The ECB and the Bank of England Prepare Backstops For BREXIT Eventuality

All recent polls suggest the insolent freedom loving knaves from the UK will opt to leave the suicidal catamites in the EU. As such, the ECB and the BOE are concocting schemes to deal with any market dislocations, should the 6/23 referendum fail to go their way.

The European Central Bank would publicly pledge to backstop financial markets in tandem with the Bank of England should Britain vote to leave the European Union, officials with knowledge of the matter told Reuters.
The preparations illustrate the heightened state of alert ahead of the June 23 referendum, which will help determine Britain’s future in trade and world affairs and also shape the EU. The pound and euro have lost value on fears a Brexit could tip the 28-member bloc into recession.
Such an announcement from the ECB would come on June 24 if an early-morning result showed that British voters had chosen to leave the EU, according to the sources. The aim is to underpin investor confidence across Europe and contain further market jitters.
“There will be a statement to do whatever it takes to maintain adequate market liquidity,” said one senior central bank official, who spoke on condition of anonymity.

This is all looking fairly grim right now, as are all market squalls. However, if recent history is of any use to us, this fear will dissipate and lead to yet another central bank sponsored rally. Because death and the demise of markets seems like all but a foregone conclusion, I am increasingly skeptical that it can happen in such an insidiously pre-medicated fashion.

Nevertheless, I remain steadfast in my belief that our yield curve will invert, forcing me to remain long TLT until this is realized.

The poles aren’t like the rest of Europeans. They’re more old school, a hard people who find difficulties in changing light bulbs with less than 10 people. Their central bank chief, Jerzy Kropiwnicki just gave short sellers open season on the Polish currency, which has a long rich history of fuckery.

The currency slid 0.4 percent to a three-week low of 4.4295 per euro, adding to a 0.8 percent slump yesterday after Polish central banker Jerzy Kropiwnicki suggested that after a vote for Brexit, he would tolerate a slump to a record 5 per euro before intervening. The yield premium on the nation’s 10-year domestic bonds over Germany jumped to 326 basis points, the most since 2012.

“We identify the zloty as one of the most vulnerable currencies to Brexit risks,” ING Groep NV strategists Chris Turner and Petr Krpata wrote in a report to clients. “In such an environment, yesterday’s comments from the MPC board member Kropiwnicki are not helpful.”

Brexit concerns are hurting the zloty, which plummeted to a record intraday low of 4.93 per euro during the global financial crisis in 2009, because the Polish economy is the largest recipient of EU subsidies which could partly be at risk if the U.K. exited. The pound and European stocks extended losses on Tuesday after a series of new opinion polls showed Brits may vote to leave.

Since the euro is in the deflationary vortex, by extension, Poland is not. Hence, her currency waivers, as the Germans dig themselves a deeper trench.

But retail sales beat an already depressed guidance number, so everything is okay, right?

Germant bunds are now negative yielding instruments of arch deflation.

The CAC is getting smoked in France.

Gold is firming.

US treasuries are rising again. The ark is strong and able to withstand the storm.

Markets are poised for their 4th consecutive down day. Good morning.

Since 2008, the laxness at the FDA has helped investment bankers bring public piece of shit, early stage, biotech scandals. The vast majority of these stocks will go bankrupt, leaving investors in shambles.

Here are today’s biotech terrorist attacks on US investors.

INFI -64.9%, MESO -36.4%, KMPH -30%, RVNC -23.7%, IMGN -11.1%

The deflationary vortex is real. Japanese sovereigns, up to 15 yr durations, are negative–providing an anchor for rates worldwide. As long as Japanese rates continue to dive deeper into the crevasse of negative rates, the more support there will be for treasuries and ETFs like TLT.

The yen is climbing again. Each uptick in the yen is like a karate chop to the head for Japanese exporters.

The NIKKEI is down 1.25%

I got absolutely nothing from this segment. I tried to parse out some bullish data points and then some bearish ones, but came up with absolutely nothing. This was a masterful performance of complete gibberish.

This is a horrific earnings shortfall, especially for a company who’ve been granted supreme control over the Chinese internets. Revenue guidance is coming down in the magnitude of 10% and so are the shares in after-hours trading.

The stock is off $13 to the $150 area.

Co lowers its Q2 revs guidance to $2.807-2.823 bln, from $3.119-3.192 bln ($3.072 bln Capital IQ Consensus)

The revenue guidance revision was mainly attributable to the following factors:

First, regulatory authorities continue to review the online marketing practices of medical, pharmaceutical, healthcare and other similar businesses, and have also implemented stricter advertising regulations for medical organizations. The review is being rolled out with varied timing with different levels of implementation and interpretation across geographies. While the review is underway, the Company has observed a reduction or delay in spend from a significant portion of medical customers. These customers may be in the process of receiving instruction from regulatory authorities, gathering and submitting required documentation and adjusting their practices to comply with new regulations.

Second, the Company has reduced the number of sponsored links across the platform. This measure impacts revenue over the short term but enhances user experience and will drive benefit to Baidu over the long term.

The company will host a conference call tonight at 7:30pm.

Essentially, we have an Islamic extremism problem, not a good problem. This is a powerful speech, which will be reviled by many who walk around with acute mental ailments.

Let’s keep it simple, shall we?

Markets do not like the ark floating. TLT making new highs means risk is off, with a big giant capital O. Also, gold trading higher, while the miners trade off, means liquidation of equities is starting to get serious. Couple that with the fact that European sovereign yields are diverging from one another, and there is a recipe for disaster taking form.

Eighty percent of stocks traded off today, with very few places of respite. The only spots of strength were found in dividend payers. Again, the vortex of this market concern lies with yields. If the central banks cannot send the yen lower and JGB yields a little higher, we’re got a problem.

This isn’t fear mongering, but indelible facts on the ground.

Truth be told, the BREXIT vote is a red herring in all of this nonsense. I can see how people might get bearish ahead of the vote, then it gets shot down, causing yet another market rally. Remember, the financial engineers are box watching motherfuckers and will not rest until the Dow is at 30k.

Nothing of note is oversold in Exodus at this time.

The Libyan Investment Fund’s lawsuit against Goldman continues, hoping to extract $1.2 billion from the large, insidious, pernicious, investment bank. Amongst a sundry of claims against America’s best and brightest, they claim Goldman paid for hookers to woo the Libyan barbarians into giving them money to manage. Also, and this is one of my favorite lines, they said Goldman “delivered a pitch on structured leveraged loans to someone who lives in the middle of the desert with his camels”.

Goldman lavished the camel drivers with private jets, champagne and five star hotels (the fucking horror of it all!).

The crux of the complaint is that Goldman lost a bunch of money during THE FUCKING FINANCIAL CRISIS. Their attorneys are seeking losses for nine trades that were made, one of a very outsized nature, during the hard months of 2008.

As the world burned and the LIA got crushed under a maelstrom of Goldman styled chicanery, the pimps at Goldman raked in $200 million in fees. Although disheartening and somewhat excessive, none of these charges were illegal and are part of the cost of doing business with investment managers.

One last crime that Goldman committed was hiring the brother of the LIA’s former Deputy Chief. It seems nepotism is a global phenomenon. However, it’s inherently evil when trades go wrong and someone is suing to get their money back and to be made whole.

Sorry LIA, no do overs.