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Oct 8, 2015

DealBook P.M. Edition - October 8, 2015: 'Bond King' William Gross Sues Pimco Over Dismissal"


Thursday, October 8, 2015
TOP STORY
News media reports have portrayed William Gross's departure from Pimco as a product of his erratic and domineering behavior.
'Bond King' William Gross Sues Pimco Over Dismissal The investment manager is seeking at least $200 million from the bond giant he helped found.


Federal Reserve Bank of New York Org: Agency MBS Transaction Data Update - October 8, 2015.

Agency MBS Transaction Summary
Gross purchases from October 1 through October 7: $6,166 million
Sales (dollar rolls) from October 1 through October 7: $0 million
Net purchases from October 1 through October 7: $6,166 million

All amounts reflect current face

Dow Closes Above 17K For First Time Since August: Wall Street at Close Report by CNBCon October 8, 2015.

cnbc.com

Dow closes above 17K for first time since August

Evelyn Cheng
U.S. stocks closed higher Thursday, with the Dow and S&P above key psychological levels, as investors digested the Federal Reserve's September meeting minutes.
"I think the combination of oil (gains) and the Fed minutes have lifted the indices here," said Peter Cardillo, chief market economist at Rockwell Global Capital, noting the minutes diminished the likelihood of a rate hike this year.
The Dow Jones industrial average and S&P 500 opened lower and attempted slight gains, before rallying after the release of the Fed minutes to close above their 50-day moving averages. The Dow also ended above its 50-day on Wednesday.

Peter Boehringer: Bundesbank Still Has Failed to Deliver a Gold Bar List: GATA | THE GATA DISPATCH - October 8, 2015.

Peter Boehringer: Bundesbank still has failed to deliver a gold bar list

Submitted by cpowell on  October 8, 2015.October 8, 2015

Peter Boehringer, leader of the campaign to repatriate Germany's national gold reserves, today brilliantly dismantles the Bundesbank's claim yesterday to have accounted for those reserves.
First, Boehringer writes, the Bundesbank has provided not a list of gold bars by producer and serial number but rather a mere inventory list maintained by the foreign central banks vaulting the German gold, a list created by those central banks themselves for gold that may or may not exist or remain in hand.

 Then Boehringer asks why the list wouldn't be exactly the same as a list of the German gold bars in 1968, after which there have been only minor changes to the German gold reserves. That is, what gold transactions has the Bundesbank undertaken since then and why?
Of course an honest answer to this question would expose the manic leasing and swapping of gold reserves by Western central banks for currency and gold market rigging in recent decades.
The German gold reserves, Boehringer concludes, require serious auditing by an independent organization, and the Bundesbank's repatriation of Germany's gold should be hastened.
Boehringer's response to the Bundesbank -- and to the Bundesbank's shills in the mainstream financial news media -- is headlined "47 Years After 1968, Bundesbank STILL Fails to Deliver a Gold Bar Number List Posted in Koos Jansen's space at Bullion Star here:

https://www.bullionstar.com/blogs/koos-jansen/guest-post-47-years-after-...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

Bernanke Revives Doubts About the Lehman Moment: Bloomberg View - October 8, 2015.

bloombergview.com

Bernanke Revives Doubts About the Lehman Moment

Mark Gilbert
 
I confess to being slightly obsessed with the schizophrenic zig-zagging by the U.S. authorities that arguably made the credit crisis much, much worse. The feds underwrote the bailout of Bear Stearns, then let Lehman Brothers become the biggest bankruptcy in U.S. history, and the very next day rescued American International Group, and leaving the world of finance bewildered and confused. After reading the latest memoir on the period, I'm still not convinced the principal actors in the drama are being entirely frank about what happened behind the scenes of the real Lehman moment.
My pain is easy to name: The overseers of finance were able to produce a $30 billion loan to persuade JPMorgan to absorb Bear Stearns. They finagled $85 billion more when AIG was heading for the cliff. But in between those two unprecedented bailouts, they say there was no possible way -- no possible way -- to avert Lehman's bankruptcy in September 2008. I find myself unwilling to suspend my disbelief and accept that narrative.

