JPMorgan Doubles Down on Pound Short After Unexpected Rally By Bloomberg



(Bloomberg) — The pound’s dominant September rally is flashing a sell signal to JPMorgan Chase (NYSE:) & Co.

The British currency gained against all of its Group-of-10 peers this month as traders reduced odds of a no-deal Brexit at the end of October. That’s made the pound’s valuation “no longer as cheap” as Britain hurtles toward an Oct. 31 deadline to leave the European Union, strategists including Meera Chandan wrote in a Sept. 27 note.

The bank recommends selling the British currency against the Swiss franc, given that the odds of an exit deal by end-October are “very low” and the odds of a hard Brexit by January have increased. Additionally, Bank of England policy maker Michael Saunders’s unexpected dovish shift last week adds conviction to the short-sterling view, according to the analysts.

“Against this backdrop — not-so-cheap valuations, ongoing political uncertainty with risks of ‘no deal’ still lingering and a more dovish BOE — we view risks to GBP tilted to the downside,” Chandan wrote.

The pound’s gained over 1% against the dollar in September, and has climbed roughly 1.9% against the Swiss franc to trade near 1.2270. JPMorgan recommends selling pound-franc at 1.22, with a stop at 1.2450.

Recommended trades against the pound have been “light” since early August, given the magnitude of bearish positioning against the currency, the analysts wrote. However, after sterling’s September rally, speculators are the least bearish on the pound since late July, according to the latest Commodity Futures Trading Commission data.

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Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Oil Falls Further on Saudi Calm, China Outlook  By Investing.com


© Reuters.

By Barani Krishnan

Investing.com – Two weeks on and oil bulls are swimming against the bearish tide since the Saudi attack. The kingdom’s assurance that its crude output was undamaged and that it will not strike at Iran drove prices down by another 1% or more on Monday.

settled down $1.84, or 3.3%, at $54.07 per barrel.

settled down $1.79, or 2.9%, at $59.25.

“ has closed the gap after the attack on Saudi Arabia,” said Olivier Jakob of oil risk consultancy PetroMatrix.

After surging as much as $8 per barrel initially, both WTI and fell in a slow but persistent slide over the past two weeks as Saudi Arabia said its production had recovered fully from the Sept. 14 attack. It also said it had a higher output capacity now than before.

On Monday, WTI settled 75 cents below its pre-attack price of $54.85. was nearly $1 below its earlier level of $60.22.

While buying on dips prevented an acceleration of last week’s selling, it’s “not enough to reverse the trend,” Jakob said.

The lack of any military response by Saudi Arabia toward Iran, which it has accused of the attack, has also erased any war premium from oil prices.

Saudi Arabia’s Crown Prince Mohammed bin Salman warned in an interview broadcast with CBS on Sunday that oil prices could spike to “unimaginably high numbers” if the world does not come together to deter Iran. But he added that he would prefer a political solution to a military one.

Moving on from the Saudi saga, a week-long holiday in China to celebrate the Golden Week is expected to keep the lid on market positives this week.

Adding to that is a subdued Chinese economic outlook, despite a rebound in manufacturing.

Chinese Vice Premier Liu He is expected to travel to the U.S. next week to resume trade talks, but markets aren’t holding out too much hope, given President Donald Trump’s vacillations so far over the negotiations.

Tame inflation data from Germany, as well as the second-lowest reading in four years is also keeping the macro tone in oil subdued.

Hedge funds and other money managers sold 16 million barrels of futures and options in the six major petroleum contracts in the week to Sept. 24, after buying a total of 144 million in the previous two weeks, according to Reuters columnist John Kemp.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



U.S. judge rules for Bombardier, dismisses Comerica aircraft payments lawsuit By Reuters



NEW YORK (Reuters) – A U.S. judge on Monday dismissed a lawsuit in which Comerica Inc (N:) sought millions of dollars from Bombardier Inc (TO:) after the Canadian aircraft maker could not find buyers for four planes whose leases had expired.

