Financial Markets and Economy
Deutsche Bank Charged Over Paschi Accounts as Legal Hits Mount (Bloomberg)
Deutsche Bank AG was dealt a fresh blow on Saturday when an Italian court charged the company, an employee and five former executives for colluding with Banca Monte dei Paschi di Siena SpA to falsify the Italian lender’s accounts in 2008.
China's yuan is joining the IMF's elite group of reserve currencies (Business Insider)
China’s yuan joins an elite group of reserve currencies created by the International Monetary Fund on Saturday in a move hailed as a milestone in the country’s rise to global financial prominence.
Looking for Your Trading Edge (Traderfeed)
Just thought I'd update this post on what it means for stocks when we see a high degree of institutional participation in the US equity market. Yesterday's reading was in the highest quartile, which has been associated with significantly above average returns over a next 10-day period. Interestingly, we also saw an elevated equity put/call ratio, also associated with favorable next 10-day returns in SPY.
Deutsche Bank’s Woes Put $2 Trillion of Bonds Beyond ECB’s Reach (Bloomberg)
The troubles of Deutsche Bank AG are making European Central Bank President Mario Draghi’s job more complicated.
Why The U.S. Should Put Out The Welcome Mat For Foreign Entrepreneurs (Forbes)
I’ve been thinking about how the rhetoric on immigrants in the current political climate is playing with the smart, ambitious people around the world who traditionally have come to America to make a better life. With the U.S. economy plugging away at a relatively slow, steady rate, will we still be the destination of choice for talented individuals who embrace the risk of uprooting from familiar surroundings to make a bet on a big idea?
There is really only one investment banking business to be in right now (Business Insider)
It has been a quiet year for dealmaking activity so far in 2016.
There has been much less deal activity in the equity markets, while mergers and acquisitions activity has also slowed. Syndicated loan activity has also dropped.
Pound Traders’ Focus Switches to BOE Through Prism of Economy (Bloomberg)
In the fight to understand the fate of the pound, traders will be looking at indicators of services, manufacturing and construction — all sectors that will be vital to the post-Brexit economy.
Bond Traders More Sure of December Rate Hike This Year Than Last (Bloomberg)
If history is any guide, the bond market is ready for the Federal Reserve to pull the trigger on interest rates in December.
Today's Federal Reserve Makes Volcker Look Timid (Mauldin Economics)
Let’s look at the Fed’s (and other central banks’) magnitude of monetary manipulation in recent years and the very constrained maneuvering room they now have as a consequence.
Three Reasons Why The Banking System Is Rigged Against You (Sovereign Man, Zero Hedge)
If there were ever any doubt about how completely RIGGED the banking system is against depositors, allow me to introduce the following:
Exhibit A: Governments are working to make banks LESS safe.
Nissan is an early sign of the downturns and the divisions Brexit could bring (The Guardian)
One of the few advantages of Brexit is that the unfolding debacle may be the trigger for the deep economic, political and constitutional reform that Britain so badly needs.
Germany's Merkel cannot afford to bail out Deutsche Bank: media (Reuters)
German Chancellor Angela Merkel cannot afford to bail out Deutsche Bank (DBKGn.DE) given the hard line Berlin has taken against state aid in other European nations and the risk of a political backlash at home, German media wrote on Saturday.
Companies
At Carnegie Deli in Manhattan, Just 3 Months of Pastramis to Go (NY Times)
Live in New York long enough and you will lose somewhere you love. Good things die here. It’s what keeps the place alive.
Duke University Endowment Posts 2.6% Loss for Year Ended in June (Bloomberg)
Duke University’s endowment reported an investment loss of 2.6 percent for fiscal 2016, following a year when the school spent more than it earned in its investments.
JPMorgan just promoted a rising star in its biggest business (Business Insider)
JPMorgan just announced a change at the top of its consumer banking business.
The US bank has named Thasunda Duckett as CEO of the consumer bank, reporting to Gordon Smith, CEO of consumer and community banking.
Volkswagen settles with dealers for $1.2 billion over emissions scandal (Mashable Asia)
Volkswagen's emissions scandal is costing it another $1.2 billion.
The car manufacturer agreed Friday to pay US dealers up to $1.2 billion to compensate them for losses that resulted from the scandal, the Associated Press reported.
Shopping at Walmart is getting a lot cheaper (Business Insider)
Grocery prices are in a free-fall.
Food prices have declined for nine straight months in the US, marking one of the longest stretches of food deflation in 50 years.
Zara Owner Ortega Buys $550 Million Madrid Skyscraper (Reuters)
The reclusive billionaire wants to build a real estate empire.
Amancio Ortega, Europe’s richest man and founder of global fashion group and Zara owner Inditex, has bought one of Madrid’s most famous skyscrapers for 490 million euros ($551 million) through his property investment arm, a source said.
Politics
Hillary Clinton could transform early education in the United States (Business Insider)
A few years ago, I heard a saying that stuck with me: "If you want olives, you need to plant olive trees." It refers to the glacial pace at which the trees bear fruit. While apples and bananas take only a few years, olives can take a decade, sometimes longer.
Clinton's 'Nasty' Trump Ads Are Mostly His Own Words (Associated Press)
WASHINGTON (AP) — Donald Trump says Hillary Clinton is making "nasty" ads about him. Most of Clinton's commercials about Trump, though, merely include clips of him speaking. Her campaign seems to have concluded that Trump is his own worst enemy.
Why don’t we restore the Constitution so every election is not “make or break”? (Washington Post)
Why does this and every election in recent years seem like a “make or break” election? One reason is that we have abandoned so many of the constraints imposed by the Constitution on our government that everything now rides on who holds office.
Donald Trump claims Google is hiding bad Hillary Clinton news, and isn’t entirely wrong (Independent)
Donald Trump has claimed that Google is suppressing bad news about Hillary Clinton. He’s not entirely wrong, but perhaps not for the reasons he thinks.
Trump Blames Bad Poll Numbers On Existence Of Numerical System (Andy Borowitz, The New Yorker)
YOUNGSTOWN, OHIO (The Borowitz Report)—Donald J. Trump lashed out at a new target on Monday, blaming his bad poll numbers on the existence of the numerical system.
After Trump-Clinton, Vice-Presidential Debate Isn’t Exactly ‘the Return of Elvis’ (NY Times)
Psst, there is another debate on Tuesday.
No, not between Donald J. Trump and Hillary Clinton. They do not suit back up in their gladiatorial armor until next Sunday.
Will Distrust of Hillary Cause People to Vote against their Own Interests? (The Huffington Post)
It is mind-boggling that some people will consider voting against their own best interest because of what they say is ‘distrust’ of Hillary. I know gay people who will vote for Trump knowing the Party whose principles they claimed to support is gone.
Technology
Six sun-powered ships (Inhabitat, Engadget)
The vast majority of boats rely on fossil fuels that tax the environment. Fortunately, alternative energy is on the rise in the marine world, and solar-powered ships are prepared to sail into a much cleaner future. It's been a few years since the world's largest (at the time) solar-powered ship completed its journey around the world, and a number of a fresh concepts are now awaiting construction.
Self-Driving Hype Doesn’t Reflect Reality (The Wall Street Journal)
To judge by recent claims, “fully autonomous” self-driving technology is just around the corner. Uber Technologies Inc. is offering Pittsburgh residents rides in autonomous Ford Fusions. Ford Motor Co., BMW AG, Volvo Car Corp. and Lyft Inc. say they will produce fully autonomous vehicles by 2021 or sooner. Tesla Motors Inc. Chief Executive Elon Musk, rarely topped in hyperbole, says the technology will be here within 24 months.
Paris Motor Show goes electric (CNN Money)
Several automakers unveiled plug-in cars at this week's Paris Motor Show, some of which will hit the market very soon.
Others won't be on the market for a few years, but still show manufacturers believe that EVs are on the cusp of becoming serious business.
Hackers Pissed That People Don't Want to Pay for the NSA Tools They Stole (Gizmodo)
Since August, “TheShadowBrokers” have been claiming that they had acquired NSA hacking tools through a breach of the Equation Group, which is believed to be an offshoot of the NSA. After offering what appears to be proof of the tools’ legitimacy, they announced that they wanted a million dollars for the rest of their information.
Space drone learns how to see with one eye in zero-G (Engadget)
One of the small drones aboard the ISS taught itself how to go around station with just one eye, and it was a lot harder than you might think. For starters, the SPHERE drone (that's short for Synchronized Position Hold Engage and Reorient Experimental Satellite) learned on its own by using machine learning.
Tokyo Man Believed To Be The First Person Arrested For Selling Jailbroken iPhones (Digital Trends)
Jailbreaking your iPhone is something Apple already frowns upon. Unfortunately for a Tokyo man, he found out the hard way that selling these modified phones draws the ire of authorities, too, reports The Japan Times.
Health and Biotech
J&J’s Skin Drug Beats Humira in Final-Stage Psoriasis Study (Bloomberg)
Johnson & Johnson’s experimental drug for psoriasis hit its main goals and outperformed a rival in a final-stage study, positioning the company to expand its arsenal of immune-disease treatments.
The Revolution in EMS Care (The Wall Street Journal)
From the increasingly sophisticated equipment they carry and the new lifesaving techniques they use, to the changing roles they play in some communities—providing preventive care and monitoring patients at home—ambulance crews today are hardly recognizable from their origins as “horizontal taxicabs.”
MEDICARE Sets New Patient Safety Goals For Hospitals (Associated Press)
WASHINGTON (AP) — Medicare is setting new goals for keeping hospitalized patients safe and reducing readmissions after patients are discharged.
This simple vaccine could finally offer protection against the common cold (Science Alert)
Part of the problem in finding an effective cure for the common cold is there are so many variations of its root cause. But scientists have just found a way to target multiple strains of the cold in one vaccine that's surprisingly simple to produce.
We Are Closer To Curing All Diseases Than We Think (Popular Science)
Last week, Facebook CEO Mark Zuckerberg and his wife Priscilla Chan announced an ambitious project—to “invest in basic science research with the goal of curing disease.” The couple started by donating $3 billion over 10 years in this initiative, which target four major groups of illnesses: cancer, infectious diseases, as well as heart and neurological diseases.
Life on the Home Planet
Hurricane Matthew Soaks Colombia, Heads for Jamaica, Haiti (Bloomberg)
Kingston, Jamaica (AP) — One of the most powerful Atlantic hurricanes in recent history roared over the open Caribbean Sea on Saturday on a course that threatened Jamaica, Haiti and Cuba.
The U.S. Is About to Get Much Better Weather Satellites (Scientific American)
Daily weather forecasts in the U.S. wouldn't be nearly as accurate as they are without the three geostationary weather satellites that are parked 22,000 miles above Earth. Next month these predictions will get even better: the U.S. National Oceanic and Atmospheric Administration and NASA plan to launch the first of four satellites that should deliver what the agencies call “game-changing” capabilities for predicting both ordinary weather and dangerous storms such as hurricanes.
Here’s a refugee’s step-by-step process to enter the US (Business Insider)
In light of the UN General Assembly adopting its recent New York Declaration on Refugees and Migrants, there has been much discussion on various aspects of the acceptance of refugees in the US.
Flooding Closes Schools, Blocks Roads Along Atlantic Coast (Associated Press)
WASHINGTON (AP) — Flooding has closed schools and blocked roads after heavy rains in parts of Maryland, Virginia and Delaware.
China paper says U.S., South Korea will 'pay the price' for planned missile system (Reuters)
The United States and South Korea are destined to "pay the price" for their decision to deploy an advanced missile defense system which will inevitably prompt a "counter attack", China's top newspaper said on Saturday.
Australia says MH17 missile suspects might be confirmed by year-end (Reuters)
Australian Foreign Minister Julie Bishop said on Sunday the names of those responsible for shooting down Malaysia Airlines flight MH17 over Ukraine in 2014 might be confirmed by the end of the year.
New Jersey Transit Was Under Investigation Before Fatal Crash (NY Times)
The Federal Railroad Administration began investigating safety problems at New Jersey Transit before a fatal train crash last week, a federal rail official confirmed on Saturday.
