Apple

• 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)

Following Friday's disastrous payrolls report, which confirmed all the pre-recessionary economic data and signaled that instead of approaching "lift-off" and decoupling from the rest of the world, the US economy is following the emerging markets into a slowdown in what may be the first global, synchronized recession since 2008, the market saw its biggest intraday surge since 2011 and the sharpest short covering squeeze in history, we are happy to announce that the "market" is now solidly back in "bad news is good news" mode.

The 30 stocks of the Dow Jones Industrial Average currently trade for an average of 14.8x next year’s consensus earnings.  But... Everyone knows Wall Street analysts are always too optimistic, so what if we just look at the lowest estimate for each company? The driver of market pessimism sits at the top of the income statement – the Street’s worst case revenue estimates call for a decline of 1.7% in 2016.  Now, Q3 earnings season is unlikely to provide much comfort here; why should corporate managements go out on a guidance limb when their stocks are down on the year?  All this points to further volatility in October, and with a bias to the downside.

• U.S., Allies Demand Russia Stop Attacks on Syria Opposition (BBG)
• Russian Airstrikes Defend Strategic Assad Regime Stronghold on Syria’s Coast (WSJ)
• Emerging Stocks Head for Weekly Advance Before U.S. Jobs Data (BBG)
• Wage Strife Clouds Car-Sales Boom (WSJ)
• Oregon town reels from classroom carnage (Reuters)
• Oregon shooter came from California, described as shy and skittish (Reuters)

The unforeseen consequences of the advent of electric cars will reverberate much farther than the demise of dealerships and significant shifts in market share in the auto industry.

News That Matters

"Under U.S. law - the law that, not coincidentally, governs most of the world’s largest online platforms - intermediaries such as Twitter and Facebook generally can’t be held responsible for what people do on them. But the United Nations proposes both that social networks proactively police every profile and post, and that government agencies only “license” those who agree to do so." Interestingly, it appears Apple and Facebook want to get ahead of the curve and begin censoring news the U.S. government might find embarrassing right away.

Being a careful analysis of what happens when a snippy cheerleader grows up to interview a pleasantly-bearded economist on what folks should be doing with their surplus cash.

If you borrow cash then it’s not income. No one in his right mind borrows to buy consumer goods... But what if someone else borrows, is that your income?

The global Bubble is bursting – hence financial conditions are tightening. Bubbles never provide a convenient time to tighten monetary policy. Best practices would require central bankers to tighten early before Bubble Dynamics take firm hold. Central bankers instead nurture and accommodate Bubble excess. It ensures a policy dead end -  the faltering global Bubble has progressed beyond the point where Fed rate policy has much impact.

"This is a risky business. Can they get it wrong? Absolutely they can get it wrong."

• Stocks slip for fifth straight day, euro holds steady (Reuters)
• VW recall letters in April warned of an emissions glitch (Reuters)
• VW Cheating Scandal Threatens to Ensnare BMW as Probe Widens (BBG)
• Pope Francis set to address fractious U.S. Congress (Reuters)
• Norway Cuts Rates to Record Low to Save Economy From Oil Slump (BBG)
• Taiwan Cuts Rate for First Time Since 2009 as Exports Falter (BBG)
• Janet Yellen to speak at UMass on Thursday (Daily Collegian)
• A Big Bet That China’s Currency Will Devalue Further (NYT)
• Debt Relief for Students Snarls Market for Their Loans (WSJ)

"The politicians cannot understand that they are destroying your future. All they can see is their need to retain power... We are reaching the end of this noose around our neck that was placed there by Marx. What you need to do is take back government. You cannot create a solution with the same line of thinking that created the current mess. The future belongs to the youth. Understand the devil you are dancing with. It is time to become politically active and challenge the establishment for that is the only way to save the future."

• Global Stocks Steady Despite China Slowdown (WSJ)
• European Recovery Saves Markets From China Gloom as Stocks Rally (BBG)
• Pope starts U.S. trip with tone of conciliation (Reuters)
• FBI Said to Recover Personal E-Mails From Hillary Clinton Server (BBG)
• Volkswagen chief faces grilling by board over diesel scandal (Reuters)
• 'European Detroit' Fear Grips VW Company Town as Scandal Widens (BBG)
• Berlin finds itself caught up in Volkswagen scandal (FT)