European, Asian stocks declined, halting a global rally that sent U.S. stocks surging to new all time highs faltered, weighing on the S&P although the index rebounded modestly after a kneejerk announcement lower overnight after Trump's National Security Advisor announced his unexpected resignation.
Just about every adult on earth has seen this show before. Greece faces a debt repayment that it cannot meet... and needs fresh bailout funds. Past budget stringency has failed to relieve Greece’s predicament. If Athens were to unwind this crony-capitalist regulatory regime, it would generate an economic dynamism that Greece desperately needs.
This is a complicated mess. Berlusconi wants election in 2018 so he would be able to run. Renzi wants an election this year as does Beppe Grillo. But Renzi also wants to squash opponents of Renzi-ism first. This may push back elections to August.
According to BofA, the best ways to hedge increased risks of a potential Eurosceptic win in the upcoming French election is favouring 10y peripheral spread wideners in Spain vs France, longs in 5y5y Germany and 5y Dutch sovereign CDS. In the options space, the banks recommends going long vol with a hybrid 6m10y strangle. In inflation, it likes 5y5y French CPI v HICP widener and a long 30y OATei breakeven vs inflation swap.
Protect against the collapse of the euro and other fiat currencies by diversifying internationally and owning gold and silver bullion coins and bars in the safest vaults in the safest jurisdictions in the world.
"We think a scenario where retail investors, corporates and financials all get much more optimistic at the same time needs to be respected. As TABX cratered and credit markets wavered in early 2007, the S&P 500 went on to make new highs, not peaking until October. Greed is a powerful force. We are trying not to forget that."
Greek PM Alexis Tsipras on Saturday warned the IMF and German Finance Minister Wolfgang Schaeuble to "stop playing with fire" in handling his country's debt, suggesting negotiations between Greece and the Troika are far from a compromise.
In a welcome sign the latest conflict between the troubled Greece's lenders may be thawing, Reuters reports that Euro zone creditors and the International Monetary Fund have agreed between themselves to present a common stance to Greece later on Friday in talks on reforms and the fiscal path Athens must take.
S&P futures rose further into record territory, European shares rose to within striking distance of their highest levels in more than a year while bonds fell and the dollar rose as investors cheered a surge in Chinese trade data amid hopes of "phenomenal" tax cuts by Donald Trump, all of which have rekindled the Trumpflation trade.