$350 Trillion In Securities In Limbo: LIBOR To Be Phased Out By 2021

Unofficially, Libor died some time in 2012 when what until then was a giant conspiracy theory, namely that the world's most important reference index had been rigged for years, was confirmed. Officially, Libor died earlier today when the top U.K. regulator, the FCA announced that Libor would be phased out by the end of 2021.

Core Durable Goods Orders Disappoint But Aircraft Orders Surge 131%

A huge upside surprise for durable goods orders (+6.5% MoM vs +3.9% MoM) was dominated by a 19% spike in transportation (with non-defense aircraft orders up 131.2% MoM). However, away from this unsustainable surge in orders, Core Durable Goods Orders disappointed (+0.2% vs +0.4% exp) and Capital Goods New Orders Nondefense Ex Aircraft & Parts fell 0.1% - the biggest drop since Dec 2016.

Krona Sinks After Swedish PM Refuses To Resign, Reshuffles Cabinet Over "Disastrous Leak"

A brief (ECB/Fed-driven) sigh of relief yesterday in the Krona has ended as Sweden's embattled PM has refused to resign over the government's "disastrous leak" of the nation's citizens' information. Lofven has instead chosen to reshuffle his cabinet, ading "I don’t want political chaos in Sweden, that’s not what we need right now, I will take responsibility and ensure we don’t get a political crisis."

Frontrunning: July 27

  • Healthcare showdown (Reuters)
  • Tax Overhaul in Doubt With House Stuck on Budget Disagreements (BBG)
  • Dollar steadies after Fed skid, shares hit new highs (Reuters)
  • Samsung Is Closing In on Apple as World’s Most Profitable Tech Firm (WSJ)
  • Sweden's PM Refuses to Resign After Cyber-Security Scandal (BBG)

Global Stocks Hit New All Time High As Dollar Rebounds; Europe Volatile On Earnings Deluge

The levitation continues with S&P futures pointing to - what else - another higher open while European stocks swung between gains and losses on the busiest earnings days of the year (85 of the Stoxx 600 report) which has seen European pharma giant AstraZeneca plunge 15%, the most on record, after its flagship lung cancer trial Mystic failed to show benefits, while Deutsche Bank slumped 4% on a 12% plunge in FICC revenue.

EU To Force Poland, Hungary And Czech Republic To Accept Refugees

One month after the EU's executive Commission launched legal cases against Poland, Hungary and the Czech Republic for "defaulting on their legal obligations" by refusing to accept migrants, on Wednesday the three Central European nations suffered another blow after Brussels mounted a legal fightback to force them to comply with EU refugee quotas.

Deutsche Bank Tumbles After Abysmal Trading Results

Deutsche Bank shares tumbled 4% on Thursday after the bank reported a plunge in overall company revenue which slumped to the lowest in three and a half years, as Investment Banking revenue dropped 16%, while FICC tumbled a whopping 12% Y/Y and 30% Q/Q, with CEO John Cryan taking a page out of the Goldman playbook and blaming "muted client activity."