U.S. District Judge Paul Gardephe in Manhattan, who had dismissed an earlier version of the lawsuit in July 2017, said Comerica was still unable to show that the planes had been returned to the lessor, which its contracts with Bombardier required before payment could be made.

The bank had sought $10.1 million (C$13.4 million) in its original January 2016 lawsuit. The amount sought was blacked out in the amended complaint. Lawyers for Comerica did not immediately respond to requests for comment.

Comerica had said its Comerica Leasing Corp unit had been the beneficiary under trusts that bought the four CL-600 business jets from Bombardier, and then leased them to a predecessor of SkyWest Inc’s (O:) ExpressJet unit.

The Dallas-based bank said Bombardier had guaranteed minimum residual values after the leases ran out in 2015, and promised to make up shortfalls if it found no buyers.

Gardephe, however, agreed with Bombardier that “pleading that ExpressJet made the aircraft available to Comerica Leasing at an airport in Georgia is not the same as pleading that ExpressJet returned the aircraft to Comerica.”

Monday’s dismissal was with prejudice, meaning Comerica cannot file an amended complaint.

The case is Comerica Leasing Corp v Bombardier Inc, U.S. District Court, Southern (NYSE:) District of New York, No. 16-00614.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Fed’s $200 billion effort holds down repo rate at quarter-end By Reuters


Fed’s $200 billion effort holds down repo rate at quarter-end

By Richard Leong

NEW YORK (Reuters) – An extra $200 billion in cash available to the U.S. banking system on Monday thanks to injections by the Federal Reserve kept a lid on short-term borrowing costs at end of the third quarter, preventing a replay of the chaos that hit money markets nearly two weeks ago.

Traders and analysts had speculated whether the liquidity the U.S. central bank has provided through primary dealers would be enough of a buffer for the $2.2 trillion repurchase agreement market at a critical time when banks and Wall Street often scramble for cash.

“It seems to be fairly well contained so far,” said Gennadiy Goldberg, U.S. senior interest rates strategist at TD Securities in New York.

On Monday, the Fed pumped $63.5 billion in cash via overnight loans to primary dealers, or the top 24 Wall Street firms that do business directly with the Fed.

This move was on top of the $139 billion in 14-day cash the Fed also put in the system last week.

Overnight repo rates opened early Monday at 2.50%-2.80%, compared with 1.90% late on Friday, according to ICAP (LON:).

They fell to 1.70%-1.95% in mid-afternoon trading.

On Sept. 17 during the market turmoil, overnight repo rates jumped to 10%, which had not been seen since the height of the global credit crisis in 2008.

The central bank is scheduled to conduct daily repo operations where primary dealers can bid for loans from the Fed with Treasuries and other bonds as collateral through Oct. 10.

On Monday, it announced it would offer up to $75 billion in overnight repos on Tuesday, down from the aggregate limit of $100 billion on Monday.

Goldberg said the Fed may consider prolonging its repo schedule until it decides whether to launch a standing repo facility or increase its balance sheet through Treasury purchases, or both.

Morgan Stanley (NYSE:) analysts forecast the Fed may buy $315 billion in Treasuries over a six-month span beginning on Nov. 1 to try to rebuild bank reserves and avert the turmoil that hit money markets.

Boston Fed President Patrick Harker said on Friday discussions about a standing repo facility are in their “infancy” and that more work needs to be done to determine how such a program would be designed.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Italy lifts deficit goals, but seeks to avoid EU fight By Reuters



By Gavin Jones and Giuseppe Fonte

ROME (Reuters) – The Italian government slightly raised the country’s budget deficit target for 2020 on Monday, looking to head off a programmed hike in value-added taxes while avoiding renewed tensions with the European Union.

The new coalition, which includes the anti-establishment 5-Star Movement and pro-European Democratic Party (PD), is set to unveil its first budget next month which will be based on an array of new forecasts agreed by the cabinet.

The latest figures point to growth of 0.1% this year, down from a previous goal of 0.2%, with output seen at a meager 0.6% in 2020 compared to a previously forecast 0.8%, the Treasury’s Economic and Financial Document said.

The cabinet said the budget deficit would come in at 2.2% of gross domestic product (GDP) next year compared with 2.1% in the last such document released in April.

The structural deficit, which is stripped of growth fluctuations and is closely watched by Brussels, is forecast to rise to 1.4% of GDP in 2020 from 1.2% this year — in defiance of EU rules which call for the number to decline progressively toward zero.

In July, the European Commission urged Italy to reduce the structural deficit by 0.6 points next year.

The previous Italian government, which included the euroskeptic League party, clashed ferociously with Brussels last year when it pledged to hike the 2019 deficit to 2.4% of GDP as it sought to boost welfare spending.

However, the League is not in the new coalition and Economy Minister Roberto Gualtieri said on Monday he hoped to have a “constructive dialogue” with Europe over the budget, avoiding the sort of inflammatory language that so riled EU officials in the past.

TAX EVASION

Much of the deficit in the forthcoming budget will be used to head off an automatic increase in value-added sales taxes (VAT), that had been due to come into force in January and was meant to raise some 23 billion euros ($25.2 billion) to ensure Italy complied with EU fiscal rules.

Economists warned such a hike could have snuffed out Italy’s timid growth and the new government, which took office last month, said avoiding the VAT rise was a priority.

Italy’s debt, proportionally the second highest in the euro zone after Greece’s, is forecast to rise to a new peak of 135.7% this year, before declining to 135.2% in 2020.

Last year’s ratio came in at 134.8%.

Heavily indebted Italy has consistently underperformed its European partners over the past two decades and successive governments have promised to reverse the trend through multiple reform programs. These have mostly failed.

The latest administration has said it will focus on battling tax evasion and look to raise a hefty 7 billion euros from a new crackdown next year. As part of this plan, it aims to introduce measures to encourage people to use easily traced credit cards rather than resort to opaque cash transactions.

“We will never solve structural problems in this country unless we overcome tax evasion. The government will be very serious on this issue,” Gualtieri said.

He added that the coalition also wanted to promote environment-friendly policies and would issue so-called Green Bonds to pay for various projects.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Fed’s $200 billion effort holds down repo rate at quarter-end


NEW YORK (Reuters) – An extra $200 billion in cash available to the U.S. banking system on Monday thanks to injections by the Federal Reserve kept a lid on short-term borrowing costs at end of the third quarter, preventing a replay of the chaos that hit money markets nearly two weeks ago.

Traders and analysts had speculated whether the liquidity the U.S. central bank has provided through primary dealers would be enough of a buffer for the $2.2 trillion repurchase agreement market at a critical time when banks and Wall Street often scramble for cash.

“It seems to be fairly well contained so far,” said Gennadiy Goldberg, U.S. senior interest rates strategist at TD Securities in New York.

On Monday, the Fed pumped $63.5 billion in cash via overnight loans to primary dealers, or the top 24 Wall Street firms that do business directly with the Fed.

This move was on top of the $139 billion in 14-day cash the Fed also put in the system last week.

Overnight repo rates opened early Monday at 2.50%-2.80%, compared with 1.90% late on Friday, according to ICAP.

They fell to 1.70%-1.95% in mid-afternoon trading.

On Sept. 17 during the market turmoil, overnight repo rates jumped to 10%, which had not been seen since the height of the global credit crisis in 2008.

The central bank is scheduled to conduct daily repo operations where primary dealers can bid for loans from the Fed with Treasuries and other bonds as collateral through Oct. 10.

On Monday, it announced it would offer up to $75 billion in overnight repos on Tuesday, down from the aggregate limit of $100 billion on Monday.

Goldberg said the Fed may consider prolonging its repo schedule until it decides whether to launch a standing repo facility or increase its balance sheet through Treasury purchases, or both.

Morgan Stanley analysts forecast the Fed may buy $315 billion in Treasuries over a six-month span beginning on Nov. 1 to try to rebuild bank reserves and avert the turmoil that hit money markets.

Boston Fed President Patrick Harker said on Friday discussions about a standing repo facility are in their “infancy” and that more work needs to be done to determine how such a program would be designed.

Reporting by Richard Leong; Editing by Alison Williams and Andrea Ricci



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Forever 21 closing stores in bankruptcy filing shows limits to fast fashion


(Reuters) – Fast-fashion retailer Forever 21 filed for bankruptcy late on Sunday, joining a growing list of brick-and-mortar companies that have seen sales hit by the rise of competition from online sellers like Amazon.com Inc (AMZN.O) and the changing fashion trends dictated by millennial shoppers.

Forever 21 Inc, the privately held company that helped popularize trendy and cheap clothing, has fallen out of favor with shoppers, in part due to other retailers like Sweden’ H&M and Spain’s Zara that churn out affordable styles similar to those recently seen on designer runways.

Younger, more environmentally conscious shoppers are also choosing brands that ethically source garments instead of retailers that use cheap fabrics to make T-shirts that are snapped up for $5. Resale sites like thredUp.com, which calls itself the largest online thrift store, are also growing in popularity.

Forever 21, which has 815 stores in 57 countries, said the restructuring will allow it to focus on the profitable core part of its operations and shut stores in some international locations.

It has requested court approval to close up to 178 U.S. stores outside of its major markets.

On its website on Monday, Forever 21 sales included tops that started at $3 and dresses, handbags and jewelry and pants for $20 and under.

Gabriella Santaniello, founder of retail research firm A-Line Partners, said the bankruptcy would likely create pressure on other clothing retailers as Forever 21 slashes prices to clear inventory.

She said the chain did little to differentiate itself from others.

“They used to have a bit of an older customer, but customers have become more conscious of where they spend their dollars. They want sustainability, they want to feel represented and I don’t think Forever 21 particularly stood for any of this,” she said.

At midday on Monday, there were a handful of customers browsing the jogging pants, body suits and furry jackets in the 6-month-old store at Los Angeles’ upscale Santa Monica Place shopping center.

“I don’t know if I would shop here if it wasn’t for quick fixes,” like white t-shirts and other basics, said Michael Lambert, 33, who was visiting from St. Petersburg, Florida.

“You wash it once and it’s beat,” Sommer Reling, 25, said of clothing from the chain.

Jennifer Thurmond, 46, said she was optimistic the chain could turn itself around if Forever 21 was able to keep its fashions current and keep prices reasonable.

Shoppers browse through clothing at a Forever 21 fashion retail store at the King of Prussia mall in King of Prussia, Pennsylvania, U.S. September 30, 2019.

BIG STORES

Retail analysts said Forever 21’s low prices and extremely large stores may also be a cause of its financial trouble.

“Forever 21’s large stores have been the key to their downfall. How can you have profitability on sales per square foot with these large stores,” said Jane Hali, at research firm Jane Hali & Associates.

Fast-fashion rivals H&M and Zara have never had stores as large as Forever 21 and Zara only has about 85 stores in the United States, she noted.

Founded in 1984 and headquartered in Los Angeles, Forever 21 said it will close most of its stores in Asia and Europe but would continue operations in Mexico and Latin America.

Since the start of 2017, more than 20 U.S. retailers including Sears Holdings Corp (SHLDQ.PK) and Toys ‘R’ Us have filed for bankruptcy as more customers shop online and eschew large malls.

Forever 21 also said on Sunday its Canadian subsidiary filed for bankruptcy and it plans to wind down the business, closing 44 stores in the country.

“Slimming down the operation and reducing costs is only one part of the battle. The long-term survival of Forever 21 relies on the chain creating a sustainable and differentiated brand,” Saunders said.

Forever 21 lists both assets and liabilities in the range of $1 billion to $10 billion, according to the court filing in the U.S. Bankruptcy Court for the District of Delaware.

Slideshow (3 Images)

The retailer, which filed to reorganize under Chapter 11 bankruptcy protection, said it received $275 million in financing from its existing lenders, with JPMorgan Chase Bank NA as agent, and $75 million in new capital from TPG Sixth Street Partners and certain of its affiliated funds.

April Stanton, 33, a Forever 21 fitting room attendant at the Chicago store shrugged off the bankruptcy.

“We’re still making money. We make our daily sales goals here,” Stanton said.

Richa Naidu in Chicago and Aishwarya Venugopal in Bengaluru; Additional reporting by Rama Venkat in Bengaluru and Lisa Baertlein in Los Angeles; Editing by Uttaresh.V and Lisa Shumaker



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Tech Billionaire Mark Cuban on Bitcoin By Cointelegraph


© Reuters. ‘I’d Rather Have Bananas’: Tech Billionaire Mark Cuban on Bitcoin

Billionaire technology investor Mark Cuban said that he would be happier owning bananas than (BTC).

Cuban made his remarks in a video Q&A published on YouTube by technology news outlet Wired on Sept. 27. During the Q&A session, he answered to a Twitter user asking why Cuban hates crypto if he is “into providing opportunity for people to grow their net worth.”

Continue Reading on Coin Telegraph

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



UK’s Labour demands Javid address no-deal Brexit short bets on sterling By Reuters



LONDON (Reuters) – Britain’s opposition Labour Party will ask finance minister Sajid Javid to make a statement in parliament on Monday on short positions against the pound in the lead-up to a possible no-deal Brexit, party officials said.

Labour’s John McDonnell, the party’s top finance official, would seek the statement, Labour officials said on Twitter.

McDonnell said on Saturday he had asked Mark Sedwill, the government’s cabinet secretary, to investigate any conflict of interest after former finance minister Philip Hammond said “speculators” who backed Prime Minister Boris Johnson stood to profit from a falling pound in the event of a no-deal Brexit.

Sterling plunged after the Brexit referendum in June 2016 and it is widely expected to slide again if Johnson takes the country out of the European Union on Oct. 31 without a transition deal, something he says he is prepared to do despite efforts by lawmakers to stop him.

Hedge fund managers were among the donors who poured hundreds of thousands of pounds into Johnson’s campaign to become prime minister in July.

Investors including hedge funds have a $6.3 billion short position against sterling, according to the latest Commodity Futures Trading Commission data, although that is lower than the $7.8 billion that was wagered against the currency in August.

Sterling, currently trading at $1.23, has lost about 18% of its value versus the dollar since the 2016 referendum and is down by a similar magnitude against the euro.

Investors in hedge funds, however, say their interest in speculating on sterling has been limited because the political situation is so unpredictable and the foreign exchange market so volatile.

Javid is unlikely to respond for the government in parliament as he will be making his speech to the Conservative Party conference. Instead, a junior finance minister is likely to respond.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Saudi Aramco plans to pay base dividend of $75 billion in 2020 By Reuters


© Reuters. FILE PHOTO: FILE PHOTO: Logo of Saudi Aramco is seen at the 20th Middle East Oil & Gas Show and Conference (MOES 2017) in Manama

DUBAI (Reuters) – Saudi Arabia’s state oil giant Saudi Aramco plans to pay a base dividend of $75 billion in 2020, it said in a corporate overview posted to its website on Monday as it prepares for an initial public offering (IPO).

Aramco has been courting investors for the IPO, for which it seeks to achieve a $2 trillion valuation.

The document said the company would have “a progressive growing dividend on sustainable basis at board discretion”.

The listing of Aramco, the world’s largest oil company, is the centrepiece of Crown Prince Mohammed bin Salman’s plan to shake up the Saudi economy and diversify away from oil. The IPO appears to be proceeding despite uncertainty over the timeline following a Sept. 14 attack on Aramco’s facilities.

The document on Monday also mentioned the company’s “progressive royalty scheme”, with a marginal rate set at 15% up to $70 per barrel, 45% between $70 and $100, and 80% if the price rises higher.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.