Nomura

• Ebola Patient Fights for Life as Contacts are Monitored (BBG)
• GPIF Unlikely To Announce New Portfolio Until November: Delay Could Rattle Investors Hoping Fund Will Invest More in Stocks (WSJ)
• High risk Ebola could reach France and UK by end-October, scientists calculate (Reuters)
• Neves to Face Rousseff in Brazil in Surprise Comeback (BBG)
• Hong Kong democracy protests fade, face test of stamina (Reuters); A Hong Kong Protest Run on Fumes and Instant Noodles (WSJ)
• Putin Clans Said Gridlocked Over Arrest as Sanctions Bite (BBG)
• Surging dollar may be triple whammy for U.S. earnings (Reuters)
• Lloyds Said to Cut Thousands of Jobs as CEO Cuts Costs (BBG)

While the biggest micro news of the weekend is certainly the report that Hewlett-Packard has finally thrown in the towel on organic growth (all those thousands laid off over the past ten years can finally breathe easily - they were not fired in vain), and has proceeded to do what so many said was its only real option: splitting into two separate companies, a personal-computer and printer business, and corporate hardware and services operations (which will certainly lead to even more stock buybacks only not at one but two companies) which in turn has sent its stock and futures higher, perhaps the most notable development in the macro world is Japan's realization finally that the weaker Yen is crushing domestic businesses, which has resulted in the USDJPY sliding to lows last seen at Friday's jobs report print, and also generally leading to across the board wekness for the dollar, whose relentless surge in the past 3 months is strongly reminiscent of the euphoria following the Plaza Accord, only in the other direction (and making some wonder if the Plaza Hotel caterer are about to see a rerun of September 22, 1985 in the coming weeks).

• How you know it is all a lie: Pelosi Presses Obama to Talk Up Stronger U.S. Economy (BBG)
• Secret Goldman Sachs Tapes Put Pressure on New York Fed (NYT), Uh, no they don't
• Clashes Break Out at Hong Kong Protest Site (WSJ)
• N.Y. Fed Lawyer Says AIG Got Billions Without Paperwork (BBG)
• Ebola’s Disease Detectives Race to Track Others Exposed (BBG)
• UPS, FedEx Want Retailers to Get Real on Holiday Shipping (WSJ)
• No more mailman at the door under U.S. Postal Service plan (Reuters)

Bloomberg reports that stock orders amounting to a whopping $617 billion (yes Bilion with a B) or more than the size of Sweden’s economy, were canceled in Japan earlier today, for reasons unknown although the early culprit is that this was one of the biggest trading errors of all time. Of course, since this trade was noted, and DKed, one can assume that a major whale was on the losing end of the trade: recall that this is precisely what happened to Goldman time and again, when some errant algo caused the firm to lose millions on several occasions in 2012 and 2013. There is one tiny difference: this time it was not Goldman, and the total amount was not a few paltry million but over half a trillion dollars!

• Scots spurn independence in historic vote but demand new powers (Reuters)
• Salmond’s Journey as Scotland’s Leader Ends Short of Destination (BBG)
• European Stocks Rally to 6 1/2-Year High on Scottish Vote (BBG)
• Jack Ma Planning Personal Roadshow With Clinton to Immelt (BBG)
• Some consumers say Apple is losing its 'cool' factor (Reuters)
• Gold IPhones at $3,600 as China Delay Fuels Black Market (BBG)
• This Man's Job: Make Bill Gates Richer (WSJ)
• Mom-and-Dad Banks Step Up Aid to First-Time Home Buyers (BBG)
• France says it launches first air strikes in Iraq (Reuters)

China warns "the outside world doesn't get it, we do," in a statement related to the "stealth QE" they unleashed yesterday, noting investorsd "do not realize that today's Chinese economy is moving towards "new normal" in the process," and "need to accept the volatility of economic data," during this transition. Crucially, PBOC adviser Chen Yulu clarifies what Western central banks simply cannot grasp: "Hoping for stimulus policies in the face of increased economic pressure is short-sighted and does no good to long-term economic development," warning investors should not expect "strong stimulus." Wall Street is less than exuberant about the liquidity injection, as the impact on real economy may be limited due to lenders' risk aversion.

• Showtime for Apple: Big phones, smart watches and high expectations (Reuters)
• Bank of England Gov. Mark Carney Signals Spring Rate Rise (WSJ)
• Quebec Shows Scots Question Returns Even If Answer Is No (BBG)
• Hush money with a 9 year vesting period: Ex-SAC Fund Manager Martoma Sentenced to Nine Years in Prison (BBG)
• Dreams on hold, Brazil's 'new middle class' turns on Rousseff (Reuters)
• Fed to Hit Biggest U.S. Banks With Tougher Capital Surcharge (WSJ)
• Egypt court sentences Brotherhood leader, cleric to 20 years in jail (Reuters)

As I have said for at least a year now, until and unless we see a weekly close (ideally consecutive weekly closes) in the VIX index below 10, then I judge risk-on has more to go. We got close in June/early July, but we did not get there. I would expect that, if I am right about the next quarter or two, then VIX should hit this target during this timeframe. At that point, positioning for the big turn and reversal of large chunks of the nominal wealth/asset price gains since early 2009 would take over as my key investment strategy.

