Fitch

Austerity Isn't Dead, It Will Come Back With A Vengeance

"Whilst I don’t deny the medium term tide is against austerity, the very high levels of sovereign debt mean austerity will return. To understand why this must happen we need to deal with the three key fallacies that austerity opponents are propagating."

Global Shares Hit Another Record High In Lethargic Session Ahead Of US Data Deluge

It was another painfully low-volume overnight session, which however did not prevent global stocks from hitting another record highs, capping their best week in over two months as the dollar stayed close to nine-month lows following Yellen's dovish retreat in which she noted caution on persistently low inflation as odds of future rate hikes in 2017 and 2018 dropped.

Frontrunning: July 11

  • Trump Looks to Wall Street for Fed Bank Regulator (WSJ)
  • Rates play prods dollar to four-month high versus yen, kiwi dollar falls (Reuters)
  • Kaspersky Lab Has Been Working With Russian Intelligence (BBG)
  • Buffett’s Berkshire Moves Away From Stock Picking (WSJ)
  • OPEC's Barkindo says all producers should help balance market (Reuters)

Illinois Tax Rate Soars 32% After Senate Overrides Governor Veto

In a whirlwind of activity on America's nation holiday, just around noon, first the Illinois Senate voted to approve the House tax hike and spending bill, then shortly after, state Gov. Rauner - just as he warned he would - vetoed both the income tax increase and the budget bill and budget implementation bill, only to be himself overriden moments later by the Senate, as it took the drastic measure to end a record budget impasse.

Draghi Doesn't See "Bubbles" - Let Me Show You Some

"Ask yourself a question: On the day the ECB stops buying, which of you would buy peripheral or European bonds at these prices? Clearly, the first sign of a bubble is the absence of demand in the secondary that offsets the impact of the ECB..."