Germans "Lose Faith In Banks", Rush To Buy Safes

First Japan, now German savers are leaving the "security" of savings banks for the true safety of paper cash parked inside home safes, where the central bank's negative rates can never reach. As a result safes across Germany are selling out as German savers finally "lose faith in banks."

Frontrunning: August 30

  • EU demands Apple pay Ireland up to 13 billion euros in tax (Reuters)
  • Dollar Advances as Treasuries Drop on Rate Outlook; Stocks Rise (BBG)
  • Chinese embassy in Kyrgyzstan hit by suspected suicide car bomb (Reuters)
  • France, joining German Economy Minister, urges halt to trade talks with U.S. (Reuters)
  • Euro zone monthly economic sentiment falls more than expected (Reuters)

For The First Time Since The Recession, Boeing Won't Raise Airplane Prices Due To Plunge In Demand

As part of the US economic slowdown, many have observed the sharp drop in demand for heavy trucking, coupled with the steep dropoff in train and intermodal traffic. Now, a third major red flag has emerged in the sky, where the slowdown in sales and new orders for airplanes is now so acute that US plane giatn, Boeing, announced on Monday it would refrain from increasing jetliner prices for the coming year, the first time it has held prices steady since 2009.

French Economy Minister To Resign On Tuesday

In a move that is seen as the launchpad for a presidential run by the youngest, and ostensibly most popular, member of Francois Hollande's cabinet, Reuters reports that France's Economy Minister Emmanuel Macron is set to resign on Tuesday, citing a source close to the former investment banker said.

Fed's Fischer Speaks, Says Rate Decision Not "One And Done" As He "Takes Markets Into Account"

The most anticipated Fed speaker of the day, and perhaps the week, was Fed vice chairman Stanley Fischer, who caused ripples on Friday with his follow up speech on Friday, and who spoke moments ago on Bloomberg TV, although judging by the modest pick up in Treasuries, the market's interpretation is that Fischer did not make any particularly hawkish announcement. Among the thing he said is that "the work of the central bank is never done, and I don’t think you can say one and done and that’s it."

Futures Flat, Global Stocks Higher As Dollar Resumes Rise

The quiet overnight market had been focused on the upcoming comments by Stanley Fischer, who is set to give a Bloomberg TV interview at 6:30am ET, where he was expected to expand on his recent hawkish comments. Heading into Fischer's appearance, the dollar strengthened, global stocks rose, oil hovered around $47, while US index futures were largely flat and Treasuries fell.

Apple Ordered To Repay $14.5 Billion In "Illegal" Tax Benefits, Stock Falls 2%

As the FT reported first yesterday, the EU has judged that the Irish government granted Apple "undue tax benefits" and moments ago announced the specific size of the penalty when it ordered the tech giant repay up to €13 billion ($14.5 billion) plus interest. According to the EU, the Irish deal slashed Apple taxes from 2003 to 2014, and allowed Apple to avoid tax on almost all EU profit.

Norway Raids Sovereign Wealth Fund To Cover Government Expenses

Norway's $890 billion sovereign wealth fund has long acted as a backstop for global equity markets due to it's ability to measure risk over the long-term.  But that may be coming to an end as Deputy Governor at Norway’s Central Bank, Egil Matsen, warns that withdrawals are "relevant for how we think about the risk-bearing capacity of the fund."

When 'Whatever It Takes' Fails: 37% Of Italians Give Up Job Hunt As Welfare State Grows

With France calling for the EU's budget limits to be lifted and everyone breaking every rule of fiscal responsibility - because Draghi has killed the market's signal - the fear of ever deepening deficits is (for now) removed. Enabling governments to do "whatever it takes" to get re-elected, because reforms are vote-killers, has incentivized an ever-growing group of Europeans to simply give up the job search... with Italians at the top of the list...

Greek 'Thought Police' Prosecute Bishop For (Accurately) Calling 'Refugees', "Illegal Migrants"

Greece is presently in the "coalmine" of an endless economic and immigration crisis. This month, for the first time, there was a request to activate an anti-racist law, passed in September 2014, against a Greek citizen who also has institutional status. The government asked the district attorney to prosecute the Bishop of Chios Island, Markos Vasilakis, because he dared to say, during a sermon, that the thousands of people who recently arrived from Turkey on the island of Chios are illegal migrants, and not Syrian refugees.

HuffPo "Revoked Publishing Access" Of Journalist After 'Hillary Health' Story: "It's Orwellian...I'm Scared"

"I've honestly never seen anything like this.  It's frankly chilling.  I'm a little scared.  I'm doing this video also to say, I'm not suicidal right now; I am not a particularly clumsy person; I don't own a car at the moment.  So if I'm to slip in the shower over the next couple of days or something silly like that you have to really employ probability and statistics here." 

"There Will Be Blood" - The Whole Game Is About Containing Russia-China

BRICS is in a coma. What’s surviving is RC: the Russia/China strategic partnership. Yet even the partnership seems to be in trouble – with Russia still attacked by myriad metastases of Hybrid War. The – Exceptionalist – Hegemon remains powerful, and the opposition is dazed and confused. Or is it?

Why A Record Number Of College Grads Are Working Minimum Wage Jobs

Increasingly more low wage employees are those with a college education as they are unable to leverage their diploma credentials to get a better paying job, as the only ones hiring are those seeking minimum-paid workers. This means that the share of college grads working minimum wage jobs is now an all time high; jobs which barely cover the cost of living, let along covering interest expense on student loans.

4 Millennials, 4 Salaries: Survey Finds Millennials At All Income Levels Happy, Self-Assured And Completely Delusional

Esquire Magazine recently conducted a poll of 4 millennials at 4 different income levels and the one unifying theme in the responses seemed to be that millennials are fairly self-assured and optimistic about their future despite the overwhelming mountain of economic evidence that suggests they're totally screwed.  Seems that millennials are maintaining their "safe spaces" beyond their college years...

Former Barrick Gold President: "A Big Move Has Begun. There's Something Fundamentally Wrong With The Economy"

"I think a move has begun... When you have bonds at negative interest rates you know there’s something fundamentally wrong with the economy. That’s a statement of the relative safeness of currencies... when people actually feel they can buy that bond and pay money to keep it in that bond just because it’s a safer haven than other investments then that’s pretty bad."