Five Things World Business Will be Talking About Today

(Bloomberg)

All eyes on Madrid as Catalonia blinks, changing tax laws is never easy, and Uber faces more U.S. criminal probes. Here are some of the things people in markets are talking about today.

Pulling back 

The Spanish government has maintained its hard line on Catalan secession after the president of the region yesterday backed away from unilaterally declaring independence. Prime Minister Mariano Rajoy convened an extraordinary meeting of his cabinet this morning, and started the process that may spur the suspension of the regional government. He is seeking further clarification from Catalan about its independence intentions. The decision by Catalan separatists to defer its declaration has spurred a rally in the country’s stocks and bonds, while the euro rose to its highest level in more than a week.

Fiscal plans

President Donald Trump said that he will adjust his tax plan in the coming weeks without specifying what the adjustments would be. The tight legislative arithmetic means that the administration will have to tread carefully to avoid alienating any more than two GOP senators. The recent feud between the president and Senator Bob Corker won’t help the passage of the fiscal plan.

Uber woes

Uber Technologies Inc. is facing at least five criminal probes from the Justice Department – two more than previously reported. The ride-hailing app was already under pressure following the suspension of its license to operate in London, with similar moves possible in other major markets such as Brazil. Its mounting legal problems are not the only headwind of late: a speed-bump has also emerged in Softbank’s plan to invest billions in Uber.

Markets rise

The MSCI Asia Pacific Index gained 0.2 percent overnight, while Japan’s Nikkei 225 Stock Average added 0.3 percent to close at the highest since 1996. In Europe, the Stoxx 600 Index was unchanged at 5:40 a.m. Eastern Time as a 1.25 percent rally in Spain’s IBEX 35 Index was not enough to lift the regional gauge. S&P 500 futures slipped 0.1 percent, the 10-year Treasury yield was at 2.343 percent while gold was unchanged.

Earnings season

Wall Street third-quarter earnings season kicks off with JPMorgan Chase & Co. and Citigroup Inc. reporting tomorrow, with expectations for a less-than-stellar set of results across the banking industry. Low volatility in markets probably hit trading revenue, loan growth is expected to decelerate for the fourth-straight quarter, and earnings outlooks are somewhat dependent on the success of Trump’s tax overhaul.