European stock-index futures descended as Italy cut its growth forecasts, adding to concern that the euro-area economy is deteriorating. Asian shares fell, while US index futures were little changed.
The Italian authorities said the country’s GDP will decline 0.3 percent this year, compared with its April prediction of an increase of 0.8 percent. They also predicted a slower-than-expected recovery in 2015, with GDP expanding 0.6 percent compared with a previous estimate of 1.3 percent.
In France, the government will postpone a goal to reduce its budget deficit to 3 percent of GDP until 2017 because of low growth and low inflation, according to Les Echos. The country will have to ask the European Union for a third delay in meeting its deficit targets, the paper reported.
Futures on the Euro Stoxx 50 Index expiring in December dropped 0.6 percent to 3,204 at 7:39 a.m. in London. Contracts on the U.K.’s FTSE 100 Index slid 0.4 percent. Standard & Poor’s 500 Index futures slipped less than 0.1 percent, while the MSCI Asia Pacific Index lost 0.4 percent.
The Stoxx Europe 600 Index, the region-wide benchmark, rose
for a fifth quarter, its longest streak since 2006, amid
optimism that the European Central Bank will step up stimulus
measures even as the Federal Reserve winds down its program.
In the U.S., a report from the New Jersey-based ADP Research Institute Roseland may show that U.S. companies hired 205,000 workers in September, more than the 204,000 in August, economists surveyed by Bloomberg News predicted. That would be the first gain in three months. Separate data may show that manufacturing in the world’s largest economy continued to expand last month.
UniCredit (UCG) might be active. S Immo bid for the lender’s 16 percent stake in CA Immobilien Anlagen yesterday. At least two other companies plan to make offers for the shareholding, including Austrian competitor Immofinanz AG and a private-equity firm, according to two people with knowledge of the matter.
Orange might move. Bpifrance offered the phone company’s shares at 11.60 euros to market price, according to a person familiar with the matter. The French state-owned investment bank is selling 50 million shares, cutting its holding in Orange to 11.6 percent from 13.5 percent.
Tesco Plc (TSCO) might be active. It is considering that the food retailer is closing its video-streaming business if a buyer isn’t found, according to a report in the Times. Separately, the company said the U.K.’s Financial Conduct Authority has started an investigation into its overstatement of a profit estimate.
Afren Plc (AFR) might move. The U.K. explorer in Nigeria that suspended its chief executive officer and is probing three unauthorized payments to partners said an independent review by Willkie Farr & Gallagher LLP hasn’t found more improper payments. Afren’s board expects a detailed report to be delivered this month.
