- In the absence of US investors, European Equities dropped sharply lower on Monday, posting record losses led by financials. This morning, also Asian shares trade in negative territory, but losses are more contained.
- Group of Seven financial leaders will meet on Friday where they are likely to agree to keep monetary policy accommodative, slow fiscal consolidation in countries where possible and implement structural reforms, a G7 source said.
- US President Barack Obama used Labour Day to preview proposals for new infrastructure spending and an extension of payroll tax cuts as part of a major jobs package he will unveil this week, and challenged Republicans to find common ground with him.
- Italian President Giorgio Napolitano urged swift action to strengthen planned austerity measures, saying a severe market selloff was a clear warning that markets had lost confidence in Italy.
- Global bank regulators are preparing to ease new rules that would require banks to hold more liquid assets to withstand a funding crunch in a crisis, the FT reports. The move would follow complaints from banks that new Basel III standards on liquidity would force them to sharply curtail lending to consumers.
- Europe’s sovereign debt crisis will stunt bank profit for years and could kill off the weakest, Deutsche bank CEO Ackermann told industry bosses, amid intense scrutiny of the sector’s finances.
- Gold prices are hovering around record high levels as renewed fears over the euro zone debt crisis and concerns about stalling global growth encouraged investors to seek for safety.
Today, the eco calendar contains the preliminary estimate of euro zone Q2 GDP, the German factory orders and non-manufacturing ISM in the US.
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