- EU to Assess Ukraine Cease-Fire as New Russian Sanctions Weighed. European Union governments tomorrow will reopen discussions about the viability of a cease-fire in Ukraine as the bloc weighs whether to pull the trigger on tougher sanctions against Russia. The scheduled talks in Brussels among diplomats from the 28 member nations follow the EU’s abrupt decision yesterday to put on hold for at least a “few days” a second package of economic penalities against Russia over its encroachment in Ukraine. The delay offered more time to assess the effectiveness of the cease-fire without risking further trade retaliation by the Kremlin.
- Obama Speaking Tomorrow Night on Fighting Islamic State. President Barack Obama will make a televised address from the White House tomorrow night on his strategy for degrading and destroying Islamic State militants operating in Iraq and Syria.
- Another Scots Poll Shows Swing to Independence. (video) Voters in Scotland are embracing independence, according to a poll that provides fresh evidence of a swing away from the U.K. and suggests the result of next week’s referendum is on a knife edge.
- Draghi Plea for ABS Support Rebuffed by France, Germany. Mario Draghi asked European governments to help him help them. The answer so far is “no.” France and Germany, the euro area’s two largest economies, will say they’re not interested in providing state guarantees for the European Central Bank president’s asset-purchase program announced last week, according to a draft document obtained by Bloomberg News.
- China Money-Supply Growth Eases to Five-Month Low. China’s money-supply growth unexpectedly eased to the slowest pace in five months, comments by Premier Li Keqiang indicated, a sign of credit constraints as a property slump weighs on the economy. M2, the government’s broadest measure, rose 12.8 percent in August from a year earlier, Li said today in Tianjin, the state-run Xinhua News Agency reported ahead of the official release by the People’s Bank of China. That compares with a 13.5 percent pace in July, which was also the median estimate for August in a Bloomberg News survey of analysts.
- Brazil Rating Outlook Cut to Negative by Moody’s on Growth. Brazil’s credit rating outlook was cut to negative by Moody’s Investors Service, which said slow economic growth is unlikely to improve in the short term. Moody’s affirmed Brazil’s Baa2 rating, its second-lowest investment grade. The change in outlook comes after data last month showed Latin America’s largest economy entered a recession for the first time in five years, and as President Dilma Rousseff seeks election to a second term in October.
- Europe Stocks Fall Third Day Amid Greece, Portugal Drops. European stocks fell, posting their biggest three-day decline in a month, as national benchmark gauges slipped in Greece, Portugal and Spain. The Stoxx Europe 600 Index dropped 0.4 percent to 344.87 at the close, having extended losses after the U.S. market opened. Greece’s ASE Index fell 2.6 percent, as Portugal’s PSI 20 Index slid 1.5 percent and Spain’s IBEX 35 Index retreated 1.4 percent, for the biggest drops among 18 western-European markets. “We don’t see a huge opportunity in European equities at the moment,” Stewart Richardson, who helps oversee about $100 million as chief investment officer at RMG Wealth Management LLP, said by phone from London. “We don’t expect a significant pick-up in the European economy this year. If Scotland votes Yes in the referendum, that will impact the U.K. economy and spill over into Europe’s economy as well.”
- Commodities Drop to Lowest Since January as Dollar Climbs. Commodities declined to the lowest level in almost eight months as the dollar advanced on speculation that the Federal Reserve will increase interest rates next year, curbing demand for raw materials. The Bloomberg Commodity Index (BCOM) that tracks 22 futures lost as much as 0.5% to 123.6507, the lowest since Jan. 13 and traded at 123.8599 at 2:52 p.m. in London. Nickel tumbled the most since May, corn traded at a four-year low and Brent crude declined for a fourth day.
- Rubber Falls to 5-Year Low as China Supplies Compound Thai Glut. Rubber tumbled to the lowest in five years amid rising stockpiles in China, the world’s largest user, and an oversupply in Thailand, the biggest producer. Prices dropped as much as 4.4 percent in Shanghai and 3 percent in Tokyo. Inventories monitored by the Shanghai Futures Exchange rose 1.6 percent to 166,328 metric tons on Sept. 4, the highest in four months, bourse data show. Global production will outpace demand by 371,000 tons in 2014, the Singapore-based International Rubber Study Group said last month. Thailand started selling stockpiles while it also tries to reduce the glut by felling older trees.
- Don’t Hate Credit, Just Use Leverage for 10% Returns, Says Citi. Stop complaining junk-bond yields are too low. Instead, just use borrowed money to juice returns. That’s the message from Citigroup Inc. (C) analysts, anyway.
- McDonald’s(MCD) Monthly Sales Slump Worst Since 2003. McDonald’s Corp. (MCD), the world’s largest restaurant chain, posted the worst same-store sales decline in more than a decade, hurt by sluggish demand in the U.S. and a health scare involving a Chinese supplier. Sales at stores open at least 13 months fell 3.7 percent in August, the Oak Brook, Illinois-based company said in a statement today. Analysts estimated a 3.1 percent drop. McDonald’s also said that supplier problems in China will reduce third-quarter earnings per share by 15 cents to 20 cents.
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- Ukraine Rebels Reiterate Demand for All of Donetsk, Luhansk. Self-proclaimed people's republics are demanding self-determination for Donetsk, Luhansk regions within their full administrative boundaries, citing DNR's 1st Deputy Prime Minister Andrei Purgin.
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