In an extended interview with Spanish newspaper El Pais granted as Donald Trump was being sworn in as US president, Pope Francis warned against populism, saying it could lead to the election of "saviors" like Hitler, while condemning the idea of using walls and barbed wire to keep out foreigners.
It's long overdue to acknowledge we face a future absent net growth and likely a future with fewer consumers, fewer homebuyers, fewer taxpayers, fewer employees. We face a battle where higher productivity leads to ever more being done by ever fewer people... and if we aren't thoughtful, honest, and creative in how we adapt to this new reality... terrible consequences could await us.
For 30 years the 1,000 square miles surrounding the Chernobyl nuclear power plant in Ukraine, Belarus and Russia have lay largely inhabited and remains one of the most radioactively contaminated areas in the world. But that's all about to change if a group of German and Chinese investors have their way about it.
The Trump Rally is over: the last week saw the largest precious metal inflows in 5 months ($1.3bn), the 4th consecutive week of bond inflows ($4.5bn), and a week of modest $1.7bn equity inflows, however US stocks saw $2.5 billion in outflows, representing the 4th weekly outflow in the past 5 weeks.
"All eyes will be on the content and style of Trump's inauguration speech," Morgan Stanley's Hans Redeker wrote in a note. "The more 'Presidential' this speech comes across, the better the outcome for markets." And as BonY added, "If Trump ramps up the rhetoric the market will be concerned about building long dollar positions."
European and Asian shares, and S&P futures slipped, while government bond yields jumped to multi-week highs on Thursday after Yellen's hawkish speech. Oil rose after API reported a drop in crude inventories. The euro rebounded as investors look to Mario Draghi to address rising European inflation that make the ECB's stimulative policies look increasingly out of sync.
"I want to be loud and clear: populism scares me... policy makers need to 'man-up' and pay for the social cohesion that we need to keep our societies advancing... it probably means more redistribution than we have in place at the moment and accept that this may be a higher tax burden on people..."
Deutsche Bank employees are facing more bad news, following reported from the Post and Bloomberg that the largest German lender will tell senior employees as soon as this week that they probably won’t get a bonus for 2016 because of the lender’s performance last year. The post adds that Deutsche may hold back on giving out bonuses to as many as 90% of bankers and traders.