This Is The Rumor Causing The Spike In Deutsche Bank Shares

The catalyst for the DB spike is again a rumor.  There has been trader unsubstantiated speculation - launched on Twitter - that the bank may reach a lower RMBS settlement with the U.S. DoJ than feared. As Bloomberg seriously notes: "unverified handles on Twitter speculate the DoJ fine may be $5.4b, vs reports earlier this month the DoJ had sought $14b. Unverified handles including @fiatcurrency, @Fxmacro Tweet or retweet the speculation."

This Is How Much Liquidity Deutsche Bank Has At This Moment, And What Happens Next

Following today's Deutsche Bank fireworks, Goldman reports that "crisis” questions are being asked: “is there risk of a financial crisis re-run” and “can a large European bank face a liquidity event”? To answer these questions we look at the total liquidity accessible to Deutsche Bank, and what are the options facing the bank next.

Chicago Fed Bounces But Employment Slips

"Economic growth in the US appears to have picked up a little at the end of the third quarter," reports MNI as September's Chicago Fed ticked up to 54.2 (better than the 52.0 expectations). Most subindices rose but notably employment fell. While excuses grow around the nation for disappointing data, 79% of Chicago panellists said the run-up to November Presidential Elections is having a negligible impact on business.

Gold & Silver Are Spiking

With USDollar liquidity demand soaring in Europe, and Lehman-esque systemic risk concerns re-emerging from the shadows, it appears the safe haven bid for protection from the folly of politicians and central planners is alive and well...

US Spending Disappoints In August As Savings Rate Rises For Second Month

After pesonal spending growth slowed modestly one month ago, rising 3.8% Y/Y, in August US consumption once again disappointed, staying flat in the month, below the 0.1% expected sequential rebound, although this was offset by an upward revision to the last month's data from 0.3% to 0.4%. On an inflation adjusted basis, as feeds into the GDP beancount, Real PCE dipped -0.1% in August, well below July's 0.3% bounce, missing the expectation of a 0.1% rise while the Core PCE Index was inline with the 1.7% expected on a Y/Y basis.

Frontrunning: September 30

  • Asia stocks slide as Deutsche sours mood, oil pulls back (Reuters)
  • Deutsche Bank Drops to Record as Some Clients Reduce Exposure (BBG)
  • Deutsche CEO tries to reassure staff as shares plunge (Reuters)
  • Oil falls as investors cash in on OPEC deal rally, dollar rises (Reuters)
  • Three Chinese fishermen killed in confrontation with South Korea coastguard (Reuters)

Largest Dutch Bank To Fire Thousands

One day after Germany's second largest lender confirmed reports of a massive restructuring when it announced it would lay off nearly 10,000 employees, or about 20% of its entire workforce while slashing the bank's dividend for the rest of the year, the Dutch newspaper Het Financieele Dagblad reported that ING Groep, the largest Netherlands lender, will announce thousands of job cuts at its investor day on Monday.

Will The ECB Buy Stocks?

With The SNB and BOJ already neck deep in their equity-buying experimentation, and even Janet Yellen hinting at it for The Fed, the most pressing question on most liquidity-hunting central-planer-watchers is - when will Draghi start buying stocks? The short answer, from ABN AMRO, is ECB equity purchases are unlikely in the near term.. and even so, The ECB would be increasing the risk on its balance sheet for uncertain, and at best modest gains in economic growth and inflation.

Cheat Sheet: The Third Party Presidential Candidates

It’s coming closer to election time, and it’s hard to shake the feeling that something crazy or unprecedented could happen in the coming months... and for the first time in almost 20 years, the third-party candidates are getting attention across the board.

France's New Sharia Police

The silence of politicians and human rights organizations, when non-Muslim women are violently assaulted because they wear shorts that are not compatible with sharia -- as opposed to their thundering indignation against police for issuing a fine to a Muslim woman in a burkini -- signals an immensely important political and institutional move...

The Run Begins: Deutsche Bank Hedge Fund Clients Withdraw Excess Cash

Deutsche Bank concerns just went to '11' as Bloomberg reports a number of funds that clear derivatives trades with Deutsche Bank AG have withdrawn some excess cash and positions held at the lender, a sign of counterparties’ mounting concerns about doing business with Europe’s largest investment bank.

A Conspiracy Theory About Conspiracy Theories

"The powers that be – the elite, the deep state, whomever – want wild conspiracy theories to spread. Because after these wild theories set the “outrage meter” very high, they can get away with almost anything below that line."