EURO DROPS AS GERMAN INFLATION RATE TURNS NEGATIVE AGAIN

Germany’s inflation rate has turned negative, for the first time since January.

The German consumer prices index fell by 0.2% year-on-year this month, according to new data from the Federal Statistics Office.

Analysts had expected the CPI to be unchanged; this negative reading could intensify calls for the European Central Bank to increase its QE programme.

The euro gave up 0.28% to trade at 1.1212 against the dollar.

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SINGAPORE ENTERS BEAR MARKET, ASIAN SHARES MOSTLY LOWER

On Monday Singapore’s FTSE Straits Times Index was down 1.6%, putting the index in bear market territory — defined as a 20% fall from a recent peak.

Stocks in Singapore, a commodities-trading hub, have come under pressure amid signals of China’s dipping economy and weak business climate, which have hurt commodities prices.

Earlier Monday, the world's second largest economy reported its August industrial profits fell 8.8% from a year earlier.

Singapore-listed firms that focus on offshore marine engineering and commodities led the declines, with SembCorp Marine down 3.4% and Noble Group shedding 2.2%.

Elsewhere in Asia, the Nikkei 225 Stock Average was down 1.32% and the Shanghai Composite added 0.27%, while Australia's S&P ASX 200 was up 1.35%.

In Japan, some investors are reestimating how realistic expectations of additional monetary easing by the Bank of Japan would be, which contributed to selling in Tokyo, said Soichiro Monji, general manager of economic research at Daiwa SB Investments.

On Friday Japanese shares rose 1.8%, partly driven by hopes of more monetary easing after Bank of Japan Governor Haruhiko Kuroda met with Prime Minister Shinzo Abe at the prime minister’s residence early that afternoon to discuss the economy.

Abe also said during a news conference after the market closed Friday that he wasn’t considering an immediate stimulus package.

The Japanese economy is shrinking, prompting some economists to question whether the “Abenomics” growth program is at risk of failing. On Thursday Abe said that he would aim to increase the size of the economy by around a fifth, without specifying exactly how or when that would be accomplished. Economists were skeptical.

Meanwhile, many investors see a buying opportunity in Tokyo, where corporate earnings are at record highs.

The Nikkei is near a bottom and a drop in commodity prices will provide “significant merits” to the economy in the longer term, said Masayuki Kubota, chief strategist at Rakuten Securities.

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BLOOMBERG'S ROBIN HOOD INDEX: HOW MUCH EACH PERSON WOULD GET IF THE RICHEST ONE IN THE COUNTRY GAVE MONEY TO THE POOR?

How would the global wealth be distributed if at least one billionaire from each country became a Robin Hood and gave out his or her fortune to the poor?

Bloomberg's analysts took a spattering of 42 countries with completely different demographics and economies, and then compared the wealthiest persons to the percentage of the populations living in poverty.

What is notable is that the richest person in Chile, Holland, France and Australia is a woman.

The gauge shows how the net worth of each country's wealthiest person compares to the livelihood of his fellow countrymen by calculating the lump sum in dollars each person living in poverty would get if the assets of the richest citizen were redistributed.

The net worth of Bill Gates would turn into a one-off payment of $1,736 if distributed to the neediest 15 percent of Americans.

In Cyprus and Sweden the poor would gain the most, - $45,987 and $33,149 respectively, yet they are also exceptional, as they have small populations — the island of Cyprus in the Mediterranean has 1.1 million people — and quite high level of life — Sweden ranks among the highest when it comes to GDP per capita.

Moreover, analysts admit that quantifying the boost from each payout is hard because each dollar will buy you something different in local currency terms. The poverty line also varies from nation to nation.

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DOLLAR, TREASURY YIELDS JUMP AFTER STRONG GDP

On Friday the greenback was broadly higher and Treasury yields jumped after the Commerce Department said that the U.S. economy grew in the second quarter at a faster pace than what had been initially reported and as Federal Reserve Chair Janet Yellen signaled the possibility of a U.S. rate hike this year.

The U.S. economy grew almost 4% in the second quarter, supported by higher consumer spending and a stronger business investment than previously reported, revised figures signal.

Gross domestic product — the value of everything a nation produces — climbed at a 3.9% annual rate from April to June, according to the government’s second update of how fast the nation’s economy expanded during the spring.

Previously the Commerce Department had said GDP increased 3.7%. The numbers are revised once the government gets more data on how the economy performed.

The recovery in the second quarter after dismal 0.6% growth in the first three months of the year was driven largely by an increase in spending by consumers, who account for as much as 70% of U.S. economic activity.

