Eurozone Headlines

  • The Silence Of The Bears

    Authored by Sven Henrich via NorthmanTrader.com, The silence of the bears is deafening. And who can blame them? The last 2 years have been absolutely brutal for any fans of price discovery, volatility and anything analytical mattering. Nothing matters. Be it divergences, valuations, earnings misses, slowing data, yield curve, equal weight, internals, catastrophes in nature, slowing loan growth, slowing auto sales, slowing real estate, retail apocalypse, debt levels, etc…I can drone on. Nothing...

    @zerohedge
  • 7 Reasons Why Stocks No Longer Care About Political Shocks, And 2 Why They Should

    From Nicholas Colas of DataTrek Research Why do global equity markets ignore political shocks like Brexit, President Trump’s election or the news that Angela Merkel failed to form a government in Germany? There are plenty of good reasons, actually, which we review below. News that German Chancellor Angela Merkel failed to form a new government was the big shock of the day. It is unclear if the country will have a minority coalition or call fresh snap elections. The New York Times quoted a Der...

    @zerohedge
  • BofA's Apocalyptic Forecast: Stocks Flash Crash, Bond Bubble Bursts In H1 2018, War May Follow

    Having predicted back in July that the "most dangerous moment for markets will come in 3 or 4 months", i.e., now, BofA's Michael Hartnett was - in retrospect - wrong (unless of course the S&P plunges in the next few days). However, having stuck to his underlying logic - which was as sound then as it is now - Hartnett has not given up on his "bad cop" forecast (not to be mistaken with the S&P target to be unveiled shortly by BofA's equity team and which will probably be around 2,800), and...

    @zerohedge
  • Hyperinflation in Zimbabwe – It’s back, but maybe not for long

    Submitted by BullionStar.com When a nation adopts a foreign currency it will typically face significant hurdles when it tries to rid itself of that currency, or de-dollarize. But Zimbabwe’s autocratic ruler Robert Mugabe has appeared to have done the impossible. After dollarizing ten years ago, over the course of the last year or two he and his cronies have managed to throw off the U.S. dollar and re-introduce a Zimbabwean replacement. We can see evidence of this new currency in Zimbabwe's stock...

    @zerohedge
  • What Happened To Cash Flow Growth: The Red Flag In Q3 Earnings

    Listening to Wall Street analysts, or their financial press cheerleaders, one would be left with the impression that earnings season has been gangbusters, and the recent 2-3 quarters of growth are sure to lay the basis for a new golden age in which EPS rises at double-digit rates for years to come. There are just a few problems with this wildly incorrect conclusion. First, after a year of earnings recession and a year in which earnings went nowehere, 2017 is finally catching up to where analysts...

    @zerohedge
  • What German Political Turmoil? Global Markets BTFD, Don't Look Back

    US index futures are unchanged, having recovered virtually all overnight session losses alongside the EURUSD following Merkel's failure to form a government, while European shares rise despite Angela Merkel's failure to form a new government. In the span of just hours, the goalseeked "hot take" consensus was that Germany’s collapsed coalition talks aren’t expected be a deal breaker for European equities due to the "strength of the German economy." As we pointed out earlier, the euro reversed...

    @zerohedge
  • The Stage Has Been Set For The Next Financial Crisis

    Authored by Constantin Gurdgiev via CaymanFinancialReview.com, Last month, the Japanese government auctioned off some US$4 billion worth of new two-year bonds at a new record low yield of negative 0.149 percent. The country’s five-year debt is currently yielding minus 0.135 percent per annum, and its 10-year bonds are trading at -0.001 percent. Strange as it may sound, the safe haven status of Japanese bonds means that there is an ample demand among private investors, especially foreign buyers,...

    @zerohedge
  • Era of ultra-low inflation could draw to close as globe recovers, says Draghi

    Global economic growth could stoke a rise in inflation across the world, ending the era of flat prices - and ultra-low interest rates, Mario Draghi has indicated.

