Europe – UK not preparing for hard Brexit

Major European indices were up yesterday led by the FTSE’s 1.2%. Losers included Portugal’s PSI20 at -0.84%.

PMIs yesterday show manufacturing up in September and services down across the board – Germany’s former growing from 52.2 in August to the currently expected 6.6 while the latter falls from 54.4 to 53.7. Only in the UK did manufacturing contract by a point.

A British Chambers of Commerce report quoted by Reuters this morning says that 51% of UK companies have taken no steps yet to face a no-deal Brexit

Americas – FED heads express concern

Europe’s PMI discrepancy extends to the US, as well, manufacturing rising from 53.11 to 53.5 and services falling from 55 to 54.6. Housing prices maintained their 1% increase MoM, in July and mortgage applications soared from aa 2.5% contraction in August to 6.8% this past September week.

US indices closed down yesterday led by the Nasdaq’s -3.02%., while, at 94.51, the USD last night reached an 8-week high.

The FED’s vice chair Richard Clarida and Cleveland’s Fed head Loretta Mester yesterday warned against the economy’s dismal future thanks to unemployment, weak demand and fiscal stimulus roadblocks. Chicago’s Charles Evans joined the voices in vowing low rates for the foreseeable future. Their leader, Jerome Powell, told Congress that he hopes for cooperation with legislators to facilitate recovery.

Asia – Japan’s Suga invites Sth Korea’s Moon to make nice

With FOMC members yesterday expressing concern for economic recovery, Asian markets are all down this morning, the KOSPI losing 2.3% followed by the Hang Seng, and New Zealand’s DJ leading the rear at -0.41% after the nation recorded a $353 mn trade deficit MoM in August – down from July’s $447 mn surplus.

The FTSE-Russel group is expected to add Chinese government bonds to its World Government Bond Index, following similar steps by JPMorgan & Bloomberg/Barclays – all indications of the acceptance of said bonds as safe-haven assets.

Meanwhile, on the political front (the BoJ’s minutes underwhelming), Japan’s new PM, Yoshihide Suga told the South Korean President Moon Jae-in that the two nations should repair their frayed ties, while China, for its part, has denied entry to two anti-China academics from Australia. And, Taiwan’s President Tsai Ing-wen is promising support for the local semiconductor industry, beleaguered by the China/US trade war.

Commodities – Gandham joins Coinburp

Oil yesterday gained about a dollar’s worth of traction towards the EIA’s report of a disappointing 1.639 mB withdrawal before losing its gains.

This morning finds Bitcoin bouncing off support at 10.25K as former the UK’s former eToro chief Iqbal Gandham joins cryptocurrency platform CoinBurp.

Corporate – DoJ targets social porn & terror

Nike jumped 15% yesterday after the previous day’s announcement of a 10% increase in EPS on a 10% rise in income this past quarter.

Tesla shares were down 10.34% yesterday after reports that the company will be suing the US at the Court of International Trade in New York over its Chinese products import tariffs.

Facebook was down 2.25% after the US Department of Justice revealed legislative proposals to hold social media companies responsible for drug trafficking, child pornography, terrorism and other federal crime-related postings.

Ahead today, quarterly earnings from Costco and Carmax, dividends from Aviva, Wolters, Nvidia and Qualcomm, and ex-dividend for Morrison Supermarkets.

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