Morning Reads
- Can This Man Solve Europe’s Energy Conundrum?
- U.K. Government Plans an Update to Its Tax and Spending Agenda
- Bank of England Further Expands Bond-Market Rescue
- China’s Shot at Overtaking the US Economy Is at Stake in Xi’s Next Term
- World’s Emergency-Lending Capacity Is Getting Stretched
- Fed’s Vice Chair Nods to Global Risks but Stays Focused on Inflation
- Credit Suisse May Face $8 Billion Capital Shortfall in 2024
- Chipmaker Rout Engulfs TSMC, Samsung With $240 Billion Wiped Out
- GM Looks to Parlay Battery Work Into New Energy Business
- Cathie Wood Buys Adobe as Stock Tumbles After $20 Billion Deal
- The Great Post-Covid Online Shopping Bet Was a Costly Delusion
- A Prime Day Warning:
- Delta to Invest in Flying-Taxi Maker to Offer Rides to Airports
- Ben Bernanke Led the Fed During the Worst Financial Crisis in Generations
- Influential Model About Bank Runs
Options
Futures
PREMIUM
PREPPER
- S&P 500 futures are 0.3% below fair value; the Nasdaq 100 futures are 0.3% below fair value; and the DJIA futures are 0.1% below fair value
- Key factors driving the futures market:
- The need for the Bank of England to intervene again in UK gilt market raises concerns about financial stability
- Slowdown concerns piqued by reports that China is introducing new restrictions again in some Chinese cities because of rising Covid cases
- Worries about rising interest rates (10-yr note yield hit 4.00% overnight)
- The Bank of England said it will also buy index-linked gilts from Oct. 11-Oct. 14 to mitigate dysfunction in the market and "fire-sale" dynamics
- President Biden and G7 leaders to have a virtual meeting today to discuss Ukraine support and accountability for Putin, according to Reuters
- Japanese Prime Minister Kishida expresses support for Bank of Japan's easy monetary policy
- The September NFIB Small Business Optimism Index checked in at 92.1 versus 91.8 in August
- American Airlines (AAL) raises Q3 revenue growth guidance to up ~13% compared to 2019 levels versus prior guidance of up 10-12%
- Brokerage research calls of note:
- Upgrades: ABC, AMGN, ELF, LULU, SGEN
- Downgrades: QRVO, SWKS, SPWR, VTRU, ZM
- WTI crude futures -2.0% to $89.22/bbl; nat gas futures +0.9% to $6.49/mmbtu; copper futures -0.3% to $3.42/lb
- 2-yr note yield unchanged at 4.30% and 10-yr note yield +4 bps to 3.92%
- There is no other economic data of note today