France

Tyler Durden's picture

Here's How Obama Can Halt "Tax Inversions" Without Congress (& Why It Doesn't Matter)





As the topic of "unpatriotic" 'tax inversions' becomes a political issue, we thought it interesting to examine how big an economic issue it really is. How much income tax do U.S. companies actually pay every year to the Federal government? As ConvergEx's Nick Colas notes, the simple answer is “Not much”, at least as compared to any other major source of revenue. In Fiscal 2013, Colas adds, the total was $274 billion, or just 9.9% of all tax and withholding receipts. Your political leanings will inform your opinion about whether that number is too high or too low, of course; but we point out that, as Reuters reports, a former  international tax counsel at Treasury explains Obama could "slam dunk" dictate an end to 'tax inversions' without Congressional approval (by invoking a little known 1969 tax law)

 
Pivotfarm's picture

China’s Storm: 2016





There never seems to be a day that goes by without someone predicting that China is going to go down the Yangtze and end up some creek without a paddle.

 
Tyler Durden's picture

Can Germany Carry Europe’s Weight In The Next Financial Crisis?





Within the European economic context Germany has been a star performer in recent years, outgrowing in GDP terms its Eurozone peer group as a whole in all but one year since 2006 (complete with a magnificent football/soccer team). This was quite a reversal of fortune from the ten years prior, when Germany consistently lagged in wealth creation. Together with its size and unwavering historical commitment to the EU project, this has created the expectation in political and even financial circles that if Europe faces another major economic crisis Germany will have no choice but to support the most vulnerable member states, possibly even relenting to the mutualisation of the Eurozone's debts. While this is a very complex topic, the following graph puts the odds in favor of one outcome: the next time push comes to shove in a big way, Germany will likely say NEIN!

 
Tyler Durden's picture

Indexation Is A Socialist Way Of Allocating Capital





"In effect, by pursuing indexation we have introduced a socialist way of allocating capital in the heart of the capitalist system... As we all know, socialism is the ultimate form of freeloading. It has never worked, and it never will. This indexation is one of the most obvious forms of parasitism we have ever encountered."

 
Tyler Durden's picture

US Evacuates Libya Embassy Following Biggest Local Violence Since Gadhafi Ouster





The middle east is burning again: first it was the fascinating ascent of the brutal Al-Qaeda spinoff ISIS, creating its own Caliphate in northern Iraq and in the process taking over a third of Syrian territory as well as all of its oil infrastructure. Then, the latest iteration of the Israel vs Gaza conflict has now claimed over 1000 lives and is dragging virtually all neighboring countries into it as well. And the cherry on top is that the Libyan "liberation" by the US has just gone full circle, as the country is is now witnessing one of its worst spasms of violence since Gadhafi’s ouster. End result: nearly two years after the deadly attack on the US embassy in Benghazi, moments ago the US once again shuttered its embassy in Libya, this time in Tripoli, evacuating more than 150 Americans to Tunisia.  This is happening just 24 hours after the US Secretary of State was literally next door in Egypt, assuring the region that peace and stability are just around the corner.

 
Tyler Durden's picture

Company In Which Joe Biden's Son Is Director Prepares To Drill Shale Gas In East Ukraine





Recall what we said earlier today: the proxy war Ukraine conflict, just like that in Syria preceding it, "is all about energy." Recall also the following chart showing Ukraine's shale gas deposits, keeping in mind that the Dnieper-Donets basin accounts for approximately 90 per cent of Ukrainian production. Finally, recall our story from May that Joe Biden's son, Hunter, just joined the board of the largest Ukraine gas producer Burisma Holdings. Now put it all together and you will like figure out what will happen next.

 
Tyler Durden's picture

Number Of French Jobless Rise To New Record





With "recoveries" like these who needs staged, false flag conflicts and wars covering over 10% of the globe? Well, socialist France for one which moments ago announced that total jobless rose from 3.389 million to 3.398 million, a new record high. Surprisingly, while the year-over-year unemployment change for people under 25 declined by 3.1%, it was workers 25-49 which saw a material 3.3% increase in joblessness, but it was workers aged 50 and older that saw a veritable surge in unemployment, rising by 11.5% from a year ago. Surely, just like in the US, this is due to young people retiring in droves.

 
Tyler Durden's picture

Europe Unveils Preliminary Sanctions Against Russia





According to Reuters, key measures suggested by the Commission include:

  • closing EU capital markets to state-owned Russian banks,
  • an embargo on arms sales to Moscow,
  • restrictions on the supply of energy and dual-use technologies.
  • a list of 15 individuals and 18 entities, including companies, subject to asset freezes for their role in supporting Russia's annexation of Crimea and detribalization of eastern Ukraine.

Of course, since France would blow a gasket if its Mistral ship was impacted by the sanctions, and since this really is just another populist measure not intended to really punish Russia (as that would mean a prompt shut off of European gas and an even prompter slide into a triple dip recession if not outright depression), Europe promptly "detoothed" the sanctions by announcing that they would not affect current supplies of oil, gas and other commodities from Russia, diplomats said.

