Business

Has The Global Recession Begun In Earnest?

Just when you thought The BoJ would save the day with its miraculous intervention in carry trades, this happens:

• *BOEING SAID TO FACE SEC PROBE OF DREAMLINER AND 747 ACCOUNTING

And just like that, Boeing's stocks crashes 10% dragging the major US equity markets with it. So, just as a reminder, this is a firm which the US government (via Ex-Im Bank) lends billions of US taxpayer dollars... and now the SEC is accusing them of fraud.

As Bloomberg reports,

While Citigroup's Eric Lee thinks its "ridiculous" to talk fo a US recession, it appears the macro data and markets would strongly disagree: as Bloomberg reports:

Signals by central banks from Europe to Japan that additional stimulus is at the ready are failing to ease investor concern that global growth will keep slowing.

 

 

Following remarks that are identical to those from yesterday, today Yellen will conclude her semi-annual testimony, this time by presenting her vision about the economy and the path of future rate hikes to the Senate Banking Committee. Surprises, if any, will come during the Q&A.

Watch the hearing live below.

http://www.senate.gov/isvp

2Y yields crashed 10bps overnight - the biggest plunge in yields since September's FOMC fold on rate-hikes. The rest of the Treasury bond complex also saw yields crash with 10Y flash-crashing 20bps - amid collapsing liquidity - at its deepest.

Then - as if by magic - a sudden crazed Yen seller appeared and lifted all risk boats (and bond yields) "off the lows."

One wonders how long this 'intervention' will last...