While Germany's largest lender would ultimately be rescued by the German government if needed, other banks in the region wouldn’t be able to count on such support, Gundlach said. “Deutsche Bank will be supported by Germany if push comes to shove, but what about Credit Suisse, which has shown a similar decline in stock price? Who’s there to bail them out?”
US military strikes against the Assad regime will be back on the table Wednesday at the White House, when top national security officials in the Obama administration are set to discuss options for the way forward in Syria. One proposed approach is to strike the Assad regime without a U.N. Security Council resolution would be to carry out the strikes covertly and without public acknowledgment, the official said.
Profits at roughly a quarter of Chinese companies in a Reuters analysis were too low in the first half of this year to cover their debt servicing obligations, as earnings tumble and as corporate debt soars to record highs.
In what was a disappointment for anyone hoping for "devastating" disclosures, Julian Assange today held off releasing information about the US elections or Hillary Clinton, despite widespread expectation that he was poised to make a major release.
Philippine leader Rodrigo Duterte on Tuesday told U.S. President Barack Obama to "go to hell" and said the United States had refused to sell some weapons to his country but he did not care because Russia and China were willing suppliers. He also lashed out at the EU advising it to "better choose purgatory. Hell is full already. Why should I be afraid of you?"
"Central bankers have fostered a casino like atmosphere where savers/investors are presented with a Hobson's Choice, or perhaps a more damaging Sophie's Choice of participating (or not) in markets previously beyond prior imagination. Investors/savers are now scrappin' like mongrel dogs for tidbits of return at the zero bound. This cannot end well."
Sterling dropped to its weakest since 1985, hit by a growing sense that the UK may be heading for a 'hard' Brexit in which it cuts links to the EU's single market in favor of total control over immigration. The dollar strengthened, the Nikkei225 rose as the Yen fell, stocks in Europe rallied while US equity futures were fractionally in the green.
The Reserve Bank of India unexpectedly cut interest rates Tuesday, lowering its benchmark repurchase rate by 25bps from 6.50% to 6.25% the lowest in more than 5 years, with all 11 economists polled by the WSJ predicting rates would remain unchanged. The central bank cited a marked slowdown in global growth and a benign inflation outlook, in the first decision made by the recently-appointed committee headed by the new governor, Urjit Patel.
Russian President Vladimir Putin on Monday suspended an agreement with the United States for disposal of weapons-grade plutonium because of "unfriendly" acts by Washington, the Kremlin said. This was followed by a statement by the Russian foreign ministry that information exchange between Russian and US military has stopped of late.