China Import Slump Casts Gloom Over World Buffeted by Trade War
Bhina is buying less from the rest of the world, pushing its trade surplus higher and dragging on global economic growth. Imports in the world’s second-largest economy dropped 8.5% in September for a ninth decline in the past 10 readings, while exports decreased 3.2% in dollar terms from a year earlier. That left a trade surplus of $39.65 billion for the month, with the total for the first nine months jumping 36% to $298 billion.
Pound bruised as Brexit deal doubts creep in
Saikat Chatterjee – Reuters
Sterling gave up some of last week’s strong gains on Monday after the European Union and Britain said a lot more work would be needed to secure an agreement on the country’s departure from the bloc by Oct. 31.
Barneys Bankruptcy Lenders Extend Bid Deadline Until Tuesday
Soma Biswas and Juliet Chung – WSJ
Barneys New York Inc.’s lenders extended until Tuesday a deadline for the luxury retailer to clinch an offer from a buyer. A Barneys lawyer said at a bankruptcy-court hearing on Friday that the company needs a few more days to firm up a potential deal with a lead bidder, or stalking horse, that would keep the chain alive.
Bulls Come Out of the Woodwork
Helene Meisler – The Street
Last week I posed the question: How fast would folks turn bullish? We knew, based on the indicators then that if we went down any further, sentiment toward the market would be at a bearish extreme. Well now we have our answer. You see, Friday took the equity put/call ratio down to 51%. Under 50% and I consider it short-term bearish. What’s more is last Monday, the equity put/call ratio was 94%. So that’s sorta Jimmy John’s fast.
How A Recession Affects the Stock Market
Scott Bauer – Open Markets
Rising interest rates, inflation and commodity prices are historical signs of an oncoming recession, but the market isn’t seeing any of those yet. The stock market typically continues to decline sharply for several months during a recession.
Exchanges and Clearing
Update – Cboe Announces Release Date for Retail Order Priority on EDGX Equities Exchange Cboe Press Release
Effective Friday, November 1, 2019, Cboe EDGX Equities Exchange (EDGX) will provide enhanced book priority for Retail Priority Orders. Immediately on the effective date, or any trading day thereafter, a Retail Member Organization (RMO) may begin designating their orders for retail priority.
Another Win for MIAX – Five NASDAQ Patents Invalidated by PTAB
Miami International Holdings, Inc. (MIH), the parent holding company of the MIAX Options , MIAX PEARL and MIAX Emerald™ exchanges (MIAX), today announced that a fifth Nasdaq patent asserted against MIAX as part of its infringement complaint has been found invalid by the Patent Trial and Appeal Board (PTAB) of the United States Patent and Trademark Office. The PTAB ruled in its final written decision that all 30 claims of Nasdaq’s U.S. Patent No. 8,386,371 are unpatentable under 35 U.S.C. Section 101.
CME Group Reaches Record Asia Pacific Average Daily Volume of 1.2 Million Contracts in Q3
CME Group, the world’s leading and most diverse derivatives marketplace, today announced that it achieved its highest quarterly Asia Pacific average daily volume (ADV) on record, with 1.2 million contracts traded during third-quarter of 2019, up 61% year over year and surpassing the previous quarterly record of 1.1 million contracts traded in second-quarter 2019.
Regulation & Enforcement
(VIDEO) Rodgin Cohen Breaks Down the Volcker Rule Overhaul
Rodgin Cohen, senior chairman at Sullivan & Cromwell, examines the overhauled Volcker Rule approved by the Federal Reserve, which will go into full effect at the start of 2021. He speaks with Bloomberg’s Alix Steel on “Bloomberg Daybreak: Americas.”
How to Deal With Head-Spinning Market Swings
Norm Alster – The New York Times
Stocks began to swing wildly over the summer, and while things have quieted down a bit, many veterans expect more turbulence ahead. “I think we’re looking at continued high volatility all the way in to the next election,” said Christopher Hyzy, chief investment officer for Merrill and the Bank of America Private Bank. This is likely to upset many people who would, naturally enough, prefer to profit from stocks with little stress. What’s the best response to periods like this?
(VIDEO) A Risk Reversal Strategy for S&P 500 E-Mini Options
In this segment of “Charting Futures,” Bloomberg’s Greg Calderone examines the options activity surrounding the S&P 500 Index. He speaks with Bloomberg’s Abigail Doolittle on “Bloomberg Markets: The Close.”
QE, or Not QE? Impact of Fed Bond-Buying Will Depend on Treasury
Rich Miller – Bloomberg
The Federal Reserve insists its planned hoovering-up of Treasury securities is a “technical” measure that isn’t quantitative easing and won’t meaningfully impact the economy. But that may depend on how the Treasury Department responds to the central bank’s plan. If the Treasury reacts by stepping up its issuance of Treasury bills and cutting back on sales of longer-dated securities, that would tend to put downward pressure on long-term interest rates — which is exactly what the Fed’s crisis-era QE programs were intended to do.
Schwab and Others Confirm Status as Casinos, Purveyors of Financial Opioids
Maybe I imagined it, but a couple weeks ago, I thought I saw an article claiming that Jack Dorsey, CEO of the world’s largest kazoo – you know, the thing with the familiar harmony and enough dissonance to over-stimulate your reptilian id – was set to replicate Robinhood’s free trading platform on Twitter. Sure. Why not? What could go wrong?!