15Oct2019 Pre-Market Commentary: Wall Street Opened Higher As Banks Kick Off Earnings Season, DOW Opened 130 Points Higher, WTI Dips Into The 52 Handle, Gold Falling Fractionally

Here is the current market situation from CNN Money

European markets are mixed today. The CAC 40 is up 0.65% while the DAX gains 0.58%. The FTSE 100 is off 0.34%.

Former Thomas Cook boss defends record after firm’s collapse

The former chief executive of bankrupt travel firm Thomas Cook said on Tuesday he understood public anger over his pay but defended his record, saying he had worked tirelessly to try to save the company.

Wall Street headed higher on strong earnings start

Wall Street was set to open higher on Tuesday, as strong earnings reports from JPMorgan Chase, UnitedHealth and Johnson & Johnson allayed concerns about the fallout from a prolonged U.S.-China trade war on corporate America.

Banks reap $1 billion from U.S. mortgage bond trading boom

Global banks earned $1 billion from trading government-backed U.S. mortgage securities in the first half of 2019, data shows, a fivefold increase on last year for what industry sources say is the fastest growing revenue source in investment banking.

Neil Woodford sacked as flagship Equity Income Fund to be shut

Neil Woodford has been ousted from his flagship LF Woodford Equity Income Fund which will be shut down to pay back investors whose money has been trapped since June.

How Amazon.com moved into the business of U.S. elections

Amazon.com Inc’s cloud computing arm is making an aggressive push into one of the most sensitive technology sectors: U.S. elections.

Intel buys software business from Canada’s Pivot Technology in 5G push

California chipmaker Intel Corp has agreed to purchase a software business from Toronto-based information technology firm Pivot Technology Solutions Inc , Intel said on Tuesday.

BlackRock beats profit estimates as assets swell to nearly $7 trillion

BlackRock Inc , the world’s largest asset manager, exceeded analysts’ estimates for quarterly profit on Tuesday, as investors poured money into its fixed-income funds and cash management business amid worries about global growth.

Blackstone turns up heat on hotelier Unizo with tender offer

Private equity firm Blackstone Group said on Tuesday it would launch a tender offer for Unizo Holdings at 5,000 yen a share, doubling down on its $1.6 billion offer after the proposal was rebuffed by the Japanese hotel chain.

Oil prices steady on trade war jitters but OPEC hints supply restraint

Oil prices steadied on Tuesday after two days of losses amid U.S.-China trade talks which have investors on edge, but OPEC said it hoped to balance markets beyond 2020 in a sign of possible further supply curbs.

WeWork Bonds Crash To Record Low, JPMorgan Financial Lifeline Preferred

WeWork Bonds Crash To Record Low, JPMorgan Financial Lifeline Preferred

Early investors and investment banks behind WeWork are panicking as the company runs out of cash next month. The struggling start-up is considering two massive bailouts, one either from JPMorgan Chase & Co. or another from SoftBank Group Corp., according to Bloomberg sources.

The office-sharing start-up had its IPO request rejected last month when questions started to swirl about its non-existent profitability plan.Â

As macroeconomic headwinds continue to mount, Wall Street has recently readjusted valuations of unicorns and focused on profitable companies, due to the threat of a recession in 2020 and beyond.Â

As we noted last month, WeWork lost $690 million in the first six months of the year and is expected to generate a loss from operations approaching $3 billion as it burns through tens of millions in cash daily. The company could run out of money in the coming months if it fails to receive a capital injection. Â

Wells Net Interest Margin Plunged As Curve Inverted; Rising Deposit Costs Sting

Wells Net Interest Margin Plunged As Curve Inverted; Rising Deposit Costs Sting

On the surface, Wells reported Q3 results that were “not great, not terrible”: while the GAAP results were a huge miss, when one adds back a key charge, the bank reported EPS of $1.27, beating expectations of $1.15, while non-GAAP revenue of $22.0BN was also better than the $20.93BN expected.

If it ended there, it would be great. Unfortunately, it did not and one peek below the surface reveals that most of the EPS upside was thanks to an aggressive stock repurchase program that saw Wells’ shares outstanding drop by 9% in the past 12 months, artificially boosting its EPS number.

Not Transitory – Fed Liquidity Handout Surges To Near $90 Billion

Not Transitory – Fed Liquidity Handout Surges To Near $90 Billion

So much for the ‘transitory’ liquidity shortage arguments put forth by commission-takers and asset-gatherers, The NYFed accepted $87.7 billion (in o/n and term) repo today – the highest level yet.

The Fed accepted $20.1 billion in 14-day term repo…

Pentagon Confirms Manbij Handed Over To Russia As US Forces Filmed Departing

Pentagon Confirms Manbij Handed Over To Russia As US Forces Filmed Departing

A stunning development in the key northern Syrian city of Manbij “ the Pentagon has confirmed a planned handover to Russian military forces is underway amid a Turkish military assault on the region. This also hours after President Trump tweeted that Assad “wants naturally to protect the Kurds” and that the problem should be left to local powers.Â

Late Monday the main US base in Manbij was filmed empty of US forces, and American convoys were also spotted hastily pulling out of the city as Syrian national forces entered, following Sunday’s historic deal between the Kurdish-led Syrian Democratic Forces (SDF) and the Assad government. Newsweek reports the developments follows:

The U.S. military has begun a hasty exit from Syria’s northern city of Manbij, and is set to help Russia establish itself there amid a Turkish attempt to defeat Kurdish-led, Pentagon-backed fighters at the strategic location, Newsweek has learned.

Wipro posts better-than-expected Q2 profit of Rs 2,561 cr

Wipro posts better-than-expected Q2 profit of Rs 2,561 crAnalysts in an ET Now poll had projected the profit figure at Rs 2,303 crore.

India may soon hive off GAIL pipeline biz

India may soon hive off GAIL pipeline bizTo resolve the conflict arising out of the same entity owning the two jobs, splitting GAIL is being considered.

Panagariya on how to achieve $5 tn goal

Panagariya on how to achieve $5 tn goalModi could follow the model he himself pioneered in the Special Economic Zones in Gujarat back in 2004.

October 2019 Empire State Manufacturing Index Improves A Little

Written by Steven Hansen

The Empire State Manufacturing Survey index marginally improved and remains expansion. Overall this survey remains below values seen in the last 2+ years.

Your Digital Self: Here’s a believable explanation of those UFO videos released by the Navy

Jurica Dujmović says a military patent could explain mysterious objects caught on video by a jet-fighter pilot.

Your Digital Self: Think fossil fuels are bad? Nuclear energy is even worse

Some tout nuclear energy as ‘clean,’ but it’s hardly that, even with technological advancements.

Where Should I Retire?: ‘I’m 73 and fed up with California. I want a gun-friendly, affordable city with good weather. Where should I retire?’

Some hidden gems to consider.