Europe

Authored by Howard Kunstler via Kunstler.com,

First mistake: Emmanuel Macron’s handlers played Beethoven’s “Ode to Joy” instead of the French national anthem at the winner’s election rally. Well, at least they didn’t play “Deutschland Über Alles.”

The tensions in the Euroland situation remain: the 20 percent-plus youth unemployment, the papered-over insolvency of the European banks, and the implacable contraction of economic activity, especially at the southern rim of the EU.

In a note from Goldman's cross-asset strategist Ian Wright, the bank points out something troubling: on one hand, over the past six months, or rather since the US elections, equity markets around the globe have soared, and returns across regions have been "strong" - S&P 500, Stoxx 600, Nikkei 225 and MSCI EM ($) have returned roughly 11%, 16%, 20% and 11% in local currency price terms, respectively, with MSCI World ($) up 12% over the same period.  In other words, everything is up.

Well today’s get rich quick scheme didn’t work out so great, writes former FX trader and fund manager Rich Breslow. It turns out that more than a few traders had the idea that they’d go with the huge Macron poll lead and superior debate performance and place a little weekend flutter. After all, not that many other people may have noticed. But whether or not the euro, bund yields and the like behaved as hoped on Macron’s win isn’t really dispositive of anything. Put it all down to noise.

Gold Coins and Bars Demand Rises 9% In Q1, 2017

From Bill Blain’s latest Morning Porridge edition

“To summarise the summary: anyone who is capable of getting themselves made President should on no account be allowed to do the job..”

The best thing about the French Election is I've just won a case of very fine French wine on the result!