European Union

"There Is A Lot Of Fear In The Market" - Stocks, Futures Slide After Yen Soars

Two days after stocks slid in a coordinated risk-off session, and one day after a DOE estimate of US oil inventories sent US stocks surging while the failed Allergan-Pfizer deal unleashed torrential hopes of a biotech M&A spree leading to the single best day for the sector in 5 years, sentiment has again shifted, this time due to a violent surge in the Yen as the market keeps testing the resolve of the Japanese central bank to keep its currency weak, and so far finding it to be nonexistent.

Dutch Referendum May Have Unleashed European "Continental Crisis"

The outcome of a non-binding Dutch referendum on broader European Union ties with Ukraine was too close to call on Wednesday, with a vital turnout threshold hanging in the balance, exit polls showed. The vote, launched by anti-EU forces, is seen as test of the strength of eurosceptics on the continent just three months before Britain votes on whether to stay in the European Union.

Nigel Farage On The Future Of Politics

The era of top-down political operations is ending. Mass membership, open, accessible political movements are the future. Membership structures that are low-cost but allow involvement for those wishing to participate from the comfort of their own homes is where politics is headed, engaging an entirely new section of the population who have been left behind by the distant, remote current political structures. 

Did Italy And Malta Actually Agree To Swap Oil Rights For Refugees

As the Syrian refugee crisis reaches a critical impasse, both in terms of European security and refugee human rights, Brussels has found itself having to deny accusations of a secret pact between Malta and Italy to swap refugees for oil exploration rights. The Maltese opposition leader has claimed that Malta and Italy cut a secret deal in which Malta would surrender oil exploration rights in an offshore area disputed with Italy, while Italy would return the favor by picking up Malta’s share of migrant rescues at sea.

Frontrunning: April 4

  • Ties between Germany and Russia enter new chill (Reuters)
  • Tax authorities begin probes into some people named in Panama Papers leak (Reuters)
  • SEC investigates ex-JPMorgan debt traders (FT)
  • Who Will Win Wisconsin? Here Are Six Credible Predictions (BBG)
  • Victim in Wall St. Scheme Was a Classmate of Its Accused Architect (NYT)

Greece Demands Explanation From IMF Over Leaked Transcript

Greek politicians wasted no time in seeking a response from the IMF over the leaked transcript released earlier today by Wikileaks suggesting the IMF may threaten to pull out of the country's bailout as a tactic to force European lenders to more offer debt relief, and which according to the Greek government was "interpreted as revealing an IMF effort to blackmail Athens with a possible credit event to force it to give in on pension cuts which it has rejected."

The Trade Wars Begin: China Retaliates To Steel Tariffs With Global Anti-Dumping Duties

In the aftermath of dramatic tarfiffs imposed on China's steel exports in December, we asked how long until it responds with it own protectionist response: a necessary and sufficient condition for fully symmetric trade wars. It did so earlier today when, accused of flooding world markets with cheap steel, it imposed its own anti-dumping duties as high as 46.3% on electric steel products imported from Japan, South Korea and the European Union, the Ministry of Commerce said on Friday.

Europe Continues To Court "Prince In Brussels" Erdogan

Erdogan has boasted that he is proud of boldly blackmailing EU leaders into paying him protection money. The nightmare scenario for a desperate EU is that no matter how much it bows to extortionist demands from Turkey, the migrant crisis will continue to grow.

Frontrunning: March 30

  • Bad News Is Great News: Cautious Yellen drives world stocks near 2016 peaks (Reuters)
  • Yellen Spurs Global Stock Rally as Oil Rebounds, Dollar Tumbles (BBG)
  • Trump drops pledge to back Republican presidential nominee other than himself (Reuters)
  • Second judge says Clinton email setup may have been in 'bad faith' (Reuters)
  • Brussels Airport Remains Shut as Police Hunt Third Attacker (BBG)

Does Saudi Arabia's Play For Market Share Make Sense?

Props to Saudi Arabia. Unlike other producers, including U.S. shale producers, it maintained financial strength and flexibility during the last boom. When it began to shift the paradigm of global supply, the kingdom was explicit about its goal - market share - even if it didn’t always trumpet the proactive steps it was taking towards that goal. The now-evident objective of low prices, having been achieved and sustained, begs the question of why Saudi Arabia defended its market share.