EU reaches migrant deal with Turkey, battle of the billionaires and traders doubt 2015 rates rise

The daily briefing “FirstFT” from the Financial Times.

Goldman Sachs capped a bleak earnings season for many of the biggest US banks, unveiling a drop in bond trading that knocked third-quarter profits by almost 40 per cent.

The Wall Street bank said it had been wrongfooted by “challenging” conditions in emerging markets and “limited” client activity, as it missed profit estimates for the first time in four years. (FT)

In the news

China raises the rhetoric A top naval officer warned the US that it would deliver a “head-on blow” to any foreign forces “violating” its sovereignty, as Washington plans a naval mission to skirt artificial islands Beijing has constructed in the South China Sea. (FT)

EU reaches migrant deal with Turkey Europe will provide €3bn in funding and accelerated visa liberalisation to Ankara in return for clamping down on the flow of refugees. The draft deal is ambitious and includes a host of sweeteners that Turkey has sought for many years, but it still awaits approval from EU member states. (FT)

Battle of the billionaires China has for the first time overtaken the US as home to the most dollar billionaires, according to the latest Hurun Rich List. The country added 242 billionaires this year, bringing its total to 596 and surpassing the US tally of 537. (FT)

Obama’s Afghan U-turn In a major policy reversal , the US president said soldiers would remain in the country beyond 2016. He said he had changed strategy because Afghan security forces were still not strong enough to fend off the Taliban. The decision — along with the fight against Isis in Iraq — makes it nearly impossible for Mr Obama to fulfil his longtime goal of ending America’s two Middle East wars. (FT, Bloomberg)

Forget about that 2015 rate rise That’s the message interest rate futures are sending, indicating that most traders doubt the Fed will finally begin to tighten monetary policy this year. (FT)

It’s a big day for

US-South Korea relations At a White House summit, Barack Obama and South Korean President Park Geun-hye are likely to reaffirm their countries’ long-standing alliance. The meeting follows heightened tensions with North Korea in August after two South Korean soldiers were maimed by land mines placed on the border. (NPR)

Read more about upcoming events this week.

Food for thought

Serving to Novak Djokovic The world No 1 tennis player settles down for a sushi lunch with the FT aboard his private jet. His conversation is reminiscent of his ground strokes: fluent, intense and measured. And his winning philosophy? It’s all in the mind. (FT)

The dead dogs of Mexico City Citizens of the capital’s Condesa neighbourhood were aghast this month when a killer struck, claiming the lives of 18 canines in less than a week. But perhaps the crime wave should not come as a surprise in a country struggling to keep violence on a short leash, writes the FT’s Jude Webber. The human murder rate is soaring, while a third of households have reported suffering some kind of crime. (FT)

Syria’s ‘mafia-style’ gas deals Isis and the Assad regime remain battleground enemies. But on Syria’s gasfields the need for electricity has forced them into a Faustian pact: Isis controls eight power plants, while the regime has the companies that know how to run them. (FT)

Metal as light as a feather Boeing has developed a new type of metal structure so light it can be placed comfortably on the top of a dandelion without disturbing it. The material has walls that are 1,000 times thinner than a human hair. (Quartz)

Hong Kong’s tutor wars Lawsuits; multimillion-dollar battles for talent; celebrities emblazoned on billboards all over town. It sounds like Hollywood but this is the bizarre, high-stakes world of Hong Kong’s super-tutors. Education is big business in the territory: one popular tutor last week spurned an $11 milllion salary deal. (FT)

Video of the day

Discord from the Fed John Authers explains how apparent disagreements within the Federal Reserve sent the dollar tumbling, while a Walmart profit warning administered a shock. (FT)

This article is published in collaboration with FirstFT. Publication does not imply endorsement of views by the World Economic Forum.

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Image: A migrant walks in Europe. REUTERS/Ognen Teofilovski.