“No one likes to admit defeat. But global policymakers, who continue to insist that there’s more they can do to revive growth and inflation, are starting to sound like Monty Python’s Black Knight (click to see video)..."
The long await IPO of Snapchat is finally coming: according to Bloomberg the social media will seek to raise as much as $4 billion in its planned initial public offering, making it the biggest social media company to go public since Twitter's initial public offering in November 2013.
15 years after it was part of one historic merger, Time Warner is getting bought again, and while the current deal is roughly half the size of AOL's historic $164 billion acquisition of Time Warner in 2000 it's still a big enough deal that it's drawing attention on the campaign trail from both candidates, and to generate millions in revenues for Wall Street banks eager to sell the $40 billion in debt needed to fund the deal.
"I'm supportive of Hillary Clinton... Yes, so flat out, yes, I do. That doesn’t say that I agree with all of her policies... [but] I don’t want to help or hurt anybody by giving them an endorsement...”
One day after a slump in Chinese trade sparked a global market selloff on concerns the world's second biggest economy had once again hit a downward inflection point, overnight China surprised once again, this time to the upside when the latest inflationary data printed hotter than expected, sending European and Asian stocks higher and pushing the yen lower after China’s producer price index rose for the first time since March 2012.
While much attention in recent weeks has fallen on Deutsche Bank's balance sheet, today we got a timely reminder that the bank also has substantial income statement problems when Bloomberg reported that the biggest German lender is implementing a companywide hiring freeze as CEO John Cryan "seeks to lower costs and shore up investor confidence."
Turkish assets plummeted the most since an attempted coup in July and credit risk climbed after Moody’s Investors Service cut the country’s sovereign rating to junk. The immediate response by the Turkish administration was to lash out at Moody's calling the decision "politically-motivated", after a similar downgrade by S&P led Erdogan to acuse the agency of siding with coup plotters.
As reported over the weekend, in an unexpected announcement Angela Merkel announced that she has ruled out state aid for Deutsche Bank, and the market reaction has been swift and brutal, with the bank's shares tumbling to a new all time low, sliding more than 6% this morning to €10.70, as the company's default risk has soared higher and is now the widest name in the Markit iTraxx index.
Stocks across the board, and US equity futures are broadly in the green this morning as markets shrug off the terror-related events in the NYC area over the weekend. There wasn’t a single positive “reason” for the green price action but fears about the bond “tantrum” appear to be fading while a stronger dollar helped push oil and the commodity complex higher.
As attention turns to what is now the biggest wildcard in global oil demand, one which could directly lead to the evaporation of up to 1 mmbpd in demand, Bloomberg writes that "the world is puzzling" over China's Strategic Oil Reserve, and with good reason: if 1mm barrels of oil demand were to disappear, the price of oil would plunge as the already oversupplied market would find itself with an unprecedented glut of excess production.
Global stocks declined broadly, led by European equities which fell for the first time this week while currency markets continued their subdued tone even as the recent 4-day rally in the USD appears to have topped out, as investors took to sidelines ahead of the Jackson Hole meeting which begins tonight. Japanese and Chinese stocks had suffered modest drops in Asia. S&P 500 Index futures slipped 0.2%, continuing yesterday's modest selloff.