European Union

Pound Tumbles After UK Government Wins Brexit Suit In Northern Ireland Court

Moments ago sterling did what it has been doing so well these past few months, it tumbled by as much as 50 pips after a Northern Irish judge rejected a pair of challenges to the Brexit process, removing at least one obstacle to Prime Minister Theresa May’s plan to begin severing ties with the European Union by the end of March. 

The Mayor Of London: "My Side" Versus Reality

Taken as a whole, Mayor Khan's presentation to the Chicago Council on Global Affairs on "The Breakdown of Social Integration – The Challenge of Our Age," seemed to ignore unpleasant facts which suggest that there is more incompatibility of values than he is willing to admit -- in the interest of pushing an immigration agenda favored by his "side." Mayor Khan's presentation seemed designed to pacify Westerners and enable the spread of the rule of Islam.

Stalled EU-Canada Trade Deal Gets Greenlight Following Belgium Approval

One week after Canada demonstratively walked out of European trade talks, with Canada's Chrystia Freeland saying that "the European Union is not capable right now to have an international agreement, even with a country that has European values like Canada", moments ago a planned trade deal between the European Union and Canada overcame a key hurdle Thursday when Belgium said it would approve the accord.

Rajoy To Form Minority Government Thanks To Abstentions: Expect No Stability

Mariano Rajoy is headed for another term as Spanish prime minister following two inconclusive elections. However, should the socialists reorganize, Rajoy could easily find himself facing a vote of no confidence in a year or so. Rajoy is corrupt as they come. Ciudadanos had to hold its nose to enter this fragile minority coalition. There is nothing at all stable about this setup.

 

Frontrunning: October 25

  • Hilsenrath: Fed’s Task Ahead: How Best to Signal Year-End Rate Move (WSJ)
  • Fed Inclined to Raise Rates If Next President Pumps Up Budget (BBG)
  • World stocks, commodities climb as economic confidence lifts (Reuters)
  • Ahead of earnings: Apple Boosted by IPhone 7 Demand, Slowing Pace of Sales Decline (BBG)
  • Campaigns Brace for Election-Day Legal Battles (WSJ)

Frontrunning: October 24

  • The CEO Behind AT&T’s Huge Time Warner Deal (BBG)
  • AT&T-Time Warner deal sparks calls for scrutiny in Washington (Reuters)
  • Wall Street’s $40 Billion AT&T Pledge Offers Fees and Risks (BBG)
  • Bernie Sanders: Obama Administration “Should Kill” The AT&T-Time Warner Deal (Deadline)
  • Oil prices under pressure as Iraq resists joining output cut (Reuters)

Global Stocks Jump On Mega Merger Monday, Buoyed By Earnings, PMIs, Politics

Global stocks jumped around the globe, with Europe's Stoxx 600 and US equity futures rising more than 0.5% on a surge in merger announcements over the weekend including the $85 billion mega takeout of AT&T for Time Warner, the $6.4 billion acquisition of B/E Aerospace by Rockwell Collins, the $2.7 billion deal targeting Genworth by China Oceanwide and the just announced $4 billion purchase of Scotttrade by Ameritrade.

Life After 11/9 - Governing The Ungovernable

Europe truly is a continent full of powder kegs. Even before you add refugees. However, the US and UK are first in line when it comes to the risk of being rendered ungovernable. Partly simply because of timing, and partly because the differences between various ‘groups’ and movements are as pronounced as they are already today. Both countries are running out of carpet to sweep their dirt under.

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."