Eurozone
How Mario Draghi Can Force The Swiss National Bank To Go "Nuclear" On Depositors
Submitted by Tyler Durden on 09/17/2015 18:00 -0500In today's centrally planned world, the proliferation of NIRP means that nothing is sacred - not even a Swiss bank account...
Axel Merk Warns "Investors Are In For A Rude Awakening"
Submitted by Tyler Durden on 09/16/2015 08:25 -0500Will she raise or will she not? As financial markets focus on whether we will see a Fed rate hike this week, investors may be in for a rude awakening.
China Plunge Protectors Unleash Berserk Buying Spree In Last Hour Of Trading As Fed Meeting Begins
Submitted by Tyler Durden on 09/16/2015 06:04 -0500Ffor whatever reason starting in the last hour of trading and continuing until the close, the Shanghai Composite - after trading largely unchanged - went from red on the day to up 4.9% after hitting 5.9% minutes before the close - the biggest one day surge since March 2009 - and nearly erasing the 6.1% drop from the past two days in just about 60 minutes of trading, providing a solid hour of laughter to bystanders and observers in the process.
Sep 16 - US House Plans Vote On Bill To Lift Ban On Oil Exports
Submitted by Pivotfarm on 09/15/2015 17:38 -0500News That Matters
Market "Ominously Hints Recession Imminent" BofA Warns Unless "Unambiguous Pessimism" Leads To Stock Rally
Submitted by Tyler Durden on 09/15/2015 09:18 -0500The tone from investors in the latest Bank of America survey is clear: as Michael Harnett summarizes it, the one prevailing theme is "unambiguous pessimism." Bottom line: either markets soar, or something bad is about to happen: to wit: "Unambiguous pessimism means risk assets riper for a rally (note investors don’t want a Fed hike this week). If no rally, then markets ominously hinting “recession” and/or “default” imminent." Good luck Janet.
China Stocks Drop Most Since Late August, BOJ Disappoints Bailout Addicts; US Futures Flat
Submitted by Tyler Durden on 09/15/2015 05:56 -0500Almost two weeks after we explained why any hope for a QQE boost by the BOJ is a myth, and that any increase in monetization will simply lead to a faster tapering and ultimately halt of Kuroda's bond purchases the market finally grasped this, when overnight the BOJ not only did not easy further as some - certainly the USDJPY - had expected, but kept its QE at the JPY80 trillion level and failed to offer any hints of further easing that many had hoped for, pushing the Nikkei down from up almost 400 point intraday to virtually unchanged and sending the USDJPY back under 120. JGBs also traded lower on concerns there may not be much more QE to frontrun.
Sep 15 - US Rate Hikes Will Bring Volatility To EMs
Submitted by Pivotfarm on 09/14/2015 17:31 -0500News That Matters
Sep 14 - ECB Sees Euro Governance As Not Fit For Purpose
Submitted by Pivotfarm on 09/14/2015 06:07 -0500News That Matters
Dollar Outlook Ahead of the FOMC Meeting
Submitted by Marc To Market on 09/12/2015 13:00 -0500A review of the technical condition of the dollar in the days leading up to the FOMC meeting announcement.
Why Don't You Explain this To Me Like I'm 5...
Submitted by Tyler Durden on 09/10/2015 15:45 -0500What the pundits attempt to do is have you focus on the forest from an inch away. While the endless optimism of the talking-heads, most recently that the selloff in developed equity markets has gone too far, each offering up various 'narrative' reasons to support their claim; simply put, they are full of tragic flaws. Allow us to color-code this for all those market "pros" and PhD "economists" who haven't been able to follow the premise over the past several months...
Fortress Europe Under Threat
Submitted by Tyler Durden on 09/10/2015 12:11 -0500The lack of leadership to tackle this clear and present danger to Europe's future is truly concerning. Both the migrants and the Europeans might be worse off as a result.
Global Economy Nearing a “Structural Recession”
Submitted by testosteronepit on 09/10/2015 08:01 -0500And monetary policies will be “ineffective”: Natixis
Frontrunning: September 10
Submitted by Tyler Durden on 09/10/2015 06:35 -0500- Compare: S&P 500 Futures Advance After U.S. Stocks Ignored Global Rally (BBG)
- And contrast: Global Stock Rally Grinds to a Halt (BBG)
- And be very confused: Global Stocks Lower on U.S. Interest Rate Uncertainty (WSJ)
- Hilsenrath: Fed Wavers on September Rate Rise (WSJ)
- Time for more QE: Abe Adviser Says Next Month Good Opportunity for BOJ Easing (BBG)
- Brazil downgraded to junk rating by S&P, deepening woes (Reuters)
- Kiwi dollar tumbles after New Zealand cuts interest rates (Reuters)
Europe's Banks – Insolvent Zombies
Submitted by Tyler Durden on 09/09/2015 10:57 -0500Bank profitability will remain under pressure for some time to come in light of the new capital regulations currently in the works. This will make it more difficult for banks to generate new capital internally, so they will have to tap the capital markets and dilute their shareholders further. It is no wonder that bank stocks remain way below the valuations they once commanded (we actually wouldn’t touch these stocks with a ten-foot pole). From a wider economic perspective, the new capital regulations are rendering banks moderately safer for depositors (as long as the markets don’t lose faith in government debt that is), but they also contribute to their ongoing “zombification”. Bank lending is going to remain subdued. This wouldn’t represent a big problem, if not for the fact that it is likely to provoke even more government activism.
Buiter: Only "Helicopter Money" Can Save The World From The Next Recession
Submitted by Tyler Durden on 09/09/2015 07:08 -0500"We believe a global recession scenario has become the most likely global macroeconomic scenario for the next two years or so. Helicopter money drops would be the best instrument to tackle a downturn in all DMs. We expect to see QE #N, where N could become a large integer, as part of the monetary policy response in the US and the UK, and QEE2 in Japan."
