By Lorcan Roche Kelly
Saudi Aramco could take months to fully restore output at its giant Abqaiq plant with oil analysts saying that damage at the facility is more severe than originally thought. Crude futures are holding close to yesterday’s level as investors await a clearer picture of supply disruption and worry about future attacks in the region. One thing seems almost certain: President Donald Trump would have little political support in Washington if he were to order strikes on Iran. Leaders of the Islamic Republic said they will not negotiate with the U.S.
The WeWork IPO is being moved further out the calendar as valuations of the company plummet. WeWork is facing pressure from SoftBank Group Corp. to delay the initial offering that is expected to value the company at about $15 billion — well short of the $47 billion it was worth when SoftBank last invested. On the other side, We Co. could lose access to $6 billion of credit financing should it fail to launch its IPO by Dec. 31.
Today the U.K.’s Supreme Court starts three days of hearings over Prime Minister Boris Johnson’s decision to suspend Parliament. The court has not given a date for when it will rule on the case but it is expected within a week. Johnson, back from another unsuccessful trip to the mainland, is still being asked to come up with workable solutions to the Irish border problem and still insisting goodwill and energy will lead to a deal.
Overnight, the MSCI Asia Pacific Index slipped 0.5% while Japan’s Topix index closed 0.3% higher after its first session of a holiday-shortened trading week. In Europe, the Stoxx 600 Index was 0.2% lower at 5:50 a.m. Eastern Time in a broad-based move lower. S&P 500 futures signaled a small drop at the open, the 10-year Treasury yield was 1.835% and gold was flat.
U.S. industrial production is expected to show a 0.2% increase for August when the data is published at 9:15 a.m. At 4:00 p.m., Treasury International Capital (TIC) flows data for July is released. There is an election in Israel today and the U.N. general assembly opens in New York. FedEx Corp. and Adobe Inc. are among companies reporting earnings today.