Bloomberg:
- Ottawa Attacks Shatter Canadian Innocence. The shooting spree that paralyzed Canada’s capital today may change the self-image of a country that’s long prided itself on avoiding the violence more commonly associated with its southern neighbor. The fatal attack on a soldier this morning prompted a frenzied evacuation of Prime Minister Stephen Harper and a lockdown of public buildings. Civil servants and tourists described chaotic scenes as police swarmed to locate the assailant, or assailants -- one of whom was shot and killed by police inside Parliament.
- Saudis at War With Islamic State Confront Echo of Kingdom’s Past. When Saudi rulers send warplanes on missions against Islamic State, they’re targeting a group whose theocratic ideology and roots in desert warfare overlap at least partly with the kingdom’s own present and past. The world’s largest oil exporter has evolved into a mostly urban society in its eight decades of statehood, yet nomadic fighters erupting from the desert in a blaze of religious zeal are still part of its foundation narrative. Today in Saudi Arabia, as in the territory controlled by Islamic State in Syria and Iraq, women must wear black abayas, shops all close during prayer times, religious police enforce Islamic laws and criminals face violent punishment.
- Weak Yen’s Tap on Worker Wallets Fuels Debate: Chart of the Day. A 26 percent depreciation of the yen versus the dollar in the past two years has boosted Japanese companies’ profits while hurting workers’ purchasing power, intensifying debate among officials on policies to increase inflation.
- H.K. Protesters Draw Attacks From China and Local Support. China’s media is ratcheting up the rhetoric against Hong Kong’s pro-democracy movement, saying protesters risk becoming foreign puppets, at the same time a poll showed the demonstrations have gained support in the city. In an editorial yesterday in the English-language daily Global Times, the paper linked the protests to other movements that China deems hostile to the Chinese Communist Party’s authority.
- Asian Stocks Follow U.S. Retreat as Oil Drops; Kiwi Falls. Asian stocks dropped, with the regional index falling from a two-week high after U.S. equities halted their rally. Oil maintained declines while New Zealand’s dollar weakened after inflation slowed more than estimated. The MSCI Asia Pacific Index lost 0.5 percent by 9:58 a.m. in Tokyo, after climbing to the highest close since Oct. 9 yesterday.
- Corn and Soybeans Decline as U.S. Harvest Accelerates. Corn futures dropped from the highest price in seven weeks as dry weather aids farmers harvesting the biggest crop ever in the U.S., the world’s largest grower. Soybeans also fell, while wheat gained. Conditions in the southern and eastern Midwest are improving after rains caused delays in fieldwork, according to Gaithersburg, Maryland-based MDA Weather Services. Thirty-one percent of the corn crop was collected as of Oct. 19, trailing the five-year average of 53 percent, according to the U.S. Department of Agriculture.
- Late Subprime Auto-Loan Payments Cause for Vigilance, Citi Says.
Late payments on auto loans to borrowers with spotty credit have
increased at a "disproportionate" pace, rising to higher levels than
before the financial crisis, according to Citigroup Inc. The
delinquency rate for such debt that has been packaged into bonds rose
about 15% from a year earlier to 3.8% in August, Citigroup analysts led
by Mary Kane said yesterday in a report. Borrowers are falling behind
with sales of asset-backed securities tied to subprime auto loans
surging as six years of near-zero interest rates pushes investors toward
riskier assets. Concern is mounting that looser underwriting standards
may lead to higher losses for bondholders.
Late payments on auto loans to borrowers with spotty credit have increased at a "disproportionate" pace, rising to higher levels than before the financial crisis, according to Citigroup Inc.
The delinquency rate for such debt that has been packaged into bonds rose about 15 percent from a year earlier to 3.8 percent in August, Citigroup analysts led by Mary Kane said yesterday in a report. By contrast, 0.4 percent of borrowers with good credit are behind on payments.
Payments more than 60 days overdue averaged 3.3 percent in the 12 months ended in August, Citigroup said. Borrowers are falling behind with sales of asset-backed securities tied to subprime auto loans surging as six years of near-zero interest rates pushes investors toward riskier assets. Concern is mounting that looser underwriting standards may lead to higher losses for bondholders.
