Goldman Finds Tax Reform Will Greatly Benefit The Big Banks

"Based on our preliminary analysis of the current tax bill under consideration by Congress, our EPS estimates for our coverage would increase by 13% on average if the US statutory rate were to be reduced to the proposed 21%, all else being equal."

Key Events In The Last Week Before Christmas

It might be the last full week before Christmas - with both newsflow and trading volumes set to slide substantially - but there’s still a few interesting events and data releases to look forward to next week.

Rising Interest Rates Starting To Bite

We have long held that interest rates have been so low (especially real rates) that it will take some time to reach a level for them to really matter and impact markets. The 2-year yield crossing over the S&P500 dividend yield this past week for the first time in the last ten years is unlikely to slow the momentum driving risk markets.

Frontrunning: December 18

  • Bitcoin Takes Bigger Wall Street Stage With Smooth CME Debut (BBG)
  • Trump targets China and Russia on national security (Reuters)
  • Panthers owner to sell team amid misconduct allegations (Reuters)
  • Prosecutors Treat Opioid Overdoses as Homicides, Snagging Friends, Relatives (WSJ)
  • U.S. taxpayers rush to claim deductions under threat from tax bill (Reuters)

Austria: New Government To Resist "Islamization"

A coalition between the anti-immigration Austrian People's Party and the anti-establishment Austrian Freedom Party, which will be sworn into office on December 18, is poised to catapult Austria to the vanguard of Western Europe's resistance to mass migration from the Muslim world.

Greece Is The Patsy For Europe's Failure (And The Ordeal Is Far From Over)

"The truth is, Greece was set up to be a patsy for the failure of Europe’s financial system, and is now being groomed simultaneously as a tourist attraction to benefit foreign investors who buy Greek assets for pennies on the dollar, and as an internment camp for refugees and migrants that Europe’s ‘leaders’ view as a threat to their political careers more than anything else."

Is The iPhone X Racist?

A woman in the eastern Chinese city of Nanjing has been offered a second refund after faulty facial recognition software on two iPhone X handsets allowed her colleague to unlock them.