Consumer purchases jumped 3.6%, up from a prior estimate of 3.1%. Americans spent more on services such as health care and transportation.

The upwardly revised gross domestic product data came after Federal Reserve chief Janet Yellen said Thursday evening that an interest-rate hike is likely in 2015, citing a strengthening economy.

The news boosted investor confidence, sparking a stock-market rally and a bond-market selloff. Typically, when investors buy into riskier assets, like stocks, they sell safer investments like U.S. government bonds.

The Treasury selloff pushed prices lower and drove yields, which move in the opposite direction, higher.

The yield on the 10-year benchmark Treasury note  rose 6.2 basis points to 2.182% and the 30-year bond yield gained 5.9 basis points to 2.964%, according to Tradeweb. One basis point is equal to one hundredth of a percentage point.

The yield on the two-year Treasury note  increased by 4.3 basis points to 0.723%.

In Europe, the yield on the benchmark 10-year German bond  known as the bund, added 6.2 basis points to 0.650%, after falling Thursday to its lowest level in a month.

Elsewhere in the currency market, the dollar was given a significant boost.

The greenback re-approached Thursday's six-year peak against its Canadian counterpart with USD/CAD hitting 1.3356 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3312, edging up 0.05%.

EUR/USD dipped 1.1184, lower 0.42%.

Sterling lost 0.32% versus the greenback with GBP/USD trading at 1.5192.

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GOLD SURGES, U.S. STOCKS OPEN LOWER AFTER MIXED U.S. DATA, YELLEN ON TAP

Gold futures pushed higher on Thursday, after mixed U.S. economic data underlined uncertainty over the state of the world's largest economy.

Meanwhile, U.S. stocks opened lower and were on track for a third straight losing session ahead of a speech by Federal Reserve Chairwoman Janet Yellen.

December gold on the Comex division of the New York Mercantile Exchange added $15.60, or 1.41%, to trade at $1,147.60 a troy ounce during U.S. morning hours.

Yesterday, gold prices inched up $6.70, or 0.6%, as steep losses in global equity markets boosted the appeal of the precious metal.

Earlier, the U.S. Department of Labor said in a report that the number of individuals filing for initial jobless benefits in the week ending September 19 rose by 3,000 to 267,000 from the previous week’s total of 264,000, compared to expectations for a 7,000 rise.

In a separate report, the U.S. Commerce Department said that total durable goods orders declined by 2.0% in August, matching forecasts. Orders for durable goods in July were revised to a gain of 1.9% from a previously reported increase of 2.2%.

Core durable goods orders, which exclude volatile transportation items, were flat in September, compared to expectations for an increase of 0.1%. Core durable goods orders climbed 0.4% in July.

U.S. stocks declined at open.

Caterpillar Inc. added to the market’s downbeat sentiment, which said that it plans to cut 10,000 jobs by the end of 2018. The Dow component’s announcement is likely to put pressure on the Dow Jones Industrial Average throughout the day.

The Dow Jones Industrial Average, lost 131 points, or 8%, to 16,146, while the S&P 500 lost 12 points, or 0.7%% to 1,926. The Nasdaq Composite Index, shed 31 points, or 0.7%, to 4,720.

Fed Chairwoman Janet Yellen’s speech is expected at 5 p.m. Eastern Time after the close of U.S. trading.

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KIWI RISES VS GREENBACK WHILE AUSSIE STEADY NEAR 2-WEEK LOWS

On Thursday the New Zealand dollar rose against its U.S. counterpart, despite the release of downbeat New Zealand trade balance numbers, while its Australian counterpart was steady near two and half week lows.

NZD/USD hit 0.6308 during late Asian trade, the session high; the pair subsequently consolidated at 0.6288.

Earlier Thursday, Statistics New Zealand reported that the country's trade deficit expanded to NZ$1,035 million in August from NZ$649 million the previous month. Analysts had expected the trade deficit to widen to NZ$850 million last month.

Elsewhere, AUD/USD hit 0.6992 during late Asian trade, the session low; the pair settled at 0.6983.

The U.S. dollar had strengthened after comments by some Federal Reserve officials Monday night signaled that a U.S. rate increase is still on the cards this year.

In separate comments, St. Louis Fed President James Bullard and Atlanta Fed President Dennis Lockhart signaled that the Fed rate increase is not off the table this year.

Investors were now awaiting a speech by Fed Chair Janet Yellen later in the day for additional clarity on the bank’s decision last week to leave interest rates on hold.

