“Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars.” — Bernard Baruch

1. Japan’s Economy Falls Into Surprise Recession — MarketWatch, a sales tax increase pushed Japan’s economy into a recession in the third quarter. Japan’s real GDP shrank 1.6% on an annualized basis as firms cut inventories and held back on capital investment. The figure marked the second quarter of contraction, after the economy shrank 7.3% in the April-June quarter after the national sales tax ticked up to 8% from 5% on April 1. Many economists consider two quarters of economic contraction to be a recession.
2. Intel Unveiled The Luxury Wearable Device for Fashion-Forward Women — via TheVerge, it features a 1.6″ OLED display, and delivers texts, e-mails, and Facebook (NASDAQ:FB)/Google (GOOG, GOOGL) notifications over AT&T’s (NYSE:T) 3G network independently of the user’s smartphone. Intel (NASDAQ:INTC) has priced the device at $495.
3. West African Mining Projects Take Hit From Ebola Crisis — WSJ, the Ebola epidemic in west Africa has led mining companies in the region to put expansion plans on hold, delaying the roll-out of jobs meant for residents of the countries hardest hit by the virus. ArcelorMittal (NYSE:MT) has delayed a $1.7B expansion at its iron ore mine in Liberia, Rio Tinto (NYSE:RIO) has stopped work on a $20B iron ore mine in Guinea, and Sierra Leone-focused London Mining filed for bankruptcy last month.
4. Alibaba To Launch International Version of Taobao Marketplace — Reuters, Jack Ma has announced that Alibaba will set up an international version of its e-commerce marketplace Taobao to serve buyers worldwide in multiple languages, including English and Chinese. Alibaba (NYSE:BABA) currently has an international e-commerce platform specializing in wholesale goods called Aliexpress but does not have an international offering for consumers to sell to each other.
5. China’s Central Bank Cuts Interest Rates — WSJ, China cut lending rates for the first time in more than two years, in an acknowledgment that its piecemeal efforts to bolster its flagging growth have failed. The People’s Bank of China lowered one-year benchmark lending rates by 40 bps to 5.6% and reduced the one-year deposit rate by 25 bps to 2.75%. China’s economic growth slowed to a five-year low of 7.3% last quarter. The last time China cut lending rates was July 2012.
6. ECB Begins Buying Asset-Backed Securities Under Private QE — The European Central Bank (ECB) has started buying asset-backed securities,in a move to encourage banks to lend and revive the economy. The program is one plank in a strategy which ECB chief Mario Draghi hopes will increase its balance sheet by up to 1 trillion euros. It already buys covered bonds, a secure form of debt often backed by property. The ABS and covered bond programs will last for at least two years.

The week ahead — Economic data from Econoday.com: