.
Africa’s cities must be better planned. Too many are being designed for the minority with cars.
America is over-dependent on corn and soy. It’s leading to a scary loss of crop diversity.
Europe must heed Turkey’s migrant mistakes. Overall wages have risen, but some workers have paid the price.
An armed robbery suspect used an Uber car in his getaway attempt. He didn’t get very far.
Elephant DNA is programmed to crush cancer. The massive mammals carry extra genes that destroy damaged cells.
A modern-day hermit’s routine includes Facebook and Twitter. Seeking solitude can also include social media, says a former British nun.
Some music is supposed to put you to sleep. Max Richter’s latest work is eight hours long.
Two orphaned Korean sisters just met in Florida. Adopted by different American families, they were working at the same hospital.
Correction: Yesterday’s Daily Brief stated that Wells Fargo and Goldman Sachs would publish earnings on Tuesday; they are in fact expected to publish them today and tomorrow, respectively.