Lloyds

• China turmoil sends oil, stocks sliding (Reuters)
• China's Stock Traders Go Home After 29 Minutes (BBG)
• Yuan hits weakest since Feb 2011 on fresh low midpoint (Reuters)
• Stocks Extend Rout, Oil Slides on China as Soros Warns of Crisis (BBG)
• China's 29 Minutes of Chaos: Stunned Brokers and a Race to Sell (BBG)
• North Korea Uses Bomb Test to Boost Dictatorship (WSJ)

• Obama, wiping tears, makes new push to tighten gun rules (Reuters)
• Global stocks hit by China worries, North Korea nuclear test (Reuters)
• Oil hits 11-year low, Saudi-Iran row cuts chances of output restraint (Reuters)
• North Korea says successfully conducts first H-bomb test (Reuters)
• Valeant Planning to Appoint New Leader as CEO Remains Hospitalized (WSJ)
• Treasuries Extend 2016 Winning Start With Growth Outlook Clouded (BBG)

• China stocks tank, triggers circuit breaker (Reuters)
• Stocks Slump Across Europe and Asia Following Shanghai's 7% Crash (BBG)
• China Halts Stock Trading After 7% Rout Triggers Circuit Breaker (BBG)
• Iran says Riyadh thrives on tension after relations cut (Reuters)
• Saudis and Bahrain Face Off With Iran in Worst Clash Since 1980s (BBG)
• Syrian rebel group backs Saudi move to cut ties with Iran (Reuters)

Optimism in US equity futures appears to have returned, and as of this moment US equity futures are higher by 9 points to 2060 as the attention shifts to what, according to BofA, is truly the most important ever. It is unclear just how the algos would take a second consecutive major disappointment in a row: should today's NFP print be well below the 200,000 consensus, December rate hike odd will tumble and the EUR will surge even more after declining modestly from overnight highs just below 1.10, leading to even more losses in European equities and spilling over to the US. 

Repeated dosages of quantitative easing to kick-start economic recovery have proved totally ineffective everywhere. Yet central bankers are talking about doing it again – in larger amounts. The obsession with spending rather than saving has led governments everywhere to suppress interest rates to near zero. Under this destructive economic model governments are the worst offenders. In their craze to spend cheap money they allocate resources blindly into projects of dubious viability, for which there was no public demand in the first place. Result: huge taxpayer-borne losses.

In a "world of disappointments", where beta is king and where alpha has become a joke (or, now that equity is a risk-free asset and debt is risky, is outright punished) where growth no longer exists, drowning under the weight of $200 trillion in debt, and where value strategies have been all but forgotten replaced instead with "stories" about companies that have no cash flows but just might be "the next big thing" (one day), what should one to do? Why, engage in the most idiotic of strategies: chase momentum.

• Fed puts December rate hike firmly on the agenda (Reuters)
• Charting the Markets: A More Hawkish Fed Rattles Investors (BBG)
• China to modernize and improve fiscal and tax systems (Reuters)
• Deutsche Bank to Cut 35,000 Jobs in Overhaul (WSJ)
• Deutsche Bank Said to Near $200 Million Sanctions Settlement (BBG)
• Barclays profits drop as it abandons cost-cutting targets (FT)

• McDonald’s Close to Deciding Whether to Change Structure of U.S. Real Estate (WSJ)
• Stocks Rise as Stimulus Bets Spur $4.1 Trillion Gain; Oil Climbs (BBG)
• Wall Street bonuses likely to plunge as trading revenue drops (Reuters)
• Syrian army launches Aleppo offensive with Iranian support (Reuters)
• Malaysia’s Najib Razak Played Key Role at Troubled 1MDB Investment Fund (WSJ)
• VW Loses Market Share in Europe as Diesel-Motor Recalls Loom (BBG)

• China economic growth seen slowing despite policy easing (Reuters)
• FBI, Justice Department Investigating Daily Fantasy Sports Business Model (WSJ)
• Obama to slow pace of withdrawal of U.S. troops from Afghanistan (Reuters)
• Corporate America's Epic Debt Binge Leaves $119 Billion Hangover (BBG)
• Islamic State battles insurgents as Syria army prepares assault (Reuters)
• Why Hillary Clinton Can’t Win by Going After the NRA (BBG)

• Global stocks eye biggest rally in four years on Fed relief (Reuters)
• FOMC Minutes Sap Confidence in Fed's 2015 Rate Hike Resolve (BBG)
• Glencore to cut annual zinc production by a third (FT)
• Tea Party wave that lifted Republicans threatens to engulf them (Reuters)
• Why Kevin McCarthy Came to Quit Speaker Race (WSJ)
• A U.S. Recession Just Got a Little More Likely (BBG)

• Asian shares rise on fading Fed rate views (Reuters)
• U.S. Equity Futures Fall, Risking S&P 500 Rally as Copper Slides (BBG)
• More biotech pain, this time from the WSJ: For Prescription Drug Makers, Price Increases Drive Revenue (WSJ)
• VW Will Delay or Cancel Non-Essential Investments Due to Scandal (BBG)
• Russia Rejects No-Fly Zone Over Syria as Clerics Urge Reprisals (BBG)
• Historic Pacific trade deal faces skeptics in U.S. Congress (Reuters)
• German Factory Orders Unexpectedly Fall Amid Economic Risks (BBG)

News That Matters

News That Matters

News That Matters

News That Matters