Morgan Stanley

European, EM Stocks Slide On ECB Taper Concerns; US Futures Flat

With China on holiday, overnight sessions remain relatively quiet: at this moment, S&P500 futures are little changed as European stocks fall for first day in seven, on yesterday's concern that the ECB is moving toward tightening monetary policy; Asian indices rose slightly for third day. WTI climbs to $49.40, the highest since June 30 after yesterday's surprisingly large API crude draw report.

Trump's Right - Morgan Stanley Warns "Big, Fat, Ugly Bubble" Is "An Illusion" Driven By The Fed

"In a looping debate rant, Mr. Trump argued that an increasingly “political” Fed is holding interest rates low to help Democrats in November, driving up a “big, fat, ugly bubble” that will pop when the central bank raises rates. This riff has some truth to it... The stock market should be a barometer of the economy, but in practice it has become a barometer of Fed policy."

Futures Fail To Rebound As Deutsche Bank Tries To Comfort Markets That It Is "Fine"

After yesterday's "Hillary rally" in the US, the overnight's session has seen more risk-on sentiment as European stocks advanced, ignoring weakness in Asia as investors followed every twist of shares of beleaguered lender Deutsche Bank, whose CEO last night assured Bill readers that the bank is not seeking a bailout, which however was contradicted by a Zeit article this morning reporting that Germany may seek as much as s 25% "bailout" stake in a worst case scenario.

Citi Slams "Increasingly Bizarre" Presidential Race As Morgan Stanley Unveils Trump "Contingency Plans"

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.

$195 Billion Asset Manager: "The Time Has Come To Leave The Dance Floor"

"When the supposed solutions to the Fed’s dilemma are merely new “problems,” you know you are approaching the cycle’s end... long-term investing is predicated on not just knowing where the happening parties are during the reflationary parts of the cycle but more importantly, knowing when the time has come to leave the dance floor. In our view, that time has already come."

"Disappointing And Underwhelming" - An Unhappy Wall Street Reacts To The BOJ's Latest Announcement

Just after midnight east coast time, the BOJ presented its new and improved monetary policy dubbed “QQE with Yield Curve Control,” in which the central bank said it would buy JGBs such that 10-year yield remain at the current level of around zero percent. The BOJ will also buy JGBs at designated yields, and generally steepen the curve even as it failed to lower rates or add more QE. Wall Street took one look at what the BOJ came up with... and hated it immediately.

How Big An Impact Will A Rate Hike Have On Oil Prices?

Oil prices could be facing a significant jolt after Federal Chair Janet Yellen, in her annual speech at the Jackson Hole economic symposium in Wyoming, said that the case to increase interest rates had strengthened. The extent of the jolt that may be felt is far from certain however.

The Status Quo vs. Donald Trump

"...the corrupt status quo of both useless political parties are making a huge calculated error by coming together so publicly against Trump. By rallying so aggressively and passionately around Hillary Clinton, the worst of the worst from America’s oligarchy have succeeded in the impossible. They have made a billionaire reality tv star look like a counter culture iconoclast."