European Markets Celebrate Their Potential Demise

We are truly living through interesting times. Let me remind you that Exodus hasn’t flashed an oversold signal since the beginning of summer, representative of a market that doesn’t go down. Literally nothing is able to derail the bull run.

We’ve gone through BREXIT, Trump winning, Italian referendum and Trump menacing China and markets still climb to new highs.

NOTHING CAN STOP THE MARKET FROM GOING UP.

European markets, save Italy, are rallying. Future are up and all of the risk on trimmings are in effect.

If a nuclear device detonated in NYC, stocks would trade up.

All currencies could be rendered worthless, a Black Plague could breakout and the anti christ himself could step forth and declare hell on earth to commence and stocks would still trade up.

Holiday shopping season is upon us and the mall is dead. Will that matter? Perhaps for a few individual names. Certain stocks will succumb to reality and plunge. But on the whole, I suspect we’re gonna glide into the New Year’s — right through retarded Federal Reserve hikes, and live happily ever after.

Motherfuckers.

There’s so much hate out there. The EU has decided they’re going to do something about it, god damn it. All of the damned, fucking, voters running astray this year must have the autocrats going apeshit trying to figure out ways to suppress populism. As such, the EU is demanding that US tech giants comply with their demands to curtail ‘hate speech’ else be literally forced to do so — according to law. The laws are designed to protect migrants streaming into the EU, raping and pillaging along the way.

Europeans, you must comply.

source: Reuters

The European Union (EU) executive’s warning comes six months after the companies signed up to a voluntary code of conduct to take action in Europe within 24 hours, following rising concerns triggered by the refugee crisis and terror attacks.

This included removing or disabling access to the content if necessary, better cooperation with civil society organizations and the promotion of “counter-narratives” to hate speech.

Such as propaganda, like the correct the record shills? Counter-narratives.

The code of conduct is largely a continuation of efforts that the companies already take to counter hate speech on their websites, such as developing tools for people to report hateful content and training staff to handle such requests.

The EU Justice Commission wants tech companies to censor speech at a much faster pace than the current 80% after 48 hours. Permitting 20% of speech that is deemed hateful to be disseminated after 48 hours is 20% too much, according to the Commissioner Vera Jourova.

“If Facebook, YouTube, Twitter and Microsoft want to convince me and the ministers that the non-legislative approach can work, they will have to act quickly and make a strong effort in the coming months,” Jourova told the Financial Times.

Jourova’s report showed an uneven pace across the 28-country bloc, with the removal rate of racist posts in Germany and France above 50 percent, but just 11 percent in Austria and 4 percent in Italy.

Coincidentally, the Italians just told the EU to fuck off this evening, voting against the referendum. I suppose they’re all a bunch of racist bastards.

EU justice ministers will meet in Brussels to discuss the report on Thursday. They are also expected to ask the companies to clarify issues including taking down “terrorist propaganda” and helping provide evidence to convict foreign fighters.

How nice of them to also include the censorship of terrorists. Kiss your free speech goodbye Europe. The EU has gone full Soviet Union with the aim to suppress freedom of expression.

Thus far, the pin action is tepid, mainly because no one takes anything seriously anymore and also because it was expected. Nasdaq futures are off by 0.7%, DAX and CAC futures are down by 0.75% and 1.06%, respectively.

On the upside, gold is surging by 0.6%, as the euro gets clobbered by 1%. This is significant because dollar strength usually means gold weakness. But in this instance, the dollar strength is more representative of risk off instead of faux hyperinflation.

Both WTI and copper are lower by about 0.7%.

In light of the referendum defeat, I think it’s important to monitor the spreads between German and Italian 10yr bonds. Right now, German yields are edging lower — while Italians are rising. The moves are not noteworthy at the moment, with spreads at 163bps.

At some point, the non believers will have to start learning the old fashioned way. Trump has been very transparent from day 1. If you fuck with American business or its people, he’s going to use the full powers of his office to exact a reckoning. Since the election, the mindless drones on Wall Street have taken a very bullish position on China — bidding up steel, aluminum and copper stocks without a care in the world.

If Trump is truly sincere about protecting US industry from unfair and corrupt Chinese trade practices, which entails dumping and currency manipulation, as well as unfair taxation on US goods entering the country, then this entire dream of a run will be revoked and the nightmare for the status quo will begin — in earnest.

