"I'm all for immigration and completely open borders to enable opportunity seekers from anyplace to move anyplace else. With two big, critically important, caveats: 1) there can be no welfare or free government services, so everyone has to pay his own way, and no freeloaders are attracted 2) all property is privately owned, to minimize the possibility of squatter camps full of beggars."
The global search for yield continued this morning, when as reported yesterday, Italy was set to price its first ever super-long bond in the form of 50 year paper. According to Bloomberg, the issue size will be set at €5 billion, but what is more impressive is that with €18.5 billion in orders, it will be nearly 4x oversubscribed.
In a few days, Italy will become the latest nation to issue super-long bonds this year, following sovereigns including Belgium, France, Ireland and Spain in taking advantage of the historically low interest rates spurred by central bank stimulus. The market, however, was not impressed.
... the government's "irresponsible" plan to relocate migrants in Calais to other parts of France... would "proliferate a multitude of small Calais, genuine areas of lawlessness that exacerbate lasting tensions throughout the country."
One day after Germany's second largest lender confirmed reports of a massive restructuring when it announced it would lay off nearly 10,000 employees, or about 20% of its entire workforce while slashing the bank's dividend for the rest of the year, the Dutch newspaper Het Financieele Dagblad reported that ING Groep, the largest Netherlands lender, will announce thousands of job cuts at its investor day on Monday.
With The SNB and BOJ already neck deep in their equity-buying experimentation, and even Janet Yellen hinting at it for The Fed, the most pressing question on most liquidity-hunting central-planer-watchers is - when will Draghi start buying stocks? The short answer, from ABN AMRO, is ECB equity purchases are unlikely in the near term.. and even so, The ECB would be increasing the risk on its balance sheet for uncertain, and at best modest gains in economic growth and inflation.
We are accustomed to looking at Europe’s woes in a purely financial context. This is a mistake, because it misses the real reasons why the EU will fail and not survive the next financial crisis. We normally survive financial crises, thanks to the successful actions of central banks as lenders of last resort. However, the origins and construction of both the the euro and the EU itself could ensure the next financial crisis commences in the coming months, and will exceed the capabilities of the ECB to save the system.
"We are going to move towards an EU army much faster than people believe." But the creation of a European army, a long-held goal of European federalists, would entail an unprecedented transfer of sovereignty from European nation states to unelected bureaucrats in Brussels, the de facto capital of the EU.
Caterpillar has gotten into hot water when Belgium's government announced it was considering legal action against the machinery company over the U.S. heavy equipment maker's decision to close a manufacturing site and lay off more than 2,000 workers. Prime Minister Michel described the expected closure of the Gosselies plant in the Wallonia region as "brutal, cruel and heartbreaking."
"Beaches, like any public space, must be protected from religious claims. The burkini is an anti-social political project aimed in particular at subjugating women... It is not compatible with the values ??of France and the Republic. Faced with such provocations, the Republic must defend itself." — French Prime Minister Manuel Valls. But according to the mayor of Villeneuve-Loubet, the high court's ruling against burkini bans, "far from appeasing [Muslims], will instead increase passions and tensions."
Since July of 2011, two of the largest and most important asset classes in the world, US Treasury debt and gold valuations, have been moving in contradiction to supply and demand data. US Treasury rates have fallen by a third since the vast majority of previous buyers since have ceased accumulating... and gold has fallen about 25% on increasing physical demand. These are simply not the hallmarks of a free market. However, the only thing investors should be more afraid of than a free market correction or potential market crash is the absence of free markets...
On the verge of running out of bond to monetize, the ECB has engaged in something fed had expected: it is buying bonds from itself. But according to a troubling Reuters "trial balloon" that may be just the beginning: as Reuters writes, the "ECB may soon be forced to follow the Bank of Japan's example and buy equities as part of any expanded stimulus programme."