U.S. options market operators have agreed in recent months on the need for new automatic trading halts when stock options prices suddenly surge or plunge, similar to the "Limit Up/Limit Down" rules, fully implemented this past May.
Sources tell Reuters that the first part of the plan, which creates a uniform set of rules on how to deal with erroneous trades, is soon to be filed with regulators.
Asian shares plummeted this morning, as yesterday's Wall Street retreat and falling crude prices renewed investor worries over slowing global growth, while a mixed picture on Chinese manufacturing failed to impress markets.
The flash HSBC/Markit manufacturing purchasing managers' index edged up to 50.4 from a final reading of 50.2 in September, while the manufacturing output subindex in October slipped to a 5-month low of 50.7 from 51.3.
European shares are also down, with investors rattled by the threat of recession in Europe. Reports from Europe due later in the day will give investors another chance to determine the pulse of the world economy.
Japan's Nikkei closed down 0.4%, Shanghai sank 1%; Hong Kong fell 0.3%.
Honda (NYSE:HMC) has issued another recall for the new Fit hybrid subcompact model (marking the fifth recall in less than a year in Japan) over two defects that cover 425,825 cars.
The cost of the five recalls now totals ¥16.5B.
Apologizing for the repeated call backs, Honda says Chief Executive Takanobu Ito and other execs would reduce their salary by 10-20% for three months, and assign an executive to oversee quality improvements.
Tesco (OTCPK:TSCDY, OTCPK:TSCDF) Chairman Richard Broadbent is stepping down, as the company scrapped its full-year trading profit outlook due to last month's accounting error.
A continuing investigation into the accounting practices reveal that the profit forecast for the first half had been overstated by £263M ($422.1M), slightly higher than the £250M it first said in September.
Eight Tesco execs have been suspended since the discrepancy was first reported.
The 2nd U.S. Circuit Court of Appeals in NY has dismissed Argentina's appeal of an order directing BNY Mellon (NYSE:BK) to hold onto the $539M it deposited for its restructured bondholders.
The $539M interest payment played a key role in the country's default, after U.S. District Judge Thomas Griesa directed the bank to retain the funds until Argentina completed negotiations over its $1.33B plus interest owed to holdout creditors.
Following yesterday's expanded recall over faulty airbags made by Takata (OTCPK:TKTDY), the Manhattan U.S. attorney’s office is investigating whether the company made misleading statements about the safety of its air bags to U.S. regulators.
The airbags could explode with too much force during a collision, and spray drivers and passengers with shrapnel.
The National Highway Traffic Safety Administration nearly doubled its estimate of the number of U.S. vehicles affected yesterday, to 7.8M, saying the figure could be revised again.
"Everyone is always saying rates will rise; it is almost comical,” says Jeff Gundlach, speaking at ETF.com's Inside Fixed Income conference. It's a mistake looking at past economic recoveries as a template for this one, he says, because persistent deflation - owing to a number of factors - makes this cycle different.
While the Fed realizes QE doesn't do a lot of good and is ending it, he adds, the central bank has no reason to hike rates anytime soon.
Gundlach never sticks with just fixed income, and this time he turns to oil, which he believes is headed far lower. "I'm convinced Saudi Arabia wants oil at $70. They love turning the screws on people who mean them harm in the Middle East." Seventy dollar oil, however, will also hurt the booming energy sector here in the States as fracking is hardly worth it at that price.
The HSBC Flash China Manufacturing PMI for October rises to a three-month high of 50.4 from 50.2 in September (which was also the median economist estimate). The final read from HSBC is due on November 3, but this "flash" print is typically based on about 85-90% of total responses.
The manufacturing output subindex in October slipped to a 5-month low of 50.7 from 51.3.
HSBC's Hongbin Qu: "Domestic as well as external demand showed some signs of slowing ... Disinflationary pressures intensified, as both the input and output price indices declined further ... The economy continues to show signs of insufficient demand. This warrants further policy easing."
Shanghai is lower by 0.25% in early action, and the Hang Seng is down about the same.
Making good on a September report from The Information, Twitter (NYSE:TWTR) has launched Fabric, an SDK that gives app developers analytics, distribution, and (via MoPub's mobile ad platform) monetization tools.
The analytics toolkit (Crashlytics) provides data on app performance and crashes. The distribution toolkit (Twitter Kit) allows 3rd-party apps to add embedded tweets, and their users to quickly compose them. It also allows users to sign into apps via their Twitter logins or phone numbers.The monetization toolkit (MoPub Kit) lets an app's ad inventory appear in the MoPub Marketplace.
Aside from boosting MoPub's sales and Twitter's user engagement, Fabric could provide valuable data that would allow Twitter to bolster its own apps and ad sales. CEO Dick Costolo: "It’s not a departure so much as moving beyond Twitter the product and moving into Twitter the company and the platform."
Facebook and Google have been going after developers with their own tool sets, and for similar reasons.