'Mystery' solved... maybe.
Bloomberg is reporting that excess liquidity within Greek banks - who leant it to their credit-risky peers at notably high rates - are responsible for the sudden, scary spike in EONIA over the last two days, according to two bankers with knowledge of the matter.
Authored by Steven Vannelli via Knowledge Leaders Capital blog,
In a US Dollar bull market with interest rates at zero, cash is rightfully dismissed as a non-asset class. But, when the US Dollar is in a bear cycle, things change, irrespective of what US interest rates are.
There are a handful of indicators we use to identify US Dollar bull and bear cycles.
Markets were thrown for a loop in the past 24 hours, with the Dow first soaring nearly 400 points on Thursday on expectations that tax reform was a done deal, when drama emerged just after the close when the Senate tax bill came this close to falling apart when the proposed "Trigger" was ruled as invalid, pushing a Thursday tax vote to this morning, and as of this moment the bill appears in limbo with the GOP scrambling to find ways to appease the sudden loud opposition among budget hawks. UBS economist Paul Donovan summarized it best this morning:
Authored by Zainab Calcuttawala via OilPrice.com,
A new law passed by the Danish government could authorize regulators to block the passage of the Russian Nord Stream 2 gas pipeline on security or foreign policy grounds, according to a new report by Reuters.
Under previous laws, the two reasons above would not have constituted valid grounds to reject the construction of a pipeline.
Nord Stream 2 will bypass land routes through Ukraine, Poland, and Belarus to supply gas to Germany and surrounding nations.
Via GEFIRA,
Once France was one of “the great powers”, dominating Europe and parts of the world in terms of culture and economy. The country’s demise started after the Second World War, though it still played a key role in the creation of the European Union and the euro, which was to prevent Germany from subjugating the rest of the continent.
However, this strategy has failed and Berlin has become Europe’s capital, with France’s importance ever dwindling.