Financial Markets and Economy
Emerging Stocks Rise to Two-Month High as China Shares Rally (Bloomberg)
Emerging-market stocks headed for the highest level since China’s surprise devaluation of the yuan two months ago as investors speculated the government of the world’s second-largest economy will take steps to bolster economic growth. Russia’s ruble led currencies higher.
Chinese yuan rises to highest level since August’s surprise devaluation (Market Watch)
The dollar slipped Monday against most other major currencies, falling to its worst level against the Chinese yuan since late August, after the People’s Bank of China announced fresh stimulus measures amid a rebound in commodity prices.
Dell just bought EMC in one of the biggest tech mergers ever (Business Insider)
Dell is buying EMC, a $50 billion publicly traded IT giant, for around $67 billion in one of the tech industry's biggest mergers ever, according to Bloomberg, which said the terms of the deal looked like this:
Dell plans to pay $24.05 a share in cash plus tracking stock in EMC’s prize holding, VMware Inc., valued at about $9 for each EMC share, the companies said in a statement Monday. The price of $33.15 a share is 28 percent above EMC’s closing level on Oct. 7, just before reports surfaced that a deal was in the works.
Goldman: Three Hurdles the MarketFaces in the Fourth Quarter (Bloomberg)
The S&P 500 may have rallied close to 5 percent last week, but that doesn't mean it's going to be smooth sailing for the rest of 2015. In its most recent U.S. Weekly Kickstart, Goldman Sachs analysts highlight three hurdles the market faces as we approach what's turning out to be a bumpy year.
The team, led by David Kostin, starts off by pointing to possibly disappointing results during the current earnings season. The firm recently cut its forecasts for both earnings and the S&P 500.
'Stars aligned' for AB InBev's megabrew merger plan (Business Insider)
Anheuser-Busch InBev's <ABI.BR> CEO says a study of SABMiller's <SAB.L> African beer markets and talks with top shareholders led to an "alignment of stars" that drew it to its nearest rival.
But observers say the real catalysts for the $100 billion takeover proposal made public on Oct. 7 are a steep fall in SABMiller's share price, search for growth beyond AB InBev's declining core Americas markets and a desire not to give SABMiller's new management enough time to execute a workable defense.
What Is Your Emotional P&L? (Trader Feed)
You know a person's dreams are dying when they become solely focused on ways to not lose money in trading. Risk management is a necessary component of success, but it's how we manage opportunities that ultimately puts points on the board. Too many traders cut off the right tails of their return distributions when they trim the left tails. They are quick to get out of losing trades, quick to avoid winners from becoming losers, and ultimately neither win nor lose all that much. Sometimes we become so focused on staying in the game that we forget about winning the game.
Volkswagen's Widening Stock Gap Reflects Concern on Capital Plan (Bloomberg)
Volkswagen AG has already set aside billions in potential costs related to its emissions-rigging scandal. Mounting speculation that the crisis-stricken company will sell stock to raise funds is sending its non-voting shares to the biggest discount versus voting ones in six years.
Gold futures rise, adding to last week’s solid gain (Market Watch)
Gold futures stepped higher early Monday, building on the prior week’s sizable gain that came amid bets for a further delay in U.S. interest-rate hikes.
Welcome to the '3rd wave' of the financial crisis (Business Insider)
Remember the 2008 financial crisis? Well, it's back.
The financial disaster, which started seven years ago with the collapse in US real estate and investment banking, has entered its third phase, according to a team of Goldman Sachs analysts.
This wave is characterised by rock-bottom commodities prices, stalling growth in China and other emerging-markets economies, and low global inflation, Goldman Sachs analysts led by Peter Oppenheimer said in a big-picture note.
Pound Gains Versus Dollar as Traders Await Signals From BOE (Bloomberg)
The pound rose against the dollar, approaching its strongest level in three weeks, as traders awaited further clues from Bank of England policy makers as to the timing of their first interest-rate increase since the financial crisis.
A £4 billion part of the fintech boom is 'reminiscent of the dotcom bubble' (Business Insider)
LendInvest, a UK peer-to-peer short term mortgage lender, just turned a profit for the second time in its two-year history.
The company, which lets investors lend directly to people looking for short-term mortgages, made a £3.1 million ($4.7 million) profit in the year to March, up from £1.2 million ($1.8 million) in 2014. Revenue rose from £5 million ($7.6 million) to £15 million ($23 million).
Uber Can Gain China Only by Losing Its Soul (Bloomberg)
What does Uber want out of China? If the ride-sharing company avoids being blocked in the Peoples Republic, it will have done better than Google, Facebook, Twitter and Dropbox.
Infosys Bullish Option Bets Jump Toward Year High After Results (Bloomberg)
The number of bullish option bets in Infosys Ltd. jumped to the highest level in almost a year after the software company’s quarterly earnings report, even as its shares retreated from a record high.
What technical analysts are watching after last week’s big market rally (Market Watch)
While the S&P 500 climbed 3.3% last week for its biggest weekly gain of the year, some chart lovers aren’t that dazzled by the U.S. stock market’s advance.
Technical analysts caution that laggards — meaning stocks that had been underperfoming — fared best in the recent runup.
