Business

While Italy scrambles to conclude a private sector rescue of ailing Monte Paschi, which hopes to raise €5 billion in the form a share sale to anchor and retail investors, while at the same time the bank is underoing a debt for equity swap, moments ago Reuters reported that Italy's cabinet will meet later on Monday to authorise an increase to the national debt to cover the cost of saving Monte dei Paschi di Siena, should a public bailout be unavoidable, as well as other ailing banks, government sources said cited by Reuters.

After a brief respite, the bloodbath in Chinese bonds is back, with futures plunging back to lows overnight amid liquidity fears (short-term lending rates are inverted) and growing anxiety over China's almost unprecedented debtload.

Submitted by Brendan Brown via The Mises Institute,

Markets have not been slow to see through the hollowness of the European Central Bank's announced (on December 8) curtailment of the pace of money printing planned for April next year. The ECB plans to reduce its “stimulus” from 80 billion euros per month down to 60 billion euros per month. But, it plans to do this for nine months before any further review — rather than the usual 6-month fixed period until further review. 

The market is about to wake up to something bad.

That something is the fact that the $USD’s strength is going to crush corporate profits in 1Q17.

You see, companies begin to issue guidance for their results during the last week of the quarter. So the warnings are about to start hitting. Indeed, we’re already beginning to see this.

Safra Catz is CEO for Oracle, a $160 BILLION tech company. And she just issued a major warning of what's coming this way.

By EconMatters