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KIWI RECOVERS; AUSSIE HIGHER AFTER STRONG AUSTRALIA DATA

The Australian dollar edged higher against its U.S. counterpart on Tuesday, after the release of upbeat house price data from Australia. Meanwhile, the New Zealand dollar was also higher recovering from the previous session's sharp losses.

AUD/USD was last at 0.7154, up 0.32% - the session high.

The kiwi was steady against the Australian dollar, with AUD/NZD at 1.1286.

NZD/USD was last at 0.6325.

Australia’s official house price index rose more-than-expected in the last quarter, official data showed on Tuesday.

In a report, Australian Bureau of Statistics said that Australian HPI rose to a seasonally adjusted 4.7%, from 1.6% in the preceding quarter.

Analysts had expected Australian HPI to rise 2.5% in the last quarter.

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GOLD SLIDES FROM THREE-WEEK HIGHS AS DOLLAR, EQUITIES RECOVER

Gold futures turned lower on Monday to fall from the highest level in nearly three weeks as the U.S. dollar and global equity markets rebounded from a brutal selloff in the prior session in wake of the Federal Reserve’s decision not to hike interest rates.

Comex gold for December delivery hit an intraday peak of $1,139.40 a troy ounce before turning lower to trade at $1,132.60 during U.S. morning hours, down $5.20, or 0.46%.

The dollar pushed higher against the other major currencies on Monday, as the greenback continued to recover from the Fed's decision last week to hold interest rates at current levels.

EUR/USD was last at 1.1233, lower 0.59%.

GBP/USD was last at 1.5513, lower 0.10%.

Global equity markets rose along with other risk-sensitive assets, such as oil and copper, recovering from steep losses suffered Friday.

U.S. stocks opened higher on Monday, bouncing after a big post-Fed selloff last week.

Investors waited for home-sales data and a speech from a key Federal Reserve member to provide further direction. The S&P 500 opened 11 points, or 0.6%, higher at 1,968. The Dow Jones Industrial Average added 100 points, or 0.6%, to 16,482 at the open. The Nasdaq Composite began the day higher, up 26 points, or 0.5% at 4,854.

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STUDIES SAY REFUGEES HELP ECONOMY, DROP THE VIEW THEY ARE AN ECONOMIC BURDEN

According to the International Organization for Migration, already this year 362,000 illegal migrants have arrived in Europe and thousands continue to come. An estimated 80 per cent are refugees from violence, and Europe is legally obliged to provide an asylum for them.

Most European countries are reluctant to do that, and researchers explain it with two reasons: fear that letting in some refugees will encourage more, and that migrants will be an economic burden. However, the evidence shows both views are false.

EU asylum laws

The EU’s asylum laws were designed in the 1990s to accept small numbers of people. They don’t necessarily require people to stay in the first country they arrive at – where the fingerprints of refugees are held in the EU’s Eurodac database. But countries apply that rule, because it is an administratively easy way to grant refugee status. But a 2001 directive empowers the EU to bypass this system and admit asylum seekers quickly in cases of “mass influx”. In July, EU member states used it to agree a voluntary plan to relocate 32,000 people stranded in Italy and Greece, roughly according to the receiving country’s size, GDP, unemployment rate, and how many refugees it has already.

Apart from that, the EU has never used its emergency plan, says Madeline Garlick of Migration Policy Institute Europe, because “member states fear this will be a pull factor for other people from the same country”. Observers say this is why the UK refuses migrants who have already entered Europe – it would encourage more to come.

However, Alexander Betts, head of Refugee Studies Centre at the University of Oxford says that there is no sound research that would prove the political claim that giving people asylum stimulates more flow.

“Nearly all refugees want to go home. They don’t sit in refugee camps calculating where they can get the best benefits.”

Researches, economic impact

One EU country seems completely calm. Germany says it can take 800,000 asylum seekers in 2015, as it largely counts on immigrants to fill up its ageing workforce and the EU’s emergency asylum rules say resettled refugees can legally work. In 2012, Germany had 200,000 more deaths than births, - now more than compensated by 391,000 immigrants.

“Every euro we spend on training migrants is a euro to avoid a shortage of skilled labor,” German state governments declared last week. Otherwise, they would need to spend more on benefits, as the labor shortage bites industry and jobs, they noted.

In contrast, UK prime minister David Cameron, being under public pressure, said the country would take solely 20,000 Syrian refugees by 2020.

On 4 September the World Bank, the UN’s International Labour Organization and the OECD issued a report which signaled that “in most countries migrants pay more in taxes and social contributions than they receive.”

