Wednesday, May 25, 2016

Economic News , Data & Views ( May 25 , 2016 ) Overview For Wednesday (1. Markets - Global Equities 62% Above Their 200-day Moving Average, 53% Positive YTD , Junk Bond Bonanzas - From Worst To Not As Bad As Before , 105th CB Cut Since 2015 - 2016 , NIRP For Wednesday , US Data Point For The Day - PMI Output Index Falls From 52.4% to 50.8% In May . 2. Greece - Creditors Deal - Analysis The Day After The "Deal". 3. Refugee Crisis News Of The day. 4. Spain Political Updates. 5. Odds & Ends. )


Markets & market moving news.....




Global Equities: 62% above their 200-day moving average, 53% positive YTD. S&P 500 <1% off its total return high.







High Yield Energy spreads at new 6-month lows, more than cut in half from all-time wides on Feb 11 (1984 to 971 bps)







Junk energy bonds ditch distressed label as gains.








Hungary cuts rates for the 3rd time this year, the 105th central bank easing measure of 2015-16.






The greatest trick the central bankers ever pulled was convincing the world that negative rates are a good thing.








Markit Flash U.S. Composite Output Index falls from 52.4 in April to 50.8 in May







Services PMI: Service providers report slowest rate of staff hiring since December 2014










Greece - Creditors Deal ......







In other words , nothing of note has been accomplished and the decisions avoided once again...






Why was everyone so happy yesterday -IMF still sitting on the sidelines and the "Deal" looks like a damp squib.








ESM Regling: Interest deferral is not forgiveness. It is added to debt stock, so "red line" of no haircut respected.






Germany on the hook....up to 25 Bn.






The Day after , already trying to wiggle out ....







Deal—what deal? Despite the talk of disbursements and debt-relief, nothing was sealed at the (1/3)






The Eurogroup meeting was hailed as a "breakthrough" on the question of debt relief—but it was no such thing. (2/3)






The debt relief Tsipras needs as a figleaf to cover bailout concessions remains out of reach, contingent and unquantified. (3/3)






Ban Ki-moon slammed western leaders for skipping the World Humanitarian Summit







IMF says not ready to add funds to Greece bailout as it stands now







statement clearly indicates supplemental MoU for .






2y yields drop as ECB to consider bonds as collateral. Could boost demand by €4.5bn.







Yes , this sums up Eurogroup neatly.







Refugees Crisis .....





Europe's top rights official defends on asylum delays Interview w/








Italy says number of migrants saved today now 670. 5 confirmed dead.







Refugees: Escape to Freedom? | Athens | May 29 - June 1








Clear out of Greek refugee camp should reopen economic artery






Spain.....






3rd night of protests in Barcelona. Rubbish bins being burnt tonight.










"PP confirms it accepts a 4-way debate with Rajoy and rejects PSOE proposal for a 2-way debate with Sánchez."







Rajoy not loved in Valencia..







Remains to be seen how this plays out in the June 26th Election.







Odds & Ends.....







A 5k fine ? That outrageous...








Panama Papers law firm abruptly resigns as the representative of 1,024 Nevada companies








*PRE-OPEC MEETING SAID TO HAVE NO DISCUSSION OF OIL-OUTPUT LIMIT. The OPEC meeting won't either







Messy , messy , messy...







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