Monday Morning Reads
- Global Growth in 2024
- Likely to Get Much Worse
- Recessions As We Know Them
- Why Are So Many Workers on Strike?
- Advertisers Wonder Who’s Listening
- Goldman’s Unwelcome Streak
- Earnings Season Opportunity?
- Opioid players down premarket on start of Ohio trial
- Discover teams up with Amazon for holiday offers
- Halliburton EPS in-line, misses on revenue
- Adobe cut on Experience Cloud concerns
- Casper preps for IPO
- SAP, Microsoft disclose three-year cloud deal
- Beyond Meat -2% after more Wall Street caution
- Danaher to sell certain businesses to Sartorius for $750M
- Frackers float mortgage bond-like security as capital needs intensify
- Four players in opioid epidemic face trial in Ohio Monday
- FAA told "multiple times" about expanded role of flight-control software - Boeing
- Smith & Nephew CEO bids adieu
Open Interest Changes for Today:
In an about-face, Prime Minister Boris Johnson has asked European lawmakers for an extension of the Brexit deadline until the end of January 2020. He was forced to capitulate after Parliament voted 322 to 306 to withhold support for the deal until the passage of legislation to implement it.
Democratic frontrunner Senator Elizabeth Warren will "soon" release her plan to fund U.S. universal health care, known as "Medicare for All." Voters and rivals are keen to see the details, since it will take trillions to fund a government-backed single-payer system.
Boeing (NYSE:BA) released a statement clarifying comments made in 2016 from a technical pilot about its flight control software, saying the dialogue pertained to flight simulator software. It added that his comments did not mean that the company had prior knowledge of flaws that led to the two crashes.
Go deeper: Boeing Faces $33 Billion Sword Of Damocles.
At meetings in Washington, DC, finance ministers and central bankers were warm to the idea of fiscal stimulus, but there was little agreement on precisely what to do. U.S. Treasury Secretary Mnuchin believes "all tools" should be used as the benefits of monetary easing shrink.
Go deeper: The Jackson Hole Jolly For Central Bankers, And The Ramifications For Gold.
In rare public comments by a senior government official, Vice Premier Liu He said that China will work with the U.S. to resolve the core issues of the trade war, adding that stopping it would benefit both sides and the world. A deal could limit the damage to global growth.
Go deeper: China: What's Next After The Trade Talks.
Facing a weak global economy and softer domestic demand after a recent sales tax hike, the BOJ is considering even more stimulus aimed at hitting its 2% inflation target. The central bank projects 1% inflation this fiscal year and lower than 2% the following two years.
Lawyers for Teva Pharmaceutical Industries (NYSE:TEVA), AmerisourceBergen (NYSE:ABC), Cardinal Health (NYSE:CAH) and Walgreens Boots Alliance (NASDAQ:WBA) will be in a Cleveland district court on Monday to face accusations from two counties in the state that their actions were the main drivers of the opioid epidemic there. Last-minute settlement talks stalled, but a deal could still be reached while the trial progresses.
Disney's (NYSE:DIS) Maleficent: Mistress of Evil was number one in the U.S. in its debut weekend, but the $36M gross was only about half the original's. Joaquin Phoenix's Joker was #2, maintaining its momentum from its October 4 release.
Cash-burning fracking companies, consumers of more than $100B since 2014, are turning to a new security akin to a mortgage-backed bond to raise much-needed capital. The instrument, issued from a company-created special entity with ownership rights to wells, is paid off with production revenues. Yields are ~6% for the highest-quality wells and higher for riskier assets.
Go deeper: 9 Energy Companies That Won't Go Bankrupt.
U.S. insurance companies are facing potential payouts that could reach into the billions related to child sex abuse cases after 22 states and Washington, DC enacted laws extending or eliminating the statute of limitations for claims.
SAP and Microsoft (NASDAQ:MSFT) have come to a three-year deal to help large enterprise customers move processes to the cloud. The "Embrace" partnership is an extension of an existing close (but nonexclusive) relationship between SAP and Microsoft's Azure operations. The deal has already helped SAP double new cloud bookings for Q3.
UBS is cutting up to 30 jobs in Asian banking centers - mainly Hong Kong and Singapore, along with Sydney and Tokyo - following the combination of its global markets and banking businesses, Reuters says. Those cuts will hit both front and back office positions. One aspect of its business streamlining is the merger of the bank's main equities unit with smaller foreign exchange, rates and credit trading operations.
What else is happening...
In Asia, Japan +0.25%. Hong Kong +0.02%. China +0.05%. India closed.
In Europe, at midday, London +0.19%. Paris +0.06%. Frankfurt +0.56%.
Futures at 5:40, Dow +0.08%. S&P +0.17%. Nasdaq +0.23%. Crude -0.82% to $53.43. Gold +0.01% to $1,494.30. Bitcoin +3.2% to $8,241.
Ten-year Treasury Yield +2.8 bps to 1.776%.
Today's Economic Calendar
11:40 Fed’s Bowman Speech