In a research from last year, analysts at University College London found both European and non-European immigrants to Great Britain more than pay their way. Non-Europeans living in the UK since 1995 brought £35 billion worth of education with them. Those who arrived between 2000 and 2011 were less likely than native Britons to remain on state benefits, and no more likely to live in social housing. They contributed a net £5 billion in taxes during that period - unlike natives.

That is partly because most migrants are young and need relatively little in the way of benefits. Their economic impact is getting closer to the one natives have as they age and assimilate.

Carlos Vargas-Silva of the Migration Observatory at the University of Oxford reported this year that letting in 260,000 immigrants a year could halve the UK’s public debt 50 years from now.

Mathias Czaika of the International Migration Institute at the University of Oxford suggested that some studies show that migrants create jobs for locals. “An influx of migrants can depress wages, but mostly for other migrants, and only 1 to 3 per cent. Mostly the impact on wages or jobs is neutral or positive.”

Germany has no doubts. What is wrong with the others then?

Analysts distinguish non-economic reasons, viz, a fear of the cultural impact. In August, for example, Slovakia said it would take only Christian Syrians. Meanwhile more refugees are coming, and Europe will have to learn how to cope with this and make them adapt to the local environment - at least for now, until the situation is stable in their Motherland. Or maybe they have to skip their fears and look for economic benefits instead?

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NEW METATRADER 4 ANDROID UPDATE: 24 ANALYTICAL OBJECTS AND OTP AUTHENTICATION

Recently, we have reported on the addition of analytical objects and two-factor authentication in the MetaTrader 5 Android. Now, the same features are available in the new MetaTrader 4 Android build 846.

You now have access to 24 graphical objects for technical analysis: lines, channels, Elliott waves, Gann and Fibonacci tools, as well as geometric shapes that can be applied both to charts and indicator windows.

New MetaTrader 4 Android Update: 24 Analytical Objects and OTP Authentication

The second major innovation is the OTP (One Time Password) system providing additional level of security when working with trading accounts. Now, a verification code may be enabled by a user in addition to login and password when logging in to a desktop or tablet terminal. The code is generated by a MetaTrader 4 Android application. To start using one-time passwords, users should bind their trading accounts to the password generator.

Update your MetaTrader 4 Android to receive 24 graphical objects for market analysis and enhanced security tool!

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DOLLAR EXTENDS LOSSES FRIDAY AFTER FED STANDS PAT

On Friday the dollar extended its losses against the yen in a fluctuating Asia trade, underscoring investors’ wariness over softness in the global economy and markets given the Federal Reserve’s decision to keep interest rates unchanged.

In a highly-anticipated decision Thursday, the Federal Reserve left short-term interest rates unchanged after weeks of hot market-churning debate over whether the central bank would end an era of near-zero rates.

Fed Chairwoman Janet Yellen said concerns about inflation, China and financial markets contributed to the Fed’s decision to stand pat.

The selling of the dollar has also been accelerated by a sharp decline in the benchmark Nikkei Stock Average midday, which deepened the risk-averse mood and spurred buying into the perceived safety of the Japanese currency. The Nikkei was last down 1.96% midday.

USD/JPY was last at 119.71, compared with 120.03 late Thursday in New York, tracking the overnight dollar selling that brought the U.S. currency from around 120.90 before the Fed concluded its two-day policy meeting.

The greenback was slightly stronger against the euro, which declined to $1.1401 from $1.1434 late Thursday, after hitting its three-week high of $1.1441 overnight.

The shared currency was at ¥135.75 from ¥137.22 earlier.

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GOLD DIPS AFTER HITTING ONE-WEEK HIGH AHEAD OF FOMC

Gold prices were trading close to their highest level in a week on Thursday as weak U.S. inflation data weighed on the dollar and raised hopes that the Federal Reserve would hold off hiking interest rates.

Comex gold futures for December delivery were dipped 0.15% to $1,117.30 an ounce, compared to overnight highs of $1,122.4.

Meanwhile, the dollar remained under pressure ahead of the conclusion of the closely watched Fed policy setting meeting later in the day amid uncertainty over whether the central bank would hike short term interest rates for the first time in almost a decade.

A rise in interest rates would boost the greenback by making it more attractive to yield-seeking investors, while putting gold under pressure, as it doesn’t yield interest.

EUR/USD was last at 1.1318, higher 0.23%, and GBP/USD also added 0.23% to trade at 1.5527.

We’ll get the Federal Open Market Committee statement with the rate-hike decision at 2 p.m. Eastern, with Yellen’s news conference half an hour after that.

Several economic reports come out before the Fed grabs the spotlight. Readings on weekly jobless claims and housing starts are slated to hit at 8:30 a.m. Eastern, followed by the Philly Fed survey at 10 a.m.