• That will teach the UAE who's boss: U.S. Won’t Consult Syria on Militant Strikes: White House (BBG)
• Putin Set to Meet Poroshenko as Ukraine Tensions Escalate (BBG)... but the de-escalation algo?
• Tim Hortons’ Canadian Fans Squeamish of American Hookup (BBG)
• Israeli air strikes target more Gaza high-rises (Reuters)
• How Steve Ballmer Became a Rookie Basketball Mogul (WSJ)
• Buffett to Help Finance Burger King Tax-Saving Deal (BBG)
• U.S. Factories Keep Losing Ground to Global Rivals (WSJ)
• Boehner, Camp Profit From Corporate Bid to Avoid U.S. Tax (BBG)
• Experimental U.S. hypersonic weapon destroyed seconds after launch (Reuters)
• The Neo-Neocons (WSJ)

• Fed Decision-Day Guide: QE Tapering to Inflation Debate (BBG)
• Obama says strains over Ukraine not leading to new Cold War with Russia (Reuters)
• Siemens to BP Prepare for Downward Russia Business Spiral (BBG)
• Paying Ransoms, Europe Bankrolls Qaeda Terror (NYT)
• Argentina Banks Preparing Bid to Help Argentina Avoid Default (WSJ)
• Obama Weighs Fewer Deportations of Illegal Immigrants Living in U.S. (WSJ)
• India Warships Off Japan Show Rising Lure as China Counterweight (BBG)
• Hong Kong Popping Housing Bubbles London Can’t Handle (BBG)
• Carnage at U.N. school as Israel pounds Gaza refugee camp (Reuters)

While Goldman's "derivative-based financial advice" to Greece before the EU enabling them to join the party seemingly went unpunished, Nomura has not been so lucky. Having created complex derivatives transactions to 'help' Sicily's regional government, which have now produced major losses for the duped managers, The FT reports Nomura has had property and cash worth $150 million seized related to allegations that the investment bank defrauded the regional government of Sicily with the sale of derivatives in 2002.

• EU finalises Russian sanctions as BP warns of impact on business (FT)
• Geopolitical Risk Rises for Global Investors (BBG)
• Jaded Argentines brace for looming debt default (Reuters)
• In Argentina, Mix of Money and Politics Stirs Intrigue Around Kirchner (WSJ)
• Mom ‘Trusting God’ for Ebola-Infected U.S. Doctor’s Life (BBG)
• Thanks NSA: Tech Companies Reel as NSA's Spying Tarnishes Reputations (BBG)
• Goldman unit eyes foray into China amid metals financing scandal (Reuters)
• Cash out time: London’s Gherkin Tower Offered for Sale by Its Lenders (BBG)
• Apenomics strikes again: McDonald’s Japan axes profit guidance amid food safety scandal (FT)
• Do you see what happens Larry when you are the only USDJPY bid? Nomura Profit Falls More Than Estimated on Broking Slump (BBG)

• The market in one sentence: Buying on Dips Pays Most in Five Years as Stocks Rebound (BBG)
• Europe subdued, Russia shares tumble on new sanctions (Reuters)
• Chinese Data Don’t Add Up (WSJ)
• Argentine Default Drama Nears Critical Stage (WSJ)
• Global Pressure Mounts on Israel to End Gaza Fighting (BBG)
• Ukraine troops advance as experts renew attempt to reach crash site (Reuters)
• Prospects Brighten for Republicans to Reclaim a Senate Majority (WSJ)
• Europe’s banking union faces legal challenge in Germany (FT)
• Investors Bet on China's Large Property Developers (WSJ)
• Hague court orders Russia to pay over $50 billion in Yukos case (Reuters)

Despite an impressive ramp by USDJPY in the last two hours of trading (thank you Nomura and BOJ) whose purpose was to get the DE Shaw and all other correlation algos to push spoos higher, today's trifecta of the ugly guidance by Visa (which dominated the DJIA), very ugly earnings by Amazon (which dominated the Nasdaq) and the CME ES margin hike just proved too much, and while Friday may have been the new Tuesday following 11 "green" DJIA Fridays in a row, today's 123 point drop stopped the trend before lucky 12 out of 12.

• Here come the gates which we predicted in 2010: SEC Is Set to Approve Money-Fund Rules (WSJ)
• Dick's cuts 400 jobs as golf now less popular (MW)
• Kerry arrives in Israel, pushes for peace (Reuters)
• Pay Penalty Haunts Recession Grads as U.S. Economy Mends (BBG)
• Appeals Courts Issue Conflicting Rulings on Health-Law Subsidies (WSJ)
• Rebel Stronghold Donetsk Holds Breath as Shellfire Mounts (BBG)
• Business executive wins Georgia Republican runoff in U.S. Senate race (Reuters)
• Five held in China food scandal probe, including head of Shanghai Husi Food (Reuters)
• Jobs Hold Sway Over Yellen-Carney as Central Banks Splinter (BBG)