Over the weekend, New River CIO Eric Peters had a simple and concise summary for events over the past year: "Pretty much everything that happened in 2016 can be explained by two things; China and oil prices,” he said. “Literally, that’s it."
Today, thanks to a research report from UBS titled "Where is the epicentre of the reflation trade?", we have confirmation that Peters was spot on.
S&P futures extended their Wednesday decline, dropping in the overnight session with banking shares in focus ahead of results from JPMorgan and Citigroup. European stocks likewise retreated along with the dollar, while Asian shares were mixed.
When I saw the Fox Business interview with Maria Bartiromo and Donald Trump, I was perplexed by what I had just bared witness to. It's not every day that you get to sit on the precipice of world war, and rarely do you get to see an interview as bizarre as this one. First, go watch the exchange and then come back for proper analysis.
https://www.youtube.com/watch?v=4eSz8GM5hvM
After warnings yesterday, and on the heels of a "very good call" with President Trump, China has escalated its threats to North Korea over its nuclear tests. In another Global Times op-ed, China warns "if the North makes another provocative move this month, the Chinese society will be willing to adopt severe restrictive measures that have never been seen before..."
Is That Armageddon Over The Horizon?
Paul Craig Roberts
The insouciance of the Western world is extraordinary. It is not only Americans who permit themselves to be brainwashed by CNN, MSNBC, NPR, the New York Times and Washington Post, but also their counterparts in Europe, Canada, Australia, and Japan, who rely on the war propaganda machine that poses as a media. http://www.bbc.com/news/world-us-canada-39573526