Global markets and US equity futures fell on Samsung Galaxy Note 7 contagion concern, while the dollar rose to its strongest level in 11 weeks and U.S. bonds declined as investors boosted wagers that the Federal Reserve will raise interest rates this year.
"I do not see the Brexit result in isolation. Instead, I believe we are witnessing a popular uprising against failed politics on a global scale. People want to vote for candidates with personality, faults and all. It is the same in the UK, America and much of the rest of Europe. The little people have had enough. They want change."
Like the Titanic, the EU was presented as a “super-state”, one that would be bigger and better than all the others in Europe. It was declared unsinkable. Yet, soon after it was launched, it hit an unexpected iceberg from which it could not recover. Years from now, historians and economists will debate the identity of the EU iceberg. Some will say Brexit, others will say Deutsche Bank. Still others will cite events that we have not yet seen.
With US Treasury markets closed, all eyes are on Bunds which are pushing on further above the cruclal 0.00% they broke Friday. Touching 5bps (yield) today, 10Y yields are nearing the upper bound of their post-Brexit range... as Deutsche Bank is bid.
The gold trading Commitment of Traders (COT) report, released Friday, shows the peculiarly timed gold sell off and much needed wash out of speculative longs out of the gold futures market last week sets gold up for lower prices, prior to moving higher again.
As part of the July stress tests results, which "promised to restore faith in Europe’s banks by assessing all of their finances in the same way" Deutsche Bank’s result was boosted by a "special concession" agreed to by Mario Draghi: DB's results included the $4 billion in proceeds from selling its stake in Chinese lender Hua Xia even though the deal had not been done by the end of 2015, the official cut-off point for transactions to be included.
While the entire nation was transfixed on last night's latest, and most scandalous yet "debate", in which there was little actual debating and a lot of talking points and character assassination attempts, index futures were little changed throughout Sunday's 90 minutes event, suggesting that no clear winner had emerged on either side.
"The 46 trillion euros figure sounds gigantic, but it is completely misleading. The real risk is far lower" Deutsche Bank's Chief Risk Officer Stewart Lewis told Welt am Sonntag. There is just one problem with this statement: Lewis made an almost identical promise that "Deutsche Bank is fine" two months ago. As it turned out, it wasn't.
"We are not in a recovery and were not really in a traditional recession. People think of a business cycle as a boom, followed by a recession and then there are automatic stabilizers that revive the economy, but this time, we can't revive. And the reason is that every recovery since 1945 has begun with a higher, and higher, and higher level of debt. And the debt is so high now that since 2008 we've been in what I call, debt deflation."
The end of growth exposes the stupidity and ignorance of all but (and even that’s a maybe) a precious few (of our) ‘leaders’. We are transcending into an entirely different stage of our lives, our economies, our societies. Growth is gone, it went out the window long ago only to be replaced with debt. And that’s going to take a lot of getting used to. But there’s nothing that says we couldn’t see it coming.
While speculation that Qatar investors may come to Deutsche Bank's rescue came and went on Friday, the German lender quietly took advantage of the relentless global appetite for yield and on Friday evening Deutsche Bank issued its first US dollar-denominated bond in five months when its raised $3 billion in five year paper