Sears Holdings has filed a Chapter 11 bankruptcy petition, and Eddie Lampert has resigned as CEO but remains chairman. A deal with lenders allows hundreds of stores to remain open while the company goes through bankruptcy proceedings.
European Central Bank President Mario Draghi says Italian officials should "calm down with the tone" and stop questioning the euro because the country's budget debate is hurting households and businesses. An Italian official has dismissed Draghi's statements as personal opinions that don't reflect government policy.
President Donald Trump says that more tariffs on Chinese imports might be imposed if China doesn't negotiate "a fair deal" with the US but that he does not want to send the Chinese economy into a depression. He calls China a "bigger problem" than Russia regarding foreign meddling in the 2016 US election.
Gary Cohn, former president of Goldman Sachs and former chief economic adviser to President Donald Trump, has joined the board of advisers at blockchain startup Spring Labs.
At least 18 deaths have resulted from Hurricane Michael, which hit the Florida Panhandle last week and caused widespread property damage in the Southeast, and officials say the death toll could increase as dozens of people have yet to be found. Some estimates of Michael's damage put insured losses at $5 billion to $8 billion, and experts say insurers are equipped to absorb the losses.
Europe should keep options open and not automatically follow the Federal Reserve's lead in ceasing asset purchases, Bank of France Governor Francois Villeroy de Galhau says. The European Central Bank has indicated it will stop adding to a €2.6 trillion asset pile and has hinted of an interest-rate increase late next year.
Sterling has declined against the euro and the US dollar as hopes fade that the UK and the EU will reach a breakthrough on Brexit talks. Meanwhile, the yen has risen against the dollar as the Japanese currency strengthens its position as a haven.
The European Parliament might delay for two years a ban on using the Euro Overnight Index Average and the Euro Interbank Offered Rate that the EU Benchmarks Regulation is set to phase in because of industry concerns about risk to valuation and financial stability. The European Commission says a delay will be considered if there is "evidence that all alternative options not entailing an extension of the transition period would not achieve the desired smooth transition".
The UK Financial Conduct Authority has released a consultation for a "hard Brexit" that proposes the regulator take responsibility for reporting, decisions, data collection and how data are shared with the European Securities and Markets Authority. The FCA has also clarified how Europe's revised Markets in Financial Instruments Directive is incorporated into UK law.
President Donald Trump has lashed out at Europe on trade, saying "nobody treats us much worse" than the EU does. "The European Union was formed in order to take advantage of us on trade, and that's what they've done," he said.
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