Whether it is due to the conclusion of quarter-end window dressing, or due to a more poor manufacturing data out of China overnight, but the new quarter is starting off poorly for risk with Europe flat and US equities lower, while the scramble for safety means that bond yields across the developed world just hit new all time lows as precious metals are surging once again on ongoing speculation central banks will do anything to keep markets propped up and buy up even more assets.
"Intersecting the UK's EU exit process is likely to be pressure to hold a new referendum on Scottish independence, which we expect will ultimately generate a vote shortly before the UK leaves the EU in 2019. Our base case is that Scotland will vote for independence and institute a new currency at that point." - JPMorgan
Putin spoke calmly and in a detached tone, when asked for his reaction to Brexit. But he hinted he is insightful enough to recognize the opportunity brought up by fate. The bottom line is that the EU and NATO are complementary. And Brexit upholds that national interests prevail over European collective interests. Without doubt, Brexit is also, partly at least, a reflection of the overall weariness in Europe with the continued NATO expansion eastward.
There was a reason why we warned readers two days ago that "The World's Central Bankers Are Gathering At The BIS' Basel Tower Ahead Of The Brexit Result": simply enough, it was to facilitate an immediate response when a worst-cased Brexit vote hit. And that is precisely what has happened today in the aftermath of the historic British decision to exit the EU. It started, as one would expect, with Mark Carney who said the Bank of England is ready to pump billions of pounds into the financial system as he stands at the front line of Britain’s defense against a Brexit-provoked market crisis.
Moments ago the newswires lit up with news that the Clinton Foundation was among the organizations breached by suspected Russian hackers (who in reality is just one hacker, and he is Romanian). Among the numerous documents leaked is a file titled "Clinton Foundation Vulnerabilities Master Doc" - here are its contents.
global oil consumption is likely soon to peak (OECD to continue declining; China+Russia+Brazil to begin declining; Africa+India flatlining; the RoW the wildcard)... and all those spouting EIA estimates are likely spouting bogus information. However, this isn't just true for oil consumption but true for most commodity consumption & general consumption world over.
"The EU will disintegrate when we leave. They will realise there is nothing left. The political union is going to be a disaster and they'll want a free-trade area. Do you know who'll be the first country invited to that free trade area? The U.K."
Tuesday's overnight price action has been a continuation of yesterday's Brexit relief rally, as investors focused on the two latest polls favorable to Remain in Thursday's referendum (while ignoring the YouGov poll which gave Leave a small lead), and hoping the doom and gloom by George Soros will convince the undecideds to vote against Leaving. As a result, global stocks continued their advance while pound extending the biggest rally since 2008.