US & Israel Prepare Post-Election Strikes On Iran Despite Escalation Warnings zerohedge.com/geopolitical/u…

The Oil Shock Is Worse Than Breakevens Say zerohedge.com/markets/oil-sh…

"Lost Its Mojo": Wolfe Downgrades Netflix As Billions In Content Spending Fails To Deliver Hits zerohedge.com/markets/lost-i…

META CREDIT RISK SPIKES ON HIGHER SPENDING PLANS TESLA CREDIT RISK SPIKES ON LOWER SPENDING PLANS

French Police Identify Antifa As The "Ideologically Distinct Group" Behind The Riots Despite Democratic Denials zerohedge.com/geopolitical/f…

Jobless Claims Near 60-Year Lows Amid 'Low-Hire, Low Fire, Low-Inspire' Economy zerohedge.com/markets/jobles…

Initial Claims 194K, Exp. 200K Continuing Claims 1728K, Exp. 1710K

Futures Slide As Market Runs Out Of AI Patience, Oil Jumps On Saudi Attacks zerohedge.com/markets/future…

Top Overnight News For most of the war, Iran had an invaluable cushion: dozens of oil tankers holding millions of barrels of crude sitting safely in waters in Asia. Tehran steadily sold the oil to China, bringing in billions of much-needed cash. Now, that floating storage is gone. By mid-October, the reserves were fully depleted, according to analysts at Kpler, as a U.S. naval blockade prevented Iran from replacing the crude it normally sells to Chinese refineries. WSJ The US ordered some diplomats and their families to leave Saudi Arabia because of the threat from Houthi militants, as the Iran-backed group carried out more strikes from Yemen; four people were killed in two attacks on an Aramco oil field and an airport in Saudi Arabia's Eastern Province. BBG The US and Israel have drawn up plans for renewed strikes on Iran after the midterm elections, with targets likely to include Iran's energy infrastructure, nuclear facilities and missile and drone arsenals. NYT Aramco told staff to leave its headquarters in Dhahran and work remotely. RTRS Iran's IRGC threatened US bases in the region if Washington keeps escorting ships through what it calls an “illegal” Hormuz route. BBG Saudi Arabia is in talks with foreign governments to give state-owned Aramco access to their strategic oil storage, as the kingdom seeks to make its supplies to customers more resilient during disruptions, Chief Executive Officer Amin Nasser said. BBG The risk-off mood boosted havens, with Treasuries, the yen and Swiss franc gaining. The 30-year US yield touched its lowest since Sept. 23, but there was no relief for embattled French bonds which led a slide in European peers. BBG France's 10-year bond risk premium over Germany widened as much as 18bps to 177bps, the widest since 2011. BBG Over the past two weeks, HFs aggressively net sold global Info Tech stocks at the fastest pace in the past decade (-3.3 SDs), driven by long-and-short sales. Net allocation to Global AI stocks now sits in the 38th percentile while aggregate long/short ratio is in the 6th percentile vs. the past year. Goldman Apple shares have become investors’ preferred Big Tech hedge against AI volatility as the company largely sits out the infrastructure spending boom. BBG DeepSeek raised about $15 billion from investors including CATL and Tencent. BBG JPM's HY AI credit basket is trading at all-time wides, 97bps wider than its widest level in July, with most of the move led by CoreWeave; Oracle has widened far more than the rest of the IG hyperscalers. JPM Japan’s largest labor union group is seeking another year of wage increases big enough to anchor pay growth against persistent inflation. WSJ Japanese monetary policy: the BOJ will keep rates unchanged at its meeting next week according to a report this morning in the Nikkei (this is consistent w/market expectations). Nikkei The Philippine central bank surprised markets with a bigger-than-expected interest rate hike as it seeks to keep inflation in check during one of the worst energy crisis in decades and looming weather-driven shocks. WSJ Turkey's central bank cut its one-week repo rate by 100bps to 36%, its first cut since the start of the Iran war, in line with estimates. BBG The EU reached a provisional deal to overhaul securitization market rules that would unleash billions of euros to finance initiatives in key areas such as defense and climate resilience. BBG Barclays said it’s cutting 5,000 jobs, or about 5% of total headcount, as part of a “technology-enabled” effort to reduce costs as it adopts artificial intelligence across the bank. BBG The US signed a deal with Lockheed Martin for a minimum of 850 F-35 jets. BBG A federal judge barred the DHS from knocking on doors to check on people’s immigration status in nine states through election day, saying the practice likely violates the Voting Rights Act. BBG BofA Total Card Spending (week to October 17th) +4.9% Y/Y (prev. +5.1%); lower-income spending growth has consistently outpaced higher-income spending growth over the past several weeks. Newsquawk Some US banks are reportedly detecting unauthorized AI agents operating within accounts: Axios. The report added that the banks affected include Morgan Stanley (MS), Bank of America (BAC), JPMorgan (JPM), Wells Fargo (WFC).

Music Publishers Sue Anthropic For Copyright Infringement zerohedge.com/ai/music-publi…

JPM specialist Mark Schilsky called Meta's quarter in line, with a Q4 revenue guide that is "decidedly better than expected," but noted the 2027 commentary "will leave some investors wanting" and that the new Class C shares likely mean an equity raise is coming, just not until early 2027: "The overhang lives on!"

Premarket movers: All Mag 7 names are lower: Tesla (TSLA) drops 4.4% after the electric-car maker cut its spending plans, following capital investment that trailed expectations last quarter (Nvidia (NVDA) -2%, Alphabet (GOOGL) -2%, Amazon (AMZN) -2%, Meta Platforms (META) -2%, Microsoft (MSFT) -0.9%, Apple (AAPL) -0.2%) Chipmakers and other AI-related firms slide after reports from Tesla, Lam Research and IBM underwhelmed. Decliners include AMD (AMD) -4%, Broadcom (AVGO) -3%, Intel (INTC) -4%. The mood is weighing on other growth sectors and pushing crypto names lower American Airlines (AAL) slumps 4% after issuing a broad range for its fourth-quarter loss prediction, highlighting how the industry is struggling to map out its performance amid persistently high fuel prices. Biohaven (BHVN) soars 53% after the FDA said company’s new drug application resubmission for Vyglxia has been accepted for review. CSX (CSX) inches 2% higher after the railroad reported earnings per share for the third quarter that beat the average analyst estimate. The company is benefiting as trucking gets more expensive, pushing shippers to use its intermodal offering instead of having goods carried entirely by truck. Gentherm (THRM) falls 6% after the the automotive supplier reported adjusted earnings per share below analyst expectations in the third quarter. International Business Machines (IBM) falls 5% after posting third quarter results. Kinder Morgan (KMI) gains 2% after formally committing to building a $4.2 billion pipeline that will haul fuel across West Texas and the Panhandle to help power a data center complex. Lam Research (LRCX) falls 7% after the semiconductor capital equipment company gave a forecast for adjusted second-quarter earnings that was slightly weaker than expected at the midpoint of the range. Lockheed Martin (LMT) rises 4% after lifting its full-year outlook as the company’s missile systems portfolio was buoyed by rising global defense spending. Pool Corp. (POOL) gains 4% after third quarter results topped expectations. Procter & Gamble (PG) gains 3% after sales and profits beat Wall Street expectations, showing the Tide-owner’s limited price hikes that are successfully drawing constrained customers have not come at the expense of earnings.

France-Germany spread going orbital

*HOUTHIS CLAIM TARGETING ARAMCO SITE IN YANBU *HOUTHIS CLAIM TARGETING DAMMAM AIRPORT

First French Riots, Now Italian Trucker Blockades: What's Driving Europe's Rapid Descent Into Chaos? zerohedge.com/political/firs…

Brent Tops $112 As Tanker Attacks And Saudi Strikes Fuel Escalation Fears zerohedge.com/energy/brent-t…

French Budget Rejections Fuel Debt Crisis Fears As Yield Spread Over Germany Hits 15-Year High zerohedge.com/economics/fren…

FRANCE’S 10-YEAR BOND RISK PREMIUM RISES TO 175 BASIS POINTS