Happy Saturday, folks. With ZIRP still in place, uncertainty has reared its ugly head again to clip gains and send stocks tumbling. In the U.S., the S&P 500 tanked 1.61%, while over in Europe, the FTSE 100, the DAX, and the CAC fell 1.34%, 3.06%, and 2.56% respectively. Asian shares fared slightly better, though much worse than how they did earlier in the trading day. Bonds across the globe meanwhile ended the week with strong gains, while havens such as the Swiss franc and gold surged against the almighty dollar.
Here’s what else you need to know:
Deutsche Bank pulls i-banking out of Russia. Deutsche has been making moves to significantly cut company costs worldwide. By the end of the year, about 200 investment bank employees in the Russian deal advisory and securities-trading services teams will be affected. Technology, cash management, and other financial services employees however, will stay in place. Wall Street Journal (paywall)
Moody’s downgrades France’s credit rating. Citing several issues such as low growth potential, political constraints, and eroding competitiveness, New York-based Moody’s has downgraded France’s government bond ratings from Aa1 to Aa2, and changed its outlook on Eurozone’s second-largest economy from “stable” to “negative.” Moody’s
The NYSE had some glitches again. It did get resolved within 19 minutes though: “NYSE Arca experienced an issue routing Tape A, B & C symbols. The issue began at 15:15:12 ET and was resolved as of 15:34:01 ET.” MarketWatch
The Italian economy is slowly regaining its bella figura. At least that’s what Prime Minister Matteo Renzi’s government says. His crew just upgraded the nation’s economic forecasts for 2015 and 2016, while Pier Carlo Padoan, Italy’s finance minister, said he expected the region’s debt to GDP ratio to start shrinking next year, a first since 2007. Financial Times (paywall)
Russia moves first fighter jets to Syria. At least four tactical fighter jets are at the growing airfield on the Syrian coast. Russia has already sent housing for up to 2,000 people, attack helicopters, choppers for troop transportation, and artillery. It’s not yet clear what Russia’s full intent is. Wall Street Journal (paywall)
Burkina Faso president freed. President Michel Kafando has been freed after being seized by the military coup Thursday. Prime Minister Isaac Zida is still under house arrest. BBC
Japan dumps dovish approach. The upper chamber of Parliament approved the controversial bills allowing the military to engage in overseas combat, a major shift since the island nation’s post-WWII pacifism. The bill will allow overseas combat for the Self-Defense Force in very limited circumstances. They were previously limited to humanitarian roles. CNN
You won’t believe this:
Selfies take another life. A Japanese tourist died from head injuries after falling down the stairs at the Taj Mahal. The tourist was taking a selfie at the time. One of his colleagues fractured his leg during the fall. BBC
Photo: Marc Veraart