Business

WTI keeps dead-cat-bouncing thanks to the algos and crashing thanks to reality. This morning's reality check on the overnight ramp comes courtesy of a double-whammy from Goldman ("wouldn't be surprised to see WTI in the teens") and The IEA which increased its estimate of excess-supply drastically. This has dragged WTI back below $30 once again and where oil goes, stocks go...

Goldman Sachs Says No Surprise If Oil Price Drops Below $20/Bbl

The ECB's "whatever it takes" ponzi strategy of keeping the dream alive in Europe's financial system has finally been caught as rapid collapse in the banking system is contagiously spreading to peripheral sovereigns once again. Portugal risk spreads are up 120bps in the last 3 weeks and Spain and Italy are soaring over 35 and 50bps respectively as the almost self-dealing nature of banks buying "risk-free" EU bonds and repoing for cash via The ECB comes home to roost...

Here is how global currency warfare and the global "race to debase" works: ECB cuts rates to -0.3%, the BOJ cuts to -0.1%, then the ECB cuts to -0.7% next.

• Investors dump stocks (Reuters)
• Global Bond Rally Near `Panic' Level With Japan Yield Below Zero (BBG)
• Global Growth Fears Hit Bank Stocks (WSJ)
• GOP Race for Second in New Hampshire Intensifies (WSJ)
• N.H. Primary: Where Each 2016 Candidate Needs to Place to Build Momentum (WSJ)
• ‘Risk parity’ strategy shows strain (WSJ)
• U.N. fears for hundreds of thousands if Syria troops encircle Aleppo (Reuters)
• World's Negative-Yielding Bond Pile Tops $7 Trillion (BBG)

Yesterday's desperate scramble by Deutsche Bank to comfort markets about its liquidity position worked, for about three hours. And then, the bank which really should just keep its mouth shut, did the opposite and reminded an already panicked market just how "serious" things are, in the parlance of Jean-Claude Junkcer, when in an internal memo, the CEO assured his workers that:

• DEUTSCHE BANK CEO: CAP STRENGTH, RISK POSITIONS ’ROCK SOLID’

That was the good news. The bad news: