Deutsche Bank Probing "Misstated" Derivative Valuations After Finding "Divergences"

Deutsche Bank is probing whether it misstated the value of derivatives in its interest-rate trading business, and is sharing its findings with U.S. authorities. The reason for the probe is that, as has been a recurring case with many of its peers of the last few years, the bank found valuations that "diverged from internal models" at which point it began questioning traders.

Rajoy To Form Minority Government Thanks To Abstentions: Expect No Stability

Mariano Rajoy is headed for another term as Spanish prime minister following two inconclusive elections. However, should the socialists reorganize, Rajoy could easily find himself facing a vote of no confidence in a year or so. Rajoy is corrupt as they come. Ciudadanos had to hold its nose to enter this fragile minority coalition. There is nothing at all stable about this setup.


Clinton Campaign Chair Had Dinner With Top DOJ Official One Day After Hillary's Benghazi Hearing

In the latest revelation certain to reignite accusations of collusion between the Clinton campaign and the DOJ, among the recent batch of hacked emails released by Wikileaks, we learn that one day after Hillary Clinton's Benghazi tesimony last October, John Podesta, Hillary's campaign chairman met for dinner with a small group of well-connected friends, including top DOJ official Peter Kadzik.

New Home Sales Rise But Miss After Dramatic Downward Revision

Thanks to a dramatic downward revision for August (from 609k to 575k), September's 593k new home sales rose more than expected (but was below expectations of 600k). The pickup in September demand was helped by an 8.6% gain in the Midwest and a 3.4% increase in the South, but sales fell 4.5% in the West.

Services PMI Spikes To 11-Month Highs But Employers Remain "Cautious On Hiring"

Following October's flash Manufacturing PMI spike (to 12-month highs), today's Services PMI surged to 54.8 (its highest since Nov 2015) led by the highest level of new orders in 2016. It appears the extraordinary surge in government spending in the last quarter has rippled through and spiked these surveys, notably divergen from the declines in regional Fed surveys.

Wall Street Reacts To Apple's Disappointing Earnings

Having had a chance to digest AAPL's results, Wall Street's sellside analysts chimed in this morning, and the prevailing sentiment was neutral to negative, with Stifel's Aaron Raker most disappointed, downgrading the stock from Buy to Hold, and lowering his price target to $115.

Wholesale Inventories Growth Weakest Since 2010 Even As Auto Stocks Soar

Wholesale Inventories were unchanged year-over-year for the first time since June 2010 (up 0.2% MoM). However, below the surface things are worrisome with motor vehicle inventories up again MoM and up a shocking 9.0% YoY. Wholesale inventories-to-sales ratios are improving modestly but remain deep in recessionary territory.

It's Still The Media, Stupid!

For anyone to seriously challenge the American Leviathan, it must be understood that the mainstream media is a part of that despotic structure and it too must be neutered.  Donald Trump has done more than any Presidential candidate to expose the treachery of the mainstream media, now others must take up the cause.

Investors Have Pulled $8 Billion From Deutsche Bank's ETF Unit

DB has continued to hemmorhage cash with the FT reporting that the German lender's exchange traded fund unit has seen billions in outflows as Germany’s biggest lender considers whether to sell parts of its asset management business. Specifically, investors have pulled $8bn from Deutsche’s ETF arm so far this year.

Frontrunning: October 26

  • Florida Once Again a Focus in 2016 Campaign (WSJ)
  • Trump Has Slim Edge in Bloomberg Poll of Florida (BBG)
  • NATO seeks troops to deter Russia on eastern flank (Reuters)
  • Arbs Stay on Sidelines of AT&T-Time Warner Deal (WSJ)
  • Holiday Forecast for Apple Crumbles (BBG)
  • Saudi Arabia Faces Tough OPEC Equation With Mounting ‘Exemptions’ (BBG)