Germany

Governing The Deplorables

"Brennan is not wrong to criticize the flaws in democracy. Giving people the vote is no guarantee that they will use it wisely. But restricting the vote to the cognitive elite is no solution. I would rather be ruled by the first thousand people through the gates at the Daytona 500 than the people in that room Friday night with Hillary Clinton and Barbra Streisand. Guess who holds more power already in our society? That’s right: the cognitive elite. That’s how it works in a meritocracy."

Global Market Rout Abates As Bond Selloff Pauses, Oil Rebounds

After a sudden rout in financial markets that wiped $2 trillion in global market cap over the past week showed signs of easing, overnight stocks tried to stage another "BTFD-type" comeback with European stocks climbing for the first time in five days as oil and metals prices gained. S&P futures were modestly in green, although they faded earlier gains, on the back of a slide in the USDJPY which initially spiked to 103.31 only to fade back to the mid 102-range.

Luxembourg Wants To Kick Hungary Out Of Europe For Its "Inhuman" Treatment Of Refugees

“Anyone who, like Hungary, builds fences against refugees from war or who violates press freedom and judicial independence should be excluded temporarily, or if necessary for ever, from the EU,” Luxembourg FM Asselborn said. Hungarian Foreign Minister Peter Szijjarto called Asselborn “an intellectual lightweight” who “lives a sermonizing, pompous and frustrated life … just a few kilometers from Brussels.”

Dow Futures Slide Over 100 Points Despite Fed's Dovish Relent; Oil Drops On IEA Pessimism

After yesterday's torrid rally, which sent stocks higher the most in 2 months on the back of Lael Brainard surprisingly dovish comments, we have seen an unexpected profit-taking session overnight in ES, with US equity futures down 0.6%, driven largely by a renewed drop in oil prices which slid after the IEA said a surplus in global markets will last longer than initially estimated, persisting well into 2017 as reported previously.

"The Financial Crisis Has Morphed Into A Growth Crisis" - Rogoff Warns "Cash Is Not Forever, It's A Curse"

"Big bills are a curse... understand this: Cash is not forever... in fifty years there will be no cash... it’s one very important step towards enabling central banks to have much more effective tools in fighting a financial crisis and in particular to use negative interest rates in an effective way... people who are older need to think about having a larger share of stocks than the traditional wisdom..."

Hillary Versus Donald: War Or Peace?

For once, politicians and pundits who routinely call every election “the most crucial of a generation” are right. This year’s Presidential election is the most significant one since at least the fall of the Soviet Union and Eastern Bloc. If the U.S. electorate wants to avoid the disaster not only to its own land and the world that followed in the wake of the 1916 election, there can be only one choice in November of 2016.

George Soros Warns Europe: Accept Refugees Or Face Extinction

The refugee crisis and the Brexit calamity that it spawned have reinforced xenophobic, nationalist movements that will seek to win a series of upcoming votes. Rather than uniting to resist this threat, EU member states have become increasingly unwilling to cooperate with one another. They pursue self-serving, beggar-thy-neighbor migration policies – such as building border fences – that further fragment the Union, seriously damage member states, and subvert global human-rights standards.

Key Events In The Coming "Fed Blackout" Week

The spotlight turns to US data and Fed speakers ahead of the Fed blackout period this week. The BoE and SNB meet to decide policy but consensus expect no change from either. Elsewhere we get inflation data from the US, UK, Sweden & EZ (F), Q2 GDP from NZ & SW and labor market data from the UK & AU.

"Global Market Rout" - Bond Selloff Snowballs Into Stock Liquidations On "Stimulus Pullback" Fears

With traders in the US arriving at their desks, the global selling appears to be accelerating and as Bloomberg notes, "a selloff in fixed income is starting to snowball into a global market rout" driven by what Reuters dubbed "growing concerns that global central banks' commitment to the post-crisis orthodoxy of super-low interest rates and asset purchase programs may be waning."