Credit Suisse

Despite last night's disappointingly weak China re-open (notably less than US ADRs had implied), it appears everyone and their pet rabbit levered up as China margin-buying rose CNY21bn - the most in 2 months. It appears China's housing market also disappointed hope-strewn expectations as Golden Week home sales slowed dramatically YoY (blamed on weather). All is not well in the liquidioty stress department as despite ongoing injections, o/n HIBOR spiked 240bps overnight. China stocks are mixed at the open as PBOC strengthens the Yuan fix for the 5th day in a row to 2 month highs. Concerns are also growing in China's corporate bond market where bubble flows have greatly rotated from stocks to drive yields on risky firms to record lows.

Not everything is "fine" in the land of European banks, in fact quite the opposite.

It was just a matter of time before the market realized that the happy days for biotechs are now over. Sure enough, a quick glance at the Nasdaq Biotech Index reveals that after a modest drop yesterday when mostly Valeant was punished, the weakness today is widespread and is hitting the entire biotech sector which moments ago was down a whopping 6.4%, and just over 3,000, the biotech sector is once again not only red for the year, but danger of taking out the 2015 lows hit in the last days of September.

Today's most popular hedge fund strategy among institutional investors globally is "Alternative Global Macro Funds". Also known as a “go anywhere” investment style, active managers employ opportunistic trading tactics across asset classes, financial instruments, and geographic regions. Like many liquid alts, global macro funds grew rapidly following the financial crisis as investors looked for strategies that could diversify their portfolios in the midst of volatility in the global marketplace and historically high sector correlations against the S&P 500, thereby improving their risk-return profiles. Ultimately, success in this classification resides in selecting the right active manager given the strategy’s wide dispersion of returns.

Newly-upgraded Portugal unleashed a budget bombsell on Wednesday when it revised its 2014 deficit higher by some 60% after a failure to liquidate the predecessor to bailed out Banco Espirito Santo left taxpayers holding a €5 billion bag. 

A series of dramatic moves at the helm of Germany's iconic carmaker leaves many wondering what's next. Here are some thoughts.

The data, according to many analysts, have been broadly supportive, with stronger growth and a tightening in the labor market that should allow the Fed to be "reasonably confident" that inflation will gradually return to target. That said, heightened global risks could lead to a tactical delay. Economisseds remain evenly split on the prospect of the first rate increase in 9 years.

Tomorrow's FOMC decision is the dominant topic for investors and traders across all asset classes, with FX, perhaps, the most sensitive to perceived changes (and instigator of trades via carry). As Credit Suisse details, FX volatility remains notably elevated and along with the uncertain flows surrounding so-called "risk parity" trading strategies, and the fact that 2y Treasury yields at around 0.80% are at their highest levels since 2011 - despite the less than 30% chance of a Fed hike priced in for tomorrow - only adds to the sense of uncertainty about the Fed's reaction function. In this light, how do we see the various possibilities that could emerge from tomorrow's FOMC? Here are Credit Suisse's 5 scenarios...

News That Matters

As Reuters reports, "Deutsche Bank aims to cut roughly 23,000 jobs, or about one quarter of total staff, through layoffs mainly in technology activities and by spinning off its PostBank division, financial sources said on Monday."

News That Matters

· Thursday brings the much anticipated FOMC rate decision, with analysts split in their forecasts as to whether the central bank will hike rates after recent volatility in global markets

· A number of other events take place this week including rate decisions from the BoJ and SNB as well as releases of the German ZEW survey and the latest UK inflation & employment data

Turkey has cracked down on press "freedom" and whipped the public into a "terror" paranoia frenzy ahead of new elections set for November. The bottom line: while the Western media is preoccupied with China's censorship and stock market selloff witch hunt, a NATO member is busy nullifying a democratic election outcome and instigating a civil war, all in the pursuit of political power and all with Washington's explicit blessing.