Business

Mario Draghi just dropped the c-word. In his address to the EU Parliament, the ECB President explained that financial-stability risks are "for the time being, contained." Having admitted that Deutsche Bank is correct that negative rates certainly hurt bank profits, Draghi remains "committed to accomodative policy." But it was ECB executive board member Benoit Coeure that spoiled the party by rejecting the narrative of ECB stock buying.

Last week, when looking at the divergence between Donald Trump's proposed fiscal plan to "make America great again" on the back of an unprecedented fiscal stimulus boost which is expected to add $5.3 trillion to the debt over the next decade...

... and the deleveraging fiscal plan espoused by House Republicans...

... we pointed out something disturbing: the two plans were roughly $12 trillion apart over a cumulative ten year period, a difference equal to more than one-quarter of total federal outlays.

There was never a reason for these bastards to run higher in the first place, given that there are hordes of zombie dry bulkers littering the seas keeping day rates at artificially depressed levels. The only way this issue gets corrected, frankly, is for excess supply to be scrapped. Until then, enjoy your depressed day rates and floating bankruptcy vessels.

The sector looked good in the pre-market, but have since given it all up and more.

One of the biggest open questions troubling Wall Street traders (and everyone else) in addition to which of his close allies (and in the case of Mitt Romney, not so close) will the president-elect pick to staff the most important political posts in the new administration, is what are the details of Donald Trump's economic plan, especially as it involves the Fed, Trade, and the future of US national debt.

Submitted by Tsvetana Paraskova via OilPrice.com,

As much as up to 50 percent of the production of oil majors could be hit by carbon costs in the next ten years if legislators that currently price carbon extend the policy to the upstream sector, Wood Mackenzie said in a new report on how oil majors would respond to the global energy transition and rising pressure for low-carbon energy.