Good morning New York,
FT ALPHAVILLE
Why QE might have had a much greater effect on portfolio rebalancing after all (says Goldman).
Be glad you're not cadre-building at the third plenum.
NEWS
SAC set to agree to largest-ever insider-trading settlement with US: 'Under the deal, the firm run by Steven A. Cohen is expected to agree to pay about $1.2 billion in criminal penalties, plead guilty to an indictment obtained in July by prosecutors alleging the firm encouraged rampant insider trading, and stop managing outside money...' Cohen is still negotiating with the SEC over a separate civil lawsuit (Wall Street Journal).
Solid third quarter for HSBC. Pre-tax profit of $4.5bn from $3.5bn a year earlier; HSBC's cost-efficiency ratio fell to 57 per cent (Financial Times).
Looking for a late-year S&P 500 rally to 1,800 and beyond... 'Shares have climbed in the final two months 82 percent of the time since 1928 when the benchmark gauge advanced at least 10 percent through October, data compiled by S&P and Bloomberg show...' (Bloomberg)
Fairfax Financial is expected to firm up its $4.7bn offer to take Blackberry private later on Monday, with other bidders also due to announce their plans. They include a possible joint bid by Blackberry co-founders Mike Lazaridis and Doug Fregin alongside Cerberus Capital Management and Qualcomm (Wall Street Journal).
Ryanair cut its outlook for the second time in two months. Europe's largest low-cost airline forecast net profit of up to €520m in 2013-14, blaming "softness" in the price of average fares -- the same factor in the September downgrade of its outlook to €570m to €600m. Ryanair shares fell up to 10.8 per cent early in Tuesday trading (Financial Times).
UK construction grew at its fastest pace for six years last month. The PMI produced by Markit and the Chartered Institute of Purchasing and Supply registered 59.4, the strongest level since September 2007 (Financial Times).