Trump talks to the people directly, laying into China and setting a tone.

Did China ask us if it was OK to devalue their currency (making it hard for our companies to compete), heavily tax our products going into..

— Donald J. Trump (@realDonaldTrump) December 4, 2016

their country (the U.S. doesn't tax them) or to build a massive military complex in the middle of the South China Sea? I don't think so!

— Donald J. Trump (@realDonaldTrump) December 4, 2016

Obviously, this is in response to the media’s absurd objections to Trump accepting a phone call from the democratically elected President of Taiwan, which was deriding by the left because it might upset the apple cart of the status quo relationship with communist China. Think about that.

This new Taiwan scandal proves that Trump is literally Hitler. pic.twitter.com/Oqh09FdtFJ

— Paul Joseph Watson (@PrisonPlanet) December 3, 2016

UPDATE 2: Euro extends losses, now down by 1.02%.

UPDATE: Renzi is fucked.

Italy, constitutional referendum result: 0.0002% counted:

No: 54.7%
Yes: 45.3%#referendumcostituzionale pic.twitter.com/0IY5udMyo1

— Europe Elects (@EuropeElects) December 4, 2016

Early elections will likely be held and Italy’s move towards leaving the EU will begin shortly.

Italians have completed their democratic duties and the polls are now closed. Early exit polling suggests a big win for the “NO” crowd at 55%. If this is the case, the Five Star Movement shall rise, Renzi shall fall, and Merkel will tremble at the specter of an Italian exit from the EU — which will undoubtedly rock markets like GREXIT rumors to the power of 10.

#BREAKING Italy's Renzi loses referendum on constitutional reform: exit polls

— AFP news agency (@AFP) December 4, 2016

Markets are responding to this news by plunging the euro — off by 0.75% v the dollar.

The experiment of globalism worked wonders for backward countries bedraggled by low wages and onerous living standards. Over the past 30 years, America’s best companies packed up and left in order to take advantage of horrendous working conditions, slave labor, and a corrupt American government who permitted this to happen without a tax consequence. At the same time, America was trained to consume — absorb massive amounts of debt, in order to fuel the engine of globalism.

At the heart of the Trump contract with America is to make an effort to bring back manufacturing jobs — in order to create a better middle class and become a more competitive exporter of goods. In order to do this, tariffs have to be applied to companies who ship goods into the country. The trade off is higher prices at Walmart and a shift away from consumerism to a slightly more austere lifestyle — doing away with a toxic shop till you drop culture for something more productive.

In an early morning tweet storm, President elect Donald Trump warned American companies not to even think about moving manufacturing overseas for cheaper labor — for there will be a reckoning in the form of 35% tariffs.

The U.S. is going to substantialy reduce taxes and regulations on businesses, but any business that leaves our country for another country,

— Donald J. Trump (@realDonaldTrump) December 4, 2016

fires its employees, builds a new factory or plant in the other country, and then thinks it will sell its product back into the U.S. ……

— Donald J. Trump (@realDonaldTrump) December 4, 2016

without retribution or consequence, is WRONG! There will be a tax on our soon to be strong border of 35% for these companies ……

— Donald J. Trump (@realDonaldTrump) December 4, 2016

wanting to sell their product, cars, A.C. units etc., back across the border. This tax will make leaving financially difficult, but…..

— Donald J. Trump (@realDonaldTrump) December 4, 2016

these companies are able to move between all 50 states, with no tax or tariff being charged. Please be forewarned prior to making a very …

— Donald J. Trump (@realDonaldTrump) December 4, 2016

expensive mistake! THE UNITED STATES IS OPEN FOR BUSINESS

— Donald J. Trump (@realDonaldTrump) December 4, 2016

Globalism was great for equity holders, the wealthiest 2% in the country, and a slew of C-level execs who’ve moved factories out of the US, realizing huge profit windfalls who then ingratiated themselves with absurd bonuses. Everyone else has been hoodwinked with the idea that cheap shit at Walmart brimming with low-quality products was the best America had to offer — when in fact the country had been hollowed out and is now peering over the edge of a debt mountain almost too high to fathom — let alone think about paying down.

