Australia

"Global Market Rout" - Bond Selloff Snowballs Into Stock Liquidations On "Stimulus Pullback" Fears

With traders in the US arriving at their desks, the global selling appears to be accelerating and as Bloomberg notes, "a selloff in fixed income is starting to snowball into a global market rout" driven by what Reuters dubbed "growing concerns that global central banks' commitment to the post-crisis orthodoxy of super-low interest rates and asset purchase programs may be waning."

One "Lifelong Socialist" Norwegian's Perspective On Trump

"Despite Norwegian mainstream media and political establishment support for Hillary Clinton (They also supported Mark Rubio and Bernie Sanders when they were running), I would like to apologize for our politicians and voice my support for Trump. I believe that Americans need to think about what is at stake from lifelong socialists’ perspective. Despite what people read about Norway being the best place to live, it comes with a price."

Negative Rates & The War On Cash, Part 2: "Closing The Escape Routes"

History teaches us that central authorities dislike escape routes, at least for the majority, and are therefore prone to closing them, so that control of a limited money supply can remain in the hands of the very few. The existence of escape routes for capital preservation undermines the viability of the banking system, which is already over-extended, over-leveraged and extremely fragile. In the 1930s, gold was the escape route, so gold was confiscated. This time cash serves that role...

Eerie Calm Continues: Futures Flat Ahead Of Apple's Latest Product Launch

The unprecedented period of low volatility, in which the S&P hasn't moved more than 1% in either direction, is now well into its 40th day and the muted overnight session has done nothing to put this streak in jeopardy with S&P futures once again hugging the flatline ahead of the widely expected 3:30pm ramp. European stocks were likewise little changed while Asia was fractionally higher depite a modest dip in the Nikkei.

Australia's Prime Minister (Ex-Goldman Banker) Warns G20 To "Civilize Capitalism"

Obama wants to placate public discontent and Turnbull wants to “civilize capitalism." Instead of trying to “civilize capitalism”, we suggest we try capitalism and free markets instead of massive amounts of QE, central bank sponsored wealth inequality schemes, bank bailouts, and manipulations of every asset class on the planet, coupled with free handouts to millions of refugees at the expense of everyone else.

Traders Return From Vacation To Find S&P Futures Flat, Oil And Dollar Lower, Amid Flurry Of M&A

The return from summer holidays has started in much the same way as we left off August, with another subdued session that has seen European stocks little changed, Asian shares advance and S&P futures are modestly in the green amid a flurry of M&A. The US dollar weakened, with the Bloomberg Dollar Index down 0.2% for the 2nd day in a row as prospects for a U.S. interest-rate hike this month remained subdued.

A Brand New Visitor's First Impressions Of The United States

"...And just like that, Stockholm Syndrome has set in... At least the woman’s daughter, who watched her mother willingly submit to a humiliating body search by government officials, will grow up to be an accepting model citizen... People just accept that they have to send soldiers overseas and have to submit to government intrusion for the price of being free."

With US On Holiday, Global Stocks Rise As Dollar Sinks, While Fireworks Break Out In Crude

With the US taking the day off to celebrate the unofficial end of the summer, global markets have been relatively quiet, aside from the dramatic moves in the energy sector over the past few hours, where crude soared in early trading as reported previously on a much-hyped joint statement by the energy ministers of Saudi Arabia and Russia, only to see the spike fizzle.

Negative Rates & The War On Cash, Part 1: "There Is Nowhere To Go But Down"

As momentum builds in the developing deflationary spiral, we are seeing increasingly desperate measures to keep the global credit ponzi scheme from its inevitable conclusion. Credit bubbles are dynamic - they must grow continually or implode - hence they require ever more money to be lent into existence. As the peak of a credit bubble is reached, all these necessary factors first become problematic and then cease to be available at all. Past a certain point, there are hard limits to financial expansions, and the global economy is set to hit one imminently.

Frontrunning: September 1

  • Global shares snap losing streak as oil ends its decline (Reuters)
  • Trump returns to hardline position on illegal immigration (Reuters)
  • U.S., others agreed to 'secret' exemptions for Iran after nuclear deal (Reuters)
  • China’s Factory Gauge Unexpectedly Rises to Highest Since 2014 (BBG)
  • Weak Pound Drives U.K. Factories Back From Brexit Shock (BBG)
  • Elon Musk Faces Cash Squeeze at Tesla, SolarCity (WSJ)

"All Eyes On Central Banks" In September, But "No Reason To Smile"

September will be quite a busy month for investors since there are around 30 major central banks meetings scheduled. Since the Bank of England’s last policy announcement, the total monthly amount in global official quantitative easing has reached almost $200 billion, which corresponds, for the purpose of comparison, to Portugal’s annual GDP in 2015. Long-rumoured and oft-discussed, QE infinity is now a reality.

Russia, US Clash Over Who Killed Islamic State's Second In Command

On Tuesday, the Islamic State announced that Mohammad al-Adnani, the man who some have dubbed the terrorist organization's "second in command", was killed depriving the militant group of the man in charge of directing attacks overseas. His death marks the highest-profile killing yet of an ISIS member.

Futures Flat, Global Stocks Rise As Treasury Yields See Biggest Monthly Jump In Over A Year

The August market doldrums were on display on the last day of the month as S&P futures were fractionally lower on non-existent volume, while both Europe and Asia were modestly in the green; ten-year Treasury yields headed for the biggest monthly jump in more than a year while the dhe dollar gained for a sixth day against the yen in the longest winning streak since March. European stocks advanced for a second day, adding to a monthly gain as oil trimmed its advance in the best month since April.

Even The NYT Says Clintons Should Ban Foreign Donations

"The Clinton Foundation has become a symbol of the Clintons’ laudable ambitions, but also of their tangled alliances and operational opacity. If Mrs. Clinton wins, it could prove a target for her political adversaries. Achieving true distance from the foundation is not only necessary to ensure its effectiveness, it is an ethical imperative for Mrs. Clinton."