Danske Bank money-laundering scandal drags down Deutsche Bank

Fears that Deutsche Bank may be facing yet another scandal and huge fine in connection with the money-laundering case at Danske Bank sent its shares plunging to an all-time low, undermining tentative efforts to restore credibility at Germany’s largest bank and wiping out recent gains in the share price. Danske Bank whistleblower Howard Wilkinson told the Danish […]

Record Number of Markets Now in the Red in Worst Year Since 1901

2018 is going down as the worst year for markets ever, by at least one measure. A whopping 89 percent of assets have handed investors losses in U.S. dollar terms, more than any previous year going back more than a century. The metric comes courtesy of Deutsche Bank AG, whose macro strategists feature it as […]

Billionaire Cohen Says Bear Market Coming Within Two Years

Billionaire hedge fund manager Steve Cohen said a bear market is coming within two years, adding to a chorus of voices who say the U.S. economy could falter by 2020. “We’re definitely late cycle, and so at some point we’re going to enter a bear market, and it’s going to happen in the next year […]

Hedge funds: October was worst month in 7 years

Hedge funds suffered their worst month in October in seven years as equity strategies were hit by a sell-off in technology stocks. Hedge Fund Research’s index that tracks all strategies was down about 3 per cent, its worst monthly decline since September 2011, the data provider said. That brings the index’s performance to negative 1 […]

Goldman Sachs: Observations on the US Midterm Elections

The US midterm elections on November 6th resulted in a divided government—the widely expected outcome—with the Democratic Party gaining control of the House of Representatives while the Republican Party maintained their majority in the Senate. We believe the markets were largely priced for this outcome and therefore expect limited effect on market volatility. Fundamentals and Policy Matter […]

Central Banks No Longer Cushion Economies and Markets. Finally

Get ready for greater instability as monetary policy in the U.S. and Europe moves away from the business of suppressing volatility. The increase in market instability should come as no surprise. It was clear from early in this (now-ending gradually) exceptional monetary-policy phase that central banks’ “unconventional policies” were aimed at repressing volatility as a means of promoting economic […]

Stock Market Global Sell-Off is Rattling Investors

Weaker US earnings stoke fears of economic slowdown as Nasdaq sees worst fall in 7 years. Stock markets in Asia tumbled on Thursday following a dramatic sell-off overnight on Wall Street, putting a number of Asian indices on track for their worst month since the global financial crisis. European bourses were expected to follow, with […]

Goldman Sachs Bear-Market Risk Indicator at Highest Since 1969

A Goldman Sachs Group Inc. indicator designed to provide a “reasonable signal for future bear-market risk” has risen to the highest in almost 50 years. The firm’s Bull/Bear Index, which is based on measures of equity valuation, growth momentum, unemployment, inflation and the yield curve, is now at levels last seen in 1969. While the […]

Rising U.S. bond yields bring back Wall Street’s sinking feeling

Back in late January and early February, there was a 10 percent correction in the S&P 500 .SPX, with stock investors spooked as Treasury yield increases intensified with a monthly payrolls report showing the biggest wage gains for workers since 2009. This time around, strong economic data worried bond investors, who sent the benchmark yield on […]

BoE warns EU that £41tn of derivatives at risk after Brexit

The Bank of England has issued its starkest warning yet that up to £41tn of derivatives contracts maturing after Brexit are at risk unless European officials urgently address regulatory uncertainty. The BoE said on Tuesday that clearing houses would have to tell European members such as banks to move their business or risk falling foul […]