For Mario Draghi, None Of This Was Supposed To Happen

It'll be four weeks tomorrow that Draghi fired his quadruple bazooka and yet European markets are in apathetic mode. We show the returns of our usual selection of global assets since the cob the night before the last ECB meeting on March 10th. Perhaps markets haven't been helped by a renewed but unrelated fall in Oil (Brent -9.1%, WTI -6.3%) since this point but it's noticeable that outside of commodities the worst performers have generally been areas of the market that Draghi tried to help.

European Equities: Rolling Over…Or Overdue?

After bouncing into mid-March, bourses across the European continent have struggled to maintain any momentum. In fact, as of today, many of the broader European averages are trading back at late-February levels. Furthermore, on a relative basis, European stocks have lagged so badly that they have now set a new record for futility.

Frontrunning: April 6

  • Cruz, Sanders score decisive victories in Wisconsin (Reuters)
  • Clinton Can’t Get to New York Fast Enough After New Sanders Win (BBG)
  • Trump, Clinton Have Single-Digit Leads in Pennsylvania (BBG)
  • Panama law firm says data hack was external, files complaint (Reuters)
  • ‘Panama Papers’ Puts Spotlight on Boom in Offshore Services (WSJ)
  • Barclays partners with Goldman-backed bitcoin payments app (FT)

Pfizer, Allergan Terminate $160 Billion "Inversion" Merger; Banks Lose Over $100MM In Fees

"Pfizer Inc. today announced that the merger agreement between Pfizer and Allergan plc has been terminated by mutual agreement of the companies. The decision was driven by the actions announced by the U.S. Department of Treasury on April 4, 2016, which the companies concluded qualified as an “Adverse Tax Law Change” under the merger agreement." The biggest losers here, aside from senior AGN management who stood to cash out of their newly vested, debt-propped up shares, are the advising investment banks, who would have made over $100 million in advisory fees.

Stocks Rebound In Calm Trading On Back Of Stronger Crude, Dollar

Unlike yesterday's overnight session, which saw some subtantial carry FX volatility and tumbling European yields in the aftermath of the TSY's anti-inversion decree, leading to a return of fears that the next leg down in markets is upon us, the overnight session has been far calmer, assisted in no small part by the latest China Caixin Services PMI, which rose from 51.2 to 52.2. Adding to the overnight rebound was crude, which saw a big bounce following yesterday's API inventory data, according to which crude had its biggest inventory draw in 2016, resulting in WTI rising as high as $37.15 overnight

All Quiet On The Eurasian Front

What’s left for the Empire of Chaos in the Eurasian front is the wishful thinking of attempting to encircle both Russia and China, while both keep actually expanding all across the Eurasian Heartland, shedding US dollars and buying gold, signing a flurry of contracts in yuan and selling oil and gas to all and sundry.

The 50 Most Murderous Cities In The World

While America managed (for the first time) to get two cities on the world's Top 50 most murderous list, it is Brazil that takes the proverbial cake. Brazil has been in crisis for some time now, but even that does not explain how the venue for the 2016 Olympics is home to a mind-boggling 32 of the 50 most murderous cities in the world.

Here Are Some Of The Americans In The "Panama Papers"

Today we finally get some answers to the question on everyone's lips: who are the Americans in the Panama Papers? Surprisingly, there are no politicians of note are in files but plenty of others. Among them: retirees, scammers, and tax evaders, all of whom found a use for secrecy of offshore companies.

The ECB’s Monetary Policy Is Now Creating a Rush Into Derivatives

Investors now acknowledge that fundamental analysis is merely an afterthought when compared to the far bigger influence of central bank buying. While this destroys free markets, fuels malinvestment bubbles and rewards cronyism, it doesn’t stop central planners — it merely emboldens them. The latest example of such hubris was on full display last month when the ECB’s Mario Draghi increased QE by a third. Here’s some of what’s happened since. So “investing” has morphed into simply front-running the decisions of unelected central planners. That’s all there is to it.

The Recovery-less Recovery

It appears that Ed Yardeni's market-driven global growth barometer is peddling more fiction about the so-called 'recovery'...

California Gov. Signs Minimum Wage Hike: Admits It "Doesn’t Make Economic Sense" As Locals Flee For Texas

As of midnight, both California and New York have signed the new $15 minimum wage into law. The irony of the situation, which will most certainly go under reported, is that even California’s Governor Brown knows that it’s not the right decision to make economically. Regarding the actual economic impact, California’s Governor Brown was quoted as saying that  "economically, minimum wages may not make sense."

As Pfizer-Allergan Sinks, These "Inversion" Deals Could Be Next

While the Pfizer-Allergan $160 billion merger may be the most notable casualty of the Treasury's decree, there are various other deals working on corporate inversion deals or who have carried out inversions in the past. They are shown in the list below,

Year Of The Outsider: Why Bernie Sanders' Democratic Rebellion Is So Significant

2016 was supposed to have been the year of Jeb Bush versus Hillary Clinton: the year when the established Bush dynasty confronted the upstart rival Clinton Dynasty. But the year of the insider has turned into the year of the outsider. On both sides, voters have unexpectedly given vent to thirty years of accumulated anger with neoliberalism which has downsized their incomes and hopes. Though the Republican rebellion has been more clear-cut in its dismissal of insider candidates, it is Bernie Sanders’ Democratic rebellion that is of potentially far greater historic significance.