Today's Headlines
Bloomberg:
- Asian Banks See Funding Costs Rise, Making for Challenging 2018. It’s been a borrower’s market for a long time, in Asian syndicated loans as in the rest of the dollar universe. But Asia-Pacific lenders are facing increasing funding pressures, and a handful are aiming to pass those costs along -- in another sign that the beginning of the end of ultra-easy money may be coming. Half of the 50 banks in a Bloomberg News survey have experienced an increase in funding cost of as much as 20 basis points over the past few months. “Banks across the Asia Pacific in many cases will be challenged to maintain momentum on net interest margin primarily from a competitive standpoint in 2018,” said Gavin Gunning, senior director at S&P Global Ratings. “The banking sector regionally is becoming more competitive and in general that means that there are more pressure in terms of banks’ funding cost.”
- Apple(AAPL), Google(GOOGL) CEOs Bring Star Power as China Promotes Censorship. Apple Inc.’s Tim Cook and Google’s Sundar Pichai made their first appearances at China’s World Internet Conference, bringing star power to a gathering the Chinese government uses to promote strict online censorship. Apple’s chief executive officer gave a surprise keynote at the opening ceremony on Sunday, calling for future internet and AI technologies to be infused with privacy, security and humanity. The same day, Politburo member Wang Huning called for more aggressive government involvement online to combat terrorism and criminals online, even calling for a global response team to go well beyond China’s borders.
- U.K. Fears Brexit Breakdown as May Takes Her Best Offer to Lunch. While a deal on what happens to the Irish border after Brexit is still to be done, the role of the ECJ in enforcing the rights of citizens emerged as the greatest obstacle on Sunday after a weekend of intense talks, according to the British official and a person familiar with the EU side. May has offered all that she can and a rejection from Europe now would risk a breakdown in talks, according to the U.K. official.
- Dollar, Yields Gain on Tax Cuts as Stocks Steady. The dollar, yields and U.S. equity-index futures rallied after Senate passage of tax-cut legislation drew focus away from events in the continuing investigation into connections between Donald Trump’s aides and Russia. Asian stocks opened steady. The greenback recovered some of Friday’s losses, and Treasuries paced gains in yields in Asia on Monday. Stocks were little changed in Tokyo and Sydney, and futures on the S&P 500 index surged, as investors unwound trades triggered by concerns about former national security adviser Michael Flynn’s guilty plea for lying to federal agents. Yields on 10-year Treasuries jumped in early Asian trading. Oil continued to trade around $58 a barrel. Japan’s Topix index was little changed as of 9:22 a.m. in Tokyo, while the Nikkei 225 Stock Average was down 0.2 percent. Australia’s S&P/ASX 200 Index was steady. South Korea’s Kospi index rose 0.4 percent.
- Richmond Fed Said to Tap McKinsey's Barkin as Its President. Directors at the Federal Reserve Bank of Richmond have chosen Thomas Barkin, a senior executive at global consulting firm McKinsey & Co., as the institution’s next president, said a person familiar with the decision.
Wall Street Journal:
- How GM(GM) Helped Power the Fastest-Growing Auto Maker in China. General Motors’ Chinese joint venture, Baojun, is taking more market share but the U.S. company’s minority stake leaves it vulnerable.
- Like the Cubans Before Them, Venezuelan Exiles Are Transforming Florida Politics. Both U.S. parties are hustling to recruit a flood of new voters in a crucial state for presidential elections.
- Digital-Currency Fever May Spread to Federal Reserve. As electronic-payment methods rise in popularity, central bankers ponder whether they might need to get in the game.
- Banks Build Line of Defense for Doomsday Cyberattack. The Sheltered Harbor project is meant to ensure that every U.S. bank has a protected, unalterable backup that can be used to serve customers in case of a major hack.
Zero Hedge:
- In "Largest-Ever" Military Drill, US Orders 16,000 Troops, 230 Jets To Simulate War With North Korea.
- Trump Twitter Meltdown: President Goes To War With FBI, Urges Suing ABC For "Bad Reporting". @realDonaldTrump: People who lost money when the Stock Market went down 350 points based on the False and Dishonest reporting of Brian Ross of @ABC News (he has been suspended), should consider hiring a lawyer and suing ABC for the damages this bad reporting has caused - many millions of dollars!
Business Insider:
Night Trading
- Asian indices are -.25% to +.25% on average.
- Asia Ex-Japan Investment Grade CDS Index 72.75 -.5 basis point.
- Asia Pacific Sovereign CDS Index 13.75 unch.
- Bloomberg Emerging Markets Currency Index 73.19 unch.
- S&P 500 futures +.57%.
- NASDAQ 100 futures +.46%.
Earnings of Note
Company/Estimate
- None of note
Economic Releases
10:00 am EST
10:00 am EST
- Factory Orders for October are estimated to fall -.4% versus a +1.4% gain in September.
- (CGNX) 2-for-1
- The Eurozone PPI report, UBS Media/Communications Conference, Raymond James Tech Conference, Wells Fargo Tech Summit and the Cowen Energy/Natural Resources Conference could also impact trading today.
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