Business

After 16 days in a row without a meaningful decline, Asia trading has opened with USDJPY dumping back from almost 114.00 to 111.50 - the biggest drop since July 29th. The USD Index is down most since Trump's win but for now the moves in equities (Japanese and US) are modest (but down)...

Yen is heavily bid as Asia trading opens

The biggest drop in USDJPY since July...

As the post-Trump surge in the dollar has seemingly stalled...

Japanese equities are getting hit...

Just as we were concluding our write up on the return of Europe's solvency crisis, facilitated by Donald Trump's NATO funding demands and the end of the ECB's unprecedented can kicking exercise, the FT reported that as many as eight of Italy’s troubled banks "risk failing" if prime minister Renzi loses next weekend's constitutional referendum and ensuing market turbulence deters investors from recapitalizing them, citing senior bankers.

Since Drahi's infamous "whatever it takes" warning in the summer of 2012, European bond yields have been a one way street lower, and until the recent Trumpflation rally, had tumbled to all time lows, in many cases well below 0%.  There are two catalysts, however, that may be ending Europe's QE-driven free ride, and according to a recent report by Barclays, their names are Donald Trump and Mario Draghi.

First, when looking at the impact of Trump, Barclays notes that his election as US president may have created an additional burden on European budgets: defence spending.

This article by David Haggith was first published on The Great Recession Blog: 

Lampooning Larry Kudlow is like shooting fish in a supermarket. I ought to be embarrassed at going after dead prey and scaring innocent people. Now one of Trump’s chief economic advisors, Kudlow is a Washington-Wall-Street insider to the core of his mousy, shriveled soul: A turncoat Democrat — who, in his early years, worked on campaigns alongside Bill Clinton, John Podesta, and Michael Medved — Larry Kudlow has flipped as big as you can flop.

As deal hopes fade (amid Saudi abandoning tomorrow's OPEC/NOPEC meeting and claiming the oil market can rebalance without a freeze/cut in supply), WTI crude has slipped notably below $46 handle and is trading at 2-week lows (down over 8% from Tuesday's highs)...