Oil prices have risen over 20% since the OPEC production cut agreement at the end of November. While concerns abound on quota cheating and increased production from Libya, Nigeria and US shale, the incoming US administration could change the market completely through strategic oil sales and new import taxes.
As of January 16th, 2017, British Columbia (B.C) residents will have access to some “free money”. In effect, what this is doing is further inflating the already over heated housing bubble, and exacerbating its imminent pop!
In the realm of investing, an example of “fake news” is the claim by some market participants that a “great rotation” will take place from bonds to stocks. Despite a sharp rise in interest rates during the past six months and a drop in the market value of debt holdings, we expect minimal asset rotation away from debt and into equities during 2017.
With the dust settling on the December FOMC Minutes, the one recurring theme, even though he wasn't explicitly named, was Donald Trump and specifically the still "uncertain" impact his fiscal policies will have on the economy.
It's official. As previewed earlier this morning, when we reported that according to media reports, Sullivan & Cromwell lawyer Jay Clayton, a long-time favorite of Wall Street and especially Goldman Sachs, has been nominated to lead the Securities and Exchange Commission.
European stocks were panic-bid at the open overnight as hungover New Year's Eve revelers (absent Brits and Swiss who were still on holiday) bought Italian banks, German utilities, and Spanish industrials following the better than expected manufacturing PMIs across most nations. EuroStoxx 50 gained 0.6% - thanks to a spike near the open - for the best open to a year since 2013.
Chinese demand for bitcoin overnight finally proved too great, and US markets had no choice but to arb the difference. So with Bitcoin trading in China at an implied price of over $1,050 at this moment, the digital currency finally soared above $1,000 in the US as well, trading just around $1,024 on Coinbase as of this moment.
The eighth anniversary of Zero Hedge is just around the corner, and so, for the eighth year in a row we continue our tradition of summarizing what our readers found to be the most relevant, exciting, and actionable news of the year. We bring you the articles that you, dear reader, found to be the most interesting in the past 365 days.
Italy's Banca Monte dei Paschi di Siena (BMPS.MI), which is being bailed out by the state, plans to issue 15 billion euros ($15.8 billion) of debt next year to restore liquidity and boost investor confidence, several newspapers said on Friday.
Dan Loeb will pay Matt Ober, a quant, pardon "data scientist" who left WorldQuant for Third Point more than $2 million according to a breach of contract claim filed by his former employer. Ober, 32, will start next month as Third Point’s "chief data scientist."
We expect global monetary authorities to protect the dollar as long as they can and we expect them to fail. Stocks and bonds will react violently; stocks and weak credits falling, treasuries prices rising (at first). That failure will lead to hyperinflation – not driven by demand, but rather by central bank money printing. A new global monetary understanding will then emerge.
With his fund down ~50% YTD, one wonders if Crispin Odey should be thinking about quietly exiting stage left after a long and mostly illustrious career. However, as his latest letter suggests, Odey is just getting his second, or maybe third, wind and is confident that he will ultimately win the war against central bankers.