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Forward Guidance
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Trump gets Fed Chair short list, it's PMI day, and the EU hits Amazon with a tax bill.
Shortlist
Advisors to President Donald Trump have given him a [final list of candidates]( to take over as Federal Reserve chair when Janet Yellen’s term ends early next year. Former Fed Governor Kevin Warsh – who has drawn fire from [both the left and right]( – is among the [leading candidates](. Jeffrey Gundlach, the head of DoubleLine Capital, said that Federal Reserve Bank of Minneapolis President [Neel Kashkari]( will get the job, which would no doubt catch markets off guard.Â
PMI day
A composite Purchasing Managers Index for the euro area climbed to 56.7 in September, the strongest level in four months, according to IHS Markit. Services PMI for the region reached 55.8 as new orders rose at the fastest pace in more than six years. The service sector was also a [bright spot]( in U.K. PMI data, coming in at 53.6 for the month after a disappointing [construction](print earlier in the week. Markit publishes services and composite PMI data for the U.S. at 9:45 a.m. Eastern Time.
Back taxesÂ
Amazon.com Inc. was hit by a European Union order this morning to pay [250 million euros]( ($294 million) plus interest in back taxes to Luxembourg. The company joins the list of multinationals to fall foul of EU Competition Commissioner Margrethe Vestager, who last year served Apple Inc. with a record tax bill. Ireland was rebuked by the EU today for [failing to collect]( that sum, which could be as much as 15 billion euros.Â
Markets mixed
While it was ‘another day, [another record high](’ for U.S. stocks yesterday, the momentum has not carried across the world. In Europe, the Stoxx 600 Index was down 0.2 percent at 5:50 a.m. as Spanish markets again led the losses, while S&P 500 futures [also slipped](. The 10-year Treasury yield was at 2.318 percent and gold was higher. Overnight, the MSCI Asia Pacific Index gained 0.3 percent while Japan’s Topix index closed unchanged.
Coming up...
The 6:30 a.m. Bloomberg TV interview with Vice Chair Stanley Fisher will be worth keeping an eye on as he prepares to leave the institution. At 3:15 p.m. Yellen speaks at an event at the Federal Reserve Bank of St. Louis. In data today, as well as PMIs, mortgage application figures are released at 7:00 a.m. and the ADP employment change at 8:15 a.m.
Here's what you should read today
- The White House and Equifax agree: [Social Security numbers]( should go.
- [Go big or go home]( is the plan for ETF providers taking on Europe.Â
- China bank stocks turn into latest [best hope]( for investors.
- Now robots are coming after India’s [low-cost labor](.
- How 3-D printers could erase [a quarter of global trade](Â by 2060.
- Ex-Goldman banker Leissner [barred from U.S. securities industry](.
- The excess funding capacity in [tri-party repo](.Â
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And finally, here’s what Joe’s interested in this morning
There was an interesting tweet from Lloyd Blankfein yesterday in the wake of news that [Goldman Sachs has been exploring]( whether to get into trading of virtual currencies for clients. Three things about the tweet stand out. The first is that he took a shot at knee-jerk Bitcoin naysayers by saying that people were once skeptical of paper money too. That's quite a thing to say. It's also noteworthy that he specifically said 'bitcoin' and not 'blockchain.' For years, the Very Serious People Of Finance have been known to sit on panels and stroke their chins and stare out into the horizon and say things like "Well, of course, blockchain technology is a profound revolution that will reshape finance as we know it" and then let everyone bask in how forward-thinking they are. But Blankfein didn't say anything about blockchain here. Finally, there's the ambiguous first sentence, where he doesn't say who's still thinking about bitcoin: is it he himself, or is it Goldman as an organization? The latter would basically be reiterating the news from a day earlier. The former would suggest it's something marinating in his mind these days, which would be more intriguing.
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