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HOW WILL THE MARKETS RESPOND? FOUR WAYS TO TRADE FED DECISION

Who has been buying in the last couple of weeks? Maybe those that are hopeful the Fed will keep rates artificially low are buying ahead of that awaited announcement? Or are people are buying for no other reason than others are buying? It is really hard to predict the market movements after the Fed announcement. But analyst Jani Ziedins projects four possible outcomes and four possible ways to trade them:

1) Rally after hike

This is a bullish signal as it tells us the market no longer cares about China or rate hikes. Everyone who is worried these things sold weeks ago and when there is no one left to sell a headline, it stops mattering.

2) Selloff after hike

Over the medium-term this is a bullish outcome because the rate-hike discussions and lack of confidence are finally over. While the knee-jerk reaction was to sell the news, a 0.25% jump in short-term interest rates will not have a material impact on the U.S. economy. There will be plenty of value oriented buyers ready to jump in and snap up discount shares from fearful sellers. While it is possible to slide to the lower end of the trading range, even undercutting the 1,860 lows, the Fed hiking rates tells us they believe in this economy and so should we.

3) Rally after no hike

This will mark a temporary relief rally that will fade. Postponing the rate hike by six or twelve weeks will not make much of a difference and isn’t something to be happy about.

Jani says he would be worried over the Fed not hiking rates because it would mean they think they economy and stock market are too vulnerable to handle such a nominal rate increase. If they’re worried, then investors should also be.

4) Selloff after no hike

A collapse following good news will signal to stay clear of this market, says Ziedins. If the central bank doesn’t believe in this market, we could smash through the lows.

The situation is further complex because the cloud of rate hike uncertainty continues indefinitely. The market can handle bad news because it is quantifiable. This uncertainty and indecision is what really drives it crazy.

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OPEN-SOURCE IDENTITY PROTOCOL PROVIDER ONENAME TO SWITCH TO BITCOIN

The startup Onename made a big announcement at the Blockstack Summit 2015 where co-founder Muneeb Ali revealed the decision: it is switching from Namecoin’s blockchain to Bitcoin Namecoin network is not decentralized and the mining group Discus Fish controls 60-70% of its hashing power.

Namecoin is a blockchain-based Domain Name System (DNS) which became known an effective solution some five years ago. It was one of the first large-scale altcoins introduced in 2010; however, it has never been able to challenge the other competitors like Bitcoin, Litecoin and even Dogecoin.

According to a statement the startup will post a blog with more details on the latest decision. No commentary as of yet from the Namecoin founders has come.

DIS uses a unique way to create a ‘name’ or unique profile to accompany users’ online blockchain verified identity. Additionally, the open-source identity provider began its project in March 2014 with the ability to create a name instead of a binary number solution or a Bitcoin address. After the decision was made public, a lot of people in the community showed their happiness and said that it is after all the victory of the strongest blockchain.

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CRYPTOCURRENCY EVENT: CONSENSUS 2015 TO BE HELD ON 10 SEPTEMBER 2015 IN NEW YORK

Consensus 2015 to be held on 10 September 2015 in New York from 08:30 to 18:00 (EDT) at the TimesCenter, 242 West 41st Street, New York, NY 10036. Digital currencies and blockchain technology will be across multiple and diverse sectors where the experts will debate and discuss at the event.

The discussion will be around real-world problems and the solutions that cutting-edge digital currencies and blockchain tech might offer. PayPal, Wells Fargo, the US Department of Justice and leading technologists and investors were among the buyers of the first batch of tickets.

Leading Speakers at the Event: Wences Casares, Kathryn Haun, Jerry Brito, Kosta Peric and many others.
Wences Casares started Bitcoin wallet and storage Xapo and known for his unconditional support for the digital currency.

Kathryn Haun, US Department of Justice is going to be the lead speaker. Given her experience as an Assistant US Attorney and Digital Currency Crimes Coordinator, Northern District of California, she comes with a lot of insight.

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PORSCHE'S NEW FAST CHARGING ELECTRIC CAR IS A FRESH CHALLENGE FOR TESLA

Porsche revealed a four-seat sports car that accelerates faster than the 911 and gets charged in just 15 minutes, which issues a challenge to Tesla Motors Inc. to keep pace.

Head of Volkswagen AG Matthias Mueller said at the International Auto Show in Frankfurt that the Mission E concept reaches 100 kilometers (62 miles) per hour in 3.5 seconds, beating the 4.2 seconds for the new generation of the 911. Moreover, the 600-horsepower car has a range of more than 500 kilometers and can recharge the battery to 80 percent capacity in about 15 minutes.

