Belgium

Marc To Market's picture

Global Fragmentation: Crying Wolf Again?





A look at new arguments suggesting that globalization is fragmenting.  Are they really new?  Are they true? 

 
Tyler Durden's picture

What Happens When "Scotland" Comes To Spain?





Friday saw the largest demonstration in the history of Barcelona with 1.8 million people showing up, exceeding all previous records, calling for Catalan independence... and as Deutsche Bank warns "Catalonia matters!" seeing four key scenarios.

 
Tyler Durden's picture

Credit Suisse Warns Of "Self-Fueling Negative Feedback" In Scotland; Here's Who Is Exposed





Credit Suisse warns of a self-fuelling feedback loop of rising risks and costs to the Scottish financial and sovereign sectors, and a steady migration of capital, activity, jobs and taxes if the Scots vote "Yes". However, if the vote is a close "no", they warn "the cat is out of the bag," and risk remains.

 
Tyler Durden's picture

Is Scotland Big Enough To Go It Alone?





As Scotland goes to the polls to decide on its own separation from the United Kingdom, the tone of the campaign is high on passion and secessionists are inching toward the magical 50 percent line. One core debate is whether Scotland is too small and too insignificant to go it alone... The answer, perhaps surprisingly, is resoundingly “Yes!” Scotland’s big enough to “survive” on its own, and indeed is very likely to become richer out of the secession. Nearer to the small-is-rich Ireland than the big-but-poor Britain left behind.

 
Tyler Durden's picture

Meet The New Leadership Of Europe: Presenting The "Juncker Commission"





As reported ealier this morning, here, courtesy of Bloomberg, are the nominees for the next European Commission under the presidency of Jean-Claude "If Serioues Then lie" Juncker, with one from each of the European Union’s 28 countries. Job assignments were announced today by the incoming president, Jean-Claude Juncker of Luxembourg. What do these appointments mean for the European Union? The attached flash analysis from Open Europe should answer most initial questions.

 
Tyler Durden's picture

Spain Bond Yields Spike Most In Over A Decade As "Referendum Risk" Spreads





As we warned earlier, there is the potential for broad risk premium re-pricing across European nations on the back of Scotland's independence referendum decision; and nowhere is that more evident in the last 2 days than in Spanish bonds. So-called "referendum risk" - in this case related to Catalan independence - has sent Spanish bond yields up over 17bps (over 8.1% - the biggest single day jump since before the EU was formed) and risk spreads are 12-15bps wider as the UK experience (with growing support for UKIP alongside faster economic growth) raises the issue that economic recovery alone may not be enough to reverse the rise in anti-elite, anti-establishment sentiment across Europe.

 
Tyler Durden's picture

British Pound Collapses To 10-Month Lows





We warned here that the "Yes" vote for Scottish Independence was a "high risk" event, and as we noted earlier, with polls indicating its a high probability and 'English' leadership in full panic mode, it is perhaps not surprising that the British Pound opened down 160pips at 10-month lows... (a 500 pip drop in 3 days)... But, didn't the clever people on TV tell us 'it was priced in'?

 
Tyler Durden's picture

Back To The Future





Having singularly failed to reform or restructure their dilapidated economies, many governments throughout the West have left it to their central banks to keep a now exhausted credit bubble to inflate further. Unprecedented monetary stimulus and the suppression of interest rates have now boxed both central bankers and many investors into a corner. Bond markets now have no value but could yet get even more delusional in terms of price and yield. Stock markets are looking increasingly irrational relative to the health of their underlying economies. The euro zone looks set to re-enter recession and now expects the ECB to unveil outright quantitative easing. If the West wishes to regain its economic vigour versus Asia, it would do well to remember what made it so culturally and economically exceptional in the first place. We seem to be close to the endgame.

 
Tyler Durden's picture

British Pound Volatility Surges Most Since 2008 As Scottish Referendum "Yes" Vote Looms





As we explained previously, the market appeared woefully under-priced for the potential risk of a Scottish "yes" vote. However, this weekend saw the margin between 'yes' and 'no' voters narrowed dramatically (53% "No" vs 47% "Yes" - a 6-point spread now versus a 14 point spread just 2 weeks ago). UK Gilt yields are higher, GBP is falling (its lowest since March) and implied volatility has spiked by the most since 2008 as hedgers pile in, now suddenly fearful.

