Monday Watch

Today's Headlines

Bloomberg:      

• Oil, Populist Leaders and the Dollar: Guide to Emerging Market Risks in 2019. 

• China Pledges More Monetary, Fiscal Support in 2019.

• Huawei Gear Pulled From $3 Billion U.K. Police Phone Network. 

• U.S. Stock Futures Climb After Rout, Yen Steadies. U.S. stock futures rose, erasing earlier losses and the yen pared gains as investors weighed news over the weekend that President Donald Trump has discussed firing Federal Reserve Chairman Jerome Powell as well as the impact of a partial U.S. government shutdown. U.S. Treasury Secretary Steven Mnuchin attempted to assure financial markets that Powell would not be ousted from the central bank following a Bloomberg News report that said Trump has repeatedly discussed removing him. Mnuchin tweeted over the weekend that he had spoken with the president about the matter and quoted Trump as saying he never suggested firing Powell, nor does he think he has the right to do so. Australia’s S&P/ASX 200 Index fell 0.3 percent as of 10:47 a.m. in Sydney. FTSE China A50 Index futures lost 1 percent. Futures contracts on the S&P 500 rose 0.3 percent.  

• Fed Firing Risks, Mnuchin Calls Banks, China-U.S. Talks: Eco Day.   

• Currency Traders are on the Frontlines as Markets React to U.S. Risk.

• A Vocal Minority Is Echoing Trump's Concern About Fed Tightening.

• Wall Street Quietly Shelves Its Bitcoin Dreams.

• OPEC in a ‘Whatever It Takes’ Moment to Prop Up Oil Prices.

• Wells Fargo Slashes S&P 500 Target, Says Fed Has Made a ‘Policy Mistake’.

Wall Street Journal:

• Trump Official Warns Shutdown Could Last Into January.

• 33 Mostly Free Ways to Fix Your Family’s Tech Problems.

• Retailers Wrapping Up Holidays With Cheer.

• Fuel Production Frenzy Spurs Lower Gas Prices.

• The Phony Shutdown War.

Fox News:

• DISTURBING FOOTAGE: Pop band playing on beach smashed by deadly tsunami that killed hundreds.

• Trump bashes Corker after GOP critic hits president over shutdown terms.

CNBC:

• Look at all the 2018 tech IPOs that are underwater.

Zero Hedge:         

• Mnuchin Called Bank CEOs To Check Liquidity, Calm Markets; Has Monday Call With Plunge Protection Team.

• Hackers Steal Thousands Of Files From M&A Giant Evercore.

• Rumors Swirl As Mystery Firm Takes Fight With Mueller To Supreme Court.

• JPM: Everyone Is Capitulating.

• "Could Be Worse" - Goldman's 'Glass-Half-Full' Global Outlook.

• It's Not Just Trump: A Wall Street Chorus Is Calling For Powell's Scalp.

• Spitzer Repeatedly Snuck $5,000/Night Prostitute Into His Apartment Using A Suitcase.

• Angry Trump Forces Mattis Out Early, Names Former Boeing Exec As Acting SecDef.

• The Anatomy Of A Government Shutdown.

• 222 Dead, Dozens Missing In Indonesia After "Child Of Krakatoa" Triggers Devastating Tsunami. 

• Crypto Pump-and-Dump Groups Become "Widespread" As Market Remains Largely Unregulated.

• US Ambassador To Germany Attacked After Demanding Spiegel "Fake News" Investigation.

• Chinese Refiners Aren't Buying U.S. Crude.

• After David Hogg Rejected By UCLA, Gun Control Icon Finds Home At Harvard.

• Trump's New Chief Of Staff: President "Now Realizes He Doesn't Have Ability" To Fire Powell.

• Drones: A Rising Menace To UK Aviation.

• Sorting Out The Brexit Chaos.

• On Gun Confiscation: "Here's How It Might Actually Go Down".

Reuters:

• MIDEAST STOCKS-Saudi banks decline on tax payments, Wall ...

Telegraph:

• Comment: Brexit backsliders are flirting with disaster.

• Comment: Italy is on a collision course with the EU over its budget deficit.

Night Trading

• Asian indices are -.75% to unch. on average.

• Asia Ex-Japan Investment Grade CDS Index 98.25 +5.25 basis points.

• Asia Pacific Sovereign CDS Index 11.75 +2.0 basis points.

• Bloomberg Emerging Markets Currency Index 66.64 +.05%.

• FTSE 100 futures -.57%.

• S&P 500 futures +.26%.

• NASDAQ 100 futures +.15%.

Morning Preview Links

Earnings of Note

Company/Estimate
Before the Open:

• None of note

After the Close:

• None of note

Economic Releases
8:30 am EST

• The Chicago Fed National Activity Index for November.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The German Import Price Index and $40B 2Y T-Note auction could also impact trading today.

BOTTOM LINE: Asian indices are mostly lower, weighed down by financial and industrial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed.  The Portfolio is 25% net long heading into the week.