Six Rules For Navigating Volatile Markets: Bloomberg View - October 8, 2015

bloombergview.com

Six Rules For Navigating Volatile Markets

Mohamed A. El-Erian
 
The gyrations of U.S. equity markets on Wednesday -- the Dow Jones Industrial Average initially surged almost 200 points, turned negative, then finished the day up 122.10 points -- were yet another demonstration of generalized increased volatility.
These days, swings in the Dow of several hundred points seem to be the rule rather than the exception, and occur whether the news of the day is big, small or nonexistent. And these wide U.S. fluctuations affect and are affected by global markets that are at least as tentative and jittery.
As I have argued, this bout of market volatility will be with us for a while, especially as it is part of a bigger set of economic, financial, policy and technical transitions. In addition to larger up and down movements in both individual securities and market indices, it will result in occasional price overshoots, contagion within and across market segments, unusual asset class correlations and some sharp rebounds.
There are six major implications for investors:

Money Isn’t Restricted by Borders, So Why are People? | Giles Fraser: Loose Canon: The Guardian - Migration

theguardian.com

Money isn’t restricted by borders, so why are people? | Giles Fraser: Loose canon

Giles Fraser
 
Theresa May won’t be around in the early 22nd century when, according to Star Trek at least, Dr Emory Erickson will have invented the transporter – a device that will be able to dematerialise a person into an energy pattern, beam them to another place or planet, and then rematerialise them back again. In such a world people will be able to move as quickly and freely as an email.
The philosopher Derek Parfit has rightly questioned whether such a thing is even philosophically possible: will the rematerialised person be the same person as the dematerialised one, or just a perfect copy. (What would happen if two copies of me were rematerialised? Would they both be me?) Parfit thus raises a fascinating philosophical question about what we mean by personal identity – or what makes me me.

FDIC Announces Appointment of Lawrence Gross, Jr., to Chief Information Officer: FDIC Press Release - October 8, 2015.

FDIC

Press Release

FDIC Announces Appointment of Lawrence Gross, Jr., to Chief Information Officer

FOR IMMEDIATE RELEASE
October 8, 2015
Media Contact:
Barbara Hagenbaugh
(202) 898-7192
bhagenbaugh@fdic.gov
The Federal Deposit Insurance Corporation (FDIC) announced the appointment of Lawrence Gross, Jr., as the agency's Chief Information Officer (CIO). The CIO advises FDIC senior leaders on a range of strategic issues relating to information technology, including governance, investment, program management, strategic planning, and security.

SEC Charges Firm and Owner With Manipulative Trading: SEC Press Release - October 8, 2015.

SEC Seal

The Securities and Exchange Commission today charged a New York-based proprietary trading firm and one of its co-founders with engaging in a manipulative trading strategy known as “spoofing.”
An SEC investigation found that Briargate Trading LLP and co-founder Eric Oscher orchestrated a scheme in which they placed sham orders — spoofs — to create the false appearance of interest in stocks and manipulate their prices.  After entering spoof orders, Oscher placed bona fide orders on the opposite side of the market for the same stocks and took advantage of the artificially inflated or depressed prices.  Immediately after the bona fide orders were executed, Oscher canceled the spoof orders.

A Potential Deal Between Dell and EMC: Bits | The Business of Technology - October 8, 2015.

Thursday, October 8, 2015

Daily Report
A Potential Deal Between Dell and EMC | Dell has been relatively quiet since it went private nearly two years ago. But it may be near making a huge splash, as the company is said to be in advanced talks to buy EMC.
As Michael J. de la Merced and Quentin Hardy report, a deal between the two companies would answer years of questions about the fate of EMC, a 36-year-old company that has grown into a collection of businesses, including network security and content management for corporate clients.
It would also seem to give a clearer sense of where Dell is headed.

Europe Ekes Out Gains at Close; Oil Prices Rally 2.2%: European Markets at Close Report by CNBC on October 8, 2015.

cnbc.com

Europe ekes out gains at close; oil prices rally 2.2%

Alexandra Gibbs, Arjun Kharpal, Holly Ellyatt
European stocks attempted to end Thursday on a high, as investors shook off global market woes and steered their focus towards the oil price rally and individual stock news.
The pan-European STOXX 600 finished around 0.1 percent higher, in what had been a choppy day of trading.
London's FTSE 100 closed 0.6 percent higher, after the Bank of England kept interest rates on hold at 0.5 percent, while the French CAC ended trade just 0.2 percent up.
The German DAX index ended the day up 0.2 percent, shaking off data which revealed its exports had fell by their largest amount since the height of the financial crisis in 2009.
Data from the Federal Statistics Office showed seasonally-adjusted exports fell by 5.2 percent in August from the previous month and imports declined by 3.1 percent.
The choppy trade from Europe could be down to the mixed trade in Asian stocks overnight, while U.S. stocks opened lower Thursday as investors awaited the afternoon release of the Fed minutes and the beginning of earnings season in the coming weeks.

