In Warning To Wall Street, Jefferies Fixed Income Revenue Tumbles 33%

Jefferies second quarter earnings were a warning for the rest of Wall Street: with fixed income revenues tumbling 33% in Q2 due to "lower volumes and lower volatility", suggesting that alongside the collapse of the yield curve, the coming quarter could be rather brutal for US banks.

Caterpillar Retail Sales Rise Most In 54 Months

CAT's retail sales have put the 4+ year depression in the read view mirror, and are slowly levitating higher, although like during the 2011/2012 downturn, it all depends on how "hard" China's economic slowdown will be over the coming year.

Trader: "We Need Another 20 Basis Points For The Entire Narrative To Change"

"The 2s10s spread can bear-flatten through last year’s low to accomplish the break, but I don’t think you get the dollar motoring unless the yield curve holds these levels and bear- steepens. Traders will set the bar kind of low and start getting excited if 10-year yields can breach 2.23%. But at the end of the day we need another 20 basis points for the entire narrative to change."

What Is The Market Telling Us?

The entire global economy now depends on this stripped-of-information "market" for its stability...It's difficult to see this as healthy or sustainable.

Frontrunning: June 20

  • Central bank caution beefs up stock gains (Reuters)
  • Pound Drops as BOE's Carney Says Not Yet Time to Raise Rates (BBG)
  • Oil Just Hit Its Lowest Level of the Year (BBG)
  • Britain charges Barclays, ex-bosses over 'unlawful' Qatari deal (Reuters)
  • Senate GOP Sets Ambitious Deadline on Health-Care Vote (WSJ)

Oil Plunges To November Lows On Sudden Volume Spike

"It feels like were seeing some panic that we could shoot through the YTD lows here as we retest the levels seen last November pre the OPEC meeting, with decent volumes going through the market."

Futures, European Stocks Flat As Oil Suddenly Tumbles; Pound Slides

European stocks were flat after starting off strongly earlier, dragged lower by energy stocks. Asian stocks, U.S. futures little changed as oil tumbled with Brent tumbling as low as $45.85/bbl to the lowest intraday since November 30 and taking out a 38.2% Fib support, after a one-minute spike in volume to a day-high 5,208 lots just after 6am, with WTI mirroring Brent's momentum, and falling as much as 98c to $43.22, lowest since November 14.

Barclays, Former CEO Criminally Charged Over Qatar Fundraising

Two familiar names are in the news this morning, after the UK's Serious Fraud Office filed criminal charges against Barclays Plc and four former executives, including former CEO John Varley, for conspiracy to commit fraud regarding the bank’s 2008 capital raising from Qatar.

Soft Sharia Emerges In Turkey

The good news about Turkish justice is that despite 15 years of not-so-creeping Islamization, court verdicts do not yet sentence wrongdoers to public lashing, stoning, amputations or public hangings in main city squares. The bad news about the Turkish justice system is that it is increasingly religiously ideological...