- See more at: http://www.northjersey.com/news/business/late-subprime-auto-loan-payments-cause-for-vigilance-citi-says-1.1114865#sthash.1GWqrX4o.dpuf
- Fed’s Loan Scrutiny Leaves Banks Passing on Buyout Deals. Heightened U.S. regulatory scrutiny of leveraged lending is leading the biggest banks to back away from funding some takeovers financed by debt, creating an opportunity for smaller competitors to step in. JPMorgan Chase & Co., Bank of America Corp., Credit Suisse Group AG, Deutsche Bank AG, Barclays Plc and Morgan Stanley are among banks that have passed on the opportunity to fund deals the past few months, according to people with knowledge of the matter who asked not to be identified because they weren’t authorized to speak publicly.
- Clouds Darken for America’s Blue-Chip Stocks. Coke, IBM, Others Find Once-Reliable Formulas Leave Them Too Big to Change Direction Quickly. The approach was time-tested and hard to beat: Put your money in blue chips, decades-old companies that could be counted on to perform through thick and thin.
- Hedge Funds Add to Venture-Capital Bounty. Maverick Capital Plans to Start VC Fund on Jan. 1.
- ObamaCare Returns as an Election Albatross. Policy cancellations and price increases are occurring just in time for Election Day. Democrats assumed earlier this year that ObamaCare would be a political advantage by Election Day. North Carolina Sen. Kay Hagan, for example, said in February she wanted to show the Affordable Care Act “is something whose time is come.” A month later Colorado Sen. Mark Udall said “we did the right thing” in passing the law and told voters he “would do it again,” a response echoed by incumbents Mark Pryor (Arkansas) and Mary Landrieu (Louisiana).
- Canadian officials identify shooter in brazen attack on Parliament complex. Canadian authorities late Wednesday identified the shooter in a brazen attack on the Parliament complex in Ottawa that left a soldier dead as Michael Zehaf-Bibeau, 32, Fox News has confirmed. The shooting, which triggered a lockdown of the nation's capital, came just two days after a terror attack in Quebec.
- Ebola hits Texas hospital in the pocketbook. The Texas hospital that has been ground zero for a mini-outbreak of Ebola in the U.S. has seen steep drops in patients and revenue on the heels of the crisis.
Business Insider:
Evening Recommendations
- None of note
- Asian equity indices are -.25% to +.25% on average.
- Asia Ex-Japan Investment Grade CDS Index 118.0 +4.5 basis points.
- Asia Pacific Sovereign CDS Index 67.75 -.5 basis point.
- FTSE-100 futures -.64%.
- S&P 500 futures -.05%.
- NASDAQ 100 futures -.14%.
Earnings of Note
Company/Estimate
- (PCP)/3.32
- (LUV)/./53
- (LLY)/.67
- (PTEN)/.47
- (DO)/.79
- (CRI)/1.24
- (ALXN)/1.16
- (PHM)/.36
- (DGX)/1.08
- (CELG)/.95
- (GM)/.95
- (AAL)/1.63
- (CAB)/.86
- (DPS)/.88
- (UNP)/1.51
- (RCL)/2.19
- (RYL)/.80
- (CMCSA)/.71
- (UA)/.40
- (RTN)/1.60
- (ZMH)/1.30
- (MMM)/1.96
- (CAT)/1.34
- (NUE)/.75
- (KLAC)/.46
- (ALTR)/.37
- (JNPR)/.36
- (MSFT)/.55
- (CERN)/.42
- (CB)/1.95
- (MXIM)/.37
- (AMZN)-.75
- (DECK)/1.03
8:30 am EST
- The Chicago Fed National Activity Index for September is estimated to rise to .15 versus -.21 in August.
- Initial Jobless Claims are estimated to rise to 281K versus 264K the prior week.
- Continuing Claims are estimated to fall to 2380K versus 2389K prior.
- The FHFA House Price Index for August is estimated to rise +.3% versus a +.1% gain in July.
- Preliminary Markit US Manufacturing PMI for October is estimated to fall to 57.0 versus 57.5 in September.
- The Leading Index for September is estimated to rise +.7% versus a +.2% gain in August.
- The Kansas City Fed Manufacturing Activity Index for October is estimated at 6.0 versus 6.0 in September.
- None of note
- The Eurozone Services PMI report, China home price report, weekly EIA natural gas inventory report and the weekly Bloomberg Consumer Comfort Index could also impact trading today.
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