Volkswagen

Gavekal On The Coming Clash Of Empires: Russia's Role As A Global Game-Changer

Just when China is starting to offer an alternative—an alternative that the US should be trying to bury—the US is moving to “weaponize” the dollar and pound other nations—even those as geo-strategically vital as Russia—for simple domestic political reasons. It all seems so short-sighted.

Frontrunning: August 2

  • Trump close to decision on addressing Chinese trade practices (Reuters); White House Weighs Trade Measures Against China (WSJ)
  • Republicans Pivot to Tax Cuts Amid Frustration at Lack of Detail (BBG)
  • Russian losses in Syria jump in 2017, estimates show (Reuters)
  • Market Paradox: Firms Get Punished for Posting Earnings (WSJ)
  • OPEC’s ‘Catch-22’: How to Unwind Its Deal to Cut Oil Output (WSJ)

Frontrunning: August 1

  • Futures higher on strong earnings season; Apple in focus (Reuters)
  • Kelly Sends Off Scaramucci, But Real Test Will Be Taming Trump (BBG)
  • Senate Democrats offer Republicans help on tax reform - with conditions (Reuters)
  • Banks May Need $50 Billion New Capital After Brexit (BBG)
  • Goldman Sachs Finds Itself in Odd Spot: Last Place in Trading (WSJ)

Global Stocks Hit New All Time High As Dollar Rebounds; Europe Volatile On Earnings Deluge

The levitation continues with S&P futures pointing to - what else - another higher open while European stocks swung between gains and losses on the busiest earnings days of the year (85 of the Stoxx 600 report) which has seen European pharma giant AstraZeneca plunge 15%, the most on record, after its flagship lung cancer trial Mystic failed to show benefits, while Deutsche Bank slumped 4% on a 12% plunge in FICC revenue.

Frontrunning: July 26

  • Oil bounce, results keep stocks on high (Reuters)
  • Healthcare brawl returns to Senate floor (Reuters); Senate Sets Up Health Votes for Chaotic Obamacare Debate (BBG); Health Debate Rolls On After First Option Fails (WSJ)
  • Who Will Blink First in the Sessions Standoff? (BBG)
  • Iran Says ‘Hostile’ U.S. Sanctions Vote Undermines Nuclear Deal (BBG)
  • Russia Warns of ‘Painful’ Response If Trump Backs U.S. Sanctions (BBG)

Frontrunning: July 24

  • Kushner, Russian Ambassador Had Undisclosed Contact (WSJ)
  • Democrats take aim at big companies in economic blueprint (Reuters)
  • Trump open to signing Russia sanctions legislation (Reuters)
  • Senate GOP Unsure of What Health-Care Measure They Will Vote On (WSJ)
  • Japan PM Abe denies favors for friend amid falling support (Reuters)

Protecting The Cheaters: EU Regulators In Bed With German Auto Industry Regarding Diesel

"We can debate at length what pollution standards should be. What’s not debatable is German auto corporations lied and cheated their way to good results and now they are caught with their pants down, at least twice. Either way, diesel is on the way out. And with that pending change, Germany’s vaunted lead in auto technology has turned into ashes. Meanwhile, EU regulators are prepared to look the other way in an attempt to give German manufacturers time to catch up."

Frontrunning: July 21

  • Euro surge to two-year high prompts stocks pause (Reuters)
  • Short Sellers Give Up as Stocks Run to New Records (WSJ)
  • U.S. toughens stance on foreign deals in blow to China's buying spree (Reuters)
  • Trump team seeks to control, block Mueller’s Russia investigation (WaPo)
  • Trump Would Set Off a Chain Reaction by Trying to Fire Mueller (BBG)