Today's Headlines

Bloomberg:

• Stocks Sink With Bonds, Dollar Rallies as Complacency Broken. (video) Tranquility that has enveloped global markets for more than two months was upended as central banks start to question the benefits of further monetary easing, sending government debt, stocks and emerging-market assets to the biggest declines since June. The dollar jumped. The S&P 500 Index, global equities and emerging-market assets tumbled at least 2 percent in the biggest rout since Britain voted to secede from the European Union. The yield on the 10-year Treasury note jumped to the highest since June and the greenback almost erased a weekly slide as a Federal Reserve official warned waiting too long to raise rates threatened to overheat the economy. German 10-year yields rose above zero for the first time since July after the European Central Bank downplayed the need for more stimulus.
• Leverage Soars to New Heights as Corporate Bond Deluge Rolls On. Here’s a gut check for bond investors: corporate America is now more leveraged than ever. As this year’s corporate bond sales raced past $1 trillion on Wednesday -- marking the fifth consecutive year of trillion-plus issuance -- Morgan Stanley published a report Friday highlighting the growing strains on company balance sheets. The report, which estimated US companies’ collective debt at a record 2.4 times their collective earnings as of June, comes at a time of growing angst in global bond markets. “The investment-grade ‘safe’ part of the market is becoming the most dangerous,” said Ashish Shah, chief investment officer at AllianceBernstein LP. “There are so little returns out there. People are crowding into whatever they can.”
• EU’s Austerity Programs Are ‘History’ Now, Malta’s Scicluna Says. The European Union has turned a corner from a long spell of belt-tightening and is ready to invest in public services again, Maltese Finance Minister Edward Scicluna said. “The austerity programs are history,” Scicluna said in an interview at a meeting of EU finance ministers in Bratislava, Slovakia. “The sheer self-flagellation undertaken unanimously by all EU member states will remain a blot on our economic history books.” Since the start of the decade, euro-area governments have forced through billions of euros of cuts in public spending and infrastructure projects as they tried to slash budget deficits after Greece’s debt mountain spooked investors and sent panic throughout the bloc.
• Perry’s Assets Plunge 60% to $4 Billion as Wagers Backfire. Perry Capital, the 28-year-old hedge fund run by Goldman Sachs Group Inc. alumnus Richard Perry, has lost more than half of its assets in less than a year after posting declines since 2014. The firm’s assets slumped to $4 billion as of the end of August compared with $10 billion in September last year, according to a person with knowledge of the matter. Perry, based in New York, has posted losses of 18.4 percent from the beginning of 2014 through July of this year, an investment document shows. The fund declined 2.6 percent in the first seven months of this year after losing 12.6 percent in 2015. Michael Neus, general counsel at Perry Capital, didn’t return calls and e-mails seeking comment.

Wall Street Journal:

• Dangers Rise as America Retreats. Fifteen years after 9/11, the next president will face greater risks and a weaker military to combat them. Fifteen years ago this Sunday, nearly 3,000 Americans were killed in the deadliest attack on the U.S. homeland in our history. A decade and a half later, we remain at war with Islamic terrorists. Winning this war will require an effort of greater scale and commitment than anything we have seen since World War II, calling on every element of our national power. 
• NFL Bracing for Possible Player Demonstrations. Protests could escalate debate set off by Colin Kaepernick’s refusal to stand for national anthem.
• North Korea Nuclear Test Puts Pressure on U.S. Washington assesses options for acting on own in face of China’s apparent reluctance to rein in ally.
• Deadly Airstrikes Follow Cease-Fire Agreement in Syria. No claims of responsibility for attacks as the EU, Turkey and U.K. welcome U.S.-Russia agreement.

Barron's:

• Had bullish commentary on (VOD), (PII), (BEL), (NVO) and (BWA).

Fox News:

• Clinton says she regrets calling Trump supporters 'deplorables'. Hillary Clinton expressed “regret” Saturday for saying half of Republican presidential rival Trump’s supporters could be put into a "basket of deplorables." Clinton, the Democratic presidential nominee, said in her apology that she was “grossly generalistic” in criticizing Trump supporters, using that same phrase Friday night when attacking them at a New York fundraiser. “That's never a good idea,” she said Saturday. “Racist, sexist, homophobic, xenophobic, Islamaphobic, you name it,” Clinton said Friday. “There are people like that and he has lifted them up.”

CNBC:

• Rising from the ashes: Downtown Manhattan 15 years after 9/11. Lower Manhattan, the neighborhood that was home to the Twin Towers and which endured the brunt of the Sept. 11, 2001, terrorist attacks, has spent the last decade and a half in a state of healing and recovery. Today that process appears to be paying off.

Zero Hedge:

• The "Oh Shit" Guy That Wiped Hillary's Server With BleachBit Was Just Granted Immunity.
• Why The Eurozone Will Self-Destruct.
• Deutsche Bank: The US May Now Be In A Recession.
• US, Russia Clinch "Breakthrough" Syria Deal Over Vodka, But There Is A Catch.
• Meanwhile, The Democrats Are Getting Worried.
• Friday Was Just The Start: Here Are Goldman's 5 Reasons Why The Selling Will Continue. (graph)
• Time To Get Real, Part 1: Central Banks. (graph)
• Exposing How China "Cheats On Trade" In The Aluminum Industry.
• Deutsche Warns Of 10% Decline as Market Reaches "Mania" Level. (graph)
• Justice Department Overrules Court, Dakota Access Pipeline Construction Halted.
• Belgium Threatens To Sue Caterpillar For "Brutal, Cruel And Heartbreaking" Decision To Fire 2,000.
• "It's Never Different This Time" PIMCO Warns "The Tides Of Risk Will Flow Eventually". 
• "Get Ya Popcorn Ready" RBC Says: "Markets Are Paralyzed With Uncertainty" As "Spook Story" Arrives.
• PIK Toggle Issuance Is Bubbling Over Again...Last Time Around This Was the "Beginning Of The End".
• Weekend Reading: A Market In Stasis.
• Bondmageddon Sparks Crude Carnage & Biggest Stock Slump In 7 Months. (graph)

Business Insider:

• I have a big iPhone family, and I'm not optimistic about Apple's new EarPods or AirPods.
• The man representing the EU in the Brexit talks wants to give Britain the worst deal possible.
• Hillary Clinton wants to create a task force to monitor prescription drug prices.
• Amazon(AMZN) is doubling down on retail stores with plans to have up to 100 pop-up stores in US shopping malls.
• Mexico's 'Hot Land' is teeming with gangs, and violence there may be about to get worse.
• 15 incredible photos of Russia's latest military exercise in annexed Crimea.

NY Times:

• Apple(AAPL) Is Said to Be Rethinking Strategy on Self-Driving Cars. Apple is rethinking what it plans to do about self-driving cars, just as other big tech companies appear ready to plow ahead with competing efforts. In a retrenchment of one of its most ambitious initiatives, Apple has shuttered parts of its self-driving car project and laid off dozens of employees, according to three people briefed on the move who were not allowed to speak about it publicly.