People had prepared for the worst, but so far, they haven’t gotten the worst... But people forget that before the pandemic, the stock market was already priced for perfection. It was extremely overvalued...
The October 31 expiration of the payroll protection program has kept the ranks of the unemployed lower than had the initiative not been deployed; it implies that another round of job-shedding has only been delayed to the final two months of 2020.
"It depends on the form and the price but broadly speaking it’s the green light to carry on with the QE trade -- buy everything regardless of valuation.”
Most buyers placed their offers in April (and to a lesser extent in March), during the height of stay-at-home orders. As a result, May existing home sales will reflect the worst of the crisis, with a print likely below 4.00M.
The main highlight this week is likely to be the flash PMIs for June tomorrow, with manufacturing, services and composite PMIs coming out from around the world
With Eurasia, Eastasia, and Oceania strategic shifts in play, and for lots of other reasons, Orwell should be on our minds at present. So should Huxley.
"Markets have climbed back ... with stocks proving the doubter wrong yet again as a world of stimulus trumps the reality of economic and health struggles."
Beijing is stuck between a rock and a hard place, on one hand urgently needing more rate cuts, and on the other unable to implement them without causing another round of bank-sector impairments and potential failures.
The coronavirus response, monetary debasement, and George Floyd riots have clearly demonstrated to the honest and the productive that governments offer them less than nothing...
He may have avoided prison for the time being, but the financial pain for Markus Braun, CEO of the biggest corporate fraud in German history is just starting.
"The sharp divergence between credit and activity observed in the US, the eurozone and China is particularly unusual and highlights how different this crisis is relative to the GFC."
