Former Goldman Chief Economist Jim O'Neill Quits UK Government

While the UK has so far avoided to implode in a depressionary supernova in the aftermath of Brexit contrary to what most of the "experts" and Tokyo-owned UK journalists had predicted, changes are taking place, mostly among the top echelons of power. Earlier today, the latest political fallout from the Brexit vote was the news that former Goldman economist, and BRIC acornym creator, Lord Jim O’Neill, resigned from the U.K. government.

German Politicians Are Getting Nervous About Deutsche Bank

Deutsche Bank's finances, weakened by low profitability and mounting legal costs, are raising concern among German politicians.  At a closed session of Social Democratic lawmakers, participants discussed the U.S. fine and the financial reserves at Deutsche Bank’s disposal if it had to cover the full amount. In other words, Germany is officially starting to get nervous about Europe's biggest bank.

BOJ Needs To Go All The Way

The BOJ does have a track record of surprising markets. If it doesn’t want to see USD/JPY collapse, exacerbating the nation’s economic struggles, then it needs to ensure the shock is a dovish one this time. Which maybe what the banks are negatively expecting...Even as Goldman warns "don't expect much if anything, at all."

US Futures, Bonds Rise, Dollar Dips As Fed, BOJ Meetings Begin

If yesterday one could "explain" the overnight stock levitation due to the move higher in crude oil, today there is no such catalyst with WTI down modestly, and yet the broader push higher across European stocks and US equities has reappeared following yesterday's muted close on Wall Street ahead of key central bank data on deck.

"Warped" WaPo Calls For Prosecution Of Its Own Source (after Accepting Pulitzer For Snowden Leaks)

"...what makes today’s Washington Post editorial so remarkable, such a tour de force, is that the editors are literally calling for the criminal prosecution of one of the most important sources in their own newspaper’s history. Having basked in the glory of awards and accolades, and benefited from untold millions of clicks, the editorial page editors of the Post now want to see the source who enabled all of that be put in an American cage and branded a felon. That is warped beyond anything that can be described."

Previewing Next Week's Main Event: What Will The BOJ Do? (Spoiler Alert: Probably Nothing)

At the BOJ's next Monetary Policy Meeting on September 20-21, the Central Bank will conduct a “comprehensive assessment” of trends in economic activity and prices under the current policy framework, as well as the policy impact, with a view to achieving its 2% price stability target at the earliest possible time. Here is what to expect from next week's main event.

US Futures, European Stocks Rebound, Bonds Fall Ahead Of US Data Deluge

The overnight session started with more weakness out of Asia, where chatter that the BOJ may end up doing nothing despite all the trial balloons (as we hinted yesterday), sent the USDJPY sliding, pushing the Nikkei lower, leading to a 7th consecutive decline in the Topix, the longest such stretch since 2014 even though the BOJ is now actively buying a record amount of ETFs. However, the modest dip in S&P futures and European stocks proved too much for BTFD algos, and risk promptly rebounded.

European Leaders Discuss Plan For European Army

"We are going to move towards an EU army much faster than people believe." But the creation of a European army, a long-held goal of European federalists, would entail an unprecedented transfer of sovereignty from European nation states to unelected bureaucrats in Brussels, the de facto capital of the EU.

The World Is Turning Ugly As 2016 Winds Down

The negative reverberations in our current economic and political environment are becoming so strong that it is impossible for people to not feel at least some uneasiness in their gut. We imagine this is the same kind of sensation many felt from 1914 to 1918 during World War I and the terrible birth of communism, or perhaps in the early 1930s at the onset of the Great Depression and the rise of fascism. Some global changes are so disturbing that they send shockwaves through the collective unconscious before they ever hit the mainstream. People know that something is about to happen, even if they cannot yet clearly define it.

Global Market Rout Abates As Bond Selloff Pauses, Oil Rebounds

After a sudden rout in financial markets that wiped $2 trillion in global market cap over the past week showed signs of easing, overnight stocks tried to stage another "BTFD-type" comeback with European stocks climbing for the first time in five days as oil and metals prices gained. S&P futures were modestly in green, although they faded earlier gains, on the back of a slide in the USDJPY which initially spiked to 103.31 only to fade back to the mid 102-range.

Former DNC Chair Calls For "Contingency Plan" If Hillary's Health Forces Her Out Of The Race

In the biggest surprise emerging following Hillary's "medical event", even democrats have admitted what was formerly unthinkable: the preparation of a "contingency plan" in case Hillary's health forces her out of the race. A former DNC chairman said that the Democratic party’s congressional leaders should immediately come up with a process to identify a potential successor candidate for Hillary Clinton "for the off-chance a health emergency forces her out of the race."