Submitted by Bill Blain of Mint Partners
Are We In A Bubble About To Burst, Or Are We Facing Massive Equity Upside?
“A liberal is a conservative who has been arrested.”
The levitation continues with S&P futures pointing to - what else - another higher open while European stocks swung between gains and losses on the busiest earnings days of the year (85 of the Stoxx 600 report) which has seen European pharma giant AstraZeneca plunge 15%, the most on record, after its flagship lung cancer trial Mystic failed to show benefits, while Deutsche Bank slumped 4% on a 12% plunge in FICC revenue.
One month after the EU's executive Commission launched legal cases against Poland, Hungary and the Czech Republic for "defaulting on their legal obligations" by refusing to comply with the EU's refugee quotas (i.e., accept migrants), on Wednesday the three Central European nations suffered another blow after Brussels mounted a legal fightback to force them to comply with EU refugee quotas.
Deutsche Bank shares tumbled 4% on Thursday after reporting better than expected earnings, driven by provisions and dramatic cost-cutting, more than offset however by a sharp drop in overall company revenue which slumped to the lowest in three and a half years, as Investment Banking revenue slumped 16%, while FICC tumbled a whopping 12% Y/Y and 30% Q/Q, with CEO John Cryan taking a page out of the Goldman playbook and blaming "muted client activity."
Authored by Jeffrey Snider via Alhambra Investment Partners,