Very quietly, in the last few days, cross currency basis swaps (CCBS) related to the dollar have reversed their rise and started collapsing deeper into negative territory… again. This might not be of much interest to buyers of global equity markets at this point, but it is signalling ominous signs of growing funding stress in the financial “plumbing”.
EU leaders formerly endorsed the harmless sounding Permanent Structured Cooperation, or PESCO, pact on Thursday evening in Brussels. After the shock of Brexit, the goal of defence integration was revived by former military foes, Germany and France, supported by Italy and Spain, in a show of EU unity. A similar proposal was blocked by the French parliament in the 1950s (see below).
Via Bill Blain of Mint Partner,
We don’t think 2018 is going to be the End of the World. There will be opportunities and mistakes. Winners and grinners, and more than a few losers. Sure, we’re looking forward to the new MiFID regime – isn’t everyone? (US Readers…..)
U.S. equity index futures point to a higher open, having rebounded some 10 points off session lows with the VIX stuck on the edge between single and double digits, while European and Asian shares decline as investors assess central banks’ shift toward tighter monetary policy and concern over tax overhaul ahead of final plan.
It has been a groggy end to what is still set to be a third week of gains for MSCI’s global stock index following more upbeat data and signs that central banks including the Federal Reserve will keep treading carefully with interest rate hikes.
The U.S. Ambassador to the Soviet Union at the time it broke up and many other experts have said that the West promised Gorbachev that – if the USSR allowed German re-unification – NATO wouldn’t move “one inch closer” to Russia.
While Western leaders have long denied that such a promise, newly-declassified documents now prove this.
The National Security Archive at George Washington University reported Tuesday: