BETWEEN THE HEDGES: Today's Headlines

Bloomberg:

China's Zhou Warns on Mounting Financial Risk in Rare Commentary. China’s financial system is getting significantly more vulnerable due to high leverage, according to central bank governor Zhou Xiaochuan, who also flagged the need for deeper reforms in the world’s second-biggest economy. Latent risks are accumulating, including some that are "hidden, complex, sudden, contagious and hazardous," Zhou wrote in a lengthy and strongly-worded article published on the People’s Bank of China’s website late Saturday. The nation should toughen regulation and let markets serve the real economy better, according to Zhou. The government should also open up financial markets by relaxing capital controls and reducing restrictions on non-Chinese financial institutions that want to operate on the mainland, he wrote.

Yemen Rebels Say They Fired Missile at Saudi's Main Airport. Yemen’s Houthi rebels said Saturday they’d targeted the international airport in Riyadh with a ballistic missile in a rare attack on one of the most vital targets in the Saudi capital. The projectile was aimed at King Khalid International Airport, located about 22 miles (35 kilometers) north of Riyadh, the rebel-controlled Saba news agency reported. Saudi state-run media said the kingdom’s air defenses intercepted a missile northeast of Riyadh, with no material damage to the airport. Residents in the capital said they heard a loud bang.

Lebanon PM Resigns, Bringing Saudi-Iran Proxy Conflict to the Fore. Lebanese Prime Minister Saad al-Hariri unexpectedly resigned on Saturday in a televised speech from Saudi Arabia, saying he feared for his life and accusing Iran and its proxies of destabilizing his country and the region. Hariri, a pro-Saudi Sunni politician, said Lebanon has suffered enough because of the Iranian-backed Hezbollah and its grip on domestic politics. “I want to say to Iran and its followers that they are losing in their interference in the affairs of Arab nations, and our nation will rise as it did before -- and the hands that are extended to it with evil will be cut off,” he said.

Wall Street Journal:

As Economy Gains Strength, Companies Sell (and Spend) More. Profits at S&P 500 firms are healthy, but they aren’t rising as quickly as they did earlier in the year.

iPhone X Review: Yes, There Are Reasons to Pay Apple $1,000. Apple’s(AAPL) latest has a crisp display, easier-to-grip design, top-notch cameras—and no home button.

North Korea Will Be Top Subject for Trump During Asia Tour. President’s priority will be managing relationships with North Korea’s neighbors and pushing for more pressure on Pyongyang.

New York Terror Suspect: A ‘Mother’s Boy’ Who Wanted to Come Home. Job setbacks, isolation and fits of rage marked a downward spiral; ‘I will beat you up right now’.

Barron's:

Had bullish commentary on (HON), (NVDA), (BIDU), (BABA), (MU), (LUV), (FNSR), (LITE), (VIAV), (OCLR), (AAOI), (IPHI), (DBS). (ALI), (CTRP), (MAT), (NPYN), (CIEN), (FEYE), (AMBA), (LSCC), (CEVA), (CRAY and (INTC).