Last week was filled with the culmination of many issues as we had the FED, ECB, trade agreement, UK election, impeachment hearings, and even an attempt at resolving the USMCA trade deal with Mexico and Canada.
Posts Tagged ‘German’
Notes From Underground: The Market Has Much to Consider
December 16, 2019Notes From Underground: Prairie Fires On the Global Landscape
April 14, 2019Let me put introduce areas of great concern that markets acknowledge but do not price for as they are too difficult to weigh. The Chinese/U.S. trade negotiations are simple relative to the potential impact from Turkey, Venezuela, Europe, and, of course the final decision on Brexit.
Notes From Underground: Rome Is Alive With the Sound of Music
October 31, 2018There was singing in Rome when Angela Merkel announced that she is stepping down as the leader of the Christian Democratic Union. The two most recent German regional elections has solidified the unmitigated truth about the weakened condition of the German chancellor. For the last six years, I have been highly critical about Merkel’s policies. The bumbling French President Nicholas Sarkozy out-maneuvered Merkel in 2011 as he prevented then-Bundesbank President Axel Weber from leading the ECB.
Notes From Underground: Another FRA Podcast
September 30, 2018I am posting the latest PODCAST from the Financial Repression Authority (FRA), in which Peter Boockvar and I talk markets with Richard Bonugli. This PODCAST sets out the market issues that financial markets will confront in the fourth quarter.
Notes From Underground: Hey Germany, NEITHER A BORROWER NOR LENDER BE
December 14, 2011It is very easy to fall prey to the German view of the European debt crisis: Blame the profligate PIIGS for living beyond their means and borrowing to support a lifestyle based on leisure. There is of course great truth to this but it was the Northern European banks that lent the money in a ready fashion. The GERMAN and DUTCH current account surpluses had to be lent somewhere and with the Chinese and Japanese monopolizing the profligate lifestyles of the Americans, Germany turned to their European comrades. Belonging to the EURO and, thus, ECB zone of finance, Commerzbank, Deutsche Bank, Rabobank and SocGen all felt comfortable buying the AAA debt of Spain and Italy and of course the three little PIGs.
Notes From Underground: IF ALL THE DATA WAS POSITIVE, WHY WAS THE DOLLAR THE ODD MAN OUT?
February 1, 2011Last night the RBA, as expected, left rates unchanged at 4.75 percent. The statement released after the meeting was deemed semi–HAWKISH as the RBA noted the strength of India and China. The Australian central bank also opined that the massive Australian floods would result in pressure on wages as the rebuilding and repairing would bid away construction workers from the extremely buoyant mining sector. Some analysts had been bearish the AUSSIE DOLLAR based on lost productivity but GOVERNOR STEVENS ended that outlook.
Notes From Underground: The Success of any EU DEBT Relief program Rotates on a German Axel
January 17, 2011Some housekeeping weekend news: British Petroleum returned to the Russian market as it announced that it was swapping $16 billion shares of its stock for an equivalent amount of ROSNEFT, rendering the Kremlin the largest BP shareholder. BP management has determined that its future is better off in developing large Russian oil reserves than depending on the capriciousness of U.S. ENERGY POLICY. This is not an easy issue as some previous aggrieved parties are going to slow this agreement down until they receive compensation for past illegal moves by the PUTIN clique. More importantly, it says that serious business people are beginning to see a change in Russia and want to be part of the early movers into the “great potential.’