Chinese companies must repay 2.7 trillion yuan of bonds in the second half of this year, and together with another 3.3 trillion yuan of trust products set to mature in the second half, China's bond market may be facing its first real crisis.
Some time ago, president Trump said that his fiscal policy would unlock cash that companies would use for investing in capex and long-term growth. Well, the results from Q1 earnings under the next tax regime are in and share buybacks reached the highest level on record.
The reason Microsoft doesn`t mind overpaying for GitHub by 4.5 Billion is because they know their stock is way overvalued by historical standards in a non bubble market.
While global markets remain largely a sea of green, ignoring the threat of a trade war between the US and the rest of the world the move higher has been more muted overnight as some familiar risks have re-emerged.
"Nordstream, along with Turkish Stream and potentially a revived Southstream into Bulgaria represent an existential threat to U.S. control over European politics and its economy. So, it’s no wonder why the U.S. is taking such a hard-line approach to Nordstream 2."
"It isn't the west versus Russia. It isn't left versus right. At this time the real conflict in our society is a few ruling elites and their cronies versus humanity's natural impulse to act in a way that is beneficial to humanity..."
"Looking at the investor base, we believe that there may not be any obvious candidate to support the BTP market if a bear case fiscal expansion was to play out."
"'Crime doesn’t pay'... Actually it does, handsomely. If you are a banker or large financial player, it pays wonderfully. You get filthy rich committing the crimes and after... you continue to get filthy rich. What doesn’t pay is reporting crime..."
"The current pace is probably as good as it gets because we expect the impulse from financial conditions to turn gradually more negative, and the further likely FCI impact of our above-market funds rate forecast."
"It is necessary to clarify the storytelling about Italian debt. It is not general markets’ that have the greatest influence on the price but the ECB is by far the biggest factor."
The main focus for markets next week will instead likely be the fallout from the latest trade war developments, most notably now between the US and EU, as well further clarification around the Italian political scene.
Where previously the threat of renewed trade war between the US and the world would have been sufficient to pummel global markets, today stocks are approaching life with a "glass half full" approach, and global stocks and US futures are green across the board.
Rumor has it that Germans are the most disciplined workers in the world.
The statistics, however, as Statista's Patrick Wagner points out, give that accolade to the Indians - especially those living in Mumbai – who are apparently working much more than their German counterparts.
"Mariano Rajoy is gone from Spain’s political scene. And good riddance. Live by the sword die by the ballot box. Catalan and Basque separatists took their revenge on Rajoy's brutal crackdown ..."