 
Tyler Durden's picture

Frontrunning: July 24





  • EU to weigh extensive sanctions on Russia (FT)
  • U.S. lifts flight ban to Israel (Reuters)
  • Russia says will cooperate with MH17 probe led by Netherlands (Reuters)
  • Norway faces ‘concrete and credible’ terrorist threat (FT)
  • Don’t Tell Anybody About This Story on HFT Power Jump Trading (BBG)
  • But... but... PMI: Unilever Sales Growth Misses Estimates on Asian Slowdown (BBG)
  • World’s Biggest Wealth Fund Reviews $8 Billion Russian Stake (BBG)
  • Qualcomm latest US tech company to reverse in China (FT)
  • Hamptons Home Sales Rise as Buyers Find More Inventory (BBG)
 
Tyler Durden's picture

Overnight Manufacturing PMI Euphoria Boosts Futures To Fresh Record Highs





Ever since going public, it appears that Markit's giddyness about life has spilled over into its manufacturing surveys: after a surge in recent Markit mfg exuberance in recent months in the US, it was first China's turn overnight to hit an 18 month high, slamming expectations and fixing the bitter taste in the mouth left by another month of atrocious Japan trade data (where even Goldman has thrown in the towel on Abenomics now) following which the euphoria spilled over to Europe just as the triple-dip recession warnings had started to grow ever louder and most economists have been making a strong case for ECB QE. Instead, German July mfg PMI printed at 52.9, above the 52.0 in June and above the 51.9 expected while the Composite blasted higher to 55.9, from 54.0, and above the 53.8 expected thanks to the strongest Service PMI in 37 months! End result: a blended Eurozone manufacturing PMI rising from 51.8 to 51.9, despite expectations of a modest decline while the Composite rose from 52.8 to 54.0, on expectations of an unchanged print. Curiously the soft survey data took place as Retail Sales declined both in Italy (-0.7%, Exp. +0.2%), and the UK (-0.1%, Exp. 0.3%), which incidentally was blamed on "hot weather." Perhaps Markit, now that it has IPOed successfully, can step off the gas or at least lobby to have surveys become part of GDP.

 
GoldCore's picture

‘Apocalypse’ Krugman Ignores History, Keynes And Lenin’s Warnings





When it comes to the apocalypse, Krugman likes to have his apocalyptic cake and eat it too. Krugman says that the recent concern about “debts and deficits” was a “false alarm.” He attempts to paint those who were concerned about the debt crisis as scare mongers. He sarcastically says that “the debt apocalypse has been called off.”

 
Tyler Durden's picture

Overnight Futures Levitation Mode Engaged But Subdued





Despite yesterday's lackluster earnings the most recent market levitation on low volume was largely due to what some considered a moderation in geopolitical tensions after Europe once again showed it is completely incapable of stopping Putin from dominating Europe with his energy trump card, and is so conflicted it is even unable to impose sanctions (despite the US prodding first France with BNP and now Germany with the latest DB revelations to get their act together), as well as it being, well, Tuesday, today's moderate run-up in equity futures can likely be best attributed to momentum algos, which are also rushing to recalibrate and follow the overnight surge in the AUDJPY while ignoring any drifting USDJPY signals.

 
Tyler Durden's picture

NY Fed Slams Deutsche Bank (And Its €55 Trillion In Derivatives): Accuses It Of "Significant Operational Risk"





First it was French BNP that was punished with a $9 billion legal fee after France refused to cancel the Mistral warship shipment to Russia (which promptly led to French National Bank head Christian Noyer to warn that the days of the USD as a reserve currency are numbered), and now moments ago, none other than the 150x-levered NY Fed tapped Angela Merkel on the shoulder with a polite reminder to vote "Yes" on the next, "Level-3" round of Russia sanctions when it revealed, via the WSJ, that "Deutsche Bank's giant U.S. operations suffer from a litany of serious problems, including shoddy financial reporting, inadequate auditing and oversight and weak technology systems." The shortcomings amount to a "systemic breakdown" and "expose the firm to significant operational risk and misstated regulatory reports," said the letter from Daniel Muccia, a New York Fed senior vice president responsible for supervising Deutsche Bank.

 
Tyler Durden's picture

Venezuela's Transformation To Socialist Utopia Is Nearly Complete As Its Factories Grind To A Halt





The good news about this particular banana republic: everything else may be imploding, but at least still has bananas.

 
Tyler Durden's picture

Frontrunning: July 22





  • EU Works to Punish Russia as MH17 Bodies Leave Rebel Area (BBG)
  • Bodies From Malaysia Airlines Flight Begin Long Trip to Netherlands (WSJ)
  • Israel pounds Gaza as Kerry arrives (Reuters)
  • U.S. judge dismisses Republican lawsuit over Obamacare subsidy for Congress (Reuters)
  • Israel Soldier Missing Amid Assault on Hamas in Gaza (WSJ)
  • Detroit Retirees Vote in Favor of Pension Cuts (WSJ)
  • Russia Axes 1st Bond Sale in 3 Months as Ukraine Drives Up Yield  (BBG)
  • Wall Street Cut From Guest List for Jackson Hole Fed Meeting (BBG)
  • Credit Suisse to Exit Commodities, Posts Big Quarter Loss (BBG)
  • Draghi Cedes Euro Control to Yellen on Fed Rate Wagers (BBG)
 
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