Deutsche Bank slips, Glencore drops 3

Gold Heading For Biggest Drop in a Week: Mineweb Gold News - October 8, 2015.


Mineweb
Mineweb Gold News -  8 October 2015

Gold heading for biggest drop in a week

Gold heading for biggest drop in a week
Gold futures extend declines in early trade in the US.
 
Harmony's gold production will be 8-10% higher quarter-on-quarter

Harmony's gold production will be 8-10% higher quarter-on-quarter
South African operations behind the increase.
 
Centamin 3rd quarter production - in line with forecast

Centamin 3rd quarter production - in line with forecast
The company announces preliminary production figures for the period.
 
Gold retreats from highest in more than a week as silver drops

Gold retreats from highest in more than a week as silver drops
Gold dips ahead of Fed minutes.

LATEST NEWS

Wall Street Braces For Stock-Market Fall Ahead of Fed Minutes: U.S. Stock Market Future Indications Update - October 8, 2015.

marketwatch.com

Wall Street braces for stock-market fall ahead of Fed minutes

Anora Mahmudova, Barbara Kollmeyer
 
The Dow industrials looked set to snap a streak of four consecutive gains, as U.S. stock futures pointed lower ahead of minutes from the Federal Reserve’s most recent policy-setting meeting.
Market reaction to better-than-expected jobless claims numbers released Thursday was muted, as stock-index futures maintained modest losses.
A relatively subdued rise in Chinese markets, where traders returned from a long holiday break, and mixed trade in European stocks set the early tone, pitching futures lower.
With that backdrop, anticipation of the Fed minutes and of Alcoa Inc.’s quarterly results — due after the close of trading Thursday — has fostered a sense of skittishness among investors, as a downdraft in commodities continues.

Koos Jansen: The Real Reason Belgium Sold 1,098 Tonnes of Gold: GATA | THE GATA DISPATCH - October 8, 2015.

Koos Jansen: The real reason Belgium sold 1,098 tonnes of gold

Submitted by cpowell on October 8, 2015Thursday, October 8, 2015

Gold researcher and GATA consultant Koos Jansen today reports that the Belgian and Netherlands central banks maintain secrets about transactions with their national gold reserves. His report is headlined "The Real Reason Belgium Sold 1,098 Tonnes of Gold" and it's posted at Bullion Star's Internet site here:

https://www.bullionstar.com/blogs/koos-jansen/the-real-reason-belgium-so...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

Nato Chief Says Prepared to Send Troops to Defend Turkey: Reuters | World - October 8, 2015.

reuters.com

NATO chief says prepared to send troops to defend Turkey

By Robin Emmott
 
BRUSSELS NATO said it was prepared to send troops to Turkey to defend its ally after violations of Turkish airspace by Russian jets bombing Syria and Britain scolded Moscow for escalating a civil war that has already killed 250,000 people.Officials at the U.S.-led alliance are still smarting from Russia's weekend incursions into Turkey's airspace near northern Syria and NATO defense ministers are meeting in Brussels with the agenda likely to be dominated by the Syria crisis.

How To Catch a Spoofer by Bloomberg

bloomberg.com

How to Catch a Spoofer

A federal judge in Chicago is expected to rule soon on a high-profile spoofing case. Brought by local firm HTG Capital, the lawsuit seeks to compel the owner of the Chicago Board of Trade to identify those behind thousands of trades that, the company alleges, manipulated the U.S. Treasury futures market.
Spoofing is when a trader enters deceptive orders tricking the rest of the market into thinking there's more demand to buy or sell than there actually is. Spoofers make money by pushing the market up or down in tiny increments, allowing them to buy at a low price and sell when the price goes back up, or the other way around. When repeated hundreds or thousands of times in the space of a few minutes, all those small transactions add up.
Spoofing has been getting a lot of attention in the news lately. Earlier this year, Navinder Sarao was arrested in London and accused of spoofing from 2009 to 2014 — including allegations he contributed to the frightening May 2010 “flash crash” in U.S. stocks. In July, Chinese officials said they thought they detected 24 instances of spoofing as shares on the Shanghai and Shenzhen stock exchanges plummeted.
In today’s computerized markets it can be extremely difficult to catch a spoofer amid the deluge of daily trades.
The trading on the Chicago Board of Trade is anonymous and organized in an order book like the one seen here. It shows the best prices to buy or sell near the last traded price. The total number of bid and ask offers at each price indicates where the demand is.

Vote to Decide House Speaker Will Be Only the Start of a Longer Campaign: NYT | First Draft on Politics - October 8, 2015.

Thursday, October 8, 2015

Thursday, October 8, 2015

NYTimes.com/FirstDraft »

Representative Jason Chaffetz of Utah in his office in Washington on Monday.
Representative Jason Chaffetz of Utah in his office in Washington on Monday. Zach Gibson/The New York Times
Vote to Decide House Speaker Will Be Only Start of Longer Campaign
By CARL HULSE
Good Thursday morning. The trail offers some interesting back-and-forths as Donald J. Trump and Senator Marco Rubio of Florida, Mr. Trumps latest target of derision, will hold events near each other on the Las Vegas Strip, and as Hillary Rodham Clinton has positioned herself against a key initiative of President Obamas, but alongside her rival Democratic nominees. But while the Senate takes up the guns debate again, the main fight will be in the House, where though a vote on Speaker John A. Boehners successor will be held, the position will hardly be decided.

DealBook Today's Top Headlines - October 8, 2015: Dell is Said to Be in Talks to Buy EMC | Deutsche Bank Forecasts Loss of Nearly $7 Billion | Cleared of Some Charges, Dewey Leaders Face More

 
Thursday, October 8, 2015
TODAY'S TOP HEADLINES
By AMIE TSANG
DELL IS SAID TO BE IN TALKS TO BUY EMC Dell is in advanced talks to buy EMC, Michael J. de la Merced and Quentin Hardy report in DealBook, citing people with knowledge of the matter. A deal would unite two stalwarts of the technology industry facing pressure to revive their businesses. The deal would be mostly cash and could be agreed upon within a week.

Investors have called for a breakup of EMC, which has expanded from data storage into a variety of businesses offering network security and content management. Its stock price has fallen 12.7 percent so far this year. Critics say its "federation" business model has produced little benefit for its shareholders. The longtime chairman and chief executive, Joseph M. Tucci, has rebuffed these demands.

Wall Street Faces for Rough Day Ahead of Fed Minutes, Alcoa: U.S. Stock Market Future Indications - October 8, 2015.

marketwatch.com

Wall Street braces for rough day ahead of Fed minutes, Alcoa

Barbara Kollmeyer
 
U.S. stock futures on Thursday pointed to moderate losses for Wall Street later, after Chinese stocks failed to rally as much as expected upon returning from a long holiday break.
As well, some nervousness was setting in ahead of the minutes of the latest Federal Open Market Committee meeting and earnings from Alcoa Inc. due after the close of trading.
Futures were paring a deeper decliner from earlier. Futures for the Dow Jones Industrial Average YMZ5, -0.29% at one point down over 100 points, fell 58 points, or 0.3%, to 16,756, while those for the S&P 500 index ESZ5, -0.29%  dropped around 6 points, or 0.3%, to 1,980.75. Futures for the Nasdaq-100 index NQZ5, -0.29%  fell 15 points, or 0.4%, to 4,308.75.

China Stocks Rise as Market Tries to Catch Up With Global Gains: Asian Markets at Close Report by MarketWatch on October 8, 2015.

marketwatch.com

China stocks rise as market tries to catch up with global gains

Chao Deng
Chinese stocks rose sharply Thursday, catching up to a rally in global equities after the market was closed for a week-long holiday.
The Shanghai Composite Index SHCOMP, +2.97%  finished up 3% at 3143.46, putting its gains at nearly 7% since the lowest point of a painful summer selloff.
The benchmark is still off about 39% from its June peak, although “a stabilization in the market is in sight,” wrote Goldman Sachs analyst Kinger Lau in a note.