Morning Brief: ‘Something sinister is brewing’

Top Story

OPEC, meeting today in Vienna, agreed to cut oil production by at least 1.5 million barrels per day in the hopes of arresting a downward trend that has seen oil prices plunge toward $60 a barrel.

But as the Financial Times reported this morning, investors were already betting that any production cuts would not be enough to overcome the global slowdown in demand.

“I’m not convinced this cut will be enough to stop the slide,” one analyst told Reuters.

The likely reason? Panic is again gripping financial markets around the world, spurred on by lousy third-quarter earnings reports and grim new macroeconomic data. Japan’s Nikkei index slid another 9.6 percent Friday, while European markets fell by between 7 and 10 percent. U.S. stock futures, which fell to their lowest allowable levels, indicate a big selloff in New York today. “Something sinister is brewing,” warned one market strategist.

Decision ’08

In a shocking move, the editorial board of the New York Times endorsed Barack Obama for president.

Republican vice-presidential nominee Sarah Palin is guaranteeing victory in Pennsylvania. Meanwhile, a new GOP ad in North Carolina appears to assume that Obama will win.

Politico says the McCain campaign has become a “circular firing squad.”

Americas

Colombia’s spy chief resigned after admitting her agency spied on President Alvaro Uribe’s political opponents.

A trial in Miami is offering a fascinating window into the operating style of Venezuelan President Hugo Chavez.

After seven months of delay, Mexico’s Congress passed an energy-reform bill intended to stabilize the country’s sagging oil production.

Asia

Amnesty International called on China to release Hu Jia, the dissident who won the European Parliament’s most prestigious human rights award.

South Korea’s economy is growing at its slowest clip in four years.

Pakistan’s legislature passed a bill urging dialogue with tribal militants.

Middle East and Africa

Turkey’s Consitutional Court published its reasoning for a July ruling in which it accused the country’s prime minister of undermining secularism.

Newsweek‘s Kevin Peraino wonders if Dubai’s real estate boom is going bust.

Iranian President Mahmoud Ahmadinejad is rumored to be in ill health.

Europe

The Soyuz capsule carrying Richard Garriott landed safely. “What a great ride that was,” the space tourist said.

Iceland’s central bank governor says the country’s meltdown isn’t his fault.

The Guardian accuses a top British politician of misleading the press about his meeting with Russian billionaire Oleg Deripaska.

Today’s Agenda

NATO Secretary-General Jaap de Hoop Scheffer meets with U.S. President George W. Bush in Washington.

Photo: DIETER NAGL/AFP/Getty Images