Tuesday, July 5, 2016

Economic News , Data & Views ..... July 5, 2016...... Quick Hits 1. Markets : Bond Yields Keep Falling Lower , NIRP Becomes NIRP-IER ; Sterling Falls To Latest Low ( 31 Year Low ) VS USD ; European Banks Remain Under Siege ; Comments From Fed Head Dudley and Former Chair Greenspan ; Crude Oil Keel-hauled. . 2.UK Politics & Post Brexit Vote Updates. 3. Around The Horn In Europe ( SANS Greece Updates. ) 4. Greece Updates De Jour 5. Hillary Dodges Charges Being Recommended Against Her By The FBI - And Some Early Reactions From The Little People. 5. Odds & Ends.



Markets....






Chart: Dollar-yen below 101 -







So far today 30-yr JGB record 0.015% 20-yr JGB ZERO, 1st time 10-yr JGB record -0.265% Aussie 10-yr record 1.849% Taiwan 10-yr record -0.27%








And yuan continues to weaken as well....






At +0.25%, 1-month US T-bills have a higher yield than ... 50 YEAR bonds in Switzerland which have gone negative...









US Yield curve continues to flatten...









"This used to be an exclusive club with only 1 member: Switzerland. A proud day today at 7 members strong." - Draghi







FRENCH 9-YEAR BOND YIELD DROPS BELOW ZERO FOR FIRST TIME








Sterling slides further to 31y low of $1.3024.
















Sure , why not...








Shares of Banca Monte dei Paschi plunges to fresh all-time low of <0.30€ as Italy said to plan capital injection.








35 bn invested in these types of funds. At present , redemptions halted at two funds ( 5 bn invested therein.)









Third property fund suspends trading. About 11bn gated now.








Other CRE funds to watch today- Legal & General (-5.6) , Aberdeen Asset Management (-6.1) , Land Securities (-4.3.)









Contagion after Standard Life stopped redemptions..










Greenspan Warns A Crisis Is Imminent, Urges A Return To The Gold Standard







DUDLEY: MON POL LIMITED IN ABILITY TO ADDRESS INCOME INEQUALITY.





DUDLEY: INVESTMENT OUTLOOK HAS BEEN WEAKER THAN EXPECTED






DUDLEY: LOW INFL ALLOWS US TO BE PATIENT








Bad day for crude oil , smacked by record high East Coast gas inventories..








UK Politics & Post Brexit News  ......





Note Crabb has pulled out the race , while Fox was eliminated. Down to just 3.







First Round.... May: 165 Leadsom: 66 Gove: 48 Crabb: 34 Fox: 16 Fox goes out. Huge vote for May.






From Vernon Bogdanor in the Times today. He has a point












Why Juncker has found himself on the hotseat..







Around European Horn ( Sans Greece ) .....





Shockingly , VW involved in another scandal !








EU COMMISSION FINDS SPAIN,PORTUGAL IN FISCAL BREACH - MNI







ECOFIN CLD DECIDE ON SANCTIONS NOW OR POSTPONE; EC TO ANNOUNCE SANCTIONS PROPOSAL THURS - MNI









French PM forces contested labor laws through parliament











The French govt uses emergency measure to pass labor bill through Parliament w/o a vote — for a 2nd time.








Rules that everyone agreed upon , can't pick and choose whom they apply to now.








As if the German auto industry needed more bad news! Reports of investigation of a steel cartel in the sector. Car names at session lows.







Greece.....






ATHEX: Bank stocks nosedive to four-month low







No Greek rail, Athens metro or ISAP services on Wednesday









Finance minister says capital controls to be gradually relaxed








Hillary dodges Major Political Bullet.....







No charges recommended..









WH has said the presidential seal isn't displayed at campaign events. ()








Fwiw - some level of discontent bubbling up today...








Pres. Obama and Hillary Clinton have boarded Air Force One for flight to attend Clinton campaign rally in Charlotte, North Carolina.







"The Donald" is not pleased , which is also not a shocker.








Odds & Ends....






Venezuela has paid "$36 billion to creditors -- “a huge amount of money” -- over the previous 20 months."











In the wake of bombing leaving 300+ innocent victims, Iraqis call on Gov to execute convicted terrorists








Iraq executes five convicted of terrorism, declines HR appeals; timing linked to Karrada bombing









IS videos declare war on and















Fwiw , initially the bomber was alleged to be Pakistani. Early in the investigation though..