 
EconMatters's picture

Were European Bonds Mispriced in 2012 or are they Now?





This seems to be the biggest question in financial markets for me right now because the math just doesn`t add up any way you slice it.

 
Tyler Durden's picture

NATO Says Over 1000 Russian Troops In Ukraine, "Extremely Worrying... Dire Situation"





Hot on the heels of Ukraine's claims of 'invasion' and retraction of said claim, NATO is once again stepping in with strong claims about Russian 'incursions':

  • *NATO OFFICER: ESTIMATED 20,000 RUSSIAN TROOPS NEAR UKRAINE (not 17 or 45?)
  • *NATO OFFICER: OVER 1,000 RUSSIAN TROOPS OPERATING IN UKRAINE
  • *NATO OFFICER: 2ND FRONT RISKS CUTTING UKRAINE ARMY SUPPLY LINES
  • *NATO OFFICER: NEW 2ND FRONT 'EXTREMELY WORRYING' FOR UKRAINE

While NATO statements in the past have caused dramatic weakness in stocks (or been entirely shurgged off), it appears this time markets are taking their concerns more seriously as the officer states Ukraine's forces are in a "dire situation."

 
Tyler Durden's picture

Scottish Independence 'Yes' Vote Is A "High Risk" Event, Citi Warns





A "Yes" vote for Scottish independence represents a "high risk" event according to Citi's Michael Saunders. With the so-called 'neverendum' now less than a month away, Citi continues to highlight three particular concerns if Scotland does vote for independence: Scotland’s relatively weak fiscal position, Scotland’s large banking system and uncertainties over the currency arrangements of an independent Scotland. The Scottish Government seems to be seeking a policy of "sterlingisation" - which even their economic advisors judge "is not likely to be a long-term solution." For now a "no" vote is most likely, however, even if the Scottish referendum does not pass, the UK political landscape is likely to remain in a state of flux.

 
Tyler Durden's picture

Europe Says Would Consider Any "Unilateral Military Action By Russia A Blatant Violation Of International Law"





While we await to see any actual proof of either a Russian armed convoy entering Ukraine territory, or that this convoy was shelled by Ukraine artillery, because as a reminder this is first and foremost a war of relentless propaganda on all sides, here is the latest from Europe, which moments after stating it may roll back sanctions just announced it is now considering even more actions against Russia. From Reuters:

  • EU FOREIGN MINISTERS SAY WOULD CONSIDER ANY UNILATERAL MILITARY ACTIONS BY RUSSIA IN UKRAINE AS BLATANT VIOLATION OF INTERNATIONAL LAW

So far the only official comment that is missing is that of Russia which has vehemently denied any entrance by an armed convoy into Ukraine and has yet to have any direct statement on the alleged destruction of its assets in Ukraine.

 
Tyler Durden's picture

Here Comes The European Triple-Dip: Negative German GDP Sends Bunds Under 1% For The First Time Ever





The hammer finally hit for Europe when overnight both Germany and France reported Q2 GDP prints that missed expectations, the first actually contracting at a 0.2% rate with consensus looking for -0.1%, while France remained flat vs expectations for a tiny 0.1% rise. As a reminder, this GDP is the revised one, which already includes the estimated contribution of drugs and prostitution, suggesting the actual underlying economic growth is far worse than even reported. Then again, this is hardly surprising considering all the abysmal data out of Europe and the rest of the world in recent weeks, and with the Russian trade war sure to trim even more growth, look for all of Europe to join Italy in its first upcoming triple-dip recession in history.

 
Tyler Durden's picture

How To "Value" Sovereign Bonds In 2 Words: US 'Friend' Or 'Foe'





If a trader knew nothing about the growth, the debt, the inflation, the exporters vs. importers, the serial defaulters, currency manipulators, hot-money or conversely deflation fighters; simply grouping the nations of the world on whether they were 'friend' or 'foe' to the US would provide an odd highly correlated value perspective on the interest rates paid on 1yr and 10yr sovereign debt... It appears your status with the central bank cabal was more important than your ability to repay the loaned money?

 
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