Frontrunning: November 29

  • North Korea Missile Launch Shows Ability to Reach D.C. (WSJ)
  • Senate Republicans shove tax bill ahead as Democrats fume (Reuters)
  • British negotiators still working on Brexit deal: Treasury minister (Reuters)
  • Trump Retweets Anti-Muslim Videos From Far-Right U.K. Group (BBG)
  • Bitcoin Futures Provoke Pushback From Market Cops (BBG)

The Five Biggest Tests For China's Next Central Bank Governor

Zhou Xiaochuan, the outgoing PBoC governor, is a shrewd man and his warning about a "Minsky moment" will not have been made idly. He is also a principal architect of China's credit bubble, whether (always) willing or not, and must shoulder some of the blame. If he is lucky, his successor will be the one picking up the pieces...

China Deleveraging Hits Corporate Bonds As Cascade Effect Begins

China's WMPs sold off their liquid government bonds first to meet redemptions, keeping their higher yielding corporate bonds. Now corporate bonds are selling off. It is starting to look like the early signs of cascading sell-offs in Chinese financial markets...

Venezuela Just 24 Hours Away From Formal Declaration Of Default

ISDA has agreed to review a request to determine whether an event of default has occurred in Venezuela due to a delayed bond payment on PDVSA bonds which matured on Nov. 2. The ISDA Determinations Committee will hold its first meeting regarding PDVSA at 11am on Friday, November 10.

World Stocks Soar To New Record Highs As Oil, Metals Surge Ahead Of The Fed

US equity futures have hit a new all time high, helped by surging Asian and European stocks which have all started November on a euphoric note. Surging commodity prices, optimism about tax reform and hope for a new dovish Fed chair all combined to drive global stock markets to record highs on Wednesday.