Fitch

Futures Drop As ECB Confusion Persists, Dollar Rises To Seven Month High; Yuan Plunges

Asian stocks and S&P futures fall modestly and European shares are little changed as traders digested the surprising reticence from yesterday's ECB meeting. The dollar jumped to 7 month highs, pressuring EM currencies and pushing the euro to its weakest level since March and below the Brexit lows, after Mario Draghi shut down talk of tapering, while the Yuan dropped to the lowest since 2010.

Saudi Arabia Launches Sale Of 5, 10 And 30 Year Bonds, Seeks To Raise Up To $15 Billion

The most anticipated bond sale of the year has officially started, with Saudi Arabia seeking to sell between $10 and $15 billion in three tranches, a 5Y, 10Y and 30Y offering. Pricing is expected to take place tomorrow, Oct. 19; with the books set to close at 5pm in NYT on Tuesday October 15.  Tentative pricing will be as follows:

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.

Kuroda Ruined His Chance Of A Second Term By Doing "Stupid Things", Abe Advisor Says

BOJ governor Kuroda has ruined his chances of getting a second full term, according to Nobuyuki Nakahara, who has advised the prime minister on the economy and was an intellectual father of Japan's QE. "They are trying to clean up the mess of negative rates. It’s impossible to do a stupid thing like keeping the yield curve under government control."

Crude Declines As OPEC Deal Doubts Emerge; Futures Roll Over

After oil soared over 5% yesterday, its biggest jump since April, overnight skepticism and doubts have emerged about the viability and compliance with the deal, coupled with a boost in production by non-OPEC producers, and as a result WTI has dipped back under $47, down 0.5%, suggesting that the OPEC surge may be short-lived, and modestly pressuring US equity futures.

"It’s A Lot More Negative Than People Think" - China Beige Book Issues Stark Warning About The Economy

“I’d find it earth-shatteringly surprising if we don’t have a significant problem between now and China’s leadership change” in the fall of 2017 when the 19th Party Congress convenes, said Leland Miller, China Beige Book’s president. “This is not a stable economy. It’s one that twists and turns and happens to end up at the same spot. There are real problems below the surface.”

Deutsche Bank Contagion: Nord LB, Lufthansa, Korean Air Pull Bond Deals

As noted earlier, the post-debate market relief rally has given way to concerns over banking woes, with stocks turning lower in Europe as focus returns to Deutsche Bank. More troubling is the overnight news that two German issuers - Nord LB and Lufthansa  - followed quickly by Korean Air Lines, have pulled their bond deal as "uncertainty on the credit front appears to be weighing" on the broader market.

Turkey Lashes Out At Moody's After Downgrade To "Junk" Sends Turkish Assets Plunging

Turkish assets plummeted the most since an attempted coup in July and credit risk climbed after Moody’s Investors Service cut the country’s sovereign rating to junk. The immediate response by the Turkish administration was to lash out at Moody's calling the decision "politically-motivated", after a similar downgrade by S&P led Erdogan to acuse the agency of siding with coup plotters.

Albert Edwards Sees Shades Of 2007 In The Biggest Risk Facing The US Consumer

"The only thing keeping the US out of recession is the US consumer (see chart below). It is difficult to say consumption is driving the economy forward ? rather it is like a woodwormridden crutch creaking under the strain of holding up a deadweight economy. This  recovery ? the fourth longest in history ? is surely nearing its end."

Subprime Auto Delinquencies Jump 17% In July, Net Losses Soar 28%

According to the latest Fitch auto subprime report, things in the auto subprime space are progressively deteriorating, with subprime 60+ day delinquencies rising 13% month-over-month (MOM) in July to 4.59%, and were 17% higher versus a year earlier.  Subprime ABS annualized net losses (ANL) hit 7.39% in July rising 17% MOM, and were 28% higher year-over-year (YOY).

Is Portugal The Next "Shoe To Drop" In Europe?

Portugal 10-year yields imply that investors are starting to get a little worried about an October ratings decision that could make Portugal the EU's next big bailout candidate.