Today's massacre in money markets has seen global bonds crushed but US Treasuries dramatically underperforming. In fact, as Gavekal Capital's Eric Bush notes, the last time the spread between US and German 10-year government bonds had such a large yield differential was on May 10th, 1989, as in before the fall of the Berlin Wall.
Moments ago, Smith & Wesson reported second quarter earnings which, beat estimates on the top and bottom line. The company's Q2 revenue was the highest recorded in company history. The reason why the stock is lower, however, is due to the company's guidance, which came in the range of $052-$0.57, missing Wall Street estimates of $0.61 cents.
Starbucks has announced that its CEO, Howard Schultz, a vocal proponent of the minimum wage and vocal supporter of Hillary Clinton not to mention the person who almost single-handedly created Starbucks as a worldwide brand, is stepping down and will be replaced by COO Kevin Johnson.
A massive explosion has rocked one of Italy’s biggest oil refineries in Sannazzaro de' Burgondi, near Pavia, about 40km south of Milan. Local authorities have ordered residents to stay indoors while an emergency plan is activated.
"Post election, investors believe the world has changed. Whether or not Trump’s pro-growth agenda is enacted or succeeds, investors buy into it: the consensus of investors we surveyed yesterday put the S&P at the end of next year at 2425; a similar survey we conducted on Nov 3 put the S&P at 2087."
It appears the growthiness of the new regime is not so friendly to FANG stocks and big tech as the Nasdaq just gave up all its gains post-election.While tech is the biggest loser in stock land, it's the bloodbath in bonds that is most worrisome as 30Y yields spike another 10bps today..
Bunds were slammed when Reuters reported that the ECB will likely extend its bond purchases beyond March but is considering sending a formal signal after its policy meeting next Thursday that the program will eventually end. Is Europe about to unleash another Taper Tantrum?
Fear has gripped the bullion market, for one is deemed to be guilty until proven otherwise. People with perfectly legal cash are afraid of cameras recording their purchases and having to pay outrageous bribes. After an adjustment period people will buy more — not less — gold. For now, the gold market has gone mostly underground with the gold price hovering around US$1,700 per ounce. Did Modi want to boost the informal economy?