Sprint stock plunged, and was halted by the exchange volatility trigger, when the Nikkei reported moments ago that Japan's SoftBank Group plans to break off negotiations on the long-awaited merger between its subsidiary Sprint and T-Mobile US due to a failure to agree on ownership of the combined entity, "dashing the Japanese technology giant's hopes of reshaping the American wireless business."
After GM's stock surged over 35% in the past two months, Goldman finally decided they had seen enough this morning and downgraded the stock to sell with a $32 price target.
Having continued Friday's melt-up as soon as US equity markets opened this morning, headlines from Washington that the corporate tax cuts may be enacted "gradually" reaching 20% in 2022.
As Bloomberg reports, House tax writers are discussing a gradual phase-in for the corporate tax-rate cut that President Donald Trump and Republican leaders want -- a schedule that would have the rate reach 20 percent in 2022, according to a member of the chamber’s tax-writing committee and a person familiar with the discussions.
Another major economy is facing the ugly prospect of rising inflation.
A central theme in our analysis of The Everything Bubble is that Central Bankers are focused on only one thing: maintaining the bull market in bonds at all costs.
The reasons are as follows:
1) Bonds are what finance the Government’s massive entitlement spending/ welfare programs.
2) With massive ownership of bonds thanks to over $15 trillion in QE, Central Banks are extremely exposed should bonds collapse (and yes, Central Banks can go bust).
It appears Draghi has done it again. Since last week's dovish ECB QE taper, European sovereign bond yields have plunged and today are accelerating notably lower with Italian 10Y yields crashing 10bps to 2017 lows...
This is the lowest yield since the start of the year...
Even Spanish debt is bid...
And Catalan debt is also being bought..
However, Spain is at its riskiest compared to Italy in 12 months...
Once again Draghi proves - "It's not the economy, stupid"