Porsche Mission E

In comparison, Tesla’s Supercharger needs about 30 minutes to recharge the Model S to about 170 miles of range.

Porsche and sister unit Audi are among the elite car brands turning to battery-powered models as Tesla develops into a serious competitor.

The electric-car maker will start deliveries of the Model X crossover later this month, and a more affordable model will soon begin to be delivered.

A blow to traditional competitors, the firm run by billionaire innovator Elon Musk has received bright reviews for the acceleration and handling of the Model S.

Tesla Model S

Meanwhile, at the Frankfurt auto show, Porsche introduced a new generation of the 911 sports car. The model features biturbo engines that generate at least 370 horsepower.

More than 200,000 cars are planned for selling for the first time this year, driven by demand for the $52,600 Macan compact SUV.

The Mission E concept uses an 800-volt electric system, double the voltage of other systems, Bloomberg reports. That helps reduce charging times and lowers weight, the company said. To assist in operating the vehicle, the car features eye-tracking and gesture control, including the use of holograms that allow the driver to grab apps out of the air, according to the producer.

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YEN HIGHER AS BANK OF JAPAN STANDS PAT

On Thursday the greenback edged lower against the yen after the Bank of Japan decided to stand pat on the monetary policy which spurred demand for the Japanese currency.

In a widely expected move, the Bank of Japan’s nine policy board members voted 8-1 to maintain the policy of buying assets at an annual pace of ¥80 trillion. The BOJ last raised the purchase amount in October.

The yen was boosted by the news with the greenback last seen at ¥119.59, lower 0.52%. That compared with ¥120.23 late Monday in New York.

The U.S. currency was higher against the euro, which was at $1.1300 midday from $1.1315 late Monday.

Takuya Kanda, senior researcher at Gaitame.Com Research Institute, said he did not expect such a reaction. He said he had felt expectations for BOJ easing were mounting from earlier this morning, as indicated by a rise in the benchmark Nikkei Stock Average.

After rising 2.0% in mid-morning, the Nikkei trimmed most of its gains, and was up only 0.2% immediately after the BOJ decision. The index was last up 0.9%.

Elsewhere in the currency market, the Australian dollar was weaker at $0.7107 and ¥85.52 midday from $0.7138 and ¥85.19, respectively.

The Aussie gained earlier in the session as investors viewed the country’s new prime minister as positive. Malcolm Turnbull, a 60-year-old former investment banker, will succeed Tony Abbott.

However, the local currency turned down after the Reserve Bank of Australia issued the minutes of its Sept. 1 policy meeting, at which it maintained a neutral tone on the outlook for interest rates.

The euro was at ¥135.47 from ¥136.08.

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GOLD PRICES QUIET AHEAD OF FOMC; U.S. STOCKS LITTLE CHANGED AT OPEN

Gold prices are slightly higher in subdued early U.S. trading Monday.

Analysts have seen some light short covering in the futures market and bargain hunting in the cash market. At the same time, many market players are standing on the sidelines before this week’s highly-anticipated FOMC meeting.

December Comex gold was last up $1.50 at $1,104.80 an ounce.

December Comex silver was last down $0.12 at $14.385 an ounce.

The Federal Open Market Committee meeting on Wednesday and Thursday is the epicenter of attention this week.

A statement and press conference from Fed Chair Janet Yellen are set for Thursday afternoon.

Market analysts have not come to a consensus on whether the central bank will make an interest rate hike for the first time since 2009 at this week’s meeting, or wait until December, or next year.

The U.S. Fed funds futures market presently suggests the Fed will not make a rate hike in September.

Asian stock markets were weaker overnight, as there was more mostly downbeat economic data coming out of China.

China’s industrial output in August was up 6.1%, year-on-year, which was better than July’s 6.0% growth, but lower than the consensus forecast of up 6.6% for August. Fixed asset investment in China during January-August was also lower than expected. However, China’s retail sales in August were higher than expected.

China’s Shanghai gauge was down 2.7% Monday and Japan’s Nikkei stock index was down 1.6% on the day.

U.S. stocks opened little changed on Monday. The S&P 500 opened flat at 1,960. The Dow Jones Industrial Average opened unchanged at 16,427. The Nasdaq Composite began the day up 6 points, or 0.1% at 4,828.

In other news Monday, industrial production in the Euro zone rose 0.6% in July from June and was up 1.9% on the year, which was better than expected.

The dollar was mostly higher against its rivals with EUR/USD plunging 0.28% to 1.1307. GBP/USD hit 1.5396, lower 0.19%.

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LEADING WALL STREET COMPANIES INVESTED $30 MILLION IN BITCOIN STARTUP

Leading Wall Street companies such as i LEADING WALL STREET COMPANIES INVESTED $30 MILLION IN BITCOIN STARTUP ncluding Visa, Nasdaq etc invested $30 million in Bitcoin startup from San Francisco. This startup (Chain Inc.) helps developers to create Bitcoin application by rapid access to the blockchain to trade and transfer financial assets within speedy and relatively cheaper mechanism to record and store transactions. Besides, Wall Street companies are experimenting in non-financial assets such as smart contracts, public record keeping, etc.

Chain Inc. is not the only companies that are working on integrating Bitcoin technology into finance sectors. For example, ex-JP Morgan exec Blythe Masters had also agreed to head a Bitcoin startup.

“We believe in the power of block chain technology to transform how financial assets are transferred, but it has to be done with the right partners to insure it gets off the ground,” Adam Ludwin, CEO of Chain, told in an interview.

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WILL CHINA LEAD THE WORLD TO ANOTHER RECESSION? CITIGROUP RESPONDS

If the global economy slips into a moderately deep recession next year, it will most likely be dragged down by shrinking growth in major emerging markets - especially a recession in China, says Willem Buiter, chief economist at Citigroup.

Buiter, who is also a former member of the Bank of England's interest rate-setting committee, said in a note that the bank believes there is a high and rising likelihood of a Chinese, emerging market and global recession scenario playing out.

Worries over a steep slowdown in China's economy - the second largest in the world after the U.S. - has rolled over global markets in recent months.

Deepening those concerns, data issued on Tuesday signaled the country's dollar-denominated exports dropped by 5.5 percent in August from a year earlier, while imports plunged almost 14 percent.

Although, a global recession is not yet reflected in Citi's benchmark forecasts for global or Chinese growth in 2016, Citi's global economics team has supported this view.

In his opinion, what is more likely is global real gross domestic product growth (GDP) dipping consistently over the next few years, dropping to or below 2 percent around the middle of 2016.

He also noted, however, that the possibility of some kind of recession, moderate or severe, was 55 percent.

If the world economy slips into a recession, generally identified by two straight quarters where GDP falls, it will be the emerging markets. Particularly, China will lead the road, Buiter said.

"We consider China to be at a high and rapidly rising risk of a cyclical hard landing," the Citi note said.

"The reasons behind China's downturn and likely recession are familiar from the long history of business cycles everywhere: rising excess capacity in a growing number of sectors, excessive leverage in the private sector and episodes of irrational exuberance in asset markets."

One of the asset markets Citi referred to was the equity market. Having soared some 60 percent between the start of the year and June, China's benchmark Shanghai Composite gauge then dropped sharp and fast.

Earlier this week, China revised down its forecast for economic growth this year to 7.3 percent from 7.4 percent.

Buiter said that if China enters a recession, many emerging markets will probably follow.

"The advanced economies or developed markets (DMs) will not have enough resilience, either spontaneous or policy-driven, to prevent a global slowdown and recession, even though many large DMs will not experience recessions themselves but will merely grow more slowly," he added.

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GOLD INDUSTRY: "PEOPLE ARE STILL EAGER TO INVEST IN JEWELRY"

CEO at XCel Brands Robert D’Loren is sharing his view on the state of mind of average consumers and their investment desires. His opinion is a quite interesting insight into the industry and how businesses adjust their strategies to the current market situation.

It is too early to say whether the current market volatility significantly impacts the consumer confidence, D'Loren says. The trend nowadays is that consumers are no more physically presented in the stores, and the businessman explains that in the recent years consumers have become more confident with the distance shopping - through interactive television or online sale. This trend fits into business strategies of many companies.

D'Loren suggests that people are still willing to invest in jewelry, as weaker prices for the metal weigh. However, businesses should adjust them keeping in mind the current market environment...

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MUST-READS 2015: TECHNOLOGY DOMINATES THIS YEAR’S FT BUSINESS BOOK OF THE YEAR AWARD

Technology and risks it may bear take over this year's Financial Times and McKinsey Business Book of the Year Award. No wonder, in the age of progressing technology and multiplying startups, readers crave for new biographies and fresh explanations...

Only once, in 2013, a technology book won the prize. That was Brad Stone's "The Everything Store" about Amazon.

This year, the award's 15-title long list includes such best-sellers, as Ashlee Vance's "Elon Musk", Nathaniel Popper's "Digital Gold" about bitcoins, Martin Ford's "Rise of the Robots" and a number of others. Let us have a closer look.

