10Nov2017 Pre-Market Commentary: Wall Street To Open Fractionally Lower, DOW’s 8-week Rally To Come To An End As Tax-delay Concerns Spook Investors, WTI Trending Up In The Low 57 Handle, Global Stocks Dip On U.S. Tax Doubts

Here is the current market situation from CNN Money

European markets are mixed to lower. Shares in London are off as the FTSE 100 drops 0.50%. The CAC 40 is down 0.19% while the DAX in Germany is unchanged.

Global stocks dip on U.S. tax doubts

LONDON (Reuters) – World stocks edged lower on Friday on signs that U.S. tax reforms could be delayed after Senate Republicans offered a plan that differed significantly from the House of Representatives’ version.

China widens foreign access to its giant financial sector

BEIJING (Reuters) – China will raise foreign ownership limits in financial firms in a step granting access to a tantalizing multi-trillion dollar financial services market, as the world’s second-biggest economy seeks to position itself as a major global finance hub.

Uber loses UK appeal bid to overturn workers’ rights decision

LONDON (Reuters) – Taxi app Uber [UBER.UL] lost a bid on Friday to overturn a decision by a tribunal which had said its drivers deserved workers’ rights such as the minimum wage, in a blow to the company as it also battles to keep its license in London.

Bitcoin slides by over $1000 in less than 48 hours

LONDON (Reuters) – Bitcoin dropped below $7,000 on Friday to trade more than 5 percent down on the day, having fallen by well over $1,000 since hitting an all-time high on Wednesday.

New ‘Star Wars’ trilogy raises hopes after Disney results miss target

(Reuters) – The force of “Star Wars” lifted Walt Disney Co shares on Thursday as the promise of a new film trilogy overshadowed disappointing quarterly results and struggles at the media company’s television business.

Exclusive: Carlyle explores sale or IPO of Ortho-Clinical Diagnostics – sources

(Reuters) – Private equity firm Carlyle Group LP is exploring a sale or initial public offering of Ortho-Clinical Diagnostics Inc, a U.S. diagnostics company that could be valued at more than $7 billion, including debt, people familiar with the matter said.

Kobe Steel blames data scandal on focus on profit, lack of controls

TOKYO (Reuters) – Kobe Steel Ltd said on Friday a lack of quality controls and a focus on profits was behind the widespread data tampering that has shaken up the supply chains of car and plane makers around the world.

Middle East tensions loom over Dubai aerospace pageant

DUBAI (Reuters) – Rising Middle East tensions and a corruption crackdown in Saudi Arabia will cast a shadow over next week’s Dubai Airshow, as military and aerospace leaders try to gauge whether they might prolong a weapons-buying spree in the region.

Ministerial meeting on Airbus A400M delayed until February: sources

BERLIN (Reuters) – NATO buyer nations for the European A400M military transport plane have postponed a ministerial meeting on the troubled program for three months until February, said two sources familiar with the 20 billion euro project.

Frontrunning: November 10

Trump Declares New World-Trade Order (WSJ)

Trump brings tough trade message in vision for Asia (Reuters)

Trump Offers Trade to Asian Nations But Only If They Play Fair (BBG)

Flynn Probed Over Alleged Plan to Send Back Turkish Cleric (WSJ)

GOP’s Dueling Tax Overhauls Struggle to Pass a Key Red Ink Test (BBG)

Trump’s CNN attacks may hobble legal case to block AT&T-Time Warner deal (Reuters)

Bigger Than Black Friday, Alibaba’s ‘Singles Day’ Faces Fatigue in China (WSJ)

AT&T’s Clash in D.C. Threatens Chill on Consolidation in Media (BBG)

Manafort Charges Renew Questions About Skadden’s Work in Ukraine (BBG)

McKinsey Hired Officials’ Children in Saudi Arabia (

China’s Big Bang Bombshell: Beijing Opens Financial Sector To Foreign Ownership, But Why Now?

That was quick.

