This won't end well...

The machines have filled the gap (oil hasn't)...

who could haver seen that coming?

Right on schedule https://t.co/c5Gx6H0Cvx

— zerohedge (@zerohedge) April 18, 2016

The news of Dilma's impeachment vote kneejerk'd stocks and the real higher overnight as the almost unbelievable gains in the circling-the-economic-drain nation's stock and FX markets extended among the "blood on the streets" dip-buyers. However, things have turned around rather quickly and it appears investors are aggressively selling the news as the collapse of government is suddenly seen as a negative...

Brazilian stocks have swung from up 4.5% to down 3.5%...

And The Real is tumbling...

Two aftershocks, one measuring a magnitude of 5.3 have hit Kumamoto prefecture in Japan, according to the US Geological Survey (USGS) The aftershocks followed just days after two deadly earthquakes struck the region, killing at least 42 and injuring more than 1,000 others. RT reports: A tsunami warning has not been issued, Japanese broadcaster NHK reported. The aftershocks measured 3.9 and 3.4 on the Japanese scale, according to the country’s Meteorological Agency. Each had a depth of 10 kilometers (6.2 miles).

Down in Fredrick, MD, visiting with the KBRA FIG team this week. Last week we published a research note, "Will Negative Interest Rates Save Europe’s Banking System?"  You can read the full report with footnotes at the link below (registration is free).

https://www.krollbondratings.com/show_report/4042

In addition to the 53% plunge in Morgan Stanley earnings driven by a collapse in FICC revenues which plunged 55% from $1.9BN to $873MM, the other major company to report earlier today was Pepsi which, if only uses GAAP data, had more disappointing numbers: total revenues declined by 3% from $12.2BN to $11.86BN, just missing expectations of $11.87BN.

GAAP earnings tumbled by 24% from $1.2BN to $931MM, although since PEP repurchased $619MM in shares in the quarter, GAAP EPS declined a little less, or 21%, from $0.81 to $0.64.