A society that is given the option to protect itself is not a fearful society, it is a prudent one. The victims of Paris were never allowed the option to protect their lives, nor were they fortunate to have armed defenders present or trained combatants to stop the attack before it reached them. People need the opportunity to secure their own safety since, as the past twelve years has shown, the State will fail them.
- Turkey downs Russian warplane near Syria border, Moscow denies airspace violation (Reuters)
- Investors seek safety in bonds, yen after Turkey downs Russian jet (Reuters)
- Donald Trump Is Not Backing Down (BBG)
- Uber's Exposure May Grow as U.S. Drivers Seek 57.5 Cents a Mile (BBG)
- U.S. issues global travel alert as manhunt continues for Paris attackers (Reuters)
- Stung by Oil, Distressed-Debt Traders See Worst Losses Since '08 (BBG)
It had been a relatively quiet session overnight when as reported previously, the geopolitical situation in the middle east changed dramatically in a moment, when NATO-member country Turkey downed a Russian fighter jet allegedly over Turkish territory even though the plane crashed in Syria, and whose pilots may have been captured by local rebel forces. The news promptly slammed Turkish assets and FX, sending the Lira tumbling, pushing lower European stocks and US equity futures while sending 2 Year German Bunds to record negative yields.
According to The Times, EU leaders are holding "secret" meetings to discuss the future of Europe's cherished Schengen Agreement which allows for passport-free travel within the bloc. As one unnamed diplomat put it, "the current system is simply not working."
What do the globalists do when they want to create, reignite and keep their war on terror fought indefinitely?
Futures are modestly higher in early trading having tracked the USDJPY once again almost tick for tick, with the carry trade of choice rising to 123 shortly after Mario Draghi's latest speech pushed the dollar strong initially only to see most gains promptly evaporate against both the Yen and the Euro. European shares are likewise little changed, after gaining earlier, while Asian stocks rise; oil also advanced in early trading only to drop to its lowest overnight level moments ago, a few dimes over $40, with aluminum and copper both posting modest increases.
- Top Trade #1: Long USD vs short EUR and JPY
- Top Trade #2: Long US 10-year ‘Breakeven’ Inflation
- Top Trade #3: Long MXN and RUB versus short ZAR and CLP.
- Top Trade #4: Long EM ‘External Demand’ vs. Banks stocks
- Top Trade #5: Tighter Spread between Italy and Germany Long Rates
- Top Trade #6: Long large-cap US Banks relative to the overall S&P500
Central planners around the world are waging a War on Cash because, as Ron Paul so eloquently put it "the cashless society is the [government]’s dream: total knowledge of, and control over, the finances of every single [citizen]." It is perhaps ironic then that Sweden, which became the first country in Europe to issue paper money in 1661, is probably going to be the first in the world to entirely eliminate it.
- Security jitters drive European investors back to safe havens (Reuters)
- Global Anti-ISIS Alliance Begins to Emerge (WSJ)
- Merkel says cancelling soccer match was 'responsible' decision (Reuters)
- Paris attacker may have had accomplice on journey through Balkans (Reuters)
- Drop Assad demands if you want to unite against Islamic State: Russia to West (Reuters)
- Putin sets up commission to combat terrorism financing (Reuters)
- France, Russia strike Islamic State in Syria, EU aid invoked (Reuters)
- Pressure Grows for Global Response Against Islamic State After Paris Attacks (WSJ)
- Weakened Hollande Faces Election Backlash in Wake of Attacks (BBG)
- French Official Calls for Metal Detectors at Train Stations (NYT)
- Belgium Raises Terror Threat Level, Cancels Soccer Game vs Spain (BBG)
- Foreign Companies Scrap Paris Events After Terror Attacks (BBG)
Who would have thought terrorism is so good for stocks.
As Europe grapples with political turmoil in the periphery stemming partly from voters' collective frustration with years of austerity, RBS takes a look at the history of European expenditure cuts and how they correlate to anti-government demonstrations, riots, assassinations, general strikes, and attempted revolutions.
Editor’s Note: The tragic events in Paris, terrorism and war throughout the world, show geopolitical risk remains high. These risks will likely impact economies and financial markets and will see continuing safe haven demand for gold. “The future is uncertain and gold is the most effective insurance against that.”
Stocks Jump On Hope For More Central Bank Intervention After Japan's Quintuple Recession, Syrian StrikesSubmitted by Tyler Durden on 11/16/2015 07:03 -0500
As so often happens in these upside down days, was the best thing that could happen to the market, because another economic slowdown means the BOJ, even without sellers of JGBs, will have no choice but to expand its "stimulus" program (the same one that led Japan to its current predicament of course) and buy up if not government bonds, then corporate bonds, more ETFs (of which it already own 50%) and ultimately stocks. Because there is nothing better for the richest asset owners than total economic collapse.
It’s easy to be frightened by these proposals. But if governments think they can force us to accept negative interest rates on our savings by abolishing cash, they need to think again. It’s preposterous to assume that savers will passively accept outright confiscation of their assets via negative interest rates or a ban on cash. Instead, people will simply revert to other stores of value.