European Union

Canada Walks Out Of European Trade Talks, "Deal Impossible"

With 'trade' at the center of any substantive differences between US presidential candidates, 1000s protesting 'trade' deals across Europe, 'trade' collapsing in China, and lame-duck Obama trying to push his 'trade' agenda, it is perhaps shocking that Canada’s trade minister walked out of talks to finalize a trade pact with the European Union, saying it now seems the bloc is incapable of reaching such agreements and that Canadian officials are returning home.

Futures Drop As ECB Confusion Persists, Dollar Rises To Seven Month High; Yuan Plunges

Asian stocks and S&P futures fall modestly and European shares are little changed as traders digested the surprising reticence from yesterday's ECB meeting. The dollar jumped to 7 month highs, pressuring EM currencies and pushing the euro to its weakest level since March and below the Brexit lows, after Mario Draghi shut down talk of tapering, while the Yuan dropped to the lowest since 2010.

El-Erian Warns Of "Enormous Risk In Public Markets... Better Seller Of Stocks Than Buyer"

Investors "have been conditioned to believe, over and over again, that central banks can shield them," but, as Allianz' Mohamed El-Erian warns "the probabilities are now starting to tip in the likelihood of a bad outcome." Simply put, El-Erian explains that financial markets have "decoupled" from the economic problems of the world leaving "enormous risk in public markets because that’s the one that central banks have distorted to the greatest extent."

Frontrunning: October 20

  • Global stocks nudge higher after final U.S. presidential debate (Reuters)
  • Trump, Clinton Double Down: Final Debate By the Numbers (BBG)
  • Will Trump accept election's outcome? 'I will keep you in suspense' (Reuters)
  • After Sedate Start, Trump Takes the Bait (WSJ)
  • ‘Rigged’ Election Charge Takes Spotlight (WSJ)

US Futures, Global Stocks Mixed After Lackluster Chinese Economic Data; Oil Rises Over $51

US futures were little changed, with European shares lower, and Asian stocks higher as caution returned after last night's Chinese economic data did little to clear up how the world's second largest economy is performing, and provided few positives for investors ahead of the third and final U.S. presidential debate; imminent announcements from both the ECB and the Fed also will keep traders on their toes today.

Pound Jumps After Government Lawyer Says Brexit Treaty Likely Needs Vote From Both Houses

Shortly after sterling fell to a six year low against the euro, sliding below 1.10 or depths not seen since the March 2010 depths of the European debt crisis, the British currency found a modest respite after comments from a UK government lawyer put Theresa May's "hard Brexit" plans in flux after stating that it is likely that the Brexit treaty will have to be voted on by both houses.

Daniel Hannan - The Right Approach To Brexit

Daniel Hannan, a British member of the European Parliament (MEP), made an eloquent, impassioned speech this weekend on what should take place in Brexit talks.

Frontrunning: October 17

  • Bonds Selloff Spreads on Inflation Concern; Stocks Fall With Oil (BBG)
  • Trump charges U.S. election results being rigged 'at many polling places'  (Reuters)
  • CNN’s Stelter Blames Firebombing of NC Republican Office on Trump's 'Over Heated' Rhetoric (Newsbusters)
  • Britain, France seek EU condemnation of Russia over Syria (Reuters)
  • Inside the Secret Society of Wall Street's Top In-House Lawyers (BBG)

"The System Simply Isn't Working" - Hugh Hendry Warns Of 1930s-Style "Dramatic Fulcrum Point" In Europe

"...we have the precedent from a much earlier time (the 1930s) when the defection of just one member from a currency union caused the system to unwind rapidly. And we can clearly sense the seeds of another popular political revolt in other member countries; a flurry of upcoming elections and referendums provides an immediate catalyst...We believe we are approaching a dramatic fulcrum point in public opinion in Europe."

The End Of Growth's "Fake Elixir"

The global elites’ false promise that neoliberal economics would cure all ills through the elixir of endless growth helps explain the angry nationalist movements ripping apart the West’s politics...