RBS

RBS Tumbles After Failing BoE's "Toughest Ever Stress Test"

While the term 'stress test' has been applied almost mockingly to European and US banks in an effort to create confidence for investors (because if the government sees risks 'contained' then why worry), this morning's Bank of England stress test results highlighted "capital inadequacies" for three major UK banks. While Barclays and Standard Chartered fell short, it is taxpayer-owned Royal Bank of Scotland that is slumping on a need to cut costs, raise capital, and sell assets.

Frontrunning: November 30

  • Oil soars on OPEC hopes, dollar renews its surge (Reuters)
  • Oil Rallies on OPEC Optimism, Spurring Gains in Energy Producers (BBG)
  • Saudis say to take 'big hit' on oil output for OPEC deal, Iran can freeze (Reuters)
  • Leaner and meaner: U.S. shale greater threat to OPEC after oil price war (Reuters)
  • an the U.S. Become an Energy Superpower in 2017? (BBG)
  • RBS Fails Toughest-Ever BOE Stress Test, Boosts Capital Plan (RBS)

Frontrunning: November 17

  • Dollar halts charge as bashed bonds steady (Reuters)
  • BOJ Fires Warning at Bond Market With Unlimited Buying Plan (BBG)
  • Trump Flouts Traditions Heading Into an Office Defined by Them (BBG)
  • Mr. Hedge Fund Goes to Washington, Looking for Ally in Trump (BBG)
  • Donald Trump’s Son-in-Law, Jared Kushner, Could Get Key White House Role (WSJ)

Frontrunning: November 8

  • At last, America decides (Reuters)
  • America’s Voters Finally Get Their Day (BBG)
  • This Election Has One Sure Thing: A More Dysfunctional Congress (BBG)
  • Control of the Senate Goes Down to the Wire (WSJ)
  • 2016 Election Day: Live Results and Analysis (WSJ)
  • Dollar Volatility Drops as Clinton Leads in Final Election Poll (BBG)

Global Bond Selloff Resumes; Stocks Rise Following Strong Chinese Data

With October, the worst month for stocks since January, now in the history books S&P futures are eager to telegraph that the streak of five consecutive will end, with a modest gain of 0.3% in overnight trading, coupled with mixed global markets as the global bond selloff returned after strong Chinese economic data prompted concerns about rising global inflation.

Global Stocks Drop On Poor Earnings, Bond "Bloodbath" Ahead Of US Q3 GDP

S&P futures and Asian stocks were little changed while European shares fell as the global bonds sell-off deepened on speculation major central banks are moving closer to reining in stimulus, while stocks retreated after disappointing results from companies including Amazon.com and AB InBev.

Frontrunning: October 27

  • Clinton Foundation’s Fundraisers Pressed Donors to Steer Business to Former President (WSJ)
  • Democrats ask judge to sanction Republicans over Trump (Reuters)
  • Inside the Trump Bunker, With 12 Days to Go (BBG)
  • U.K. Growth Shows an Economy Resilient to Brexit (BBG)
  • Qualcomm to buy NXP Semiconductors for about $47 billion including debt (Reuters)

Cashless Society - Is The War On Cash Set To Benefit Gold?

If governments allow banks to shut down bank accounts of individuals or companies without a fair trial and due legal process, it will create a very dangerous situation indeed. In this environment, buying gold is rational behaviour to even the biggest paper-bugs out there. The current monetary experiment of massive QE is no longer the main concern of prudent investors and institutions, it is now combined with negative interest rates and bail-ins.