Trump leaves China (only to go back on the offensive about unfair trade practices in his APEC speech) and just hours later Trump’s new Beijing friends announce that foreign firms will be permitted to take majority ownership in Chinese financial firms… well capped at 51% for now anyway. We doubt that this occurred out of the blue and was surely being worked on in the run-up to Trump’s visit. Furthermore, we suspect that Bloomberg’s Chief Asia Economist, Tom Orlik, had got wind of it ahead of time. In our preview of Trump’s visit (see “Will Xi Offer Trump A Small Victory On Trade As Cover For His Longer-Term Ambitions”), we noted this comment of his.

“In an optimistic scenario, Trump’s appetite for tweetable wins and China’s longer-term focus could coalesce around financial market opening — a boon for the U.S. investment banks, and a support for China as it attempts to tame its credit boom,” Orlik said.

Bloomberg is describing China’s move as “China’s Big Bang moment”, harking back to the deregulation of the London Stock Exchange in 1986, which permitted commercial and investment banks, both UK and foreign, to own brokers and dealers, all backstopped by deposits. Following today’s announcement foreign firms will be able to take a majority ownership in banks, securities brokerages (China’s term for investment banks), asset managers and life insurers. The chatter on the financial news networks this morning is beyond superlative, including comment …

“This Looks More Frightening”: Global Stock, Bond Selloff Accelerates Amid Risk-Parity Rumblings

Yesterday’s Japan flash-crash inspired selling continues for a second day, with global equities – and bonds – sliding early Friday on concerns U.S. tax reform – and corporate tax cuts – will be delayed after Senate Republicans unveiled a plan that differed significantly from the House of Representatives’ version. After suffering their biggest plunge in 4 months on Thursday, European stocks failed to find a bid along with Asian stocks, while U.S. index futures pointed to a lower open (ES -0.5%, or -10), the Nikkei 225 ended 0.8% lower, Treasuries yields are up 1-4bps across the curve in steepening fashion, with the 10y at 2.370%, while the Bloomberg Dollar Spot Index declined for a third day. The VIX has jumped 6% this morning trading through 11 while WTI crude oil is little changed trading north of $57/bbl.

And here is one for the streak watchers: on Thursday the global MSCI index failed by one day to post its longest winning streak since 2003 as it fell 0.4% following 10 days straight of gains. The MSCI world index gained more than 18% so far this year and some investors believe a pullback is due. “I think there’s a feeling out there that there’s a long awaited correction, and no one wants to be caught by surprise,” said Emmanuel Cau, global equity strategist at JP Morgan. “When the market is down a bit people tend to extrapolate. But I think it’s simply a bit of profit taking and digesting from a very strong September and October.”

Europe’s benchmark Stoxx 600 reversed an early rebound, falling 0.2% on high volume; It is on track for its worst week in three months, if it falls on Friday , its fourth drop in row. Carmakers and retailers led the index to its biggest two-day drop since August as third-quarter earnings season continues, with aerospace-electronics maker Leonardo SpA crashing 20% after cutting sales forecasts.

A Bit of Holiday Cheer From Retailers

Retailers are confident that shoppers will visit their stores during the holiday season. Investors who procrastinate may miss out.

Salesforce Won’t Let Age Slow It Down

The acquisitive cloud software giant expects to double its revenue without relying on M&A deals.

Time to Remove Italian Banks from List of Global Worries

Here’s one less thing for global investors to worry about: Italy’s once-tottering financial system isn’t nearly as scary as it was.

Market Snapshot: Dow’s 8-week rally looks to come to an end as tax-delay concerns spook investors

Wall Street was set for a downbeat end to the week, with U.S. stock futures pointing to more losses, as investors continue to worry a possible delay in much-anticipated corporate tax cuts could mark an end to the recent stock rally.

Overstock shares rocket as sale of home e-commerce business is considered

Overstock’s shares shoot up to 12½-year high after results, with D.A. Davidson analyst Tom Forte’s new price target implying a further 62% rally from current levels.

Disney to charge ‘substantially’ less than Netflix for streaming, plans new ‘Star Wars’ content

Walt Disney Co. plans to charge “substantially” less for its yet-to-launch streaming service than Netflix Inc. at the beginning, and will develop a new “Star Wars” live-action TV show along with other properties for subscribers.