WHAT HAPPENED OVERNIGHT IN THE US:
· S&P -0.1%, stayed tight to 100-day moving average in another sluggish session.
· Data light and that left stage open for Fed’s Dudley to insist “every meeting…a live meeting”.
· Fed fund futures back near upper-end of recent range (c68% probability of a Dec hike).
· And oil back to bottom of 2-week range at futures expiry after recent sharp uptick in longs.
· After-hours, Microsoft briefly helped lift S&P futures after cloud beat, but didn’t last long.
WHAT’S UP THIS MORNING IN THE EAST:
· Asia quiet, mostly lower. Hong Kong closed for typhoon.
· Australia -0.2%, ended middle of day’s range on turnover 10% below average. Resources even worse; BHP +0.8% & Rio ‘unch’, both 30% light of average and indicating flat London open.
SOUTH AFRICAN NEWS:
· Expect AllShare +0.25%. From SA close yday, gold -$3 ($1263), plat -$2 ($929), copper +0.2% ($2.09/lb), oil -0.4% ($51.20), USDZAR unch (13.93), S&P +0.3%.
· BTI: offer to buy remaining 57.8% of Reynolds it doesn’t currently own at equiv $56.50 per share (20% premium vs last night’s RAI close $47.17) - made up of $24.13 in cash and 0.5502 BAT shares (equiv $32.37).
· DSY 4.2m shs on Monday was delta for Adrian Gore put option (strike 83.16 "for purposes of managing the risk associated with debt previously raised for Mr Gore’s acquisition of Discovery shares during the Discovery rights issue of July 2003 and subsequently in April 2015"). This may mean another rights issue not imminent since he’d then presumably have been prohibited from trading.
· AGMs: LEW
TODAYS KEY DATA POINTS:
· 12pm+: GE (30c)