Reuters

“Italian Government Collapse More Than Just A Possibility”

Four new polls show comedian Beppe Grillo’s Five Star Movement (M5S) ahead of prime minister  Matteo Renzi’s Democratic Party (PD) were an election held today. The next election will be no later than May 23, 2018. Renzi promised to step down if he fails a constitutional reform referendum later this year. The reform referendum will likely be held no later than this October.

A Furious Italian Prime Minister Slams Deutsche Bank As Europe's Most Insolvent Bank

Speaking at a joint news conference Italy's Prime Minister Matteo Renzi said "other European banks had much bigger problems" than their Italian counterparts "If this non-performing loan problem is worth one, the question of derivatives at other banks, at big banks, is worth one hundred. This is the ratio: one to one hundred."

EU Banks Crash To Crisis Lows As Funding Panic Accelerates

The signs are everywhere - if you choose to look - Europe's banking system is collapsing (no matter what Draghi has to offer). From record lows in Deutsche Bank and Credit Suisse to spiking default risk in Monte Paschi, the panic in Europe's funding markets (basis swaps collapsing) is palpable.

Frontrunning: July 6

  • For Hillary Clinton, Political Fight Over Emails Is Far From Over (WSJ)
  • More "Extreme carelessness" - Iraq inquiry slams Blair over legal basis for war (Reuters)
  • FBI Director Rebukes State Department Over Security Practices (WSJ)
  • Gold Climbs to Two-Year High as UBS Sees Start of New Bull Run (BBG)
  • Stocks and bond yields sink as growth fears set in (Reuters)

Hungary Will Hold A Referendum On October 2 To Halt Inflow Of Migrants

Hungary will hold a referendum on Oct. 2 on whether to accept any future European Union quota system for resettling migrants as Prime Minister Viktor Orban's government steps up its fight against the EU's migration policies. "The Hungarian government asks Hungarian citizens to say no to mandatory resettlement and to say no to the immigration policy of Brussels. Only Hungarians can decide with whom we want to live in Hungary."

Frontrunning: July 5

  • Pound Tumbles to 31-Year Low as Its Post-Brexit Selloff Resumes (BBG)
  • Bad Debt Piled in Italian Banks Looms as Next Crisis (WSJ)
  • Stock Market to Bond Market: ‘La-La-La I Can’t Hear You' (WSJ)
  • A Prime Minister, a Referendum and Italy’s Turn to Get Worried (BBG)
  • Brexit Vote Paralyzes Companies Across Europe  (WSJ)

War Of Words Erupts As Italy's PM Slams Mario Draghi: "You Could Have Done More To Help Italian Banks"

A war of words broke out between Italy's Prime Minister Matteo Renzi and the ECB's Mario Draghi, after the Italian premier dared to criticize Draghi for not having done more to resolve Italy's banking woes when he held a key Treasury job in Rome in the 1990s. "And if people had the strength and intelligence to keep politics out of the banking system a bit before we did it ... we would not have had cases like Monte dei Paschi di Siena." Slowly but surely, the facade of coolness and calmness if rapidly coming off...

German Arms Exports Nearly Double In 2015

Germany exported 7.86 billion euros ($8.75 billion) of arms last year (compared with 3.97 billion euros in 2014) including a controversial 1.6 billion euros sale to Qatar - the Gulf Arab state has been labeled by German opposition parties as an alleged source of funding for ISIS.

A Former NYMEX Trader Explains "The Mechanics Of Silver Manipulation"

What follows is how JPM manipulated the silver markets by selling the Silver contango during illiquid hours, then used their deep pockets to push settlements, then waited until margin calls made the large locals puke their positions. JPM in effect stretched the relationship between forward rates and futures spreads until they made no sense anymore. Not unlike a company trading at 50x earnings. It cannot last long. But it only has to last long enough until the guy with the position opposite you has to liquidate.