In a tumultuous week for Ebola updates (which are only set to get worse with flu season about to unfold, and where every sneeze and fever will be interpreted as an early symptom of the deadly disease, likely choking hospitals and ERs around the nation), Friday brought us one of the more disturbing updates when it was revealed that an Ebola-handling healthcare worker had decided to break the "self-watch" protocol and had gone on a Caranival cruise in the Caribbean. Fast forward to this morning, when after what one assumes was a negative blood test, the Carnival Magic ship carrying the suspect, was cleared to return to port in Galveston, TX this morning. As AP reports, "The unidentified woman who is being monitored disembarked the Carnival Magic with her husband shortly after the ship returned to Galveston, Texas, about 6 a.m. EDT, said Vicky Rey, vice president of guest care for Carnival Cruise Lines. Rey said the couple drove themselves home, but offered no further details.
Some 30,000 participants were wondering if the organizers of today's 34th Beijing International Marathon would cancel the event after "a toxic fog enveloped the Chinese capital and smog levels soared to “hazardous” levels." Adding to the confusion, and concerns, even the People’s Daily, the Communist Party’s mouthpiece newspaper, cautioned athletes against taking part in the 26.2-mile race, reporting that Beijing’s air was “not suitable for outdoor activities”. As the Telegraph reports, "Beijing authorities admitted their city’s air was "severely polluted” on Sunday while the US embassy, which also monitors smog levels, described the situation as "hazardous". The Marathon organizers' answer, however, was that the Marathon would proceed as scheduled. The end result was a surreal photo album of the "airpocalypse" marathon, perhaps the best harbinger of the globalized future, as of thousands of people jogged across downtown Beijing in gasmasks.
- Obama open to appointing Ebola 'czar', opposes travel ban (Reuters)
- Schools Close as Nurse’s Ebola Infection Ignites Concern (BBG)
- How the World's Top Health Body Allowed Ebola to Spiral Out of Control (BBG)
- European Stocks Rise Amid Growing Pressure for Stimulus (BBG)
- Putin Threatens EU Gas Squeeze Raising Stakes for Ukraine (BBG)
- ECB to Start Asset Purchases Within Days, Says Central Banker Coeuré (WSJ)
- Investors search for signs of end to stock market correction (Reuters)
There is this whole idea of state dependence that we have to consider when we’re talking about the market. Uou might have a plan to buy stocks when the index gets below a certain level, but when the market gets to that point, you: a) may not have the capital; and b) might be panicking into your shorts. It’s nice to have a plan, but, paraphrasing Mike Tyson, everyone has a plan until they get punched in the face. It’s been so long since we’ve had a correction, I’m guessing that most people have forgotten what a correction feels like.
The talking heads will be rolled out on CNBC to assure the masses that all is well. The economy is strong. Corporate profits are awesome. The stock market will go higher. Op-eds will be written by Wall Street CEOs telling you it’s the best time to invest. Federal Reserve presidents will give speeches saying there are clear skies ahead. Obama will hold a press conference to tell you how many jobs he’s added and how low the budget deficit has gone. We couldn’t possibly be entering phase two of our Greater Depression after a temporary lull provided by the $8 trillion pumped into the veins of Wall Street by the Fed and Obama. Could we?
If trained professionals (in West Africa and the US) are becoming infected by the deadly Ebola virus, what hope is there for fellow passengers in a tightly-packed metal tube? The World Health Organization expects Ebola cases to top 9000 this week and deaths to exceed 4500 as they shockingly note 427 healthcare workers are now infected. The economic impact of Ebola continues to rise as Liberia slashes its GDP estimate and East African nations discuss strategies to stop the spread from the West. In Europe, Germany is sending aid, the Spanish nurse is stable but Madrid airport activated emergency measures due to a suspected Ebola passenger. US screening restrictions increase as Yale New Haven Hospital is dealing with a patient with Ebole-like symptoms. Politicians begin debating travel bans as Dallas is expected to approve a "state of disaster" today. Contained?
Yesterday afternoon's "recovery" has come and gone, because just like that, in a matter of minutes, stuff just broke once again courtsy of a USDJPY which has been a one way liquidation street since hitting 106.30 just before Europe open to 105.6 as of this writing: U.S. 10-YEAR TREASURY YIELD DROPS 15 BASIS POINTS TO 1.99%; S&P FUTURES PLUNGE 23PTS, OR 1.2%, AS EU STOCKS DROP 2.54%.
Only this time Europe is once again broken with periphery yields exploding, after Spain earlier failed to sell the maximum target of €3.5 billion in bonds, instead unloading only €3.2 billion, and leading to this: PORTUGAL 10-YR BONDS EXTEND DROP; YIELD CLIMBS 30 BPS TO 3.58%; IRISH 10-YEAR BONDS EXTEND DECLINE; YIELD RISES 20 BPS TO 1.90%; SPANISH 10-YEAR BONDS EXTEND DROP; YIELD JUMPS 29 BPS TO 2.40%.
And the punchline, as usual, is Greece, whose 10 Year is now wider by over 1% on the session(!), to just about 9%.
"We hope that our partners will realize the futility of attempts to blackmail Russia and remember what consequences discord between major nuclear powers could bring for strategic stability." - Putin
- M&A Bubble is bursting: AbbVie Says It Reconsiders Merger Pact With Shire (WSJ)
- Winner of bad headline timing award: Spinoffs Could Set Stage for Next Merger Wave (BBG) - and now wait for the spinoffs getting pulled
- Record mortgage settlement pushes Bank of America into third-quarter loss (Reuters)
- Korea joins the Japan currency war: Bank of Korea Cuts Base Rate (WSJ)
- Double Irish’s Slow Death Leaves Google Executives Calm (BBG)
- Global Oil Glut Sends Prices Plunging (WSJ)
- Slow Rise in Prices Shows China’s Economy Is Still Struggling (WSJ)
Equity markets live and die on several well-established conventions, according to ConvergEx's Nick Colas, noting that these are the rules that investors use as the bedrock of their fundamental analysis. The volatility of the last few weeks shows that some of these paradigms are now under attack. Chief among the question marks: “Do central banks always have the power to tip the balance between growth and recession?” Another rising concern: “Can stocks constantly shrug off recessionary signals from commodity and fixed income markets?” Lastly, “How many exogenous, if largely unpredictable, global events can equities ignore before their collective weight halts a bull market?” Bottom line: the debate on these topics isn’t over for October or the balance of the year.
While Russia's economy is hurting, desperate to overthrow the tentacles of the Petrodollar, and is urgently pivoting toward Beijing, the cherry on top came moments ago when, as if to assure all involved parties that there will be enough capital support on both sides, the PBOC released a surprising announcement that the central banks of China and Russia signed a 3-year, 150 billion yuan bilateral local-currency swap deal today, according to a statement posted on PBOC website. Deal can be expanded if both parties agree, statement says. Deal aims to make bilateral trade and direct investment more convenient and promote economic development in 2 nations.
The Chinese Communist Party’s official newspaper claims the U.S. is trying to foment a “color revolution” in Hong Kong. Although China has strongly implied that foreigners were secretly controlling the Hong Kong protests in recent weeks, the commentary was the first time it so explicitly accused the U.S. of being behind the movement.
UPDATE: Nevache confirmed that the "suspicion was over" and the people were allowed to leave
Following news of the death of a British man in Macedonia from Ebola, RTL reports that 60 people are locked inside a Department of Medical and Social Coordination (DASS) building in Cergy-Pontoise (on the northeast edge of Paris) following Ebola-like symptoms in 4 people who returned from Guinea.
Ebola Pandemic Hits Germany, Turkey, And Australia As Infected Spanish Nurse Went Un-Quarantined For A WeekSubmitted by Tyler Durden on 10/09/2014 08:12 -0500
Despite the still confident exclamations from officials that the Ebola pandemic is 'contained', more and more nations are admitting to Ebola-symptomatic cases or bringing infected patients back from Africa for treatment. Australia has its first potential case of the deadly disease, as Bloomberg reports a nurse who returned from volunteering in Africa has developed Ebola-like symptoms. Despite claims that Nigeria's outbreak is over, a Turkish worker there has been hospitalized in Istanbul after signs of high fever and diarrhea. Health officials from Germany confirm a 3rd Ebola patient has arrived in the country - having contracted the disease in Liberia. And finally, just as in the sad case of Thomas Duncan in Dallas, The Guardian reports the infected Spanish nurse went untreated and unquarantined for a week despite reporting symptoms at least three times to hospital officials. It seems the world is ill-prepared for this...
Here we go again. Exactly two months after the deadly shooting of Michael Brown by a local police officer in Ferguson, MO, it is time for part two. Overnight, in nearly the same spot as the Brown shooting, a white off-duty policeman shot and killed a black teenager in St Louis, officers said, triggering a night of protests just miles from the site of another police shooting of another black youth in the suburb of Ferguson. Reuters has the details: police said the 18-year-old was armed and fired three shots while he was being chased by the officer, and they had recovered a gun at the scene. The youth was killed almost two months to the day since sometimes violent protests erupted in Ferguson after a white police officer shot dead unarmed black 18-year-old Michael Brown. Said otherwise, cops say Myer was armed but witnesses say he was only holding a sandwich when he was tased, fell over & then was shot at 17 times of which "only" three hit.