Here's how you turn a crappy stock market story into a really bullish one (Business Insider)
Earnings are estimated to have declined during the third quarter, an unfavorable development that may be exacerbating the turbulence in the markets.
Charting the Markets: Global Stock Rally, Day Nine (Bloomberg)
China stocks drive regional gains, the dollar continues to inch downwardsand RWE shares soar as much as 15 percent.
One Way Emerging Markets Are Shooting Themselves in the Foot (Bloomberg)
Emerging-market stocks and currencies have taken a beating in 2015, but underperformance in these assets is hardly novel. The MSCI Emerging Market index hit its post-recession peak in 2011 and has been trounced by its developed-market counterpart since 2010.
‘Super Crash’ theory says you shouldn’t be chasing these gains (Market Watch)
It’s Columbus Day, which could be one last opportunity to stretch and take a look around before earnings start hitting us in the face, beginning with banks tomorrow. That’s coming off what was the best week for the S&P 500 so far this year, partially fueled by a rebound for commodities prices.
U.K. Stocks Snap Eight-Day Winning Streak as Rolls-Royce Falls (Bloomberg)
U.K. stocks retreated, snapping an eight-day winning streak, with Rolls-Royce Holdings Plc and Standard Chartered Plc leading declines.
Ferrari sets $1 billion IPO. Ticker symbol? RACE (CNN)
RACE. That's the ticker symbol that Ferrari will use when it debuts on the New York Stock Exchange with a $10 billion valuation within the next few months.
Parent company Fiat Chrysler Automobile (FCAM) said Monday it plans to set a price of $48 to $52 per Ferrari share and intends to sell about 10% of the company in the initial public offering. The company hopes to raise just about $1 billion from investors.
Russia ETF Rewards Resolute Investors as Stock Volatility Surges (Bloomberg)
U.S. investors brave enough to put money into one of the most volatile stock markets are reaping some of the biggest profits in the world.
The Best Aussie Dollar Forecaster Predicts a 6% Decline (Bloomberg)
The best forecaster of the Australian dollar isnt swayed by the recent surge that sent the currency to its best weekly gainsince 2011, predicting it will fall back below 70 U.S. cents by year-end.
Oil prices cruise higher after U.S. rig-count declines, OPEC report (Market Watch)
Oil prices rose on Monday as a decline in the U.S. oil rig count and the latest supply estimates from the Organization of the Petroleum Exporting Countries indicated major oil producers are ready to tackle the prolonged low prices.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in November CLX5, -2.26% rose 25 cents, or 0.5%, to $49.88 a barrel. November Brent crude LCOX5, -1.86% on London’s ICE Futures exchange rose 19 cents, or 0.4%, to $52.84 a barrel.
Politics
Nigeria's President Buhari Will Keep Oil Minister Post Vacant (Bloomberg)
Nigeria’s President Muhammadu Buhari will leave the post of petroleum minister in Africa’s biggest oil producer vacant after signaling that he would take the position, according to his spokesman.
“He can’t be president and oil minister at the same time,” Femi Adesina said by phone on Monday from Abuja, the capital.
Americans Are Feeling Pretty Glum About Obama and the Economy (Business Insider)
Like a baseball team faltering as the playoffs draw near, the public’s attitudes toward President Obama, the economy, and the country’s direction all hit a late-summer slump in the latest Allstate/National Journal Heartland Monitor Poll.
Technology
Sharp's Latest Phone Will Dance For You (And Remember Your Shopping List) (Bloomberg)
Sharp Corp.’s newest smartphone does everything consumers would expect, from making calls and sending text messages to accessing e-mail and setting alarms. It also looks — and dances — like a tuxedo-wearing robot.
This Robot Mimics Your Movements to Transport You to Another Place (PSFK)
DORA—the Dextrous Observational Roving Automaton—is a new kind of robot. Its job isn’t to replace humans by performing tasks more efficiently. Instead, it interacts with human users and serves as a “personal avatar,” allowing individuals to experience new places without ever needing to leave their homes.
Health and Life Sciences
Elephant genes hold clues for fight against cancer (CNN)
Elephants are giant, cancer-battling super creatures that destroy damaged cells long before they become cancerous, scientists say.
In a study released this week, scientists said elephant genes may provide a crucial clue in the fight against human cancer.
First 'in womb' stem cell trial planned (BBC)
The first clinical trial injecting foetal stem cells into babies still in the womb has been announced.
It is hoped the cells, which are able to transform into a range of tissues, will lessen symptoms of incurable brittle bone disease.
Life on the Home Planet
These Syrian refugee rockers played concerts as they fled across Europe (Mashable)
A small rubber dinghy carrying 16 Syrian men pulled up on the shore of the Greek island on Lesbos in early September. Tired and lucky to be alive, the men had taken the risky boat journey across the Mediterranean from Turkey.
War drives 'alarming' global hunger (BBC)
Conflict is "development in reverse" and a key factor that is leaving almost 800 million without enough food, the 2015 Global Hunger Index has concluded.
Many of the 52 nations where the situation is serious or alarming are predominately ones experiencing civil unrest, the annual assessment says.
