Renaissance

Trump Team Will Not Attend Davos: "Would Betray Populist-Fueled Movement"

Trump won’t send an official representative to next week's globalization summit in Davos because, as Bloomberg reports citing a senior member of Trump’s transition team: "the president-elect thought it would betray his populist-fueled movement to have a presence at the high-powered annual gathering in the Swiss Alps."

The Corporate Bond Market: Binge-Borrowing

For those tapping the fixed income markets, the borrowing bingefest is conspicuous in its constancy. Not only did global bond issuance top $6.6 trillion last year, a fresh record, sales are off to a galloping start thus far in January.

Frontrunning: January 5

  • Dollar Posts Biggest Drop Since Trump's Win (BBG)
  • World stocks hit 1-1/2 year high after strong China data (Reuters)
  • Apple pulls New York Times apps in China after government request (Reuters)
  • Macy’s Axes Jobs and Stores, Echoes Kohl’s on Weak Holiday (WSJ)
  • India’s Cash Woes Are Just Beginning (BBG)

How Hedge Funds Closed Out 2016, And Why Hopes For A 2017 Rebound May Disappoint

In recent weeks there has been a burst of hope that 2017 will be better for hedge funds as a result of the recent collapse in cross-asset correlation; it is hoped that the resulting returns dispersion would make it easier for hedge funds to stand out in a world in which correlation had been at near record highs. But is that an accurate description of events?  To a great extent, the answer is no.

10 Reasons Trump Won't Lead A Nuclear Renaissance

Donald Trump in the White House and Theresa May in 10 Downing Street. They will open the door to more nuclear spending, no doubt. But, despite all the post-election industry euphoria, should we anticipate a full renaissance for U.S. commercial nuclear power?

Italy Proves That Banks Are Not The Risk-Free Fantasy We're Told To Believe

We’ve been programmed to sign over our life’s savings to a complete stranger simply because the government says it’s OK. That same government has lied to us about everything else imaginable, ranging from the existence of Weapons of Mass Destruction to whether or not he had “sexual relations with that woman.” Yet this government-sanctioned trust is routinely abused.

Frontrunning: December 22

  • Fingerprints of Tunisian suspect in Berlin attack found on truck door (Reuters)
  • Germany Ill-Prepared for Terror Fight, Critics Say (WSJ)
  • Monte Paschi Will Need a Huge State Rescue (BBG)
  • Trump denounces attack, vows tough immigration plan (AP)
  • Trump’s New Appointments Shake Up Trade, Regulation (WSJ)

"Demonetization Has Achieved Nothing" - India's Rapidly Plunging Toward A Police State

Demonetization will have achieved nothing positive. But it will have seriously damaged the Indian economy. The human costs are immense and continue to pile up. This could easily - even likely - take India to autocracy and eventually, bloody and chaotic disintegration. The demonetization policy and Modi are merely symptoms of deeper issues though.

Despite Post-Election Spike In Optimism, Small Business Owners Have Never Been More 'Uncertain'

Small Business Optimism was "basically unchanged from October's reading up to the point of the election and then rose dramatically after the results of the election were known," according to NFIB chief economist Bill Dunkelberg. In fact the surge was the sharpest since 2009 as the balance of those who thought business conditions would improve exploded from -6 to +38. However, actual sales continue to decline and "business uncertainty" has never been higher.