Wells Fargo

Liz Warren Demands Obama Fire SEC Chief Over Political Donation Disclosures

Fresh from her Wells Fargo 'victory', an emboldened Senator Elizabath Warren is taking aim at SEC Chief Mary Jo White. As WSJ reports, Warren's ongoing efforts to block administration nominees seen as too close to big business have led her to demand President Obama fire White for her decision not to craft a rule requiring public companies to disclose their political spending activities.

Global Stocks, Futures Jump On Strong China Inflation; Oil Rises Above $51

One day after a slump in Chinese trade sparked a global market selloff on concerns the world's second biggest economy had once again hit a downward inflection point, overnight China surprised once again, this time to the upside when the latest inflationary data printed hotter than expected, sending European and Asian stocks higher and pushing the yen lower after China’s producer price index rose for the first time since March 2012.

Frontrunning: October 13

  • Weak China data, stronger dollar send global stocks skidding (Reuters)
  • Oil price gains limited by higher OPEC output, U.S. crude stocks (Reuters)
  • Wells Fargo CEO Stumpf Quits in Fallout From Fake Accounts (BBG)
  • SEC Said to Demand That Cooperman Agree to Hedge Fund Suspension (BBG)
  • FBI, DOJ roiled by Comey, Lynch decision to let Clinton slide by on emails, says insider (Fox)

Global Stocks Tumble To Three Month Lows As China Fears Return

Remember when two weeks ago the China Beige Book warned that "It’s A Lot More Negative Than People Think" in the world's second biggest economy? Well after months of complacency about the Chinese economy and financial risks emanating from its $35 trillion financial sector, overnight the world got a rude awakening when China export figures tumbled, signalling a deeper slowdown than many anticipated just as the Fed prepares to raise interest rates.

Wells Fargo CEO John Stumpf To Retire Effective Immediately

The most anticlimiatic and predictable outcome to the biggest banking scandal to rock Wall Street in recent years, Wells Fargo;s fraudulent creation of 2 million (or more) fake customer accounts, has just concluded in the only possible way: with CEO and Chairman John Stumpf retiring.

Deutsche Bank Sells Another $1.5 Billion In Debt At Junk Bond Terms

Taking advantage of an open debt issuance window, overnight Deutsche Bank issued another $1.5 billion in bonds, tapping a $3 billion bond issue that prices last Friday. The reason for the heightened investor interest is that DB agreed to pay a "near junk bond" yield of 4.191%, confirming that while DB sitll has market access it comes at a substantial cost.

Frontrunning: October 12

  • UK's May offers lawmakers scrutiny of Brexit process, no Article 50 vote (Reuters)
  • For or Against Trump, GOP Fears Intensifying Civil War If He Loses (BBG)
  • Podesta: 'Reasonable Belief' WikiLeaks Tipped Off Trump Campaign (BBG)
  • Obama says Trump's comments on women disqualifying (Reuters)
  • Samsung slashes third quarter profit estimate by a third after pulling plug on Note 7 (Reuters)

Frontrunning: October 11

  • Samsung scraps Note 7 (Reuters)
  • Note 7 fiasco could burn a $17 billion hole in Samsung accounts (Reuters)
  • Trump's struggles may depress Democratic voter turnout (Reuters)
  • Major Investor Sues Theranos  (WSJ)
  • S. Africa’s Gordhan to Be Charged; Rand Plunges Most Since June (BBG)
  • Oil price falls back from one-year highs, hit by OPEC deal concerns (Reuters)

Did Stumpf Lie To Congress? Wells Manager Admits Fake Account Creation As Far Back As 2006

Just when you thought the public floggings were over and another US bank proved that crime pays, it appears Wells Fargo - and its CEO - may not be as 'Teflon' as they hoped. Having told Congress under oath that his bank committed criminal activities since 2011, VICE News reports that in fact John Stumpf's banking head Carrie Tolsetedt was actually aware of the creation of fake accounts since 2006.

Key Events In The Coming Week

In the US focus will be on the market's reaction to the second presidential debate, FOMC Minutes but also retail sales, import and producer prices and Michigan sentiment. We also hear from various Fed speakers throughout the week, and Chair Yellen gives a keynote speech on Friday.