European Central Bank

Core Eurozone Inflation Surges To 4 Year High As CPI Nears ECB Target

Mario Draghi's job just became a little more difficult, because one day after the head of the ECB surprised markets with a more dovish statement than expected stressing risks for European inflation, on Friday morning Eurostat reported that Euro zone inflation rose by more than expected to the European Central Bank's target and core inflation increased to its highest level in four years.

World Stocks Hit All Time High, S&P Futures Rise To Within 1% Of Record

World stocks hit a new record high on Tuesday, with investors still cheering Macron's victory in the first round of the French presidential election, supported by speculation about U.S. tax reform and the overnight report that Trump has conceded on the border wall, eliminating a government shutdown as a potential risk.

Will Macron Serve The Interests Of The American Deep State?

The accrued momentum in colossal sums of money flowing this way and that way has allowed unreality to reign in international finance for a while. But that is now flying apart. The ultimate reality, politicians and economists will soon discover, is that you can’t create your own reality.

Central Banks Give "All Clear" To BTFD If French Election Upsets Market

"The central bank is ready for any shocks that should materialize [after the French election]... Intervening very quickly is really very easy now given the instruments we have... But as we have seen in similar cases, no need has really been observed. And the reason is that all market participants know that these instruments are there to be used."

French Stocks Surge Off Technical Support After Overnight Poll

Nothing says existential fear for the EU like buying the f**king French dip on the heels of an overnight poll that simply confirmed expectations that the worst case scenario 'Le Pen - Melenchon' second round was still a significant outlier. French stocks soared 1.7% - the most in 6 weeks - bouncing off the 50-day moving average.

The Illusion Of Liquidity

As my mom used to say: “It’s all fun and games until someone gets their eye put out.”

Frontrunning: April 7

  • U.S. fires missiles at Assad airbase; Russia denounces 'aggression' (Reuters)
  • Congress Supports the Airstrikes, Debates What Happens Next (WSJ)
  • Trump’s Syria Strike Sends Not-So-Subtle Warning to U.S. Rivals (BBG)
  • Russia Halts Cooperation With U.S. on Syrian Air Operations (WSJ)
  • Syria Says Strike Kills Five, Damages Air Base (WSJ)

The Next Step In Europe's Negative-Interest-Rate Experiment

"Paper money appears at first sight to be a great saving, or rather that it costs nothing; but it is the dearest money there is." This is the uncomfortable truth of the euro currency experience. As it seems, people in the euro area about to learn an old lesson: namely that unbacked paper money - which is what the euro represents - cannot be trusted.