The "Synergies" Arrive: Dow Fires 2,500

Today, less than a month after Dow completed its transaction with Corning, the "synergies" which we previewed last December have begun. Moments ago Dow announced that cost-synergies would be achieved through a global RIF, or reduction in force (another of Wall Street's favorite acronyms) of approximately 2,500 jobs, or 4% of the workforce.

Frontrunning: June 28

  • Brexit vote, UK political confusion keep world markets on edge (Reuters)
  • Cameron Heads to Last Supper in Brussels Amid Impasse in London (BBG)
  • Banks Get Reprieve From Brexit Hammering (WSJ)
  • U.S. Stock Futures Rise as Stimulus Hopes Outweigh Brexit Fears (BBG)
  • Brexit adds to existing troubles faced by banks (FT)

Global Stocks Rebound, US Futures Jump On Expectation Of "Coordinated Intervention By Central Banks"

After a historic two-day selloff, which as shown yesterday slammed European banks by the most on record the wildly oversold conditions, coupled with hopes for yet another global, coordinated central bank intervention, coupled with modest hope that David Cameron's trip to Brussels today may resolve some of the Article 50 gridlock, have been sufficient to prompt a modest buying scramble among European stocks in early trading, with the pound and commodities all gaining for the first time since the shock Brexit vote.

The First Casualty Of Brexit: Italy Prepares €40 Billion Bank Bailout

Barely has the market had time to digest last week's Brexit vote by the UK, a vote which may never actually be implemented if the "sturm und drang" campaign unleashed by the EU and the ECB on UK capital markets succeeds in changing the mind of enough "Leavers" to the point that the entire referendum is called off and Boris Johnson never triggers the Article 50 clause, and already Europe's most financially troubled nation, Italy, is using Brexit as a pretext to unleash a €40 billion ($44 billion) bailout of its insolvent banks.

Greenspan Warns A Crisis Is Imminent, Urges A Return To The Gold Standard

"We're dealing now in very early days a crisis which has got a way to go.  If we went back on the gold standard and we adhered to the actual structure of the gold standard as it exited prior to 1913, we'd be fine.  Remember that the period 1870 to 1913 was one of the most aggressive periods economically that we've had in the United States, and that was a golden period of the gold standard."

Why Is The U.S. Embracing Iran - Again!?

America is apparently bent on repeating -- yet again -- the historic wrong turn it took in 1979 by once again embracing the radical Islamic regime in Iran. Why would the U.S. administration think doing the same thing again will have a different outcome?

Beijing Is Falling... Literally

Some areas of Beijing are sinking by as much as four inches a year due to the over-pumping of groundwater from beneath China's capital; and as the population grows, the pace at which the city sinks accelerates.

 

Brexit: Russia's Comfort Level Rises, US Loses Eurasian Plot

Putin spoke calmly and in a detached tone, when asked for his reaction to Brexit. But he hinted he is insightful enough to recognize the opportunity brought up by fate. The bottom line is that the EU and NATO are complementary. And Brexit upholds that national interests prevail over European collective interests. Without doubt, Brexit is also, partly at least, a reflection of the overall weariness in Europe with the continued NATO expansion eastward.

EU Officials To Unveil 'Ultimatum' Blueprint As Final Solution For European Super-State

It appears The Brits dodged more than a migration bullet in their decision to leave The EU. French and German officials are reportedly due to reveal a blueprint to effectively do away with individual member states in what is being described as an "ultimatum," with a shockingly predictable final solution to Europe's Brexit-driven existential crisis to morph the continent’s countries into one giant superstate.

"Back Into The Hurricane" - Doug Casey Warns "Gold Will Go Higher Than Most People Can Imagine"

"While we’ve spent the last several years in relative peace and calm inside the eye of the storm, we’ll be entering the other side of the hurricane wall later this year... It’s going to take gold a lot higher than most people can imagine at this point... I think $5,000 gold will happen at some point because we’re looking at a worldwide monetary crisis of historic proportions."

"Brexit" - What Goldman Thinks Will Happen Next, And Who Will Hold The Next Referendum

Considering Goldman's abysmal forecasting track record continues to plumb new lows (just today it predicted a Spain victory of Italy, and an England victory over Iceland, both tragically wrong), the following should perhaps be best used as an indicator of what will not happen. Still, since there are a lot of remaining Brexit question, we hope that the following at least provides a useful framework for how to approach the :"known unknowns", if not so much the unknown unknown ones.

The End Game Of Bubble Finance - Political Revolt

During Friday’s bloodbath we heard a CNBC anchor lady assuring her (scant) remaining audience that Brexit wasn’t a big sweat. That’s because it is purportedly a political crisis, not a financial one. Here’s a news flash. That’s all about to change. The era of Bubble Finance was enabled by a political abdication nearly 50 years ago. But as Donald Trump rightly observed in the wake of Brexit, the voters are about to take back their governments, meaning that the financial elites of the world are in for a rude awakening.