European Nations Throw Up On EU Plan To Seize Border Sovereignty, Impose Standng Border Force

“Strengthening Frontex, creating a kind of border guard would by all means be needed, beneficial,” he said on his way into a meeting of EU foreign ministers in Brussels. “But the way the commission proposed it—for it to be a structure independent from nation states—is astounding.” He added: “There’d be an undemocratic structure reporting to no one knows who.”

3 Charts The Fed Should Consider

With economic growth currently running at THE LOWEST average growth rate in American history, the time frame between the first rate and next recession will not be long. For investors, there is little “reward” in the current environment for taking on excess exposure to risk assets. The deteriorating junk bond market, declining profitability and weak economic underpinnings suggest that the clock has already begun ticking. The only question is how much time is left.

Goldman Warns IG Credit Collapse Signals S&P 500 Notably Overvalued

The sell-off in credit over the past week has led many investors to ask what it means for equities. Credit spread widening usually has negative implications for equity but as Goldman notes,  it is critical to estimate the degree to which the equity market has already priced the weakness to determine the potential risks to equity going forward. Interestingly, Goldman finds the weakness in high yield credit was foreshadowed by weakness in the equities of high yield companies (like for like), but the weakness in Investment Grade credit spreads relative to their corresponding equities represents a new divergence suggesting meaningful downside for S&P 500 investors.

Salient Partners Issues A "Storm Warning" For The Market

There is a Category 5 deflationary hurricane forming off the Chinese coast as Beijing accelerates the devaluation of the yuan against the dollar under the guise of “reform”. I say forming … the truth is that this deflationary storm has already laid waste to the global commodity complex, doing trillions of dollars in damage. I say forming … the truth is that this deflationary storm has driven inflation expectations down to levels last seen when the world was coming to an end in the Lehman aftermath. And now the Fed is going to tighten? Are you kidding me?

"Credible" Threat That Closed LA Schools Was "Hoax", NYC Says


Los Angeles police confirmed that all Los Angeles Unified School District (LAUSD) schools are closed Tuesday as police investigate what The LA Times reports as a bomb threat was called into a LAUSD board member. LAUSD is the nation's 2nd largest district. The LAUSD superintendent said  "I am not going to take a chance when it comes to the lives of students," stating that the threat was made to many schools, involved packages and backpacks, and says he wants every school is system searched. L.A. police chief says threat still being analyzed, FBI has been notified.

Common Sense Declares "Something Far Worse Is At Work In The Economy"

Since that transition in mid-year, oil prices have again persisted rather than rebounded and of late have turned to new “cycle” lows. Yet, neither transportation nor retailers have traded as if further benefits were accruing in terms of that “stimulus.” This is not to say that stock investors have boarded the recession view, only that there is a clear shift in risk perception that has undoubtedly rebalanced and reprioritized risk parameters. If the left side of the chart below was risks being viewed very favorable in terms of the economic fallout of low oil prices, the right is undoubtedly (much) less certain.

As US Commandos Arrive In Syria, Kurds Ask "Is This It?"

"The U.S. troops are about to see for themselves what they're up against, and if America is serious about defeating ISIS, it will need to contribute more than guns and bullets; America's new allies will need artillery, armored vehicles and antitank weapons to match ISIS' firepower."

Tens Of Thousands Of Properties To Be "Dumped" On London Real Estate Market By 2017

"As many as 60,000 homes bought off-plan in new developments in areas such as Nine Elms are scheduled for completion by the end of 2017 and many will be put up for sale immediately because of the growing disillusion with London... Of these, we believe between 50 to 60 per cent have been sold off-plan to international buyers. Therefore, it is likely that up to 30,000 properties could be returning to the market in the coming two years.”

Copper's Dumping As Crude's Pumping

Dr. Copper and Captain Crude are in significant disagreement over the state of the world... or it is just algos gone wild once again?

The Fixed Income Bloodbath Continues: Wall Street Harbinger Jefferies Reports Another Terrible Bond Trading Quarter

Earlier today Jefferies reported another quarter in which its Fixed Income revenue could best be described as dismal: Fixed Income posted a nominal $8.4 million in revenue: a whopping 83% collapse from the already subdued $48.6 million a year ago.  The biggest irony is that while other banks are clamoring to be allowed to "prop trade" again, Jefferies which has had the green light to do just that as it never got an FDIC bailout and remains the only sizable pure-play investment bank, just got crushed precisely due to its junk bond prop trading.

Don't Believe The Hope

If there is one chart that tells the 'truth' about the US equity 'market' it is this. Not only has breadth collapsed back to Black Monday lows (despite elevated index prices) but yesterday's exuberant rip higher diverged dramatically from a very significant drop (3 decliners for every advancer) in overall market breadth. Yes, it's Fed week, and OPEX, but the underlying support for the ponzi is waning rapidly.