Japan

Sleepy Overnight Session Interrupted By Chinese Market Turmoil

While it was indeed a generally quiet session (with Japan markets closed), US equity futures continued their run into record territory (ES up 0.1% to 2,458.50), and Europe fractionally lower, the early Monday focus was on the previously discussed turmoil for Chinese markets where despite a solid set of Chinese data small caps tumbled, selling off into the close after further warnings of regulatory scrutiny and deleveraging,

China Delivers "Surprisingly" Great Economic Data Across The Board, Yuan Yawns

Following more dismal data from the US, hope for global growth remains in China and they did not disappoint. Despite slumping macro data, a major slowdown in real estate, and the nation's deleveraging efforts in the last three months, GDP beat, Retail Sales beat, Industrial Production surged, and even fixed asset investment was above expectations. The Yuan hasn't moved.

Abe's Days Numbered? DB Warns Japan PM "May Be Forced Out" Leading To Spike In Yields

The Abe cabinet's approval ratings have kept falling and are now in the sub-40% "danger zone". It is now starting to look as though Prime Minister Shinzo Abe might be forced out of office until the Liberal Democratic Party leadership race scheduled for September 2018, in which case JGB yields might be at risk of climbing quite significantly.

John Mauldin Warns "Prepare For Turbulence"

"I’d love to be wrong. Nothing would make me happier than having to eat all these words. But without significant changes, and soon, the economy will drift sideways and down... Any outside shock – and several may be in the offing – could push us into recession."

Adventures In 'Quantitative Tightening'-Lane

"Here, in the spirit of modest contemplation, we offer several hunches, inklings, conjectures, and guesses as to what quantitative tightening might mean. These are not predictions. They’re merely a starting point from which you can extend out your own visions into the future..."

China Warns Japan: "Get Used To Our Warplanes", Sends Spy Ship Near Alaska

China told Japan on Friday to "get used to it" after it flew six warplanes over the Miyako Strait between two southern Japanese islands in a military exercise, while at the same time sending a spy ship off Alaska to observe the latest successful THAAD intercept of a ballistic missile.

Is It Time To Think And Act Differently On North Korea?

"Will the world respect us less as a fearsome hegemon because we are willing to swallow our pride, or will it applaud us for taking the first step towards peace? Donald Trump has an opportunity to accomplish an important foreign policy triumph that has eluded his two predecessors."

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.

Unite and Rule: EU As NATO's Auxiliary Economic Alliance

"The fabled divide-and-rule policy that has been deployed by imperialist powers to weaken resistance is a historically proven fact; but, neocolonial powers also use unite-and-rule strategy to create friendly alliances and to institute a centralized command and control structure in order to buttress the global neocolonial world order."