Global stocks jumped around the globe, with Europe's Stoxx 600 and US equity futures rising more than 0.5% on a surge in merger announcements over the weekend including the $85 billion mega takeout of AT&T for Time Warner, the $6.4 billion acquisition of B/E Aerospace by Rockwell Collins, the $2.7 billion deal targeting Genworth by China Oceanwide and the just announced $4 billion purchase of Scotttrade by Ameritrade.
It seems that the continuation of the devaluation that we have been waiting for is officially back on. So assuming that many of the strong relationships that have been in place the last several years hold, what should investors be mindful of?
...but if China can’t sell its products, it can’t afford to buy resources... resource prices plunge... and consumer prices follow, aggravating weak demand with lower prices, falling money velocity... gloom, doom... recession, depression... and worldwide deflation. Then, as the world’s attention is fixed on the sordid business of the U.S. election, with its contest between reality-TV Big Shot Donald Trump vs. Deep State Shill Hillary Clinton, the world economy wobbles.
Pressed by moderator Chris Wallace as to whether he would accept defeat should Hillary Clinton win the election, Donald Trump replied, “I will tell you at the time. I’ll keep you in suspense.” But what do these chattering classes and establishment bulletin boards think the Donald is going to do if he falls short of 270 electoral votes? What explains the hysteria of the establishment? In a word, fear.
The International Monetary Fund (I.M.F.) was unsuccessful in covering up its nefarious activities in Greece, as WikiLeaks uncovered back in April. Later, the I.M.F.’s internal watchdog team released a report condemning the I.M.F.’s actions.
It may come as a surprise to some that as the S&P500 has remained in a tight trading range over the past month, investors continued to withdraw substantial amounts of cash. According to the latest EPFR weekly data, global equities saw another $3.9bn in outflows, which brings the number of outflows to 5 in the past 6 weeks. Of note here is that while Europe has now suffered a record record 37 straight weeks of outflows, the US has been comparably pressured, with outflows in 6 of the past 7 weeks.
Say what you want about Donald J. Trump, but he is correct about one thing: the Federal Reserve has, with near certainty, been holding interest rates down for political purposes - namely, to aid Hillary Clinton in getting elected president of the United States.
President Obama’s High Command at the Fed has had the luck which Napoleon looked for in his generals. The exercise of two Yellen puts seems to have delayed the late dangerous stage of asset price inflation to beyond 2016 Election Day.
Global stocks were modestly higher, before the European Central Bank gives its policy update, while investors weigh mixed earnings results. Asian stocks rise, U.S. equity-index futures are little changed. The euro touched its weakest level since July and stocks in the region fell after their first back-to-back gains in two weeks.
The ink wasn't even dry yet on the just concluded historic, upsized and dramatically oversubscribed bond sale by Saudi Arabia which raised $17.5 billion and Saudi Arabia was already begun spending the money. Roughly at the same time as the wire transfers were taking place, the Saudis were busy repaying debts to state contractors, after long delays that squeezed company finances and hurt investor sentiment.
US futures were little changed, with European shares lower, and Asian stocks higher as caution returned after last night's Chinese economic data did little to clear up how the world's second largest economy is performing, and provided few positives for investors ahead of the third and final U.S. presidential debate; imminent announcements from both the ECB and the Fed also will keep traders on their toes today.
A couple of trillion dollars of freshly created debt and a collapsing currency (which did nothing for the trade balance which was described as "not very solid" by authorities) along with a dead stock market, a bond market at record low yields (unconvinced at any recovery) and a housing bubble and China's National Statistics Bureau 'nails it' with 'meets' across the board (albeit Industrial production disappointed).
There is a reason why, when the Chinese Q3 GDP print is revealed shortly, it will be an utterly meaningless indicator - the number is a goalseeked, arbitrary political construct meant to convey not information about the economy, but about Beijing's intentions what it may or may not do in the future. Unfortunately, since it is the only official number to come out of Beijing, hours will be spent debating it for the next few days. As such, here are 5 key things to focus on...