Prime Minister May signs EU divorce papers

British Prime Minister Theresa May signed the EU divorce papers on Tuesday. Brexit has officially begun as foreign exchange response seems to be muted as both the pound and euro traded off slightly against the dollar. US equities and bonds were also nonplussed by the much-anticipated move by the Brits. City of London bankers from […]

The Wall St. bulls are on the run, look out.

Apologies for late post as I have computer problems. Wall Street appears to be flexing its muscle again on the back of Donald Trump’s Presidential inauguration. JPMorgan reported 4th quarter earnings this morning and knocked the cover off the ball. Jamie Dimon’s management team just seems to fire on all cylinders, while Bank Of America […]

Market turns on a dime, but who’s dime?

Yesterday’s market moves need to be examined. The way the markets turned around on a dime after the Dow fell over 220 points on the news the Deutsche Bank was being squeezed due to liquidity concerns was the stuff that the Plunge Protection team dreams of. While the percentage moves were small, the direction was […]

Bank stocks are banking on fees

Wall Street banks finished their reporting for Q1 “earnings” with Goldman Sachs reporting Monday. While the TV financial commenters said it was a tough quarter, they proudly stated that the large banks “beat” estimates and yada, yada, yada. Give me a break. The average profit decline for the quarter was down over 30% year-over-year for […]

Plunge Protection Team to the “rescue”

For the second day in a row US equity futures are up almost 2% before the open. This while China and European bourses are selling off, in some cases hard. On Tuesday, Dow futures were up over 300 points prior to opening and held that level into the open, only to see it fade more […]

It’s all Greek to me

Wednesday the Fed will end its two-day meeting without a scheduled press conference to follow. Markets should not expect and movement in rates, since Fed chief Janet Yellen already tipped of the bond pits that no rate hike will happen after a meeting without a press conference. That’s why the September meeting is the one […]

Germany is bund-ling its problems in QEuro

As I wrote yesterday, the QEuro had more to do with bailing out Germany and its banks than the PIGS. The German 10-yr bund yield moved 28.5% yesterday with lower durations going negative yield. Early morning in the US, showed that the bund moving 8% lower in yield hovering around 0.178%. How soon before the […]