Budget Deficit

Everything Is Soaring As Trump Makes Buying Stuff Great Again

The global repricing of inflation expectations continues at a feverish pace in the aftermath of the Trump victory, leading to another surge in US equity futures, up 15 points or 0.7% to 2175 at last check, with Asian and European stock market all surging after the initial shock of Trump’s election victory gave way to optimism for fiscal stimulus will provide a boost to the global economy.  Commodity metals soared with copper surging the most since May 2013.

Egypt Stocks Soar, Bonds Rally On Currency Devaluation: "Now The Hard Work Starts"

Given our warning last week (as the black market pound crashed), the devaluation of the Egyptian pound (to 14/$) was not entirely unexpected, but as ECStrat's Emad Mostaque notes, the market was probably in the 11/$ range and so they have surprised to the upside. This will put significant social pressure on society and we could potentially see unrest as Sisi’s support continues to diminish. For now, stocks and bonds are soaring on the currency's crash.

Crispin Odey Sees 80% Crash In UK Stocks With Recession, Inflation "Inevitable"

"The FTSE 100 share index is now up 30% over five years, whilst earnings have fallen by 80%. On an earnings yield of 1.6%, the stock market could fall by 80% and, provided profits did not fall, would be on a 13x P/E multiple. The Bank of England is proud that they have engineered such a pleasant result but there is now increasing evidence that this is unsustainable."

The Boredom Before The Storm

With all the surprising and/or disturbing things going on – Brexit, China’s soaring debt, US/Russia/China saber rattling, the, um, unique US presidential race, the cyber attack that shut down big parts of the US Internet – you’d think that an unsettled world would be reflected in skittish financial markets. Instead we’re getting the opposite...

Why Hillary Clinton Is A Bigger Concern For China Than Donald Trump

So you think Donald Trump is the biggest threat to world peace? And Barack Obama engineered America’s “pivot to Asia”? It was actually Hillary Clinton, emphasising the necessity of a “strategic turn” for the United States, who launched the pivot to Asia in an October 2011 article titled “America’s Pacific Century”. The tone was martial: “Our military is by far the strongest and our economy is by far the largest.”

Saudi Arabia Is Already Spending The New Bond Money

The ink wasn't even dry yet on the just concluded historic, upsized and dramatically oversubscribed bond sale by Saudi Arabia which raised $17.5 billion and Saudi Arabia was already begun spending the money. Roughly at the same time as the wire transfers were taking place, the Saudis were busy repaying debts to state contractors, after long delays that squeezed company finances and hurt investor sentiment.

Saudi Arabia Launches Sale Of 5, 10 And 30 Year Bonds, Seeks To Raise Up To $15 Billion

The most anticipated bond sale of the year has officially started, with Saudi Arabia seeking to sell between $10 and $15 billion in three tranches, a 5Y, 10Y and 30Y offering. Pricing is expected to take place tomorrow, Oct. 19; with the books set to close at 5pm in NYT on Tuesday October 15.  Tentative pricing will be as follows:

US Budget Deficit Spikes 34%, Grows For The First Time Since 2009

In fiscal 2016 the deficit was 3.2% of GDP, compared to a deficit of 2.5% of GDP a year earlier, which was the first increase in the deficit as a share of GDP since 2009. It was also the first increase in the deficit in dollar terms since the financial crisis.