Business

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...

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.

Source: assets.bwbx.io

Italian banks have been facing rough seas for quite a while now as the total amount of non-performing loans and bad debt is piling up now. The Italian state has been trying to find a solution for this increasingly important problem as all of its banks continue to report high write-downs on the value of their assets, which is undermining the health of the entire financial system in the country.