Blackrock

What Will It Take For Geopolitical Shocks To Worry Investors?

“...we are living in unprecedented times of geopolitical and social uncertainties. For investors, it is really hard to quantify those risks.. In this age of monetary policy uber alles, every setback somehow gets sold as a buying opportunity. There are no long-term ramifications ascribed to anything,” So what will it take for risk appetite to shift?

Global Stock Rally Halted In Aftermath Of Latest French Terror Attack

The tremendous rally of the past 4 days that has sent global stocks soaring in recent days has finally been capped and European shares, S&P futures are all modestly lower following a deadly terror attack in Nice, France. Meanwhile Asian stocks rose as Chinese economic data beat estimates, with Q2 GDP rising by 0.1% more than the estimated 6.6% on the back of stronger housing data.

"We Shouldn't Be At New All Time Highs" - Even Larry Fink Doesn't Get It

 "I don't think we should be at new [stock] highs... We are seeing investors worldwide pausing, we are seeing quite a large sum of money being pulled out of equities over the last year. And yet we are at record highs. That's just a sign of how much money is being taken out by central banks in their bond purchases, and stock repurchases from companies."

US Futures, Global Markets Storm Higher As More Details Emerge About Japan's "Helicopter Money"

The global meltup continues with the S&P set to open at new all time highs, some 20 points higher from yesterday's close, however the driver for the latest rally is not so much the imminent BOE announcement which is expected to cut rates by 25 bps from 0.50%, but a dramatic surge in the USDJPY just after 1am Eastern when Bloomberg revealed more details about Ben Bernanke's masterplan for Japan's helicopter money.

World's Biggest Asset Manager Downgrades European Banks To Sell, Expects Global Slowdown

"We have trimmed our global growth expectations, and now expect a modest slowdown over the next 12 months. We see risk of a UK recession and European slowdown, as Brexit uncertainties weigh on sentiment. Our new BlackRock Macro GPS “nowcasting” indicator suggests Brexit-related uncertainty has already started to negatively impact UK and global economic growth. We have downgraded European stocks to underweight, with a negative view of the eurozone banking sector."

"We've Never Had A Shock To The System Like This" - Global Selloff Accelerates On Brexit, Italy, "Unknown" Fears

The flight to safety following last week's quarter-end window dressing is accelerating, with constant news and flashing red headlines of record low yields across DM government bonds once the norm, and as of moments ago Denmark's 10Y bonds joined the exclusive club of sub-zero yields; gold has soared to fresh multi-year highs above $1,370, the risk-off currency, the Yen, soaring and sending the USDJPY just above 100, while sterling crashed overnight once again below 1.27, levels not seen since 1985.

Something Interesting From The Rumor Bag: The Next Big Risk For UK Stocks?

"Had an interesting chat with a senior pm at brewin dolphin yesterday. Bd manages significant pool of uk pensions / charities / endowment funds. Their mandate is long only, real estate bonds shares. Essentially they selling out all the real estate and piling up in iShares ftse etf. Minimum fees, simple transaction, they get 10% return in one week. Everyone going into Blackrock I Shares FTSE ETF."

Banks Are Spending Billions On Stress Test Preparation

After failing the Federal Reserve's annual stress tests in March 2014, the WSJ reports that Citigroup hired multiple consulting firms, and spent about $180 million on stress tests during the second half of 2014 in order to address regulator's concerns. It turns out that banks are spending tens of billions in order to prepare for stress tests, creating quite a lucrative business for consultants.

Brazilian Telecom Giant Files Largest Bankruptcy In Nation's History

Brazil’s troubled telephone company Oi SA on Monday filed the largest bankruptcy protection request in the country’s history just days after debt restructuring talks with creditors collapsed. The filing of Oi and six subsidiaries lists 65.4 billion reais ($19.26 billion) in debt.

"Loan Stacking" - The Blind Spot That Could Blow Up The P2P Model

Back in February we noted that there were cracks starting to show in the world of P2P lending, and more specifically, with LendingClub's inability to assess credit risk of its borrowers that were causing the company to experience higher write-off rates than forecast. And now courtesy of Reuters, we learn of a critical blind spot in the world of online lending.

World's Largest Asset Manager Downgrades Global Equities To Neutral

With one after another bank issuing downgrade reports on global stocks, including such stalwarts as JPM and, most recently, Goldman, overnight a far more important market entity - the world's largest asset manager - joined the club when BlackRock downgraded U.S. and European stocks to neutral, citing elevated U.S. valuations and the higher probability of a midyear interest-rate increase by the Federal Reserve. 

Frontrunning: June 1

  • Japan PM delays sales tax hike, puts fiscal reform on back burner (Reuters)
  • Japanese Shoppers Keep Wallets Shut Despite Sales-Tax Delay (BBG)
  • Global stocks limp into June on oil and data slips (Reuters)
  • Euro zone factory growth remained tepid in May - PMI (Reuters)
  • China's factories steadying but weak, hopes for quick recovery fade (Reuters)