Financial Markets and Economy
Ghost of Lehman Haunts Deutsche Bank (WSJ)
Eight years ago this month, Lehman Brothers failed in large part due to panicked hedge funds pulling their money. With some big hedge funds worried enough to cut their exposure to Deutsche Bank AG, the parallel is obvious—but also deeply misleading.
Deutsche Bank’s shares have plummeted in recent weeks after The Wall Street Journal reported that the U.S. Justice Department suggested the bank pay $14 billion to settle allegations around mortgage securities. The bank expects to agree to a lower figure.
Major Dollar Shortage Exposed In Europe As Deutsche Bank Contagion Spreads (Zero Hedge)
While global markets remain calm(ish), distracted by OPEC headlines, US election 'entertainment', and Middle East proxy wars, the reality is, something very ugly is accelerating in Europe.
U.S. Index Futures Little Changed as Investors Assess Bank Woes (Bloomberg)
U.S. index futures were little changed as investors assessed the implications of deepening woes in the European banking industry.
Philippine Peso Completes Worst Month in 16 Years Amid Outflows (Bloomberg)
The Philippine peso completed its biggest monthly decline since October 2000 amid the biggest outflow from the nation’s stocks in a year.
Euro Money Markets Show Most Stress Since 2012 on Deutsche Bank (Bloomberg)
European banks borrowing dollars are paying the most since the height of the region’s sovereign-debt crisis as concerns mount about the health of Germany’s largest lender.
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10 things you need to know before European markets open (Business Insider)
Deutsche Bank fell in New York trading. Hedge funds have reduced their exposure to the lender, setting up a potential showdown with German authorities.
Euro-Area Inflation Accelerates to Fastest Rate Since 2014 (Bloomberg)
Inflation in the euro area accelerated to the fastest since late 2014 in September, the European Union’s statistics office in Luxembourg said on Friday.
Volatility Hedge Fund Sees Bull Market in Fear as Bets Jump (Bloomberg)
Take futures on the CBOE Volatility Index, whose volume surged 50 percent this month and is on pace for a record year, according to data compiled by Bloomberg. Belying the lull evidenced in the VIX itself, which has traded almost 30 percent below its historical average in September, six-month contracts on the index are priced about 40 percent higher and last month the gap hit its widest since 2012.
Oil falls on firmer dollar and profit-taking after OPEC rally (Reuters)
Oil prices fell as the dollar strengthened on Friday and investors cashed in on crude's 6 percent one-day rise after OPEC members agreed on output cuts for the first time in eight years to stifle a two-year price slide.
Deutsche Bank CEO tells staff: Market forces are trying to weaken us (CNN Money)
Deutsche Bank's chief executive has made an appeal for calm, telling employees that worries over the bank's financial health are vastly overstated.
Global funds add to Japan, euro zone bonds, see no further sell offs (Reuters)
Global investors raised holdings of Japanese bonds to four-year highs in September and bought more euro zone debt, shrugging off a mid-month market sell-off and expressing faith in central banks' commitment to their asset-buying programs.
EU and US trade negotiators seek to get TTIP talks back on track (The Guardian)
Trade negotiators will meet in New York next week to search for common ground on the controversial EU-US trade deal, which has been buffeted by strong opposition on both sides of the Atlantic.
Promontory Financial Group Signs Up With IBM (The Wall Street Journal)
Promontory Financial Group, one of the best-connected and most powerful financial consultancies, is selling out.
Two Chinese Bike-Sharing Startups Score $200 Million Investment (Bloomberg)
China’s two largest bike-sharing services both landed major investments within days of each other, one of them at an unprecedented $500 million valuation, according to people familiar with the matter.
Britons Saving at the Slowest Pace Since Financial Crisis: Chart (Bloomberg)
U.K. consumers have cut the pace at which they save to the slowest since the height of the financial crisis in 2008, according to data released on Friday.
Russian Finance Minister Warns of Wider Budget Deficit This Year (Bloomberg)
Finance Minister Anton Siluanov warned that the budget gap will be wider this year than earlier forecast, forcing Russia to step up the pace of domestic borrowing.
Cryan Defends Deutsche Bank as Some Clients Pare Back Exposure (Bloomberg)
Deutsche Bank AG Chief Executive Officer John Cryan rushed to shore up confidence in his beleaguered lender after concern some clients are reducing exposure to the company pushed shares to record lows.
Companies
Wells Fargo workers say they were fired for reporting 'gaming' of sales quotas (Reuters)
At least five Wells Fargo employees have sued the bank or filed complaints with regulators alleging that they were fired after reporting the opening of customer accounts without their permission, according to a Reuters review of lawsuits and complaints to the U.S. Labor Department.
Fitbit Is Tumbling After an Analyst Says Its New Product Is Off to a Slow Start (Bloomberg)
The company recently launched a new fitness tracker, the Charge 2, that was meant to be its hot new product heading into the holiday season. But retail analysts have judged sales of the wristband to be lackluster, prompting Pacific Crest Securities LLC to downgrade the company's stock.
Deutsche CEO tries to reassure staff as shares plunge (Reuters)
Deutsche Bank's (DBKGn.DE) chief executive sought to reassure his staff on Friday that Germany's largest lender remained robust after its shares again fell to record lows, sending tremors through global financial markets.
Deutsche Bank Has Plenty of Liquidity Amid Stress, Analysts Say (Bloomberg)
Deutsche Bank AG has plenty of readily available funds even if some clients pull deposits, according to analysts, responding to a drop in the bank’s shares after some hedge funds reduced their exposure.
Deutsche Bank woes keep stocks on steep slide (Reuters)
An eight percent slump in Deutsche Bank's already battered share price sent Europe into a fresh tailspin on Friday and left world equity markets sliding toward their worst week in three months.
Politics
Trump's Real Estate Blues: The Biggest Reason He's Down $800 Million This Year (Forbes)
Despite forays into airlines, casinos and steaks, Donald Trump’s fortune remains largely tied up in the industry that made his family rich: real estate.
Clinton says Trump may have violated U.S. law on Cuba (Reuters)
U.S. Democratic presidential nominee Hillary Clinton said on Thursday that Republican opponent Donald Trump may have violated U.S. law, following a news report that one of his companies attempted to do business in Cuba.
Congress’s Retreat on 9/11 Saudi Bill Shows Fear of Backlash (Bloomberg)
To Republicans in the U.S. Congress, a bill letting Sept. 11 victims’ families sue the Saudi government was just the sort of legal remedy — and feel-good campaign gesture — to show they’re tough on terrorism.
Democrats Rake In Money, Thanks to Suit by Republicans (NY Times)
Democrats denounced it as an assault on democracy and a sop to billionaires when the Supreme Court issued a ruling two years ago that loosened limits on campaign giving.
Technology
How Smartphone Batteries Catch on Fire (The Wall Street Journal)
The recall of Samsung’s Galaxy Note 7 after some devices caught fire has put the spotlight on phone batteries and the suppliers.
Samsung slammed by Chinese state TV over Note 7 recall 'discrimination' (Reuters)
Chinese state broadcaster CCTV has slammed South Korean tech giant Samsung Electronics Co (005930.KS) for what it said was "discrimination" against China consumers in its handling of a global recall of Galaxy Note 7 smartphones to replace batteries.
A Device For The Deaf That Let's You "Listen" With your Skin (Popular Science)
What if our bodies had a new way—other than our eardrums—to hear the world around us?
That’s what neuroscientist David Eagleman wondered five years ago. He looked at the body for answers and saw a huge sound jack.
Qualcomm in Talks to Acquire NXP Semiconductors (The Wall Street Journal)
Qualcomm Inc. is in talks to acquire NXP Semiconductors NV, a deal that likely would cost more than $30 billion and accelerate a consolidation rush in the semiconductor industry.
Health and Biotech
Scientists just documented the first case of Zika spreading through physical contact (Science Alert)
A mysterious and extreme case of Zika in the US has shown that we still have a lot to learn when it comes to the virus – and suggests the virus may be capable of being spread by physical contact.
Disrupting the Habits of Anorexia (Scientific American)
Every day on the dot of noon, Jane would eat her 150-calorie lunch: nonfat yogurt and a handful of berries. To eat earlier, she felt, would be “gluttonous.” To eat later would disrupt the dinner ritual.
Life on the Home Planet
Pakistan 'completely rejects' Indian claim of cross-border strikes (Reuters)
Pakistan on Friday "completely rejected" India's claim to have sent troops across its disputed border in Kashmir to kill suspected militants, as India evacuated villages near the frontier amid concerns about a military escalation.
Three Chinese fishermen killed in confrontation with South Korea coastguard (Reuters)
Three Chinese fishermen were killed on Thursday in a fire that broke out on their boat when South Korean coastguard men trying to apprehend them for illegal fishing threw flash grenades into a room they were hiding in, a South Korean official said.
Syrian army, rebels wage fierce battles in Aleppo (Reuters)
Syrian government forces and rebels fought battles in the center of Aleppo and north of the city on Friday, a week into a Russian-backed offensive by the Syrian army to take the entire area, a war monitor and sources on both sides said.
Bulgaria bans full-face veils in public places (Reuters)
Bulgaria's parliament on Friday banned the wearing of face veils in public in a move which supporters said would boost security in the wake of Islamist militant attacks in Europe.
Turkey pulls plug on 20 radio, TV channels in post-coup emergency decree (Reuters)
Turkey has ordered the closure of 20 television and radio stations, including one that airs children's programs, on charges they spread "terrorist propaganda", adding to fears that emergency rule is being used to stifle the media.
