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EUROPE
Euro area: Catalonia will strike again – Nordea
Another deadline looms
in the Catalan issue, and the situation is fast moving towards an escalation.
No easy solutions are ahead, the chance of further violence cannot be excluded
and market worries are set to increase in the coming days.
EUROPEAN
CENTRAL BANK
ECB Preview: Ready to scale back QE – Danske Bank
ECB Preview: Ready to scale back QE – Danske Bank
We expect ECB to extend
QE by nine months, 30bn /month, and then end QE in Q4/18
ECB preview: slower, longer, stronger - Pictet
Recent ECB communication
has been remarkably consistent in signalling a ‘slower for longer’ QE extension
into 2018.
Mario Draghi: Structural Reforms in the Euro
Area – ECB
OTHER
The BoJ’s ETF purchases mark a major shift for
Japanese equity market
– Pictet
Although it has made no
major monetary policy announcement since September 2016, the Bank of Japan
(BoJ) has actually been tapering its government bond purchases ever since.
Central bankers have one job and they don’t know
how to do it – FT
Robots are coming for these Wall Street jobs – BB
Banks and investment
funds have been tinkering for years, prompting anxiety for employees. Now,
firms are rolling out machine-learning software to suggest bets, set prices and
craft hedges. The tools will relieve staff of routine tasks and offer an edge
to those who stay. But one day, machines may not need much help.
Trend-Following: A Deep Dive Into A Unique Risk
Premium – Alpha
Architect
Plugging trend-following
strategies into your mean-variance frontier optimizer ain’t gonna work. One
needs to think outside the box and consider the tails. How does my portfolio
work in extreme scenarios? Are my assets short volatility or long volatility?
Most mean-variance-optimized portfolios pool a bunch of “uncorrelated” stuff in
a bucket without realizing they are heavily short volatility. To the extent the
world muddles along — A-okay — to the extent things get nutty…You’re dead.
Trend-following strategies present an opportunity to be long volatility and
provide unique portfolio diversification.
The 7 Key Takeaways From Xi Jinping's Vision For
"A New Era" In China – ZH
REGULARS
FirstFT Daily Briefing – FT
China party congress, Rio Tinto fraud charges and Black Monday risk
WSJ City – WSJ
Trump Close to Naming Fed Chief, Aramco IPO ‘On Track’, SEC Sues Rio
Tinto, Execs
“Best of the web” daily
charts – Lukas Daalder
Danske Daily – Danske Bank
Eye-Opener – Nordea
Chinese Party Congress starts * UK yields decline on dovish BoE comments
* EUR/USD retracts further due to strong USD
Morning Markets – TF
Market focus will be fixed on China today and the 19th National Communist
Party Congress which will likely dominate sentiment in the week ahead.
Elsewhere European equities are expected to open slightly firmer while bonds
may gain from speculation of a slower pace of QE exit by the ECB.
Daily Market Comment – Marc Chandler
Central Bank Chiefs and Currencies
Brussels Playbook – Politico
Council countdown and clampdown — Vigil for Daphne — Commission terror
and data plans
Five Things You Need to
Know to Start Your Day – BB
US
Open – ZH
Dow Futures Over 23,000: Dollar, Global Stocks Jump As China Congress
Begins
FINNISH
Aamukatsaus – Nordea
Kauaskantoinen puoluekokous alkaa Kiinassa * USA:n
lyhyiden ja pitkien korkojen ero kaventuu * Poliittinen epävarmuus lisääntyy
Tšekeissä, mutta emme odota Tšekin korunan juuri kärsivän * Euroalueen syyskuun
inflaatio oli 1,5 prosenttia ja pohjainflaatio 1,1 prosenttia