03Oct2016 Pre-Market Commentary: US Markets To Open Lower, US Dollar Strengthens, Crude Price Melting Upwards, Investors Wary Of DB And MANY Huge Problems In The EU, Indicators Bearish

Here is the current market situation from CNN Money

European markets are higher today as French and British shares show gains. The CAC 40 is up 0.10% while the FTSE 100 is up 1.14%. The German DAX is closed.

Deutsche Bank races against time to reach U.S. settlement

FRANKFURT (Reuters) – Deutsche Bank is throwing its energies into reaching a settlement before next month’s presidential election with U.S. authorities demanding a fine of up to $14 billion for mis-selling mortgage-backed securities.

Clinton expected to hit Wells Fargo in speech on ‘bad corporate actors’

WHITE PLAINS, N.Y. (Reuters) – U.S. presidential candidate Hillary Clinton on Monday will unveil a plan to make it easier for consumers to take legal action against “bad corporate actors,” citing Wells Fargo & Co and Mylan Pharmaceuticals, according to a campaign official.

Futures start quarter on a quiet note ahead of data

(Reuters) – U.S. stock index futures started the fourth quarter on a quiet note and were little changed ahead of economic data on Monday and later this week that will give investors further clues on the health of the economy.

Oil breaks above $50 a barrel as investors warm to OPEC deal

LONDON (Reuters) – Oil rose to its highest since August above $50 a barrel on Monday, supported by a planned production cut by exporter club OPEC, although analysts cautioned the stubbornness of the existing supply overhang could temper a longer-lasting rally.

ING plans to shed 7,000 jobs, invest in digital platform

AMSTERDAM (Reuters) – ING Groep plans to shed 7,000 jobs and invest heavily in its digital platforms to achieve annual savings of 900 million euros ($1 billion) by 2021, the Netherlands’ largest financial services company said on Monday.

EU resumes probe into DuPont, Dow mega deal, to rule by February 6

BRUSSELS (Reuters) – EU antitrust regulators have resumed their investigation into the $130 billion merger of U.S. chemicals giants Dow Chemical and DuPont after the companies provided key data.

BlackRock tells Financial Stability Board it backs fund stress tests

LONDON (Reuters) – BlackRock , the world’s biggest asset manager, has told the Financial Stability Board it supports plans to stress test individual mutual funds to make sure they function properly during extreme market environments.

Britain’s Hammond promises new economic plan to handle Brexit turbulence

BIRMINGHAM, England (Reuters) – Britain needs a new fiscal plan to navigate economic turbulence caused by Britain’s vote to leave the European Union, finance minister Philip Hammond said on Monday, stressing the need to balance spending cuts with infrastructure investment.

Desperate uranium miners switch to survival mode despite nuclear rebound

LONDON (Reuters) – The nuclear industry is gradually recovering from its post-Fukushima slump, but excess capacity keeps uranium prices at record lows, forcing mining companies to mothball mines, slice costs and cut debt as they struggle to survive.

GBP Gold Rises 1.3% as Sterling Slumps On ‘Hard Brexit’ Concerns, EU Contagion Risk

Sterling gold rose 1.3% today as sterling slumped again after the UK set a March deadline to start their ‘Brexit divorce’ proceedings from the European Union and on deepening nervousness regarding a ‘Hard Brexit’.

Gold in GBP – 10 Years

Theresa May’s bombshell deadline by which the UK will exit the EU given at her Conservative party conference, saw gold in sterling terms rise from £1,010/oz to £1,023/oz today and the pound hit a three-year low against the euro.

Sterling fell around 1 percent against the dollar to a seven-week low of $1.285 and a three-year low against the euro of 87.47 pence per euro.

Gold in sterling terms is now just 3.3% below the recent price highs of £1,057/oz seen in early July when gold surged in panic buying after the Brexit vote.

GBP gold is just 13% below t …

Will the EU Banking Meltdown Trigger a 2008-Type Crash?

On Friday stocks soared on rumors that the US Department of Justice would reduce its $14 billion fine on Deutsche Bank.

Turns out the rumor was a fabrication. As the Wall Street Journal noted over the weekend, NO senior decision making people at either the DoJ or DB have even seen a potential deal yet.

No Deal Between Deutsche Bank, DOJ Presented to Senior Decision-Makers

Deutsche Bank AG’s talks with the U.S. Justice Department to settle a high-profile set of mortgage-securities cases are continuing, with no deal yet presented to senior decision makers for approval on either side, according to people familiar with the matter.

WSJ

I noted that this was probably just a scam on Friday. Two weeks before, phony twitter accounts presenting themselves as news agencies were trying to promote a story that DB was about to get a bailout.

Someone was actively trying to prop up DB by spreading rumors.

The fact is that DB is just one of MANY huge problems for the EU.

EU financials as a whole took out their “the EU is saved” trendline back in 2014.

They’ve since taken out critical support and are fast approaching 2012 CRISIS levels.

Again, DB is just the tip of the iceberg. Throughout Europe banks are imploding in Spain, Italy and elsewhere.

This is going to create a REAL mess for the markets. The EU’s banking system is THREE times the size of the US’s. And unlike the US where the banks h …

Frontrunning: October 3

Donald Trump’s Tax Numbers Sharpen Focus on Treatment of Losses (WSJ)

Qatari funds nurse 1bn loss on Deutsche Bank stake (Telegraph)

Colombian Voters Reject Peace Deal With FARC Rebels (WSJ)

Hungarians vote to reject migrant quotas, but turnout too low to be valid (Reuters)

Clinton expected to hit Wells Fargo in speech on ‘bad corporate actors’ (Reuters)

Henderson’s Shares Rally Most in Seven Years on Janus Deal (BBG)

Donald Trump Is Handing a Windfall to Mexican Immigrant Families (BBG)

UK’s Hammond buries idea of extra cuts to corporation tax (Reuters)

Among Seniors, Clinton Grows More Appealing (WSJ)

Woman who accused Bill Clinton of sexual misconduct slams Hillary (Hill)

Bank of England confirms will hold broader bank stress test in 2017 (

Gilead’s Growth Tonic Is Elusive, May Have Side Effects

The biotech company’s deliberate approach to deal making has frustrated investors, but it could still pay off.

H&M Turnaround Will Take More Than Cooperative Weather

Third-quarter numbers offered scant evidence of recovery at the Swedish fashion retailer.

Japan Buyback Boom Fails to Leave Mark

Japanese companies need to do a lot more share buybacks to shed their cash-hoarder nature.

The Wall Street Journal: McDonald’s China franchise deal could fetch up to $2 billion up front

McDonald’s Corp. Chief Executive Steve Easterbrook, aiming to slim down the Golden Arches and boost profits, has turned to the market where he can do something big, fast—China.

Need to Know: The election, Deutsche Bank and earnings stand in the way of this bullish trend

The S&P just closed the door on yet another positive quarter, making it 14 out of the last 15. Now it’s the fourth quarter’s turn to deliver, and if history is any indication, deliver it should. Though there are some wild cards.

Metals Stocks: Gold spins narrowly higher as banking stress, Fed uncertainty lingers

Gold futures tipped negligibly higher in early action Monday, underpinned by broader market uncertainty but lacking the strong safe-haven demand that elevated the precious metal much of last week.