Pound Falls as Britain Heads for a ‘Hard BREXIT’

The fact that the pound is down 1% on news that Theresa May said Britain would trigger article 50 in March (the mechanism necessary to leave the EU) suggests that the market didn’t think the U.K. would do it. There have been numerous stories and rumors regarding whether or not May would follow through with her promise to leave the EU.

Now we know she’s serious, as Britain heads towards what many call a ‘hard BREXIT’, which means leading without first getting assurances.

After falling for two years, following China’s crackdown on grift and wanton depravity, it appears Macau is back. For the month of September, gaming revenues surged by 7.4% — according to the Macau Gaming Inspection and Coordination Bureau.

Last year September revenues had declined by 33% — sending shares of WYNN clown rapingly lower.

While revenues are still down 7.5%, bulls will likely make a spirited effort to clobber and injure casino short sellers with energetic violence today.

Stocks to watch: WYNN, MGM, LVS, MPEL and ETF BJK.

Former head of the Trump campaign and consummate professional in destroying the hopes and dreams of the Hillary Clinton campaign, Roger Stone, is out with a word of caution to the Clintonites basking in the ‘win’ of revealing Trump took a tax write off during the depths of his financial hardship — pre-comeback.

Wednesday@HillaryClinton is done. #Wikileaks.

— Roger Stone (@RogerJStoneJr) October 2, 2016

In an interview with Infowars today, Stone revealed that his sources, who are close to Assange, suggest the ‘Wikileaks motherload’ of information that will be ‘devastating’ to the Clinton campaign will be coming Wednesday — which would explain the sudden ‘leak’ of meaningless drivel by the NYT, in an effort to paint Trump as some sort of crazy billion dollar losing tax cheat. If someone has a billion to write off, you fucking write it off.

It’s a non-story.

BEHOLD.

This guy Jake is such a bitch. I like people like Rachel Maddow, Bill Maher and other people who plainly wear their biases on their sleeves. I can respect and accept another person’s beliefs, even if I think they’re suicidal. Hell, if the collective wants the world to burn under the fires of a corporate run governance, so be it. But it’s guys like John Harwood and Jake Tapper who really irritate me, posing as hard news guys — always ambiguously gay and trying to ‘get to the bottom’ of topics.

As you can see by this interview, clearly, he’s Hillary’s bitch.

The losses are impressive and with vigor. Saudi stocks are hitting 7 year lows, the lowest since the good olde days of Lehman (note: Deutsche Bank is NOT Lehman). Moreover and in spite of the new accord that will bring OPEC production halting to a staggering level unseen since January of 2016, no one really gives a shit about the prospects of Saudi prosperity away from the great, fucked, oil trade.

Amongst the hardest hit are in the insurance sector, as the Saudi financials circle the drain awaiting swift and an energetic beheading.

Solidarity -10.7%
Enaya -10.5%
Salama -10.05%
Allied Cooperative -10%
Trade Union -9.9%
Alahli -9.9%
Al-Ahlia -9.7%

Stocks plunge by more than 3% to 2009 levels.

And, here are the most impressive downside movers for the day.

Executives from Siemens, Daimler, Munich Re and BASF told German newspaperFrankfurter Allgemeine Sonntagszeitung they backed the bank.

“We stand with Deutsche Bank,” BASF chairman Juergen Hambrecht said.

Deutsche Bank is facing a $14bn ($11bn) fine in the US for mis-selling mortgage-backed bonds before the financial crisis of 2008.

Its shares fell sharply last week on fears the fine could cripple the bank, at one point dropping to their lowest level in 30 years.

Reinsurance giant Munich Re’s chief executive, Nikolaus von Bomhard, told the Frankfurter Allgemeine Sonntagszeitung that he had followed the news, but saw no need to “reduce our business volume” with Deutsche Bank.

Dieter Zetsche, the chief executive of luxury car firm Daimler, also backed the bank, saying: “Deutsche Bank has a great tradition, a solid foundation and beyond that, a good future ahead. Of that I am convinced.”

Siemens boss Joe Kaeser said that the bank’s management “is pursuing the right goals and has our fullest confidence”

On Friday, Deutsche chief executive John Cryan insisted the bank’s finances were strong, telling staff in an email that the lender had become the object of “hefty speculation” and that “new rumours” were causing the share price to fall.

Reports have also suggested the bank could be close to reaching a deal over a much lower fine of $5.4bn, boosting the shares.

Mr Cryan will attend this week’s annual International Monetary Fund meeting held in Washington where he is expected to try and negotiate a deal with the Department of Justice over the fine.

Last week, the German government also denied reports that it was preparing a rescue plan for the bank – Germany’s biggest lender – in case it could not afford to pay the US fine.

While Deutsche is a relatively small bank globally, it has significant trading relationships with all of the world’s largest finance houses.

In June, the IMF identified it as a bigger potential risk to the wider financial system than any other global bank.

The global shit show that is the bond market now encompasses $12 trillion in bonds yielding less than zero. The fuckery isn’t secluded to just the government market, but also corporate. As the supply for bonds dissipates from the market, making degenerates at the ECB and BOJ fraught with panic over where to ‘invest’ their monopoly money, you should expect to see more corporate bonds sink into negative territory.

courtesy of your benevolent central banks

What can go wrong?

