Japan

Bank Stocks, Dollar Slide Hit By Fresh Tax Reform Doubts

U.S. equity futures are little changed as European and Asian shares retreated, led by sliding bank stocks and a drop in the dollar as doubts over republican tax cuts and ongoing bond curve flattening hurt sentiment and prompted fresh questions over the viability of the US expansion.

"One Simple Reason The Yield Curve Is Collapsing"

The divergence between the 'hope' melt-up in stock markets and the 'nope' collapse of the US Treasury yield curve has never been so wide... and has never engendered so many excuses by commission-takers and asset-gatherers for why the latter is wrong and the former correct.

Frontrunning: November 7

  • U.S. Allies Fear Trump Will Pull a Nixon in China (WSJ)
  • Partisan Tensions Flare as GOP Revises Tax Bill (BBG)
  • Tax Overhaul Faces Major Hurdles (WSJ)
  • Multinationals Scurry to Defuse House Tax Bill’s ‘Atomic Bomb’ (BBG)
  • Parties Watch New Jersey, Virginia Votes for Wider Signals (WSJ)

Global Stock Meltup Sends Nikkei To 25 Year High

The global risk levitation continues, sending Asian stocks just shy of records, to the highest since November 2007 and Japan's Nikkei topped 22,750 - a level last seen in 1992 - while European shares and US equity futures were mixed, and the dollar rose across the board, gains accelerating through the European session with the EURUSD sumping below 1.16,

Is Korea Just A Smokescreen?

"Looking at the bigger picture, it seems more likely that the entire Korean issue is a smokescreen designed to provide cover for a military buildup intended to intimidate or even force China to abandon its challenge to the U.S. dollar. However, China is not Iraq or Libya. It is a major nuclear power."

The Big Reversal: Inflation And Higher Interest Rates Are Coming Our Way

The tectonic forces of demographics meeting the increasingly fragile pyramid scheme of financialized debt-inflated asset bubbles will more than reverse the 30+-year trends of ever lower inflation and interest rates: this interaction will spark a runaway feedback loop that will smack asset valuations back to pre-bubble, pre-pyramid scheme levels.

Trump: Texas Massacre A "Mental Health" Problem, Not A "Guns Situation"

Following the horrific murder of dozens of worshippers in Texas yesterday, demands for gun control were prevalent, but President Trump, speaking at a press conference in Tokyo, said the mass shooting was not "a guns situation," pointing out that the problem was the killer's "mental health."

Frontrunning: November 6

  • Gunman kills 26 in Texas (Reuters)
  • Trump Urges Japan to Buy More U.S. Military Equipment (WSJ)
  • Ex-Catalan leader granted freedom to campaign for independence (Reuters)
  • House begins revising Republican tax bill to quell dissent (Reuters)
  • Why the Next Four Days Will Be Crucial for the GOP Tax Bill (BBG)
  • Broadcom offers to buy mobile chipmaker Qualcomm for $103 billion (Reuters)

Global Stocks Drift Lower As US Futures Rebound From Overnight Scare, Oil At 2 Year Highs

Following an early shaky start, which saw the Hang Seng tumble as much as 1.6% driven by weakness in financials and real estate names following the latest warning by PBOC governor Zhou about "sudden, complex, hidden, contagious, hazardous" risks In markets and a decline in local real estate prices, and pressure global risk, US equity futures have recouped all losses and are back to unchanged on monday morning.