"We lower our Autos and Auto Parts coverage view to Cautious from Neutral. As we progress through the later stages of the US auto cycle, we expect a sales plateau through 2017 held up by increasing OEM incentives. Beyond this, we see US light vehicle sales mean reverting back toward normalized SAAR of 15mn from 2018 through 2020 as pent-up demand clears through"
BOJ governor Kuroda has ruined his chances of getting a second full term, according to Nobuyuki Nakahara, who has advised the prime minister on the economy and was an intellectual father of Japan's QE. "They are trying to clean up the mess of negative rates. It’s impossible to do a stupid thing like keeping the yield curve under government control."
Can fear of Trump motivate? Sure it can. But if Brexit taught us anything, it’s the limitations of a fear-based campaign, at least when the fear-mongers are the same smarter-than-thou elites who tsk-tsk their deep and abiding concern for the benighted masses from Davos or Jackson Hole. Status quo candidates don’t win on fear alone.
"We do not particularly like the profile of a credit where performance is skewed to an outcome that is so inherently unpredictable – in this case, guessing what a regulatory fine will be.... DB is likely to be a weak bank for several years from now, though, even with a capital increase."
That Hillary in power will try (and possibly) succeed in going to war once again, this time targeting Russia or its allies (the Syrian state, the Ukrainian Russian separatists), is frightening. The electorate is malleable, its collective memory short. What should be universally acknowledged truths (the Iraq War was based on lies) are in fact not grasped adequately by the masses. If they were, how could anybody vote for hideous Hillary?
“I’d find it earth-shatteringly surprising if we don’t have a significant problem between now and China’s leadership change” in the fall of 2017 when the 19th Party Congress convenes, said Leland Miller, China Beige Book’s president. “This is not a stable economy. It’s one that twists and turns and happens to end up at the same spot. There are real problems below the surface.”
When two weeks ago the DOJ announced a whopping $14BN settlement "ask" from Deutsche Bank, some wondered if there was an element of punitive retaliation aimed at Europe's "assault" on Apple's taxes. That question will surely grow louder when overnight Bloomberg reported that the DOJ is now assessing "how big a criminal fine it can extract from Volkswagen AG over emissions-cheating without putting the German carmaker out of business."
The day has finally arrived. The two most disliked presidential candidates in the history of America face off mano a (wo)mano in a 90-minute, pee-break-barred grudge match of the politically-correct corrupt establishmentarian against the deplorable status-quo-wrecker. With the polls tied up, there's everything to play for as a record audience tunes in to see who will screw up first...
Citi said that its "base case is for a Clinton victory and mostly continuity in policies, which would leave U.S. and global growth expectations relatively unchanged,” while describing the U.S. contest as “increasingly bizarre.” Bizarre or not, earlier this morning Morgan Stanley, whose base case is still a Clinton victory has presented several "contingency planning" scenarios in case Trump does win.
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.
China’s smaller banks have never been more reliant on each other for funding, prompting rating companies to warn of contagion risks in any crisis. "Contagion risks are definitely rising," according to S&P: "The pace of the development is concerning. If this isn’t stopped in time, the central bank will lose some control and flexibility of its monetary policy."
If Hillary Clinton’s illness had not materialized, someone would probably have had to have made one up for her. The Democratic presidential candidate’s dramatic drop in popularity just over the course of the last month has been attributed to her sudden health issues and pneumonia. Of course they’re claiming that Clinton will recover and that her extraordinary determination to keep fighting will make voters even more sympathetic to her. The biggest US media outlets are helping her spin that.
Two short weeks ago, we exposed the gaping difference between Amazon reader reviews of Hillary Clinton's "Stronger Together" book (14% 5-Stars) and Donald Trump's "Great Again" book (74% 5-Stars) as The New York Times describedClinton's propaganda as a "flop." So, as with everything else in this 'new normal rigged' world, something had to be done and WaPo-owner Jeff Bezos' Amazon reviews appear to have been 'tweaked' - more than doubling Hillary's top reviews.