Credit Suisse

Switzerland: Chocolate, Watches, And Jihad

Switzerland is the answer to those who claim that Islamic terrorism is reserved for those countries that have participated in operations against ISIS or other Muslim terror organizations. Switzerland has done neither, yet its flag figured among sixty other enemy flags shown in an ISIS propaganda video. Swiss authorities are currently investigating 480 suspected jihadists in the country.

Frontrunning: January 27

  • Mexico Dispute Could Overshadow May’s Free-Trade Message (BBG)
  • NATO, Russia and trade top the agenda for Trump talks with Britain's May (Reuters)
  • Trump's plan for import tax worsens crisis with Mexico (Reuters)
  • Nafta’s U.S. Impact is Modest (WSJ)
  • Republicans Are Making Little Progress on Their Obamacare Repeal Strategy (BBG)

Johnson & Johnson Acquires European Biotech Giant Actelion For $30 Billion

Concluding weeks of speculation, overnight Johnson & Johnson announced it agreed to acquire Actelion Pharmaceuticals, Europe’s biggest biotech company, for $30 billion, or CHF280 per share, expanding the U.S. pharma giant’s portfolio of rare-disease treatments as its top-selling drug faces new competition.

These Are The Biggest Losers If Trade War Breaks Out Between The US And China

"If a trade war developed between the two countries, both China and the U.S. would be negatively impacted," the People's Daily warned in a commentary. "In the end neither side would win, it would bring harm to other countries and that harm would be brought to others without benefits to the U.S. or China." Here is a quick look at the biggest losers...

Jewish Trust Sues Deutsche Bank For $3 Billion

A Jewish charitable trust has sued Deutsche Bank, alleging the German bank wrongly withheld as much as $3 billion from the heirs to a wealthy German family. According to Bloomberg, the lawsuit claims the bank refuses to return the funds initially deposited by the Wertheim family in accounts opened at what is now Credit Suisse Group AG before the rise of the Nazis in Germany.

Global Stocks Dip; Bond Yields, Dollar Rise After Yellen's Rate Guidance; All Eyes On Draghi

European and Asian shares, and S&P futures slipped, while government bond yields jumped to multi-week highs on Thursday after Yellen's hawkish speech. Oil rose after API reported a drop in crude inventories. The euro rebounded as investors look to Mario Draghi to address rising European inflation that make the ECB's stimulative policies look increasingly out of sync.

Here Are The Winners And Losers From Trump's "Border Tax Adjustment"

Potential Winners: Companies with a majority of their input costs contained within the U.S; Potentially lower tax rate of 20% on sales and full deduction for input costs; U.S. Exporters: as export revenues are not subject to U.S. tax.
Potential Losers:Products, services, and intangibles imported into the U.S.; Automakers, Oil and Gas, to Retailers can be impacted; U.S. Multinationals that have relied on aggressive tax planning to shift earning overseas.

Hedge Fund Net Short Exposure Drops To Lowest On Record

If you can't beat em, join em... at least that seems to be the mantra of long-short hedge fund managers who, after underperforming the S&P consistently over the past 8 years, have decided to ditch their shorts, sending net exposures soaring.

Party Like The Dow Is 19,999: US Futures Dip As Global Currencies Stumble; Oil Down, Gold Up

European, Asian stocks fall and U.S. equity-index futures traded mixed on Monday with fresh memories of the Dow Jones rising to under 1 point of 20,000 on Friday. The dollar has rebounded on fresh geopolitical concerns, while the pound extends its decline from Friday and has slide to 10 week lows on a Sunday interview from Theresa May which suggested a "Hard Brexit" may be in the cards.

An Angry Japan Responds To Trump's Toyota Taunts

Japanese government officials pushed back against Donald Trump’s criticism of Toyota as the attack on the country’s most powerful corporate name sent shockwaves across Japan Inc.

What Wall Street Expects From Today's Payrolls Reports

With all eyes likely on wage growth indications in the subtext of tomorrow's payrolls report (following The Fed Minutes' comments on full employment), Goldman Sachs is forecasting a better-than-expected 0.3% rebound in average hourly earnings (helped by more favorable calendar effects) and a better-than-expected 180k payrolls print (albeit with a small rise in the unemployment rate). However, they are careful to note that any downside can be blamed on "a considerable drop in temperatures."

Peso Plunges To Record Low After Trump Tweet

The Mexican Peso is plunging once again this morning - very close to all-time record lows - as fears spread that Ford's decision yesterday may become the norm following president-elect Trump's tweet that "this is just the beginning."

RBC Explains What Time To Expect Today's Pension Fund Sell Orders

Expect mechanical pension asset-rebalancing into bonds from stocks (on acct of massive relative performance gap MTD / QTD), most-clearly evidenced by the programmatic ~ half-hour long selling-waves seen in SPX at 9:35am, 11:55am and 3:35pm.  Expect this flow to continue through the new year, as market liquidity simply is not deep enough to ‘take it.’