Northern Lights

Here is what you need to know.

It’s jobs day. The US economy is expected have added 172,000 jobs in September, with the unemployment rate holding at 4.9% and average hourly earnings climbing at a 2.6% year-over-year clip. The report will cross the wires at 8:30 a.m. ET.

Fed rate-hike odds are climbing. Fed funds futures data compiled by Bloomberg shows there’s a 23.6% chance the Fed will raise interest rates at its November meeting and a 63.6% chance a rate hike happens before the end of the year. Last week, the market saw just a 50% chance of a rate hike happening in 2016.

The British pound flash crashed. Sterling plunged 6% in an instant, brought on by comments from French President Francois Hollande from the Financial Times suggesting he wanted to be hard on Brexit negotiations with Britain. The pound is down 2.1% at 1.2351 against the dollar.

China’s FX reserves are shrinking. China’s foreign-exchange reserves in September fell for a third straight month, according to data from China’s central bank, the People’s Bank of China. The drop to $3.166 trillion from $3.19 trillion was worse than the $3.18 trillion that economists had forecast.

Deutsche Bank is considering raising cash. The German investment bank is looking into ways to raise cash should it be necessary because of the eventual settlement with the US Department of Justice regarding its mortgage-backed securities investigation, Bloomberg reports.

Verizon wants a discount on Yahoo because of the hacking scandal. The telecommunications giant wants a $1 billion discount on its $4.8 billion acquisition of Yahoo’s core assets, the New York Post’s Claire Atkinson reports. Verizon believes Yahoo’s value has been ‘diminished’ by the hacking scandal, which it found out about just two days before the news went public.

Snap is working on an IPO. The company formerly known as Snapchat is said to be working on a $25 billion initial public offering that is expected to take place in March, according to The Wall Street Journal.

Boeing got a big order from Qatar Airways. The deal is expected to be worth about $18 billion and include Boeing 777, 787, and 737 MAX planes, the BBC says.

Stock markets around the world are mostly lower. Hong Kong’s Hang Seng (-0.4%) lagged in Asia, and Spain’s IBEX (-1.1%) trails in Europe. Notably, Britain’s FTSE (+0.9%) outperforms. S&P 500 futures are down 7.75 points at 2,148.75.

US economic data flows. Aside from the jobs report, wholesale inventories will be released at 10 a.m. ET, and the Baker Hughes rig count crosses the wires at 1 p.m. ET. The US 10-year yield is up 1 basis point at 1.75%.

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