France

Global Stock Rally Halted In Aftermath Of Latest French Terror Attack

The tremendous rally of the past 4 days that has sent global stocks soaring in recent days has finally been capped and European shares, S&P futures are all modestly lower following a deadly terror attack in Nice, France. Meanwhile Asian stocks rose as Chinese economic data beat estimates, with Q2 GDP rising by 0.1% more than the estimated 6.6% on the back of stronger housing data.

84 Dead, More Than 100 Injured After Truck Plows Into Crowd In Nice, France

In latest European terrorist attack on French soil, a truck plowed into the crowd on Promenade des Anglais in Nice, France this evening during a fireworks show celebrating France's Bastille Day holiday.   The truck was seen mounting the pavement and piling into anyone the driver could see, ramming over those who tried to run away. According to latest reports, 84 people have been killed and over 100 injured.

 

"The Resentment Will Explode" - In Dramatic Twist, McKinsey Slams Globalization

In a stunning study released today, one which refutes all its prior conclusions on the matter, McKinsey slams the establishment's status quo thinking and admits that the economic gains of changes in the global economy have not been widely shared lately, especially in the developed world. It finds that between 2005 and 2014, real incomes in the world's most advanced economies were flat or fell for 65 to 70% of households, or more than 540 million people.

Trump Picks Mike Pence As Vice President

While hardly a surprise to those who have been following the republican vice presidential race, moments ago Roll Call reported, citing a source, that Trump will pick Indiana governor Mike Pence as his vice president. In addition to Pence, Trump has considered former speaker of the House Newt Gingrich, New Jersey Gov. Chris Christie and Army Gen. Michael Flynn for the No. 2 spot on his ticket

US Futures, Global Markets Storm Higher As More Details Emerge About Japan's "Helicopter Money"

The global meltup continues with the S&P set to open at new all time highs, some 20 points higher from yesterday's close, however the driver for the latest rally is not so much the imminent BOE announcement which is expected to cut rates by 25 bps from 0.50%, but a dramatic surge in the USDJPY just after 1am Eastern when Bloomberg revealed more details about Ben Bernanke's masterplan for Japan's helicopter money.

Frontrunning: July 13

  • Brexit, what Brexit? Shares near 2016 highs (Reuters), Global Stocks Inch Higher (WSJ), Stocks Climb With Copper as Brexit-Induced Volatility Subsides (BBG)
  • Yen under pressure as global stock markets rally (Reuters)
  • Spanish Banks Surge as Fears Subside Over EU Mortgage Ruling (BBG)
  • Pimco Loads Up on Treasuries as Gundlach to Gross Voice Caution (BBG)
  • U.S. Presses China to Be Responsible Power After Sea Ruling (BBG)

Global Stocks, Futures Rise On Disappointing Chinese Trade Data, Hopes For More Central Bank Intervention

In an otherwise quiet overnight session, which among other things saw Germany sell 10Y Bunds with a zero coupon and a negative yield (-0.05%) for the first time ever (despite being uncovered with just €4.038BN sold below the €5.00BN target) anyone hoping for a confirmation that China will be able to prop up the world economy once more, was left disappointed when earlier this morning China reported June exports and imports that once again dropped substantially in dollar terms as soft demand at home and abroad continued to weigh on the world’s largest trading nation.

Islamization Of France: Stabbing Policemen, "Slut-Shaming" & New Death Threats

Islamization is gaining ground in the Muslim community of France. For a long time, this trend remained restricted to the cultural sphere and created strong controversies between Islamists and secular intellectuals (such as the ban on face-covering veils in schools and public places). But the debate stopped being a debate. Sometimes Islamic intolerance takes on the appearance of a civil war. The violence, which was mostly concentrated in the suburbs prior to the January 2015 terrorist attack on the satirical magazine, Charlie Hebdo, is spreading now to the heart of French cities. Murders, assaults, death threats and "slut-shaming" happens almost every day here and there.

Who's Most Afraid Of Contagion From Italy's Bank Meltdown?

Contagion is the reason Italy’s banking crisis is all of a sudden Europe’s biggest existential threat. Greece’s intractable problems are out of sight, out of mind; Brexit momentarily spooked investors and bankers; but Italy’s banking woes have the potential to wipe out investors and undo over 60 years of supranational state-building in Europe.

Global Stocks Surge On Rising Hopes Of Japan "Helicopter Money"

A quick headline search for the phrases "Japan stimulus" and "helicopter money" is all one needs to understand the very familiar reason for today latest overnight global stock rally, which has sent the USDJPY surging some more, in the process pushing the Nikkei higher by 2.5%, China up over 1% (with the help of some late FX intervention by the PBOC), European stocks up 1%, US equity futures up 0.5%, and so on, in what is a global wave of green on the back of the helicopter money which after Bernanke's visit to Japan, market participants are now convinced is just a matter of time.

Merkel Admits That Terrorists Were Smuggled In Europe's "Refugee Flow"

Following months of sternly refusing to accept that her "noble" initiative to open up Europe to over a million refugees from the middle east had adverse consequences in not only sending anti-immigrant parties soaring in the polls but also indirectly encouraging terrorism, German Chancellor Angela Merkel today admitted that some terrorists entered Europe among the wave of migrants that fled from Syria adding that the refugee flow was used in part to “smuggle terrorists” on to the continent.

Here's How Much Europe Depends On The UK

As the following charts show, Europe can’t afford a break-up with Britain. The EU and Britain, therefore, are likely to reach a trade deal and maintain close economic and military ties despite the Brexit vote.

Key Events In The Coming Week

With the key event of the week flying largely under the radar, which as previewed here last week was Bernanke's visit to Japan which has already led to another global market spike, here are the rest of the week's events.