Bloomberg:
- Romney in Debate Says Obama Favors ‘Trickle-Down Government’. Republican presidential nominee Mitt Romney said President Barack Obama favors a form of “trickle- down government” that will result in more taxes and regulations, as the two met in their first debate in the race for the White House. “That’s not the right answer for America,” Romney, 65, said tonight at the University of Denver.
- Draghi Stares at Spain as Bond Brinkmanship Keeps ECB Waiting. Mario Draghi is waiting for Spain to get back to him on whether his plan to save the euro is needed. One month after the European Central Bank president unveiled an unprecedented bond purchase program to rescue Europe’s embattled southern fringe, Spanish Prime Minister Mariano Rajoy is showing reluctance to ask for the aid he pushed for with Italy on concern about the terms attached to it. As ECB policy makers meet in Slovenia today, Spanish 2-year note yields are more than 50 basis points higher than the five-month low touched on Sept. 7, the day following their last decision. “We’re back at this game of brinkmanship between the ECB and governments again, and it’s a case of who makes some concessions first,” said Nick Matthews, senior European economist at Nomura International Plc in London. “The markets will continue to play a significant role here and Draghi needs them to turn up the pressure.” Spain will face a test of that pressure today as it sells as much as 4 billion euros ($5.2 billion) of bonds after Finance Minister Luis De Guindos said that officials are still considering whether they actually need ECB help.
- Spain Off Balance-Sheet Debt Worsens Rajoy's Battle: Euro Credit. Liabilities that the Spanish government has held off its balance sheet are winding up on the taxpayers' tab , threatening Prime Minister Mariano Rajoy's efforts to haul the economy out of a five-year slump. Government debt will leap 17 percentage points to 85% of gdp this year as the state absorbs the cost of bailing out banks, the power system and public contractors.
- France’s LBO Firms Predict ‘Death’ From Hollande’s 75% Carry Tax. French private-equity fund managers are predicting their own exile if lawmakers back President Francois Hollande’s proposed tax increases on the profit the industry makes from investments. Hollande, who released his first annual budget on Sept. 28, plans to tax fund managers’ share of the profit from their investments, known as carried interest, at a rate of as much as 75 percent, part of a wider effort to increase taxes on the wealthy and narrow the country’s deficit. France also plans to as much as double taxes on capital gains and restrict the amount of debt interest payments a company can deduct from its taxable income, a measure that will reduce returns on leveraged buyouts. Lower levies in the U.K. will lure professionals across the English Channel from where they can still try to buy French companies, Parisian dealmakers say.
- European Banks Told to Hold On to $258 Billion of Fresh Capital. The European Union’s top banking regulator told the bloc’s lenders to hold on to more than 200 billion euros ($258 billion) in capital raised to pave the way for tougher global standards. The 27 banks that were required by the European Banking Authority to submit plans for their capital raising attained a total of 116 billion euros, the London-based EBA said yesterday. Including aid to Greek and Spanish banks, European lenders increased their capital reserves by more than 200 billion euros since 2011, according to an EBA report published on its website.
- No Use in Competitive QE, Intervention, Japan's Sakakibara Says. Japan and other advanced economies are reaching the limit of what they can do to stimulate growth through monetary easing, said Eisuke Sakakibara, a former Ministry of Financial officials.
- India Slowdown Thwarts Carmakers’ Sales Search Beyond U.S. With sales crashing in Europe and slowing in China, carmakers are looking for signs of growth beyond the U.S. market. In India, it’s not looking good. The holiday season, just under way there, typically accounts for about a quarter of new auto purchases. This year, the market is uncharacteristically moribund as the economy is projected to grow at its slowest pace in a decade. That’s especially tough for Hyundai Motor Co. (005380) and Tata Motors Ltd. (TTMT), the second- and third-biggest carmakers by volume in India. “Everyone is counting on India to deliver future growth,” said Deepesh Rathore, the New Delhi-based India managing director of IHS Automotive, an industry-research company. “The festive season is a trigger for sales in the second half.”
- Applied Materials(AMAT) to Cut Up to 9 Percent of Staff Amid Slump. Applied Materials Inc. (AMAT), the largest producer of chipmaking equipment, plans to eliminate as much as 9 percent of its workforce as lackluster personal-computer demand leads customers to slow orders for manufacturing tools. The company will cut 900 to 1,300 jobs, resulting in pretax costs of $180 million to $230 million, through a voluntary retirement program and other actions. The restructuring will save $140 million to $190 million a year, Santa Clara, California-based Applied Materials said in a statement today.
- Chemical Bond Risk at Record on China Slowdown: Japan Credit. The bond risk of Japanese manufacturers that rely on China as a market for chemicals used in plastics, resins and adhesives jumped to records on faltering domestic output and signs of continued cooling in the world's second-biggest economy. Credit-default swaps on Mitsui Chemicals Inc. increased 183 basis points last quarter, reaching a record of 390 on Sept. 26, CMA data show. Contracts on Sumitomo Chemical Co., Japan's second-largest maker of the products, climbed 161 in the period, reaching their highest level ever at 284 on the same day.
- Precious Metals Are 'Standout Exposures', Morgan Stanley Says. Gold, silver and platinum are "standout exposures" in current environment, bank says. Precious metals to provide absolute positive performance. Silver to provide relative outperformance. Aluminum, nickel, lead, zinc in oversupply, vulnerable to renewed growth concerns.
- Candidates Spar Over Taxes. Obama, Romney Lay Out Differing Views of Government, Regulation, Deficit Cuts. Cutting to the heart of their differences, President Barack Obama and Republican Mitt Romney laid out contrasting visions for the federal government in their first debate in Denver, sparring over tax-cut proposals, regulations and deficit-reduction plans. Mr. Romney cast Mr. Obama as a champion of big government and spending who would raise taxes on job-creating small businesses, calling his approach "trickle-down government."
- Small Businesses Fear Fiscal Cliff Awaits at Year-End. Many small-business executives said they have little confidence that lawmakers and the president will be able to avoid a fiscal cliff by December 31. A survey of 833 business owners released Wednesday found that 47% of small-business owners and chief executives said they don't expect the country will avoid the tax increases and deep spending cuts that are set to take effect at year-end unless Congress and President Barack Obama agree on a new deficit-reduction plan. In comparison, 38% of respondents said they thought lawmakers would be able to reach an agreement. Another 14% weren't sure.
- Henninger: 2012's Sure Losers—Young People. Hi, I'm Marty and I'll be your waiter for the next 40 years.
- Can We Believe the Presidential Polls? Last week's CBS/New York Times poll had Obama ahead by nine points in Florida. That's not very likely.
CNBC:
Zero Hedge:
- 4 Years After TARP - Winners, Losers, Bubbles, And Troubles.
- Fed Confused Reality Doesn't Conform To Its Economic Models, Shocked Its Models Predict "Explosive Inflation".
- NATO Issues Statement On Syrian-Turkish Hostilities.
- Mitt Romney Absolutely Destroyed Obama In Tonight's Presidential Debate.
- A Rare Occurrence In The Saudi Currency Market Tells You That Trouble Is Brewing In The Middle East.
- Liberals Are Saying Obama Could Have Lost The Election Tonight.
- The New Matt Damon Movie That Blasts Fracking Was Partly Funded By The Government Of Abu Dhabi.
- 'Evidence QE3 Is Working'... And Other Lies.
CNN:
- CNN Poll: Romney wins debate by big margin. Sixty-seven percent of registered voters who watched the debate said GOP nominee Mitt Romney won the debate, while 25% said President Barack Obama came out as the winner, according to a CNN/ORC International Poll released late Wednesday night.
- Tennessee fungal meningitis outbreak spreads to other states. State and federal health officials said on Wednesday that they expected more cases to be reported in a deadly outbreak of fungal meningitis they believe is linked to steroid injections given for pain at two clinics in Tennessee. So far two people have died and 18 others have been sickened in Tennessee from meningitis linked to the outbreak. Four other states have reported cases, with a total of 26 illnesses and four deaths, said Centers for Disease Control and Prevention spokesman Curtis Allen. In addition to the 18 who are sick in Tennessee, one case has been reported in North Carolina, two in Florida, three in Virginia and two in Maryland. The other deaths include one each in Virginia and in Maryland, Allen said.
- U.S. strip mall recovery stalls in the third quarter. The nascent recovery at U.S. strip malls stalled in the third quarter as retail sales struggled. But large regional malls continued to rebound, driven by top-quality malls with high-end department and specialty stores, real estate research firm Reis Inc said Thursday. The retail real estate sector has been among the hardest hit in commercial property. At the mercy of consumer spending, the sector has reflected the diverse pressures and changes since the housing crisis began in 2007.
- Island plans by Tokyo's nationalist governor may stoke fresh China tensions. Tokyo Governor Shintaro Ishihara, a fiery nationalist whose failed bid to buy a group of disputed islands ignited a crisis with China, is pushing ahead with a plan to build structures there to hammer home Japan's claim, officials involved told Reuters. Although such a move is not imminent, it would be certain to strain Japan's already shaky relations with China and could prompt a rebuke from the Obama administration, which has urged both sides to ease tensions by setting aside the dispute. Ishihara's gambit appears aimed at forcing a new showdown in the island dispute with China.
- Morgan Stanley(MS) in talks to sell majority of commodity business - FT. Morgan Stanley is in talks to sell a majority stake in its commodities business to the Qatar Investment Authority, the Financial Times said, quoting people familiar with the deal.
- World Bank lowers Latin American growth forecast to 3 pct. Economic growth in Latin America will be lower than previously estimated due to the continuing worldwide slowdown, the World Bank said in a report on Wednesday. It forecast growth at 3 percent this year, below its previous projection of 3.5 to 4 percent.
- Spain fears harsh rescue terms from AAA Nordic parliaments. Senior officials from Germany and other parts of the eurozone's AAA core have warned Spain privately that angry parliaments are likely to impose stringent conditions on any further rescue loans.
- Hong Kong's number of visitors from mainland China fell 10% from a year earlier to 456,000 in the first four days of the week-long Golden Week holidays, citing figures from the city's Immigration Department. Michael Tien, founder of clothing retailer G2000 Group, said sales from mainland China visitors dropped 30% in the first two days of the holiday, according to the report.
- Mainland China Buyers of Hong Kong Homes Fall 20%. Buyers from China account for 10-20% of property in Hong Kong at present, compared with more than 30% previously, citing Fung Lam, Centaline's associate director of project development and investment. Interest from mainland buyers has declined because of rising prices, a slowing Chinese economy and a booming property market in Shenzhen, Lam said.
Piper Jaffray:
- Rated (QDEL) Overweight, target $26.
- Asian equity indices are -.25% to +1.0% on average.
- Asia Ex-Japan Investment Grade CDS Index 132.0 -1.5 basis points.
- Asia Pacific Sovereign CDS Index 114.25 -2.5 basis points.
- FTSE-100 futures +.23%.
- S&P 500 futures +.44%.
- NASDAQ 100 futures +.51%.
Earnings of Note
Company/Estimate
- (ISCA)/.08
8:30 am EST
- Initial Jobless Claims are estimated to rise to 370K versus 359K the prior week.
- Continuing Claims are estimated to rise to 3275K versus 3271K prior.
- Factory Orders for August are estimated to fall -5.9% versus a +2.8% gain in July.
- Minutes of FOMC Meeting.
- (VXX) 1-for-4
- The ECB rate decision, BoE rate decision, ECB's Draghi speaking, Fed's Bullard speaking, Challenger Jobs Cuts report for September, RBC Consumer Outlook Index for October, weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas inventory report and the (ORCL) analyst meeting could also impact trading today.
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