Somehow, someway, delusional Wall Street will ignore these statements and continue to make bullish bets on China.

When asked by two CNN shills who she thought should be the next Chair of the DNC, democrat statagist, and former Bernie Sanders spokeswoman, Symone Sanders said ‘we don’t need white people leading the democrats now.’ Instead, she felt someone of a darker persuasion should lead them, in order to best represent ‘diversity.’

Apparently, diversity doesn’t include all races — just the ones that aren’t white — according to Symone.

If you recall, Symone mocked the Trump supporter that was viciously beaten by thugs — saying ‘oh my god poor white people,’ when asked about the harrowing event.

The problem isn’t Symone. There are lots of racists pigs like her, traversing the globe spreading their demented version of hatred. The issue that I take with these comments is the platform from which she’s allotted to make them, the global network of CNN. Notice how the two cucks next to her didn’t even bother to call out her bullshit, with the flaccid male sitting there just nodding his head?

The good news is, these people are weak. Their ideas and schemes crumble very easily; because at the heart of progressive ideologies is a sickness whose columns and tenets fall one by one after just a very small amount of inspection. Populism is on the rise and the culture wars will be won by people wholly interested in freedom — rejecting the superstate and all of its trimmings. The perversion and the lies will not last the test of time and history will remember them as fleeting symbols that result when corruption intermingles with zeal — the deadliest of concoctions, which stands at the precipice, right now, of erasing the democratic party from existence.

Green party shill, Jill Stein, tried to enact a recount after receiving less than 1% of the vote in the national election. She took to the internet to raise funds and did so with great alacrity — but it wasn’t enough.

In spite of the PA vote being so close, with Trump up by just 49,000 votes, Stein just announced she’s unable to continue financing the ordeal and has been knocked the fuck out of Rocky Balboa’s state. As such, she’s taken to the internet again —  to bitch and complain about how expensive everything costs. And, she wants more of your money.

Wisconsin cost an ‘outrageous’ $3.5 million. The gall of fuckers needing money to do things.

“Petitioners are regular citizens of ordinary means,” the filing states. “They cannot afford to post the $1,000,000 bond required by the Court.”

How odd is it that we must jump through bureaucratic hoops and raise millions of dollars so we can trust our election results? #Recount2016

— Dr. Jill Stein (@DrJillStein) December 4, 2016

The problem with amateurs is their inability to play the game. Hopefully Shill Stein will now crawl back into her cavernous hole of irrelevancy and never be heard from again.

Nothing to see here. The girls at CNN were merely fraternizing, joking it up about the President elect’s airplane crashing. If you listen closely, one of the catamites caught giggling said he’d only be injured, not killed, so there’s that.

Hot mics are a bitch and so is the person who made these comments.

Over this weekend, Italy will vote on a referendum that, if passed, will give the government sweeping powers to enact radical change. According to the latest polls, the referendum is expected to fail — which might then pave the way for the nationalist Five Star Movement party to form a government — who literally hate the EU.

Similar to what we experienced here with Trump v Clinton, Italian liberals are out in force — demonizing the right wingers who will vote against the referendum, calling them ‘Trumpistis” — accusing them of spreading pro-Russian fake news.

Sound familiar?

source: NY Times/Fortune

“A protracted period of political uncertainty after a ‘No’ vote could exacerbate the Italian banking issues, unsettle the Italian bond market, and weigh on business and consumer confidence,” says Holger Schmieding, chief economist with Behrenberg Bank in Berlin.

The populist and unpredictable ‘5 Stars Movement,’ as well as the anti-euro Lega Norde of Matteo Salvini, are waiting to exploit any failure of Renzi. As such, says Schmieding, “a political crisis could open up a bigger can of worms in Italy than it would elsewhere.” And that is never good for economic growth.

Some argue this vote could be even bigger than the BREXIT vote, because of the fact that Italy has so much debt and is wholly dependent upon Germany and the ECB to keep them afloat. If the referendum fails and Italy moves to exit the EU, it’s widely expected that the entirety of the Italian banking system, with some of the worst performing stocks in the world in 2016, will collapse amidst a gigantic plume of clown dust — tossing the Germans off the side of the boat to figure out all of their losses in solitude — entirely bedraggled with ruinous losses strewn out across their overleveraged banking system.

Ciao.