According to Reuters, Morgan Stanley and Italian lenders UniCredit and Intesa SanPaolo have rebuffed a proposal by Italy's third-largest lender, Banca Monte dei Paschi di Siena to back its proposed 5 billion euro cash call, a development which may lead to a bail-in of the troubled lender, and potentially spark contagion across the Italian banking system.
Update: Looks like we may have a lost in translation moment here, because shortly after the Reuters report (which recall is first and foremost an FX dealer and so loves USDJPY volatility), bloomberg reports that the "MOF draft statement cited by Reuters simply affirms that govt still plans a package." Hardly the dramatic "pressuring" of the BOJ Reuters would have its FX trading clients believe.
The crucial thing to understand about credit bubble dynamics is that borrowing money from people desperate to lend and using the proceeds to overpay for assets requires only monkey-level intelligence. So while a bubble is inflating it’s impossible for most of the media, banking and political communities to tell the legitimate operators from the hopelessly corrupt and/or extremely stupid. That’s the world we’ve created by handing monetary printing presses to governments, and by extension to corporate CEOs.
Earlier today, the leader of the Jabhat al-Nusra front, Abu Mohamed al-Golani confirmed that his group has formally split from al-Qaeda and has renamed itself Jabhat Fath al-Sham or the Levantine Conquest Front. "The creation of this new front aims to close the gap between the jihadi factions in the Levant," Golani said in his first televised appearance. "We thank the leaders of al-Qaeda for understanding the need to break links."
"I am not Donald Trump's campaigner... I listened to (Trump) and I have to tell you that he made three proposals to stop terrorism. And as a European, I myself could not have drawn up better what Europe needs."
WTI Crude (Sept 16) futures are within a hair of trading with a $40 handle - something that has not happened since the lows after the failed Doha talks in April. From the June highs at almost $53, oil is down 22% - a bear market -as inventories, rig counts, and production all rise.
The reason Ford stock is plunging this morning is not so much the company's earnings miss, when the US auto giant reported Q2 EPS of $0.52, below the $0.60 expected, but because in some startling language, CEO Mark Fields laid out a very gloomy picture of the future.
Just hours before tomorrow's official GDP print, the Atlanta Fed just took an axe to its GDPNow US economic growth forecast. Despite the record-breaking streak of positive economic surprises, following yesterday's durable goods data and today's advance economic indicators report, GDPNow has crashed from over 2.4% to 1.8% growth for Q2.
Despite the protestations by President Obama and Hillary Clinton that America is great (the greatest in fact) and doom-and-gloom-mongery is a false narrative, reality is that Americans appear to be increasingly pessimistic about the future of America.
As Europe's "democratic institutions" continue to stick their collective heads in the sand, pretending to ignore Erdogan's unprecedented crackdown against every political opponent as well as tens of thousands of people who have nothing to do with politics, Turkey’s post-putsch purge of dissent reached deeper into the economy as authorities shuttered 130 media outlets, detained the head of a major oil company and banned the chief strategist of a leading brokerage.
Last night, just ahead of the Democratic National Convention's prime time event as president Obama was set to begin his speech praising Hillary and slamming Trump, WIkileaks released another batch of leaked data from the DNC, this time in the form of hacked voicemails from top Democratic officials. However, a cursory skim of the release underwhelmed, suggesting no major developments would emerge as a result of this particular disclosure.
In a pro- instead of reactive move that many will say was long overdue, if quite ironic considering it was Germany's lax immigration policy for most of 2015 that is the reason for Europe's soaring "radical Islam" crisis, overnight German police and special forces raided a mosque and eight apartments in Hildesheim, said to be a hotbed of a radical Salafist community, the interior minister of the northern state of Lower Saxony said on Thursday.
The current oil-price rally led many to believe that a full price recovery was underway. But inventories have been too large for that to happen short of epic supply interruptions. U.S. rig counts have surged as oil prices sink. Capital is driving the oil markets and it enables bad behavior by producers. That is why oil prices will stay low. The oil-price rally that began in February is over.