Bloomberg:
- China Backs Hong Kong’s Leung on Front Page of People’s Daily. China’s central government is “very satisfied” with Hong Kong Chief Executive Leung Chun-ying and will continue to support his leadership as protesters block streets in the city, the official People’s Daily said. China also backs the police handling of the “illegal activities,” the Communist Party’s premier newspaper said in a front-page commentary today. Occupy Central protests have violated Hong Kong’s rule of law, caused serious traffic congestion, disrupted social order and hurt peace and prosperity, the newspaper said. The People’s Daily is published by the Communist Party’s Central Committee and watched closely as an indicator of government intentions. In a similar unsigned commentary yesterday, the newspaper said: “Occupy Central hurts Hong Kong and its people; if we let it drag on the consequences will be unimaginable.”
- Islamic State Nears Kurdish Town as Turk Lawmakers Debate Troops. Islamic State forces are closing in on the Syrian town of Kobani, a key Kurdish stronghold near the border with Turkey, as Turkish lawmakers prepare to authorize the army to send troops to the neighboring country. Militants driving tanks and firing mortars captured the final village on the outskirts of Kobani and were one kilometer from the town’s entrance, according to Ibrahim Ayhan, a lawmaker from the pro-Kurdish People’s Democracy Party. Airstrikes yesterday failed to slow their advance, he said by phone. The U.S military said there were three strikes near Kobani, which destroyed an armed vehicle, artillery piece, and tank.
- War Severs Ukraine’s Industrial Arteries as Economy Sinks. The bloody conflict in Ukraine’s east is severing the arteries that connect the nation’s economy. The effects are being felt hundreds of miles from the unrest in industries as different as electricity and food processing. Power plants at the other end of the country are being starved of coal because of disruptions to mining, while in Kiev, one of Ukraine’s biggest poultry producers is looking abroad for incubatory eggs after output was halted at its facility near the war-ravaged city of Donetsk.
- China to Impose Quota on Local Government Debt Amid Rising Risks. China announced plans to cap the amount of debt local governments can take on and ban them from additional borrowing through financing vehicles as authorities step up efforts to control risks to the financial system. All borrowing by provinces and cities will need to be within a quota set by the State Council, China’s cabinet, and approved by the National People’s Congress, according to a statement posted to the central government’s website today. No figures were given for the possible amounts of the quotas. The central government won’t bail out local authorities, who will be held responsible for repaying their debt, it said.
- RBA Says Talks on Home Lending Curbs May Go Beyond Investors. Australian central bank officials said possible steps to cool the nation’s housing market wouldn’t necessarily be limited to investor lending curbs. The Reserve Bank of Australia is discussing with the Australian Prudential Regulation Authority “steps that might be taken to reinforce sound lending practices, particularly for investor finance, though not necessarily limited to that,” Assistant Governor Malcolm Edey, who is responsible for the financial system, and Luci Ellis, the head of the central bank’s financial stability unit, said in a statement to a parliamentary panel in Canberra today.
- Burgundy to Noodle Prices Rise as Weaker Yen Hurts Consumers. The weakening yen is starting to squeeze Japanese consumers as prices rise for everything from Burgundy wine to instant noodles, threatening Prime Minister Shinzo Abe’s plans to revive the country’s economy. The currency slid to 110 yen to the dollar yesterday, the lowest level in six years, making imported goods and materials more expensive. Though inflation is one of Abe’s monetary goals, the yen’s sharp slide undermines steps to boost consumer spending and endangers public backing for his economic program.
- Five Questions for Mario Draghi From ABS Program to Bank Review. Here are five things to watch for from Mario Draghi today. The European Central Bank president holds a press conference at 2:30 p.m. in Naples, Italy, 45 minutes after the Governing Council’s announcement on interest rates.
- Asia Stocks Heading for Five-Day Decline on Fed Concern. Asian stocks fell, with the benchmark index heading for a fifth day of losses, amid concern over the end of the Federal Reserve’s stimulatory bond-buying program and signs of weakness in the euro-area economy. The MSCI Asia Pacific Index (MXAP) slid 0.1 percent to 139.64 as of 9:02 a.m. in Tokyo after retreating to a four-month low yesterday. The measure capped its biggest monthly drop in more than two years in September amid concern Chinese growth is slowing and that the Federal Reserve may increase U.S. interest rates sooner as it ends asset purchases.
- Dollar Approaches Strongest in 2 Years Versus Euro. The dollar approached its strongest level in two years against the euro as diverging central-bank policies pushed U.S. Treasury yields to almost the highest versus their German counterparts since 1999. The greenback fell from a six-year high versus the yen amid bets it gained too much, too fast. Germany sold 10-year bonds to yield less than 1 percent for the first time, reflecting Europe’s economic quagmire and the additional steps the European Central Bank may take to spur a recovery. The Federal Reserve is considering when to raise interest rates. Stocks slid.
- Dallas Parents Worried Over Ebola Exposure at Schools. Four days after Dallas Ebola patient Thomas Eric Duncan was hospitalized after earlier being sent away from the ER, some parents removed their children from school because of reports he was in contact with five students. Duncan was first seen at Texas Health Presbyterian Hospital Dallas on Sept. 26, according to information supplied by the hospital’s front desk. He was sent home from the emergency room with antibiotics even though he told a nurse he had recently been in Africa, hospital officials said yesterday.
- SEC’s Gallagher Sees Bond Bubble Hurting Retail Investors. The $10 trillion U.S. corporate bond market has been inflated by companies taking advantage of record low interest rates for the last five years, Securities and Exchange Commission member Daniel M. Gallagher said today. “It clearly looks like a bubble,” Gallagher said at a market structure conference sponsored by the Security Traders Association. “You have a buildup of assets and you have to think about the downside if the bubble gets pricked.”
- U.S. Monitors Contacts of Ebola Patient in Texas. Officials Look for Symptoms in at Least a Dozen People Who May Have Come Into Contact With Liberian Man. Health authorities are monitoring for symptoms of Ebola in at least a dozen people who came into contact with a Liberian man before he was hospitalized in Dallas, moving to contain the deadly disease before it can spread further in the U.S. Among those who had contact with the sick man, Thomas Eric Duncan, are five children, ranging from elementary to high-school age, as well as a small group of adults, state and local officials said at a news conference on Wednesday.
- Secret Service Director Pierson Resigns. Former Chief of Presidential Protective Division Joseph Clancy to Take Over on Interim Basis. The head of the Secret Service resigned under pressure Wednesday after a series of embarrassing stumbles that outraged lawmakers, caught the White House by surprise and called into question the security of the president.
- ObamaCare's Anti-Innovation Effect. Socked by new taxes, U.S. health-care technology companies are moving R&D centers and jobs overseas.
- 'Khorasan Group' is new name coined by Obama for old foe, critics claim. The Obama administration is being accused of coining a new name for an old nemesis by dubbing an Al Qaeda offshoot “The Khorasan Group.”
- Starting next week, a new indicator may roil the markets. The Federal Reserve will publish a new monthly gauge of the health of the labor market, called the labor market conditions index, beginning next Monday, the central bank announced Wednesday. The report is an attempt to dig deeper into labor market trends beyond the standard monthly unemployment rate measure.
- Something's Broken. (graph) NYSE New Lows have surged to 14-month highs and the spread to New Highs is weakest since August 2013.
The Daily Rapid:
- United Airlines scrambles to alert HUNDREDS of passengers who came in contact with Ebola patient. United Airlines is scrambling to alert the hundreds of passengers who shared twi planes with the first Ebola patient on U.S. soil. Thomas Eric Duncan, a Liberian national, arrived in the U.S. at Washington Dulles International Airport on United Flight 951 on September 20, the airline revealed today. He then boarded United Flight 822 to Dallas/Fort Worth International Airport.
- REFILE-Risks to 'Abenomics' growing, whether Japan PM raises tax or not. If history is a guide, a string of disappointing economic reports in Japan would seem to argue against raising the country's sales tax again. But the risks for "Abenomics" are increasing whatever Prime Minister Shinzo Abe decides to do.
Obama takes on coal with first-ever carbon limits
Read more at http://www.philly.com/philly/news/politics/20130919_ap_0f857b20e0c144a5a1e1b9dddc9f9d72.html#YRThyDOhArykUeYy.9Brazil cuts 2014 GDP growth forecast, keeps fiscal goal
Telegraph:Read more at http://www.philly.com/philly/news/politics/20130919_ap_0f857b20e0c144a5a1e1b9dddc9f9d72.html#YRThyDOhArykUeYy.9Brazil cuts 2014 GDP growth forecast, keeps fiscal goal
- Hong Kong crisis exposes impossible contradiction of China's economic growth. Hong Kong's crisis comes at a treacherous moment, up to its neck in China's credit bubble.
- None of note
- Asian equity indices are -1.50% to -.50% on average.
- Asia Ex-Japan Investment Grade CDS Index 101.0 +2.0 basis points.
- Asia Pacific Sovereign CDS Index 71.75 +.25 basis point.
- FTSE-100 futures -.16%.
- S&P 500 futures +.10%.
- NASDAQ 100 futures +.09%.
Earnings of Note
Company/Estimate
- (MKC)/.81
- (PKE)/.41
- (GPN)/1.14
- (STZ)/1.16
- (ATU)/.52
- (RECN)/.14
8:30 am EST
- Initial Jobless Claims are estimated to rise to 297K versus 293K the prior week.
- Continuing Claims are estimated to fall to 2425K versus 2439K prior.
- Factory Orders for August are estimated to fall -9.5% versus a +10.5% gain in July.
- None of note
- The Fed's Bullard speaking, Fed's Lockhart speaking, Fed's Dudley speaking, ECB rate decision, Draghi press conference, Challenger Job Cuts report for September, RBC Consumer Outlook Index for October, ISM New York for September, weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas inventory report, (AN) sales update and the (ORCL) analyst meeting could also impact trading today.
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