Monday, June 27, 2016

Economic News , Data & Views ...... June 27 , 2016..... Quick Hits - 1. Markets & Market Moving : US Yield Curve Ends At New Expansion Low ; S&P Battering Continue ; Bank Stocks Battering Continue ; VIX Has Strange Day ; UK Gets By Both S&P & Fitch ; Deutsche Bank Share price And 10y German Yields Continue To Trade Lower In Lockstep. 2. Brexit After-Math - News De Jour. 3 Brexit & Referendum Become Magical Words - . Becomes Leverages As Other EU Nations Discover the "Referendum " Word. 4. Odds & Ends - Mostly MENA. ) .


( Asia Updates since original posting... )

Morning Twitter birds! Just for a change, Japan yields are getting crushed. 20-year JGB falls to record 0.055%

Brexit driving foreign JGB demand, 10-week average net buying $3.1b ($1.1m in Jan). Not long now 'til zero, 30-year.

PBOC continuing to adjust the yuan, today's fix is the weakest since Dec 2010 (6.6528). Fixing 1.3% weaker in 3 days, most since Aug deval


PBoC conducts 180 bln Yuan 7-Day reverse repo, net injection 70 bln at 2.25%.

Jim Rogers: Brexit Blowback "Worse Than Any Bear Market You've Ever Seen"

US Yield Curve ends the day at a new expansion low, flattest since Nov 2007. 84 bps spread

Chart: Is French 10yr bond yield also headed for negative territory? Any EU related risk is absorbed by the ECB?

S&P 500: down to 22% of stocks above their 50-day moving average, fewest since the Feb 11 low.

Biggest European 2-day bank stock drop in... ever

This was strange and a few twirps commented on this during the day....

Both the long vol and short vol ETFs finished lower today. Strange day in the world of volatility.

Rumors on Bridgewater: Only information there is that they are "ugly" --

The last G7 sovereign to face 2notch cut like UK by S&P was as Eurozone debt crisis mounted in Jan2012. (BBG)

Another hour, another downgrade. Fitch cuts UK's rating by 1 notch to AA; Outlook Negative.

Deutsche Bank share price and 10y German Yields continue to trade lower in lockstep.

tremors: Two bleak days for European banks via h/t

UniCredit battering continues....

GBP/USD fresh 30-yr lows Gilt yields below 1% Barclays and RBS down 25%

Naturally , both Yellen and Carney have pulled out of the ECB event in Portugal. No need to explain why ...


Post- Brexit News .....

( Much more at Twitter T.L.)

Francois Hollande - Europe has project to pursue. Cannot waste time. UK should issue article 50 and then there will be negotiations

EU side divided , another test of Merkel's leadership looming.

Kerry:it's now incumbent on leaders to implement the will of people and to do so in a way that is responsible-sensitive-thoughtful-strategic

Cameron: I'll not trigger Article 50 at - next PM will have to do it. Before that it has to decide what kind of EU relationship it is.

David Cameron tells Scots: Forget a second independence referendum

Labour has agreed to no confidence tonight and secret ballot tomorrow.

"Britain is leaving the EU but we must not turn our back on Europe or the rest of the world", in the Commons

Second Referendum hoopla officially shutdown by the Cabinet...

German Chancellor Merkel: Cannot Allow Extended Waiting Game With UK - Has ‘Some’ Sympathy If UK Needs Time To File EU Exit Papers - BBG

Catch-up with all today's rolling resignations here >>

Brexit Becomes Leverage Tool...


Additional referendum looming perhaps....

Slovakia anti-immigrant party seeks referendum on EU membership withdrawal

Odds & Ends....

Sounds like Venezuela can't pay back those loans from China and has no more gold as collateral....

GNA's Prez Council has decided to stop the salaries for the Thini and Ghwell governments ministers & deputy ministers.

Hiftar, still opposing UN-backed unity govt & snubbing UN envoy Martin Kobler, goes to Moscow (and not for the first time)

Turkey mending fences with Russia , is a sign that resolution of Syria conflict possible in medium term.

Suicide bombers try again to bring Syria's war to eastern Lebanon. 9 killed, 15 wounded.

Rajoy says he will talk to all other parties but that the idea of asking him to step down as PM after these results is not serious.

Not a shocker...

In other news , US weapons provided to arm "Syrian Rebels " , diverted from planned destination.

Schedule for events in Europe this coming week !

Italian coastguard and navy rescue 3,300 off coast of

Iraq takes full control of Fallujah from IS

We expect 20 more camps will be needed in to house 30,000 people fleeing