US stock future indexes seem to be looking towards a depressing trading day as Japan decided to make headlines, marking the first time a G7 nation's 10-year yields have turned negative. Investors are looking to seek safer assets as crude looks to slide further. Red Volume today might tell if we have stalled and are about to climb higher.
Here is the current market situation from CNN Money
European markets are sharply lower today with shares in France off the most. The CAC 40 is down 2.23% while Germany's DAX is off 1.75% and London's FTSE 100 is lower by 1.38%.
(Reuters) - Viacom Inc , the owner of MTV, Comedy Central, Nickelodeon and movie studio Paramount, reported a steeper-than-expected drop in quarterly revenue, hurt by lower advertising sales in the United States and few hit movie releases in the period.
SINGAPORE/MUMBAI (Reuters) - India's decision to effectively ban Facebook's pared-back free Internet service is a major blow to the social network's plans, and may prompt other regulators to demand equal online access for their users.
LONDON (Reuters) - The world will store unwanted oil for most of 2016 as declines in U.S. output take time and OPEC is unlikely to cut a deal with other producers to reduce ballooning output, the International Energy Agency said.
SAN FRANCISCO (Reuters) - Tesla Motors Inc faces a pivotal moment Wednesday in its fight to convince skeptical investors that it can still win against traditional auto makers in the competition to reshape the auto business.
The ECB's "whatever it takes" ponzi strategy of keeping the dream alive in Europe's financial system has finally been caught as rapid collapse in the banking system is contagiously spreading to peripheral sovereigns once again. Portugal risk spreads are up 120bps in the last 3 weeks and Spain and Italy are soaring over 35 and 50bps respectively as the almost self-dealing nature of banks buying "risk-free" EU bonds and repoing for cash via The ECB comes home to roost...
And now The ECB is cornered as any more NIRP will merely exacerbate the stress in the financial system and lead to a vicious circle in sovereign risk.
Yesterday's desperate scramble by Deutsche Bank to comfort markets about its liquidity position worked, for about three hours. And then, the bank which really should just keep its mouth shut, did the opposite and reminded an already panicked market just how "serious" things are, in the parlance of Jean-Claude Junkcer, when in an internal memo, the CEO assured his workers that:
DEUTSCHE BANK CEO: CAP STRENGTH, RISK POSITIONS 'ROCK SOLID'
That was the good news. The bad news:
DEUTSCHE BANK TO INFORM STAFF IN COMING WEEKS ABOUT COST CUTS
Here is the full note released from DB CEO Cryan:
When I first became your colleague and Co-CEO seven months ago, I promised to increase communication from the Management Board to you. I made clear that when we had something to communicate, I wanted you to hear about it first from us. That is why I am writing to you today.
Last week, at one of our scheduled off-sites, the Management Board talked about progress on our strategy, and how recent market volatility and forecasts for slowing economic growth might impact our clients and us. Volatility in the fourth quarter impacted the earnings of most major banks, especially those in Europe, and clients may ask you about how the market-wide volatility is impacting Deutsche Bank.
You can tell them that Deutsche Bank remains absolutely rock-solid, given our strong capital and risk position. On Monday, we took advantage of this strength to reassure the market of our capacity and commitment to pay coupons to investors who hold our Additional Tier 1 capital. This type of ins ...
Japanese stocks tumbled and the benchmark government bond yield fell into negative territory for the first time, as a global flight to safety threatened to unravel the delicate market balance that Prime Minister Shinzo Abe and the Bank of Japan have tried to build.
-- this post by Tobias Adrian, Michael Fleming, Erik Vogt, and Zachary Wojtowicz
In a recent post, we presented some preliminary evidence suggesting that corporate bond market liquidity is ample. That evidence relied on bid-ask spread and price impact measures. The findings generated significant discussion, with some market participants wondering about the magnitudes of our estimates, their robustness, and whether such measures adequately capture recent changes in liquidity. In this post, we revisit these measures to more thoroughly document how they have varied over time and the importance of particular estimation approaches, trade size, trade frequency, and the dichotomy between investment-grade and high-yield bonds.
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