It’s dangerous out there. Lots of shots being fired and bloggers with axes to grind. But, for the benefit of my loyal and effervescent reader base of deranged lunatics, I’ve gone out to see what they’re all talking about.

NOTE: I’ve taken liberties to translate their titles to read what they’re really trying to say, in an effort to push back against the PC culture.

Zerohedge: Hillary Clinton Enjoys the Same Tax Loopholes as Trump, Only as a Piker

Daily Reckoning: Toss John Stumpf Into an Ass Raping Prison

Ritholtz: IGNORE THE STUPID ANALYSTS; THIS MARKET IS GOING, THE FUCK, HIGHER

Calculated Risk: Important Non-Events for the Week Ahead

Contra-Corner: The Fed’s Keynesian Model is The Devil and is Very Political

Dollar Collapse: Deutsche Bank Isn’t the Only Fucked Bank

Wolf Street: The Restaurant Industry is Predicting a Great Doom is Coming to America

Howard Lindzon: Elon Musk Should Fire Goldman and Raise Money Through Tinned Cup

Recode:  Mark Cuban, Chris Sacca and the Shark Tank Show Are Hosting a Fundraiser for Hillary Clinton

Tech Crunch: $VHC Won Another Huge, Meaningless, Lawsuit Against $AAPL

Venture Beat: Attention Start-Ups: Fuck Business Development People

The Verge: I Want to Teach My Son How to Be a Helpless Moron Who Believes Driving Cars is Retrograde

Uncle Fred!: COMMERICAL INTERLUDE, SPONSORED BY BOISE QUIET COMFORT 35 BLUETOOTH HEADPHONES

Breitbart: George Bush’s Daughter Spotted at The Devil’s Fundraiser

Gateway Pundit: The Enemy of the New America, White Men, Despise Hillary Clinton

Daily Caller: The Black Lives Matter Clown Show Hits Trump Property with Message of Unity and Peace

Heat St: Female American Chess Champion Rejects Islamic Oppression, Boycotting Tournament Held in Iran

Yes, we should arrest them.

The voice of reason, the seasoned Wall Street veteran and exemplary statesman for all of the money changers, is calling for those who warned ‘Deutsche Bank is the next Lehman’ to be punished upon the Catherine Wheel — because it is not Lehman and nothing was ever wrong with the big German bank. Even if the bank was in trouble, Jim said he had a plan to press forward, which entailed temptatious preferred stocks being bought by Warren Buffett and maybe a Saudi Sheikh or two.

The whole idea that Deutsche Bank was having liquidity issues or that Obama would injure his best friend, Merkel, is patently absurd and those in the media, who’ve been clamoring for DB to hit the dust, should be brutally punished and maimed in the most heinous of ways.

It’s all just really cool and zen, man. Twenty five percent revenue declines and a bank with a $1.8t balance sheet and $16b market cap, whose stock is down 50% for the year, is completely normal on some far distant planets where capital structure isn’t important and the laws of mathematics are different.

The state of Minnesota have declared ‘an emergency situation’ with Obamacare, as the onerous costs to maintain the plan has placed it on the verge of collapse. Subsequently, they’re permitting health care insurers raise prices by as much as 67% in 2017.

The 67% rate hike follows a very minor 14-49% hike in 2016. Things are, progressively, becoming comical.

“It’s in an emergency situation — we worked hard and avoided a collapse.” Rothman said in a telephone interview. “It’s a stopgap for 2017.”

Don’t worry poor people out there. If you make less than 92k per annum, you qualify for tax credits to soften the blow. Essentially, the federal government will pay you to keep your healthcare. For all of you rich folks earnings more than 92k, you’re fucked.

Jonathan Gold, a spokesman for the U.S. Department of Health and Human Services, said Minnesotans would still have affordable options for coverage next year. “Headline rate changes do not reflect what these consumers actually pay because tax credits reduce the cost of coverage below the sticker price,” Gold said in a statement.

Of the about 70,000 people who had insurance on the Obamacare markets this year, 63 percent got subsidies last year, according to the commissioner’s office.

Minnesota State House Speaker Kurt Daudt, a Republican, said the rate increases, along with allowing some insurers to limit enrollment, were creating a crisis.

“The unhealthy combination of massive cost increases and enrollment caps is creating a health care crisis for thousands of Minnesota families,” Daudt said in a statement.

“Last year at this time when rates were announced, I said there was a serious need for reform in Minnesota’s individual market,” he said. “This year the need for reform is now without any doubt even more serious and urgent.” He called the rising rates “unsustainable and unfair” and said that people were being “crushed by the heavy burden of these costs.”

Pfff. Racist. He’s just hating on these healthcare costs because Obama is half black. Plus, does this person, who is so worried about thousands of Minnesotan families, ever worry about the executives at some of our big pharma corporations? Here in Princeton, a sundry of good big pharma folks make their living by ripping off fuckers in Minnesota via onerous drug prices. They need those revenues for bonuses and share buybacks to be able to afford memberships at the Jasna Polana golf club. You know, those memberships aren’t gonna pay for themselves.