    The Telegraph
  • Mueller Subpoena Spooks Dollar, Sends European Stocks, US Futures Lower

    Yesterday's torrid, broad-based rally looked set to continue overnight until early in the Japanese session, when the USD tumbled and dragged down with it the USDJPY, Nikkei, and US futures following a WSJ report that Robert Mueller had issued a subpoena to more than a dozen top Trump administration officials in mid October. And as traders sit at their desks on Friday, U.S. index futures point to a lower open as European stocks fall, struggling to follow Asian equities higher as the euro...

    @zerohedge
  • How Corporate Zombies Are Threatening The Eurozone Economy

    The recovery in Eurozone growth has become part of the synchronised global growth narrative that most investors are relying on to deliver further gains in equities as we head into 2018. However, the “Zombification” of a chunk of the Eurozone’s corporate sector is not only a major unaddressed structural problem, but it’s getting worse, especially in…you guessed it…Italy and Spain. According to the WSJ. The Bank for International Settlements, the Basel-based central bank for central banks, defines...

    @zerohedge
  • Merkel Facing "Night Of The Long Knives" On Coalition Talks

    In October, Merkel won what was dubbed as the “nightmare victory” in the German elections. The weaker expected showing from the CDU/CSU forced her into complicated coalition negotiations with the FPD and the Greens. This process is coming to a head due to tomorrow’s self-imposed deadline to find enough common ground to press forward with the alliance. This alliance is the so-called “Jamaica” coalition since the colours of the parties mirror Jamaica’s flag. As Reuters reports. Talks on forming a...

    @zerohedge
  • Futures Jump, Global Stocks Rebound From Longest Losing Streak Of The Year

    After five consecutive daily losses on the MSCI world stock index and seven straight falls in Europe, there was finally a bounce, as investors returned to global equity markets in an optimistic mood on Thursday, sending US futures higher after several days of losses as global stocks rebounded following a Chinese commodity-driven rout.  The House is poised to vote, and pass, on tax legislation although what happens in the Senate remains unclear. European shares rebounded for the first time in...

    @zerohedge
  • Global Stocks Tumble, Asia Plunges On Chinese Commodity Carnage

    The euphoria of the past month has ended with a thud and BTFDers are strangely missing as the commodity chill out of China (which overnight became full blown carnage), has unleashed a global risk-off phase ahead of today's critical CPI data, resulting in broad and sharp selling across global markets, as European stocks followed declines in Asia while bonds and gold advanced. The equity retreat, which spread to U.S. stock futures, started with last night's sharp puke in Chinese commodities. As...

    @zerohedge
  • For The First Time Ever, The Richest 1% Own More Than Half Of The World's Wealth, Or $140 Trillion

    Today Credit Suisse released its latest annual global wealth report, which traditionally lays out what has become the single biggest reason for the recent "anti-establishment" revulsion: an unprecedented concentration of wealth among a handful of people, as shown in Swiss bank's infamous global wealth pyramid, an arrangement which as observed by the "shocking" political backlash of the past year, suggests that the lower 'levels' of the pyramid are increasingly unhappy about. As Credit Suisse...

    @zerohedge
  • Bank Of America: "This Is A Clear Sign Of Irrational Exuberance"

    The latest monthly Fund Manager Survey by Bank of America confirmed what recent market actions have already demonstrated, namely that, as BofA Chief Investment Strategist Michael Hartnett explained, there is a "big market conviction in Goldilocks leading to capitulation into risk assets" while at the same time sending Fund managers' cash levels to a 4-year low, and pushing "risk-taking" to a new all-time high, surpassing both the dot com and the 2007 bubbles. BofA's takeaways from the survey,...

    @zerohedge
  • US Futures, Global Stocks Extend Decline After Disappointing Chinese Data, Dollar Slides

    U.S. index futures declined for the second day in a row, dipping 0.1% to the lowest in more than a week following declines in Asian and European shares. European stocks tried and failed to shrug off the negative sentiment that spurred broad-based declines in Asia following another month of disappointing Chinese macro data... ... eventually reversing gains as the euro strengthened on German growth data. The euro was up a fifth day, rising above 1.1700 for the first time in nearly three weeks...

