Stock Rout Spreads as Bonds, Currencies Stay Calm: Markets Wrap [Bloomberg]
The worst of the stock declines were in Asia, where China’s Shanghai Composite gauge closed down more than 5 percent. Taiwan’s technology-heavy TWSE Index plummeted more than 6 percent in the region’s worst performance. By comparison, European losses were more contained, with the Stoxx Europe 600 Index and Britain’s FTSE 100 both slipping no more than 2 percent. Italian equities headed for a bear market, however, and LeasePlan Group NV pulled a planned IPO.
Contracts across all three of the S&P 500, Dow Jones and Nasdaq indexes extended losses from Wednesday, after the latter gauge plunged more than 4 percent for its worst day in seven years. Treasuries, which helped trigger the stock selloff when 10-year yields hit the highest since 2011, fluctuated in a narrow range after jumping on Wednesday.
Hurricane Michael Leaves Trail of Destruction as It Slams Florida’s Panhandle [NYT]
A storm that was initially forecast to arrive as a tropical storm instead amped up to furious intensity, hitting landfall just after midday near the small seaside community of Mexico Beach, 100 miles southwest of Tallahassee, with winds topping 155 miles per hour.
Images from there showed swaths of shattered debris where houses once stood and structures inundated up to their rooftops; the streets of Panama City, farther west, were blocked by downed tree limbs and impossible tangles of power lines. Recreational vehicles, trucks and even trains were pushed over, surrounded by new lakes of water.
Trump doubles down on Fed attacks, saying it’s ‘going loco’ [CNBC]
Saying he’s “not happy” with the Fed, Trump told Fox News he could’t understand why it was continuing to tighten U.S. monetary policy. The president has previously expressed displeasure with the central bank, and that’s led some to fear the institution’s independence is at risk.
“The problem I have is with the Fed. The Fed is going wild. I mean, I don’t know what their problem is that they are raising interest rates and it’s ridiculous,” Trump said during a telephone interview with Fox host Shannon Bream. “The problem [causing the market drop] in my opinion is Treasury and the Fed. The Fed is going loco and there’s no reason for them to do it. I’m not happy about it.”
Britain expects 5,000 financial services jobs to leave by Brexit Day [Reuters]
John Glen told lawmakers that he agreed with Bank of England estimates that 5,000 financial services jobs will have moved to continental Europe by the time Britain is due to leave the European Union next March.
Unsure of Britain’s future trading relations with the EU, financial firms in the UK are looking to open hubs in Paris, Frankfurt and elsewhere by March, and Glen singled out France for trying to exploit uncertainty over Brexit.
While acknowledging there had not yet been “wholesale moves of large institutions” to other cities, Glen said: “Clearly we are in a dynamic negotiation where the French in particular have sought to leverage as much advantage due to the uncertainty.”
Big Lenders Make Push to Liquidate Sears [WSJ]
A group of lenders, including Bank of America Corp., Wells Fargo & Co. and Citigroup Inc., are pushing for the company to liquidate its assets under a chapter 7 bankruptcy filing, as opposed to reorganizing the business under chapter 11, this person said.
A bankruptcy filing is expected by Monday when Sears must repay $134 million in loans, the people said. They cautioned the situation is fluid and that Sears could still find another source of capital to prop it up through a restructuring.
Warren Buffett Sheds Billions in Net Worth on Berkshire Hathaway’s Worst Day in Seven Years [Fortune]
The world third-wealthiest person, meanwhile, shed roughly $4.5 billion on paper over the course of 24 hours, with his stake in Berkshire Hathaway now worth about $86.4 billion.
Berkshire shares dipped 4.9% Wednesday—the stock’s worst one-day drop since Black Monday in August 2011. That selloff, which shook global markets, sliced over 600 points off the Dow Industrial Average, amid concerns about America’s ability to pay back its debts.
And the fattest bear in Alaska is … 409 Beadnose [Reuters]
Beadnose nosed out a larger Alaska brown bear, a male called 747 – and likened to a jumbo jet – in online votes collected by staff at Katmai National Park and Preserve during a wildly popular event called Fat Bear Week. Male bears are bigger but Beadnose was deemed to be more rotund.
“Her radiant rolls were deemed by the voting public to be this year’s most fabulous flab,” the park said on its Facebook page. “Our chubby champ has a few more weeks to chow down on lingering salmon carcasses before she heads up the mountains to dig herself a den and savor her victory.”