European Commission chief Jean-Claude Juncker delivered his annual state of the union address on Wednesday, in which he laid out his grand vision for federalist Europe, and urged European Union governments to use economic recovery (i.e., Mario Draghi's nationalization of the bond market), the political weakness in the US and Brexit as "springboards" toward a closer union, built on an expanded euro zone and a pivotal role in world trade.
Confirming, and sending the clearest sign of his previously discussed pivot toward Russia and away from NATO and the West, on Tuesday President Recep Tayyip Erdogan announced that Turkey had signed a deal to purchase a Russian surface-to-air missile system, and paid the first installment.
World stocks hit new record highs on Tuesday amid a continuation of Monday's risk-on theme which unleashed a dramatic relief rally on easing North Korea tensions and signs that Hurricane Irma caused less damage than feared (which according to Keynesians should be GDP negative). The MSCI All-Country World Index gained 0.2%, hitting the highest on record with a fifth consecutive advance.
Authored by Mike Shedlock via MishTalk.com,
Brexit negotiations hit the rocks with the size of the Brexit divorce bill the key issue.
The Independent reports: Britain is ‘backtracking’ on its Brexit divorce bill commitments, moans Michel Barnier, the EU’s chief negotiator warns.
My response: Hooray for the UK!
Submitted by Francseco Filia of Fasanara Capital
Measuring the Bond Bubble
A key conviction of ours is that we live through a Twin Bubble in asset markets: an Equity Bubble, particularly in the US, and a Bond Bubble, particularly in Europe.