European Union

Last week, as part of its must read 2018 Outlook piece, Bank of America's derivatives team pointed out two particularly notable things: the first was BofA's version of the (central-bank mediated) "feedback loop" diagram that keeps volatility record low and grinding even lower, as selling of vol has become a self-reinforcing dynamic, in which lower VIX begets more vol-selling by "yield-starved investors", leading to even lower VIX as the shock that can reset the feedback loop is no longer possible, and thus the strike price on the Fed's put can not be put to a market test, which also results

Authored by Mike Shedlock via www.themaven.net/mishtalk,

The Polish government increasingly defies EU rules. Since Poland is the largest aid recipient, the EU is hopping mad. 

Poland, Hungary, and the Czech Republic are all in open defiance of EU migration rules.

In addition, Poland's Law & Justice party move to take control of the courts was condemned by the European Parliament and European Commission.

Gold demand increases along with uncertainty thanks to Trump, Brexit and North Korea

Early on Friday morning, the EU and UK negotiated a deal allowing Brexit negotiations to move on to the "Phase 2", which will establish their future trading relationship.

The chaotic trading in cable continues, this time spiking to the upside after Bloomberg reports that the EU and U.K. have reached an agreement on the sensitive issue of the role of the European Court of Justice after Brexit, according to two people familiar with the matter.

The agreement on the court leaves the Irish border as the only obstacle to talks moving on to the future relationship.

As a reminder, EU leaders are due to decide whether talks can move on at a summit on Dec. 14-15.