EU is preparing for no deal Brexit, says senior official Stefaan De Rynck, an adviser to EU chief Brexit negotiator Michel Barnier, said the European Union (EU) does not want a “no deal” scenario but is preparing for one.
Key quotes (Source BBC)
Brexit is a process we want to manage in a calm and rational way.
There is a clear negative impact from no deal, I think that that is clear, for both sides but especially for the UK economy. But it is not a scenario people want to work towards.
We are preparing for it, that is for sure, at 27 [the other 27 EU states] but it is not a scenario that we in the negotiation room want to bring in that negotiation room. On going to the wire, we would certainly want to avoid that.Read More →

BOJ to maintain its status-quo next week – BAML Analysts at Bank of America Merrill Lynch (BAML) offer a sneak peek at what to expect from next week’s Bank of Japan (BOJ) monetary policy decision, which will be accompanied by an updated economic assessment report
Main Quotes:
“The BoJ is likely to keep its rates and QE targets unchanged at its 31 October MPM, in line with consensus expectations.
BoJ cannot easily normalize policy or implement additional easing. First, it needs to keep reducing JGB purchases under YCC.
The BoJ's stubbornly dovish stance leaves JPY as a preferred funding currency. USD/JPY's volatility likely to come from USD.”Read More →

Australia PM Turnbull loses majority after court citizenship ruling – Bloomberg News is crossing the wires via boomberg that-
Australia PM Turnbull government has lost its majority after the high court ruled that Deputy PM Barnaby Joyce is ineligible to remain in parliament as he was also a citizen of New Zealand when elected. The high court called Joyce's appointment as violation of consitutional laws.Read More →

NZD/USD – Oversold technical conditions offer respite NZD/USD 14-day RSI is most oversold since July 2015. 0.6820 (23.6% Fib R of 2014 high/2015 low) capping downside in the pair. The NZD/USD pair clocked a low of 0.6818 earlier today before trimming losses to trade around 0.6838 levels.
The oversold conditions on the daily chart – 14-day RSI oversold, the bearish move looks overstretched as suggested by the big gap between the price and the 10-day moving average (MA).
However, the corrective move is unlikely to gather traction, given the strong bid tone around the US dollar. Still, a 100-pip move higher cannot be ruled out if the USprelimoinary Q3 GDP data due at 12:30 GMT today shows a sharp slowdown in the economy.
NZD/USD Technical Levels
The immediate resistance is seen at 0.6869 (1-hour 50-MA), which, if breached, would expose 0.6886 (5-day MA) and 0.6904 (Oct. 26 high on 1-hour chart). On the downside, breach of support at 0.6820 (23.6% Fib) would open doors for 0.6759 (Apr…Read More → Inc. reported its sales jumped over the summer and profit trumped estimates as shoppers flocked the “Prime Day” promos on its website and patronized its newly acquired Whole Foods Market stores.
Shares of the e-retailer giant jumped over 8.5 percent in late-hours trading. The stock ended at $972.43 in New York and has risen by 30 percent this year.
Net income rose to $256 million or 52 cents per share from $252 million or 52 cents a year prior. Sales increased 34 percent to $43.7 billion.
Whole Foods produced $21 million operating income after the acquisition, equating to around one month of sales. Revenue from traditional physical stores clocked in at $1.28 billion.
Revenue from Amazon web services surged 42 percent to $4.6 billion. Meanwhile, sales of logistic services jumped 40 percent to $7.9 billion.
For the current quarter, Amazon sees operating income of $300 million to $1.65 billion on revenue of $56 billion to $60.5 billion. The figures topped analysts&#039..Read More →

Microsoft Corp. posted a quarterly profit that beat estimates as demand for its cloud computing services for firms increase and its personal computer software business steadied.
Shares of the company's biggest software company increased 3.1 percent to $81.20 in extended trading.
The company's increased focus on the fast-expanding cloud applications and platforms is aiding the company in countering the slow demand for personal computers that has hit sales of Windows.
Revenue from the company's intelligent cloud business increased almost 14 percent to $6.92 billion in Microsoft's first financial quarter, ended in September 30. This slightly beat estimates of $6.70 billion by analysts.
Meanwhile, revenue from Azure rose 90 percent against a 97 percent increase rate in the previous quarter. The strong performance of Azure helped raise the gross margin at the company's cloud business to 57 percent. Its commercial cloud annualized revenue run rate hit $20.4 bi..Read More →

The CPI data is here: Japan headline National CPI (September) 0.7% y/y (vs. expected 0.7%)Reuters with a recap up now:Most of September's scant inflation was driven by continued rises in energy costs, which were partly offset by falling cellphone bills – another sign that companies still baulk at raising prices for fear of stalling a fragile recovery in private consumption.Still, the Bank of Japan is set to largely maintain its current inflation forecasts at a policy meeting next week, blaming stagnant inflation on factors such as corporate efforts to boost productivity.More hereRead More →

Data here from earlier: China Industrial profits for September: 27.7% y/y (prior +24.0%)Recap via Reuters:Profits for China's industrial powerhouses surged the most in nearly six years in September as a government crackdown on air pollution sparked fears of winter supply shortages and sent prices of finished goods like steel and copper sharply higher.
Link here for moreRead More →