19th Oct - Small dip, plenty of headlines

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EUROPE

Editorial: Europe’s Backward Step on Banking Union – BB

Brussels is wrong to water down its plans for joint deposit insurance.

 

  SPAIN
Catalan Leader Vows To Declare Independence If Spain Triggers "Nuclear Option" – ZH

Catalan leaders hold the line, Madrid ready to impose direct rule – TF

Spain to Move Ahead With Suspension of Catalonia’s Autonomy – BB

Spain To Activate Article 155 Process, Suspending Catalonia Autonomy – ZH

Catalonia Weighs on Spanish Debt, Southern European Stocks – WSJ

Spain Unleashes Historic Power to End Catalan Independence Push – BB

  EUROPEAN CENTRAL BANK

ECB preview: Dovish tapering – Nordea

The low inflation numbers will keep the ECB’s tapering decision dovish, and emphasis will be on the forward guidance. After all the leaks, the decision should not lead to major market moves, but short-term volatility will be unavoidable.

ECB preview: Lower for longer 2.0 – ING

Next week's ECB meeting should finally provide first details of the ECB’s dovish tapering

UNITED STATES

Congress Rolls Toward Shutdown Fight Over Immigration, Obamacare – BB

Key Republican Says There’s a Chance for a Bipartisan Tax Bill – BB

Trump Falls on Ceremony. He Should Stop Trying. – BB

Other nations separate the kingly and managerial functions. The U.S. doesn't, so it has to put up with the consequences.

Give Yellen Another Term – BB

The Fed may not get everything right, but now isn't the time for upheaval at the top.

Taylor and His Rule Are Not What the Fed Needs – BB

The professor's formula led him to call for higher rates when the economy was struggling.

OTHER

Beneath the Market Rally: A Lot Less Trading – WSJ

Low volatility, rise of passive funds and lack of market-moving news have kept many investors on sidelines

An Alternate Theory on Dulled FANGs Is Weakening Earnings Forecasts – BB
Analysts have lowered estimates for the biggest five companies * Downward revisions call into question lofty valuations

The Euro's Complicated Top – Marc Chandler

EURUSD is in a possible topping pattern – interest rate differentials and speculative positioning support lower EURUSD, while European politics have already given all the positive news they can.

BofA’s 10 Crash Triggers: " Between Thanksgiving And Valentine's Day" – ZH

Analysts Really, Really Want to Be Liked – BB

Stock researchers at brokers scramble to win popularity contests.

Scoring the Great Debate Over Capital Rules – BB

Making banks safer can restrict lending. That does not mean policy makers should give up.

The Opioid Addict on the Trading Floor – BB

Wall Street professionals get hooked, and some executives see an opportunity.

‘Psychopath’ Hedge Fund Managers Make Less Money – BB

Being manipulative and mean isn’t the secret to success, a new study by two psychology professors says.

'It's able to create knowledge itself': Google unveils AI that learns on its own – Guardian

In a major breakthrough for artificial intelligence, AlphaGo Zero took just three days to master the ancient Chinese board game of Go ... with no human help

  “SELL-OFF”
Traders Puzzled By Last Minute Hong Kong Crash – ZH

“A Synchronized Global Risk-Off" On The Anniversary Of Black Monday – ZH

Greed, for Lack of a Better Word, Is Taking a Big Hit Today – BB

Inverse-volatility exchange-traded note falls from record high * XIV ETF had more than doubled since the beginning of the year

Stock Traders Wake Up to a Shock of Market Moves – BB

S&P 500, Nasdaq take lumps on Apple, global risk-off mood * ‘I couldn’t believe my eyes this morning when I saw futures’

  JAPAN
Japan: Abe set for another term despite declining public support – Danske Bank

PM Abe’s LDP close to maintaining single party majority in Lower House * Looks like vote of confidence in Abenomics and thus a reappointment of BoJ governor Kuroda and a continuation of QQE and YCC * USD/JPY could bounce higher if Abe wins, but relief rally should be shallow and short-lived

Abe's Third Arrow – Marc Chandler

Japan's Abe's gamble to call snap elections shortly after the stunning defeat in the Tokyo elections appears likely to pay-off.

  1987 CRASH

What Reagan Told The NYSE After Black Monday: Thank Heaven For Humans – ZH

Thirty years ago this week, Wall Street slid into the abyss – Reuters

The Crash of 1987 -- Happy 30th Anniversary – Rick Bookstaber

Could the 1987 stock market crash happen again? – Reuters

Crash Anniversary – newspaper headlines – Barry Ritholz

Shiller: A Stock Market Panic Like 1987 Could Happen Again – NYT

Art Cashin Remembers Black Monday, 1987 – Barry Ritholz

If You Bought 30 Years Ago Today... – ZH

What Dennis Gartman Remembers Most From "Black Monday" – ZH

  CHINA

Yield Curve Inverts, Yuan Slides As China GDP Growth Slows – ZH

China's central bank warns of 'Minsky moment' as economy powers ahead – Reuters

‘Minsky Moment’ Talk Reaches China Two Decades Since First Used – BB

China’s ‘Minsky Moment’ Warning Rattles Some Investors – WSJ

China’s Giant Ball of Money May Be Headed Back to Stocks – BB

Chinese growth forecast remains intact – Pictet

Growth still above target as CPC convenes – ABN AMRO

REGULARS

FirstFT Daily Briefing – FT

May’s open letter, Amex CEO to step down, Isis’s other grisly war

WSJ City – WSJ

LSE’s Rolet to Leave By End Of 2018, Europe Pays Little Heed to U.K.’s Brexit Warnings

“Best of the web” daily charts – Lukas Daalder

Danske Daily – Danske Bank

Eye-Opener – Nordea

Kiwi kicked by politics, Beige Book rather beige, while Catalonia awaits * Swedish unemployment rate likely to decline further * Beige Book indicated modest-to-moderate US GDP growth * Will Spain choose to take control of Catalonia today?

Morning Markets – TF

The Monday trading session will likely get off to a brisk start with the euro posting gains against both the yen and the Swiss franc Theresa May heading for an unsatisfactory summit in Brussels and Xi Jinping cheered by news of a 6.8% advance in Chinese GDP.

Daily Market Comment – Marc Chandler

Kiwi Drop and Sterling Losses Punctuate Subdued FX Market

Brussels Playbook – Politico

Summit day — EU commissioner joins #MeToo movement — China’s grand plan

Five Things You Need to Know to Start Your Day – BB

Catalonia not backing down * US fiscal plan * Disappointing UK data * Markets drop

US Open – ZH

Global Markets Shaken By Sudden Equity Sell-Off: Hong Kong Crashes, VIX Surges

Frontrunning – ZH

FINNISH

Aamukatsaus – Nordea

Katalonian itsenäistymisjulistuksen takaraja on tänään | Kiinan BKT kasvoi 3. neljänneksellä 6,8 % | Korot olivat nousussa