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Global Stocks Decline On Samsung Woes; Rising Dollar Pressures Oil

Global markets and US equity futures fell on Samsung Galaxy Note 7 contagion concern, while the dollar rose to its strongest level in 11 weeks and U.S. bonds declined as investors boosted wagers that the Federal Reserve will raise interest rates this year.

Samsung Ends Galaxy Note 7 Production, Pulls Model From Market

Samsung Electronics announced it is stopping production of its Galaxy Note 7 smartphones, a day after it halted global sales of the star-crossed devices. The South Korean company said in a regulatory filing Tuesday that it has made a final decision to stop production of the large-screen smartphone whose exploding batteries had become a recurring global problem, for the sake of consumer safety.

Globalization Is Done

The end of growth exposes the stupidity and ignorance of all but (and even that’s a maybe) a precious few (of our) ‘leaders’. We are transcending into an entirely different stage of our lives, our economies, our societies. Growth is gone, it went out the window long ago only to be replaced with debt. And that’s going to take a lot of getting used to. But there’s nothing that says we couldn’t see it coming.

US Futures Pressured By European Weakness; Oil Flat, Dollar Rises

For the fourth day in a row, US traders arrive at their desks with US equity futures largely rangebound if with a modestly heavy bias, pressured by some recent weakness in European stocks, where DB continues to post modest gains following yesterday's report that Germany is pursuing "discrete talks" over the fate of the German lender. Oil has regained earlier losses following comments by Algeria's oil minister who said that OPEC could cut 1% more than agreed upon while sterling continues to slide on growing concerns of a "hard Brexit."

Preparing For A Resurgence Of Globalism

When the Brexit vote occurred, we suggested a dialogue would be created in mainstream media painting populism as responsible for numerous economic political and military difficulties. Gradually, globalism would be suggested as the remedy for populism. That process has begun and the IMF/World bank meetings are leading the way...

US Trade Deficit Unexpectedly Grows In August, Pressuring Q3 GDP

While the recently reported advance trade data showed a far better than expected recent trade picture for the US, today's official international trade data showed another modest disappointment, with the US trade deficit in August growing from an upward revised $39.6 billion to $40.7 billion, well above the expected $39.3 billion, as imports increased more than exports. The goods deficit decreased less than $0.1 billion in August to $60.3 billion. The services surplus decreased $1.2 billion in August to $19.6 billion.

European, EM Stocks Slide On ECB Taper Concerns; US Futures Flat

With China on holiday, overnight sessions remain relatively quiet: at this moment, S&P500 futures are little changed as European stocks fall for first day in seven, on yesterday's concern that the ECB is moving toward tightening monetary policy; Asian indices rose slightly for third day. WTI climbs to $49.40, the highest since June 30 after yesterday's surprisingly large API crude draw report.

Frontrunning: October 3

  • Donald Trump’s Tax Numbers Sharpen Focus on Treatment of Losses (WSJ)
  • Qatari funds nurse €1bn loss on Deutsche Bank stake (Telegraph)
  • Colombian Voters Reject Peace Deal With FARC Rebels (WSJ)
  • Hungarians vote to reject migrant quotas, but turnout too low to be valid (Reuters)
  • Clinton expected to hit Wells Fargo in speech on 'bad corporate actors' (Reuters)

Will The ECB Buy Stocks?

With The SNB and BOJ already neck deep in their equity-buying experimentation, and even Janet Yellen hinting at it for The Fed, the most pressing question on most liquidity-hunting central-planer-watchers is - when will Draghi start buying stocks? The short answer, from ABN AMRO, is ECB equity purchases are unlikely in the near term.. and even so, The ECB would be increasing the risk on its balance sheet for uncertain, and at best modest gains in economic growth and inflation.

Futures Fail To Rebound As Deutsche Bank Tries To Comfort Markets That It Is "Fine"

After yesterday's "Hillary rally" in the US, the overnight's session has seen more risk-on sentiment as European stocks advanced, ignoring weakness in Asia as investors followed every twist of shares of beleaguered lender Deutsche Bank, whose CEO last night assured Bill readers that the bank is not seeking a bailout, which however was contradicted by a Zeit article this morning reporting that Germany may seek as much as s 25% "bailout" stake in a worst case scenario.

The Global Housing Bubble Is Biggest In These Six Cities

In the latest report by UBS wealth Management, which compiles the bank's Real Estate Bubble Index,  it found a new champion for the title of "world's biggest housing bubble", namely a familiar name, Vancouver, but also that as many as six cities had made the "bubble" category, up from last year's two.

Global Stocks Tumble, US Futures Slide On Deutsche Bank Fears, Central Bank And Commodity Concerns

While today's biggest event for both markets and politics will be tonight's highly anticipated first presidential debate between Trump and Hillary, markets are waking up to some early turmoil in both Asia and Europe, with declines in banks and energy producers dragging down stock-markets around the world, pushing investors to once again seek the safety of government bonds and the yen.