Germany

It's Official: Italy Will Nationalize Monte Paschi

So far, so expected. After earlier announcing the failure to attract any anchor investors for a private capital raise, Monte Paschi has announced that it will officially ask the Italian government for a "precuationary capital increase" - in other words a bailout. The funds will come from the newly decreed EUR20 billion bailout fund, and as Bloomberg reports will not trigger a "bail-in."

ISIS Releases Holiday Attack List Of U.S. Churches

Recent messages posted to the pro-ISIS "Secrets of Jihadis" group on the Telegram app included a list of churches in the United States and called for lone-wolf attackers to "turn the Christian New Year into a bloody horror movie."

Here Are The "Costanza Trades" Of 2017

Ask yourself; what are the trades that make complete sense and all your instincts say are right, and then do the opposite.  Basically what you end up constructing is an out of consensus portfolio and we all know how consensus trades work out in this market.

German Media Continues To Aid Merkel In "Culture of Denial"

German media is solidly behind Angela Merkel as the US media was behind Hillary Clinton. German reporting of the recent terrorist truck incident was in a single word “pathetic”. Thanks to chancellor Merkel, it’s politically incorrect to presume refugees are a problem. Worse yet, the media cooperates.

Frontrunning: December 22

  • Fingerprints of Tunisian suspect in Berlin attack found on truck door (Reuters)
  • Germany Ill-Prepared for Terror Fight, Critics Say (WSJ)
  • Monte Paschi Will Need a Huge State Rescue (BBG)
  • Trump denounces attack, vows tough immigration plan (AP)
  • Trump’s New Appointments Shake Up Trade, Regulation (WSJ)

Geert Wilders Warns "Political Revolution Is Brewing In Europe"

"The German authorities are dangerously underestimating the threat of Islam... They have betrayed their own citizens. We will have to de-islamize our societies... But it all begins with politicians with the courage to face and speak the truth."

Merkel Government Still In Denial

The police union in the German state of Thuringia issued an open letter to the state's Interior Minister, describing the crumbling law-and-order situation amid the rising migrant crime: "[You] are abandoning us completely helpless to a superior force... But what changes? Nothing. One instead gets a sense of uninterest." Meanwhile, representatives of Arab community were reported telling the police in Ruhr, "The police will not win a war with us because we are too many."

Frontrunning: December 21

  • Futures little changed after Dow, Nasdaq hit records (Reuters); Europe Stocks’ Rally Dims as Banks Drop; Oil Gains (BBG)
  • Monte dei Paschi says could run out of liquidity after four months (Reuters)
  • Spanish Banks Lose EU Case on Mortgage Interest Repayments (BBG)
  • Russia says trust needed for global oil output deal to be success (Reuters)
  • U.S. plays down absence from Moscow talks on Syria, says not 'sidelined' (Reuters)

Open Letter To Bavaria Minister-President Horst Seehofer

"I would like to commend you on your opposition to mass uncontrolled immigration into Europe. One would think that it would be trivial to praise politicians – who are elected to uphold law and order, meaning our culture and values – for doing so, but these are the times we are living in."