Eurozone

The Stage Has Been Set For The Next Financial Crisis

"We are in a multidimensional and fully internationalized carry trade game, folks, which means there is a very serious and tangible risk pool sitting just below the surface across world’s largest insurance companies, pensions funds and banks, the so-called 'mandated' undertakings..."

Futures Jump, Global Stocks Rebound From Longest Losing Streak Of The Year

After five consecutive daily losses on the MSCI world stock index and seven straight falls in Europe, there was finally a bounce, as investors returned to global equity markets in an optimistic mood on Thursday, sending US futures higher after several days of losses as global stocks rebounded following a Chinese commodity-driven rout. 

Global Stocks Tumble, Asia Plunges On Chinese Commodity Carnage

The euphoria of the past month has ended with a thud and BTFDers are strangely missing as the commodity chill out of China (which overnight became full blown carnage), has unleashed a global risk-off phase ahead of today's critical CPI data, resulting in broad and sharp selling across global markets, as European stocks followed declines in Asia while bonds and gold advanced.

Bank Of America: "This Is A Clear Sign Of Irrational Exuberance"

With a record number of fund managers saying equities are overvalued even as cash levels keep falling, and more funds are allocated to stocks, while fund managers "risk taking" has never been higher, Bank of America unveils a troubling verdict: "this is a sign of "irrational exuberance".

German Q3 GDP Growth Smashes Expectations

While the Eurozone’s structural problems remain unaddressed and the ECB’s ability to wind back its stimulus remains untested, the worst part of Germany's economic strength and the broader Eurozone resurgence, is that a host ECB bureaucrats will be putting themselves forward to take the credit.

Frontrunning: November 10

  • Trump Declares New World-Trade Order (WSJ)
  • Trump brings tough trade message in vision for Asia (Reuters)
  • Trump Offers Trade to Asian Nations But Only If They Play Fair (BBG)
  • Flynn Probed Over Alleged Plan to Send Back Turkish Cleric (WSJ)
  • GOP’s Dueling Tax Overhauls Struggle to Pass a Key Red Ink Test (BBG)

Is There Any Way Out Of The ECB's Trap?

"The trap of the so-called stimulus plan is what it has always been...  the ECB itself is hostage to the perverse incentives it created... What we see today in the valuations of sovereign bonds is not normalization of excessive yields, but euphoria generated by a single operator. The ECB. And that always brings negative consequences..."