Ashlee Vance's "Elon Musk: Tesla, SpaceX, and the quest for a Fantastic Future"

The book treats about one of the most prosperous and talented entrepreneurs of our time, a man behind PayPal, Tesla and SpaceX, - Elon Musk. Veteran technology journalist Ashley Vance gives an insight into his life, from his difficult childhood in South Africa to remarkable ascent in the United States as a man of the epoch who managed to revolutionize three industries at once. In the times of chasing easy money, Musk took a risk of chasing secrets of radical new technology. Along with grinding failures and a rising number of enemies, he experienced unprecedented successes which brought him to creating Tesla, SolarCity, SpaceX, and Musk's net worth soared to more than $5 billion...

Nathaniel Popper's "Digital Gold: The Untold Story of Bitcoin"

In his fresh 2015 best seller, New York Times technology reported Nathaniel Popper paints a brilliant history of Bitcoin - a digital currency of the Age of Internet, free from central banks and governments. This technology generated not only billions of dollars, but also attracted crowds of followers and spawned a wide social movement. To some, it brought untold fortunes, while for others - prison terms.

Martin Ford's "Rise of the Robots: Technology and the Threat of a Jobless Future"

Martin Ford's new book is an exploration of the new technology and an urge to arms to face its implications. The book soars on the verges of technology and economy, warning that unless we reassess economic fundamentals and the essence of the modern economy, we risk a future of massive unemployment and inequality.

Ford's warning sounds clearly: robots are coming, and we must decide – now – if the future will see prosperity or catastrophe. Indeed, artificial intelligence continues to accelerate and is on its way to making some today's jobs obsolete, like doctors, paralegals and even programmers are poised to be replaced by machines.

What else is on the desk?

Economic works try to keep abreast with the tech ones.

In "Restart", Mihir Sharma describes how to revive India, while in "Hall of Mirrors", Barry Eichengreen compares the lessons from the Great Depression with the recent credit crisis. In "Climate Shock", authors Gernot Wagner and Martin Weitzman observe another global crisis - climate change.

Richard Thaler explains how the behavioral economics developed evolved in "Misbehaving".

George Akerlof and Robert Shiller in their best seller "Phishing for Phools" are interested in economic trickery and the way free markets allow us to be manipulated. The book is coming next month.

In "Black Horse Ride", Ivan Fallon investigates how Lloyds, the UK bank, became embroiled in the banking crisis.

Finally, for anyone looking for hints on what's ahead for us, be it in the stock market or policy making, Philip Tetlock and Dan Gardner lay out how to improve our ability to predict the future in their forthcoming book, "Superforecasting".

The judges will select a shortlist of up to six books on September 22. The £30,000 prize will be awarded on November 17. Here is what the long list consists of:

Phishing for Phools: The Economics of Manipulation and Deception, George Akerlof and Robert Shiller, Princeton University Press

Misbehaving: The Making of Behavioural Economics (UK) Richard Thaler Allen Lane/ Penguin Press

Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future (US), Ashlee Vance, Ecco

Climate Shock: The Economic Consequences of a Hotter Planet, Gernot Wagner and Martin Weitzman Princeton University Press

How Music Got Free: What Happens When an Entire Generation Commits the Same Crime? (UK), Stephen Witt The Bodley Head/ Penguin Random House

Unfinished Business: Women Men Work Family, Anne-Marie Slaughter, Oneworld Publications/ Random House

Restart: The Last Chance for the Indian Economy, Mihir Sharma, Vintage Books/ Random House India

Rise of the Robots: Technology and the Threat of a Jobless Future (US), Martin Ford, Basic Books

Hall of Mirrors: The Great Depression, The Great Recession, and the Uses - and Misuses - of History, Barry Eichengreen, Oxford University Press

The Powerhouse: Inside the Invention of a Battery to Save the World, Steve LeVine, Viking

Losing the Signal: The Untold Story Behind the Extraordinary Rise and Spectacular Fall of Blackberry, Jacquie McNish and Sean Silcoff, Flatiron/ Macmillan

Digital Gold: Bitcoin and the Inside Story of the Misfits and Millionaires Trying to Reinvent Money (US), Nathaniel Popper, Harper/ HarperCollins

Superforecasting: The Art and Science of Prediction (UK), Philip Tetlock and Dan Gardner, Random House Books

Leadership BS: Fixing Workplaces and Careers One Truth at a Time, Jeffrey Pfeffer, HarperBusiness/ HarperCollins

Black Horse Ride: The Inside Story of Lloyds and the Banking Crisis, Ivan Fallon, The Robson Press/ Biteback Publishing

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