"We think China is currently very likely to see a financial panic. Preventing its occurrence and spread should be the top priority for our financial and macroeconomic regulators over the next few years.”
"I remain ... unable to certify that the revenues contained in this budget are sufficient to fund the programs we all support. Failure to provide sufficient funding places all of these programs at risk..."
The difference between WTI and Brent narrowed significantly over the past few days, as the forces driving the two benchmarks apart seemed to have reversed course.
It began with the Republican clown car and ended when the biggest clown ran away from the whole DC circus with a herd of his own, taking the Grand Ol’ Party with him.
The bond-equity correlation rises and falls depending on what types of economic shocks markets are digesting at any given moment. Here are the shocks that can "flip" it.
"This was not supposed to happen. Markets were supposed to be more liquid thanks to ample central bank accommodation and the electronification of financial markets. But it may well be these forces that have resulted in the fragility of market liquidity."
Relative to consensus we remain bearish on financial assets. We believe peak asset Prices in 2018 are consistent with peak investor Positioning, peak corporate Profit expectations, and peak Policy stimulus
Once again, summer looms with low implied volatility, tight high yield spreads and persistent leadership by US equities and tech. On the surface, it looks a lot like last summer. It’s not.
As widely expected, China's central bank announced it would cut the Required Reserve Ratio (RRR) for some banks by 0.5% effectively July 5, just over two months after the PBOC did a similar cut on April 17.
...multiple sources confirm a television blackout for the Republican People's Party (CHP) candidate Muharrem Ince as Erdogan's rival continues to reportedly draw immense crowds.
"the bad news is that the tail risks are rising and our work and the literature suggest a major global trade confrontation would likely push the US and the rest of the world to the brink of a recession" - BofA