    @zerohedge
  • German Q3 GDP Growth Smashes Expectations

    German GDP growth for Q3 2017 printed at 0.8% Q/Q, easily beating the consensus estimate of 0.6%, which was in line with growth in the previous quarter, driven by fixed capital formation amid stable household and government consumption. While year-on-year GDP growth was reported as 2.3%, the underlying growth was 2.8% after adjusting for calendar effects. The data confirmed that German growth was on track for its best year since 2011, and pushed the EUR higher for the fifth day, rising above...

    @zerohedge
  • Pound down as politics, trade and Brexit combine in potentially lethal cocktail

    The pound fell sharply against the euro and the dollar as fresh political turmoil struck Theresa May’s fragile Government and left markets on edge.

    The Telegraph
  • Eurozone will bolster global growth as Brexit hits UK economy, says IMF

    The Washington-based organisation said Europe´s recovery had inspired a brighter outlook for the world economy.

    Mail Online
  • Morgan Stanley: "If Central Banks Push Back, Asset Prices Face A Severe Challenge"

    As increasingly more analysts and Fed-watchers have suggested in recent months, the one catalyst that could send the market into a tailspin is for the Fed to get what it has so long wanted: a sudden spike in inflation. From Albert Edwards (who looks at record U.S. vacation plans as an ominous sign of rising wages), to Eric Peters (who warned that pent up inflation could unleash a "nightmare scenario" for the next Fed chair), to Aleksandar Kocic (who yesterday explained why the market is...

    @zerohedge
  • Frontrunning: November 10

    Trump Declares New World-Trade Order (WSJ) Trump brings tough trade message in vision for Asia (Reuters) Trump Offers Trade to Asian Nations But Only If They Play Fair (BBG) Flynn Probed Over Alleged Plan to Send Back Turkish Cleric (WSJ) GOP’s Dueling Tax Overhauls Struggle to Pass a Key Red Ink Test (BBG) Trump's CNN attacks may hobble legal case to block AT&T-Time Warner deal (Reuters) Bigger Than Black Friday, Alibaba’s ‘Singles Day’ Faces Fatigue in China (WSJ) AT&T's Clash in D.C....

    @zerohedge
  • Cable Dumps'n'Pumps As EU Official Says No Brexit Talks Breakthrough

    Brexit talks yielded no breakthrough on the financial settlement, and discussions focused on the issue of citizens’ rights, where the two sides are hoping for progress, an EU official told reporters. Bloomberg notes that the anonymous official added that no breakthrough was expected on the bill, as that would require high-level political input. The EU is piling the pressure on the UK to agree the divorce settlement as Brexit negotiations resumed in Brussels. In EU parlance, it appears that the...

    @zerohedge
  • EU cuts UK growth forecast as eurozone motors ahead

    Brussels’ health check of member states sharply cuts UK forecast to 1.5% as eurozone enjoys best year since financial crisis of 2007 The European commission enters key Brexit talks with the government with the eurozone economy in its best shape for a decade and activity in the UK weaker than expected six months ago. In its half-yearly health check, the commission sharply cut its forecast for UK growth this year and said it was likely to continue struggling in 2018 and 2019 even on the assumption...

    the Guardian
  • Prepare For Interest Rate Rises And Global Debt Bubble Collapse

    Prepare For Interest Rate Rises And Global Debt Bubble Collapse - Diversify, rebalance investments and prepare for interest rate rises- UK launches inquiry into household finances as £200bn debt pile looms- Centuries of data forewarn of rapid reversal from ultra low interest rates- 700-year average real interest rate is 4.78% (must see chart)- Massive global debt bubble - over $217 trillion (see table)- Global debt levels are building up to a gigantic tidal wave- Move to safe haven higher ground...

    @zerohedge