Written by Gary
US Stocks jump again, bringing 3-day gain in the Dow to more than 900 points (SPY +1.1%). US labor market tightening; manufacturing slowing, Nasdaq Composite ends higher by 1.8%.
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The Market in Perspective
Here are the headlines moving the markets. | |
U.S. charges financier, former Goldman bankers for 1MDBU.S. prosecutors unveiled criminal charges on Thursday against two former Goldman Sachs bankers and Malaysian financier Low Taek Jho tied to the alleged theft of billions from Malaysian sovereign wealth fund 1MDB. | |
Barclays picks Rothschild veteran Nigel Higgins as next chairmanBarclays Plc said on Thursday that Nigel Higgins, the deputy chairman of Rothschild & Co , has been appointed to succeed John McFarlane as the company’s chairman. | |
Fox’s Murdoch mulls buying back regional sports networks from DisneyTwenty-First Century Fox Inc Executive Chairman Lachlan Murdoch said Thursday it is still an “open question” whether the company will buy back the regional sports networks it sold to entertainment company Walt Disney Co in July as part of a $71 billion deal. | |
JP Morgan CEO says has no interest in buying Deutsche Bank: HandelsblattJP Morgan has no interest in buying Deutsche Bank the U.S. bank’s chief executive told German daily Handelsblatt. | |
Ex-JPMorgan CFO’s activist fund takes stake in Deutsche BankAn activist hedge fund led by the former finance chief of JP Morgan Chase has taken a 3.1 percent stake in Deutsche Bank , saying it backed new Chief Executive Christian Sewing’s efforts to turn around Germany’s biggest bank, but there was more to do. | |
U.S. House finance chair still hopeful for vote on capital formation billThe chair of the House Financial Services Committee says he is still hopeful the Senate will vote on a bill that would make it easier for companies to raise capital and go public, despite a growing likelihood the legislation has stalled in the upper chamber. | |
Wall Street extends gains for third day, trade optimism helpsU.S. stocks rose for a third straight day on Thursday as President Donald Trump said trade talks with China were “moving along nicely,” reviving hopes that the two countries can resolve their trade dispute. | |
Google workers around the world protest its corporate cultureThousands of Google employees and contractors staged brief midday walk-outs on Thursday at offices across Asia, Europe and North America to protest sexism, racism and unchecked executive power in their workplace. | |
Father of Web says tech giants may have to be split upSilicon Valley technology giants such as Facebook and Google have grown so dominant they may need to be broken up, unless challengers or changes in taste reduce their clout, the inventor of the World Wide Web told Reuters. | |
Stocks Jump On Biggest Short-Squeeze Since Brexit As Dollar DumpsBounce… While stocks bounced, the headline of the day deserves to the PBOC – which drained liquidity for the 5th day in a row and finally engineered a snap squeeze higher in Yuan… And the second biggest headline belongs to this – Today was the biggest short-squeeze since the June 2016 rebound from Brexit… Chin … | |
Nomi Prins: Expect The Fed To Pause If Volatility ContinuesAuthored by Nomi Prins via The Daily Reckoning, It’s a good thing October is at an end. It’s been a particularly lousy month for the markets. October has seen about $8 trillion in value erased from global markets. Reasons for that sell-off range from fear over Fed rate hikes, trade wars, elections and buyback “blackout” periods during earnings. Buyback blackouts are ending, which should provide markets some needed lift over the next month. Buybacks have been one of the primary reasons markets have risen this year. But other areas will keep the level of volatility high into the year-end. The upcoming elections, for example, could reshape Congress. If there is a turnover from Republicans to Democrats, legislation that relates to tax policy, financial regulations and international relations could be stalled or reversed. Externally, we’re facing global volatility factors that include increasing uncertainty over what Brexit will look like and how it will impact the European economy. The new election of a Trump-like populist figure in Brazil could have ramifications for trade in the Americas and Asia. Emerging-market countries are also seeing their currencies falter against the dollar. Volatility is nothing new. It’s how you deal with it that matters. In early 2016, just after the Fed first raised rates in December 2015 after eight years of zero interest rate policy, the markets took a nosedive. As a result, the Fed put the brakes on hiking rates for an entire year. Meanwhile, the European Central Bank (ECB) and the Bank of Japan (BOJ) ramped up their asset-buying programs, which provided stimulus to the financial markets. | |
The Best And Worst Performing Assets In “Brutal” OctoberEarlier today we showed a remarkable statistic when looking at the performance of all asset classes in the first ten months of 2018: according to Deutsche Bank, as of the end of October, 89% of assets that the German lender collects data on for its annual long-term study, have had a negative total return year to date in dollar terms. This was the highest percentage on record based on data back to 1901, eclipsing the 84% hit in 1920. Of course, the bulk of this YTD underperformance took place in the month of October. So how did various assets classes perform in the just concluded month? Well, as Deutsche Bank’s Craig Nicol writes, in the context of the longest bull market in history and the second longest (and counting) expansion of the US economy on record, October 2018 may well end up being one of the most memorable – or unforgettable depending on your take – of the 112 months during this cycle in markets, at least for equities. Indeed at a headline level, we saw the worst monthly performance in total return terms for the NASDAQ since November 2008, S&P 500 since September 2011, MSCI EM Equities since August 2015, STOXX 600 and Hang Seng since Jan … | |
Just-In-Time Stimulus: Fed Proposes Looser Rules For Large U.S. BanksAuthored by Mike Shedlock via MishTalk, The Fed’s proposal marks one of the most significant rollbacks of bank regulations since Trump took office… The Wall Street Journal reports Fed Proposes Looser Rules for Large U.S. Banks
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October 2018 Manufacturing Survey Growth Little ChangedWritten by Steven Hansen The ISM Manufacturing survey again marginally declined but continued in expansion. The key internals are in expansion. The Markit PMI manufacturing Index is in positive territory and was little changed. | |
Key Words: Dimon warns of sovereign debt crisis risk in Europe: HandelsblattJPMorgan Chase & Co. CEO Jamie Dimon says Europe could be the source of the next potential financial crisis, specifically pointing to sovereign debt as a eurozone trouble spot. | |
Trump Today: President suggests progress on China trade after talking with XiPresident Donald Trump spoke with Chinese President Xi Jinping about trade on Thursday, as he signed an order targeting Venezuela’s gold exports and was preparing to announce a change in asylum rules. | |
Bond Report: Treasury yields turn lower after weak ISM data points to factory slowdownTreasury yields slipped on Thursday after a key manufacturing gauge shows slower global growth and President Donald Trump’s tariffs are taking their toll on U.S. factories |
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