‘White Person To White Person: What Is Wrong With You?’
“My parents enlisted in World War II to fight fascism. They both served; my mother was a nurse, my father navigated bombers. They lost friends in that bloody war so that all the world could be free of fascism. They did not fight so that some white people could claim supremacy or that Nazis could openly walk the streets of America.”
It’s Falling Apart: Yields Hit YTD Lows, Stocks Fall As Reality Sets In
“Hope” meets reality, where “reality” means hurricanes, missiles, recalcitrant lawmakers, Fed indeterminacy, and on, and on…
‘Monday Could Look Very Different From Friday’
“There was a lot of market-moving news yesterday. More to come. Unfortunately for traders, the two items with the biggest potential lasting effects are virtually impossible to handicap. And to make matters worse, we won’t know their punch-line until the weekend: when markets are closed for business.”
Euro Surges As Draghi Speaks, GDP Outlook Revised Up, Inflation Path Down
“At the same time, the recent volatility in the exchange rate represents a source of uncertainty which requires monitoring with regard to its possible implications for the medium-term outlook for price stability.”
Dollar Drop Accelerates As Fed Uncertainty Weighs
So as Bloomberg notes, markets were “slightly disjointed overnight with various factors driving individual assets,” but you do want to keep an eye on the dollar here because it looks like the Cohn news combined with Stanley Fischer’s resignation is weighing on the greenback.
‘Sorry, But It’s Crazy’ – Riksbank Decision And The Policymaker Paradox
“Krona has appreciated faster than in [our] July forecast and while it’s reasonable to expect krona to appreciate due to the strong economy, it’s important that it doesn’t strengthen too rapidly,” Ingves said at the press conference, before stating the obvious as follows: “There are risks if Riksbank makes policy less expansionary before other, larger central banks.”
ECB Leaves Everything Unchanged – Eyes Turn To Draghi
But you’ve got to think Mario Draghi isn’t looking forward to Thursday’s presser.
Although no one expected any actual change to policy rates or the APP, markets are expecting quite a lot in terms of outright jawboning, telepathy, side-eyes, winks, nods, or really anything at all to suggest that the ECB is going to try and keep a lid on euro strength and/or is prepping an exit plan from stimulus.
Key Calls (Thursday): Upgrades, Downgrades, & Initiations
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Nosebleed.
The other possibility here is that by persisting in this, we’re exhausting our capacity to respond to future crises. Of course, if one waits around long enough, another crisis is bound to occur. When that happens not only will we be short on ammunition (e.g. if the next crisis started tomorrow, we’d be going into it from ZIRP/NIRP and with already bloated CB balance sheets), we’ll also be approaching it from nosebleed levels thanks largely to the fact that we never exited the state of exception instituted to cope with the previous crisis.
If It’s Not One Thing, It’s Another
If it’s not one thing, it’s another with this administration. We’ve been saying since the very beginning that although you are of course free to go down with the ship, you should not delude yourself into thinking this ship isn’t sinking.
Gary Cohn Not Racist Enough To Be Fed Chair, Trump To Consider Other Options
“President Donald Trump is unlikely to nominate Gary Cohn, his top economic adviser, as the next Federal Reserve chairman, indicating that he is open to considering additional names for a pick he has said he would like to make by year’s end, according to people familiar with the president’s thinking.”
Bloomberg: Trump Is Making A Bad Situation Worse With North Korea
“As a negotiating strategy, Trump’s approach is utterly unsuited to the North Korean crisis. For one, it’s almost certain to fail.”
Boris The Bullet-Dodger.
Seemingly unwilling to risk any further damage to his already low approval ratings, Trump ultimately
Of Tulips, ICOs, Rhino Horn, And Paris Hilton
“When you see the waft of ICO’s (Initial Coin Offerings) hitting the market, you have to ask yourself what these “investors†are smoking. Let’s put aside whether bitcoin, ethereum, or some other transactional coin, ends up being a medium of exchange with real value. Instead let’s focus on these ICO’s.”
U.S. Seeks Oil Embargo On North Korea, Freeze Of Kim’s Assets: Draft Resolution
It looks like the Trump administration is going to push the “nuclear” option re: North Korea.
No, not that nuclear option.
Trump, Democrats Agree On Debt Limit Extension – Highlights, Reaction
DEMOCRATS, TRUMP AGREE TO DEBT LIMIT EXTENSION
TRUMP, CONGRESSIONAL LEADERS AGREED ON HARVEY, DEBT LIMIT, CR
SCHUMER, PELOSI: GOVT FUNDING, DEBT LIMIT EXTENSION TO DEC. 15
TRUMP, CONGRESS AGREE ON HARVEY AID, DEBT LIMIT, CR THRU DEC.15
House Passes Harvey Aid Package As Irma Approaches
HOUSE PASSES FIRST HARVEY ASSISTANCE PACKAGE OF $7.85B
HOUSE PASSES BILL TO FUND FIRST TRANCHE OF HURRICANE HARVEY AID
ECB Said To Study QE ‘Scenarios’ For 2018 – Decision Not Expected Before October
Now you can assume that “adjusting” means winding down, but then again, it could also mean changing the parameters to get around capital key constraints in the event they find themselves breaching technical limits.Â
Chart Of The Day: So Is That The 50Y Or The 2Y Yield?
We’re going to keep writing about today’s BoC rate hike because as noted earlier, it’s more important than most stories that contain the word “Canada.”
Goldman: S&P To Fall To 2,400 By Year-End
Ok, Goldman is out on Wednesday with a visual update on their outlook for stocks
American Apathy
There’s still quite a bit of confusion out there with regard to exactly what it
Stanley Fischer Resigns As Fed Vice-Chair
FED VICE CHAIRMAN FISCHER RESIGNS, EFFECTIVE MID-OCTOBER
Consider This A Preview: Don’t Ignore Canada’s Rate Hike
The BoC hike is important. Poloz is effectively being used as a guinea pig by DM central bankers to see what happens when you hike rates in the post-crisis era. And if you’re a market watcher in the U.S. or Europe, you should take note of what the TSX did as soon as the decision came down.
Bank Of Canada Hikes Rates, Loonie Surges To Fresh Two-Year High
This wasn’t entirely unexpected given the hot economic data that’s been coming in fast and furious over the past couple of months, but it is extremely notable coming after the July hike.
North Korea Promises ‘More Gift Packages’ As South Korean Shares Fall For 5th Day
“The recent self-defense measures by my country, DPRK, are a gift package addressed to none other than the U.S. The U.S. will receive more ‘gift packages’ from my country as long as its relies on reckless provocations and futile attempts to put pressure on the DPRK.”
Twitter Accuses British Geological Survey Of ‘Market Manipulation!’ As Algos Trade North Korea Tweet
To all the Twitter users who are angry at the British Geological Survey for posting an assessment of an earthquake and roiling markets, we would gently suggest that you consider the fact that earth science research is what they are supposed to be doing.
That is, it is their job to study geological events. It is supposed to be your job and the job of the robots “manning” the trading desks to decide what those events mean for markets.Â
Key Calls (Wednesday): Upgrades, Downgrades & Initiations
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