What to watch for today
The US and Russia hold military talks. The two powers will discuss safety issues after combat aircraft from within 20 miles of each other in Syria over the weekend. The talks will be aimed at reducing the likelihood of an accidental conflict.
First Data is this year’s biggest IPO so far. 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 season continues. 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 dominated the debate against 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.
Goldman Sachs was dragged into Malaysia’s 1MDB scandal. The US Justice Department and the FBI are investigating the American bank’s role in transactions made by the politically-connected development fund, according to the Wall Street Journal (paywall). 1MDB faces multiple corruption investigations; it has not been suggested that Goldman is guilty of any wrongdoing.
Germany’s largest real-estate company planned to buy its rival. Dusseldorf-based Vonovia announced it will bid €14 billion ($16 billion) for fellow giant Deutsche Wohnen. The deal is in part aimed at preventing Deutsche Wohnen buying up a smaller rival itself; Vonovia said shareholders of both companies are open to a merger, according to the Wall Street Journal (paywall).
China’s inflation cooled. 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.
Diageo sold its UK and US wine units. Australian-based Treasury Wines agreed to pay $600 million for the majority of the drinks giant’s wine brands from the two regions, giving it a greater share of the US premium and luxury wine sector. That could precede a spin-off of Treasury’s lower-end wine brands.
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.
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 China and Hong Kong to offer such services, next week.
Quartz obsession interlude
Gideon Lichfield on why business leaders like Jack Dorsey should wean themselves off business jargon. “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.
American Democrats: you can stop freaking out about 2016. Hillary Clinton debated excellently—as did the rest of the candidates.
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.
The US created a separate Hawaiian currency during World War II. It was so they could devalue it should Japanese forces invade.
Elephant DNA is programmed to crush cancer. The massive mammals carry extra genes that destroy damaged cells.
The US Navy is teaching celestial navigation again. It is concerned it needs a back up in the event of a hack.
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.
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.