The seeds of European disconent are spreading. One week after Britain voted to separate amicably with the EU, the president of the Czech Republic, Milos Zeman, called for a referendum on his country’s membership in the EU and NATO. Demonstrating a shocking grasp of what democracy truly is, while Zeman wants to remain in both organizations, he wants the public to have a chance to "express themselves" something which sends a spike of terror through the hearts of all unelected Brussels bureaucrats.

In an interview today on CNBC, Art Cashin hits the nail on the head as he typically does when asked about the central banks, the bond market and US Treasury yields hitting new record lows.

"It's attracting money, it's a very powerful magnet and it's going to keep doing that."

 

"With all apologies to Janet Yellen it's getting to a point where it doesn't matter what the Fed thinks, rates are going to stay low."

Submitted by Eric Bush via Gavekal Capital blog,

Equity correlations have spiked to the highest level in years presumably thanks to Brexit. The 20-day correlation between the GKCI DM index and the MSCI World Index is at the highest level since 2011.

The correlation between EM and DM stocks is at its highest level since 2010.

In what turned out to be a case of morbid irony, last night we reported that Josh Brown, the 40 year old (non) driver of the Tesla which fatally crashed into a truck on May 7 in Florida while in self-driving mode when the car's cameras failed to distinguish the white side of a turning tractor-trailer from a brightly lit sky and didn't automatically activate its brakes, had as recently as a month earlier praised his "Tessy's" autopilot feature in a YouTube clip.

Authored by Yoon Young-Kwan, originally posted at Project Syndicate,

Populism, nationalism, and xenophobia all contributed to the victory of the “Leave” campaign in the United Kingdom’s recent referendum on membership in the European Union. But these forces float on the surface of a larger sea change: a fundamental shift worldwide in the relationship between the state and the market.