“The market is better at predicting news than the news at predicting the market” — Gerald Loeb.

1. Multi-trillion plan to save the eurozone being prepared — reported by The Telegraph European officials are working on a grand plan to restore confidence in the single currency area that would involve a massive bank recapitalisation, giving the bail-out fund several trillion euros of firepower, and a possible Greek default.
2. Senate approves budget stop-gap — the Senate approved, in a 79-12 vote, stop-gap measures to fund the government for an additional six weeks and avert a shutdown. It also approved, on a voice vote, a one-week extension to give the House time to consider the funding bill; House approval is expected.
3. German parliament approves expanded EU bailout fund — Chancellor Merkel achieved her majority after intense lobbying. A large majority in the German parliament has approved expanded powers for the EU’s main bailout fund. All 17 countries that use the euro must ratify the commitment to expand the powers of the EFSF and boost its bailout guarantees to 440bn euros (£383bn). So far, 10 have approved the measure.
4. Italy and Spain extended their bans on short-selling due to ongoing volatility, according to European regulator ESMA — Italy extended until Nov. 11, while Spain didn’t set a date, saying its decision was based on “protracted instability in European securities markets.”
5. Justice Department probing Chinese accounting — The U.S. Justice Department is investigating accounting irregularities at Chinese companies listed on U.S. stock exchanges, said an official with the Securities and Exchange Commission, suggesting criminal charges may be brought in addition to civil proceedings.

The week ahead — Economic data from Econoday.com: