After several weeks and months of complacency, the markets finally reacted to all the various issues and concerns around the world. This has been the worst week in global markets in a while.  It appears the Feds rate-hike and subsequent increase in yields has been the straw that has broken the camel’s back.

The situation has not been helped with further growing tensions between China and the US.  The US Secretary of the Treasury this week has accused China of currency manipulation.

The stand-off between the EU and Italy has continued this week, with the EU saying it will not bail-out Italy out should the need arise.  Both the markets and Italian government seem to be ignoring the EU’s current stance but this could change.

On the Geopolitical scene, Saudi Arabia is dealing with the fallout from the alleged killing of journalist Jamal Khashoggi.  It is alleged that the journalist was killed by a hit squad inside the country’s consulate in Istanbul.  Saudi Arabia has branded these claims as “lies”

To add to all this uncertainty, the earnings season has started.  Several industrial companies such as PPG have issued profit-warnings due to the global macro environment. It is rumoured that Ford is having to look at large numbers of redundancies.  This is thought to be a result of President Trump new tariffs.

Banks JPM and Citi have been reporting reasonable results, but all numbers have come with cautionary comments about future uncertainty.

Next week more companies are delivering their report which will gauge the current sentiment of business in the current market environment.

Economy, Trade & Fed, Macro

U.S.-China Tensions Break Out in Beijing via WSJ

China September exports surge, creating record surplus with U.S. despite tariffs from Reuters

Alternative China PMI Gauge Says Business `Has Never Been Worse’ by Bloomberg

A Greek tragedy: how the EU is destroying a country by The Spectator

Fed Officials See Strong Economy Justifying Interest Rate Rises by WSJ

IMF chief defends rate hikes after Trump slams ‘crazy’ Fed from AFP

Trade Tensions Take a Toll on Germany’s Economy via WSJ

Brazil is set to elect a fascist as president, and business is on board by NewStateman

Saudi Journalist’s Disappearance Sends Chill Through Foreign Investors, Firms from WSJ

ECB concerns grow over EU banks’ Turkey exposure as lira slides via FT

Markets / Companies

Facebook, are you kidding? By Techcrunch

Apple plans to give away original content for free to device owners as part of new digital TV strategy from CNBC

Netflix Isn’t Invincible by Above Avalon

Amazon patents Alexa tech to tell if you’re sick, depressed and sell you meds from ArsTechnica

Amazon Developing ‘Picking’ Robots for Warehouses via The Information

Ford Prepares for Mass Layoffs After Losing $1 Billion to Trump’s Trade Tariffs, Report Says by Fortune

Tencent Music postpones IPO as market turmoil hits by FT

Nationwide Class Action Lawsuit Targets Dupont, Chemours, 3M and Other Makers of PFAS Chemicals via The Intercept

Strong US bank earnings help power Wall Street rebound from FT

Italian Builders Add $118 Billion Worry to Banks’ Problems from Bloomberg

A Billionaire’s Sears Fiasco Is Finally Nearing Its End by Bloomberg

China’s Auto Sales Face First Annual Decline in Decades via WSJ

Commodities Posted Lone Gain Last Week For Major Asset Classes by The Capital Spectator

Checking in on Bond Market Losses by A Wealth Of Common Sense

Extremes in Bond Market Sentiment from Topdown Charts

Surging Yields Raise Threat of Tipping Point for Stocks by WSJ

10 & 30-Year Yields Surge, Yield Curve “Steepens,” Stocks Drop, as Fed Talks Up Rate Hikes in 2019 from Wolf Street

U-G-L-Y by Irrelevant Investor

Parsing Yesterday’s Stock Market Slide by The Capital Spectator

Why The Best Predictor of Future Stock Market Returns is Useless by Of Dollars and Data

Hedge Funds Retreat as Markets Advance via WSJ

BlackRock and Its CEO Are Making A Private Equity Bet by WSJ

Short-sellers are good for markets via The Economist

ETFs begin to reshape bond trading by FT

Iran’s Oil Exports May Be More Resilient Than Headlines Suggest via Bourse and Bazaar

Medical cannabis ‘will be available on prescription within a month’ from Metro

Crypto Currency

Harvard, Stanford, MIT Endowments Invest in Crypto Funds by the Information

Ripple (XRP) Is Down Almost 20% In Seven Days — Here’s Why via Forbes

Bill Clinton keynote speaker at Ripple blockchain event from Asia Times

Bitmain Expands Mining Operations via The Information

Ex-Donald Trump adviser Gary Cohn joins blockchain start-up via FT

Research / Interesting Reads

The Battle for the Home from Stratechery

10 years later: How the housing market has changed since the crash by Washington Post

The US is hastening its own decline in AI, says a top Chinese investor via MIT Technology Review

About six-in-ten Americans support marijuana legalization from Pew Research Center

The Walt Disney Of Retail: Meet The Billionaire Building The Malls Of The Future by Forbes

After 10 million miles, Waymo’s cars are on another level via Cnet

The Pentagon’s Push to Program Soldiers’ Brains from The Atlantic

Hackers expose frailty of robots by FT

More on the International Travel “Trump Slump” via Econbrowser

The College Dropouts Who Rode Credit Cards Into The Billion-Dollar Starup Club from WSJ

Here’s what the spread of misinformation on Twitter looks like by Poynter

The banana is dying. The race is on to reinvent it before it’s too late from Wired