peHUB First Read

Cofee* Daily carnage report: Merrill posts a worse-than-expected loss, Citi posts a better-than-expected loss, U.S. futures are up, Asian markets are crashing, particularly in Japan.

* Huntsman and Hexion are quickly morphing from foes into friends. All it takes is a common enemy.

* A squeeze in the P2P lending world, which is largely financed by venture capital firms.

* Tesla Motors cans another CEO and lays off staff. Elon Musk is now in charge, and gives his take on what’s happening.

* McCain lost his cool last night (not that he had much to begin with), and InTrade reacts by dropping his odds down to 6-1. A conservative reader offered to short Obama when InTrade had him a 69%, if I’d play the other side… Should have taken him up on it.

* Kedrosky on Gordon Brown. He likey.

* Fox Biz News turns one-year-old. I’ve still never really seen it, except for when I spent an afternoon in our New York offices. It was on a giant flat-screen, but with the volume off and no closed captioning. I asked why there was no sound and why FBN was on instead of CNBC. Both questions were answered with: “We lost the remote.”

* Nouriel Roubini on Charlie Rose: