"It's a F##king Bloodbath" - European Banking Stocks Collapse As UK Default Risk Spikes...

Traders are frantic this morning as George Osborne's calming words have done nothing to halt the carnage. From Italian bankscrashing over 25% to British banks being halted, trading at record lows, to Deutsche Bank extending its Lehman-esque trend, as one veteran stock market trader in London said, "it's a f##king bloodbath, not even Draghi can save this one." The contagion is spreading however as UK defaul risk has spiked to 3 year highs and USD liquidty needs are surging with funding markets seeing serious distress.

 

US Banks Are Crashing

"Fortress balance sheets"? Hmm, so the contagion is spreading as USD liquidity and counterparty risk in the interconnected global financial system has reached US banks with Goldman at 3 year lows and BofA and Citi plunging over 12%...

 

Deutsche Bank: "There's No Escaping The Fact That This Is A Class War"

"There's no escaping the fact that this is a class war. Whether its globalisation, immigration, inequality, poor economic growth or a combination of all of them it's quite clear from this and other anti-establishment movements that the status quo can't last in a democracy. Eventually you'll have a reaction. This is one such major reaction and given that the UK growth rate has been ok of late, it would be strange if pressure didn't continue to build elsewhere where growth has been lower for longer."

 

S&P 500 Breaks Below Key Technical Support, Dow Nears 1000-Point Plunge

For the first time since March, the S&P 500 has tumbled below its 200-day moving average; the last two times it broke this trend, things escalated very quickly. The cash S&P index is now down 100 points from pre-Brexit euphoria but Dow futures are down almost 1000 points from the 18,025 highs pre-Brexit.

 

US Services Economy Disappoints As 'Optimism' Plunges To Record Lows

The June flash Services PMI printed 51.3, flat to May but below 52.0 bounce expectations with both employment down (3rd monthly drop in a row to lowest since Dec 2014) and optimism tumbling - "service providers indicated another drop in confidence regarding the year-ahead business outlook, with the latest reading the weakest since the survey began in late-2009."

Erdogan Apologizes To Putin Over Death Of Russian Pilot, Calls Russia "Friend", Restores Ties With Israel

In two stunning geopolitical developments over the past 24 hours, Turkey - which is finding itself increasingly snubbed by not only Europe but also the US - has pivoted dramatically and shortly after restoring full deplomatic ties with another country that has recently seen the cold shoulder from the Obama administration, namely Israel, moments ago apologized to Russia for last year's downing of a Russian jet which allegedly crossed above its territory as part of the Russian campaign against ISIS.

Poll Finds That Scotland Is Against Second Independence Referendum

While Scotland's First Minister Nicola Sturgeon has suggested that Parliament could try to block the UK's exit from the EU, it appears her populist rhetoric is misplaced as a Survation poll showed 44.7% of people think Scotland should not conduct a second independence referendum, compared to 41.9% in favor of a new vote.

Yellen, Carney Pull Out Of ECB Forum In Portugal

How do you know that "things are getting serious"? Well, one way as Jean-Claude Juncker explained before, is that "you have to lie." Another is when central bankers start withdrawing from cental bank gatherings, which as Reuters reported is what both Mark Carney and now Janet Yellen have done, in this case pulling out of the ECB Forum on Central Banking that starts today and lasts through Wednesday.  Clearly they have bigger things on their plate...

Goldman Cuts Its Government Bond Yield Forecasts

Developed Market Bond Yields Crash To Record Lows

In the last year, developed market bond yields have been cut in half with the last 2 days seeing a safe-haven flight that crashed yields to a new record low. With UK Gilts 10Y under 1% for the first time, Bunds crashing to record lows, Treasuries back below 1.50%, and JGBs smashed -22bps. With peripheral bond risk spiking and default risk surging, amid ratings downgrades, as Bloomberg's Mark Cudmore notes, "gilts may prove worthy of their name, offering a superficial coating of reward that masks significant threat."

Merkel Expects Article 50 Notification "After Certain Period" But Understands "A Period Of Analysis"

Over the weekend we reported that a key tension had emerged in Europe where on one hand the EU was pressing the UK for a quick and clinical divorce, while Merkel claimed there is no need to rush. It appears that Merkel has, as expectedly, won this modest disagreement with her Brussels subordinates. Moments ago, Merkel spoke, and in continuing her party line said that she understands Britain may need a "certain amount of time" to begin Brexit negotiations

Key Events In The Coming Week: All About Brexit

With global markets gyrating on every piece of news surrounding the Brexit drama, what’s the timetable for UK-related (and all other macro) events this week and beyond?

Soros Suffers Major Loss On Long Pound Trade Ahead Of Brexit

It is somewhat ironic that the man who made a $1.5 billion profit on Black Wednesday in 1992 when he bet against the pound sterling ahead of the UK exit from the ERM would be the same one to suffer major losses on the same currency 24 years later.  According to Bloomberg, Soros was long the pound before Britain’s vote to leave the European Union on Friday, and didn’t “speculate against sterling while he was arguing for Britain to remain,” a spokesman said in an e-mailed statement Monday. In other words, Soros did put his money where his Op-Ed was.

UK Chancellor Osborne Breaks Silence, Fails To Calm Markets; Says In No Rush To Trigger Article 50

While the global market eagerly awaits outgoing UK PM David Cameron's address to Parliament on Monday after a weekend of political turmoil that left Britain looking rudderless following the shock vote to leave the European Union, this morning Chancellor George Osborne made his first statement since the EU referendum in a bid to calm the turmoil in financial markets that has followed the UK’s vote to leave the EU last Thursday.

European Stocks, US Futures Extend Slide On UK Chaos, Pound Carnage

With global asset correlations once again approaching 1, overnight stocks have been trading in broadly "risk off" mode, following every twist of pound sterling and the rapidly deteriorating British financial situation as "chaos infects" virtually all markets, from China, to European banks, to US equity futures.  As a result of ongoing aftershocks from the Brexit vote, coupled with the sudden political chaos in UK politics, where both parties now seem in disarray, with the pound has extended its selloff to a fresh 31-year low dropping below the Friday lows while European equities are dropping to levels last seen in February.

Pound Plummets To New Lows; 10Y Gilts Slide Under 1%; British Banks Halted After Crashing

Things are going from bad to worse for the UK. "We’ve seen so many developments around Brexit over the weekend since the FTSE closed and things are now looking even more concerning," Angus Nicholson of IG Ltd., said. "It’s hard to have any idea about where fair value for the pound should be when you look at the fact that Scotland and Northern Ireland could no longer be part of the U.K. within the next year or two."

Boris Johnson Emerges, Explains What "The Only Change" As A Result Of Brexit Will Be

" The only change – and it will not come in any great rush – is that the UK will extricate itself from the EU’s extraordinary and opaque system of legislation: the vast and growing corpus of law enacted by a European Court of Justice from which there can be no appeal. This will bring not threats, but golden opportunities for this country – to pass laws and set taxes according to the needs of the UK."

Why The Vast Majority Of Analysts Were Caught With Their Pants Down On Brexit

"If all an analyst does is track equities and sometimes commodities, they are never going to grasp what is happening in the economy.  Our financial system is not based entirely on numbers and graphs; it is a sociopolitical apparatus.  Political and social developments can indeed signal what might happen in stocks and on mainstreet.  The relations are there, but they are often indirect.  In 2016, EVERYTHING is snowballing with tension.  It was only a matter of time before something snapped."

"Frack Master" Busted For Blowing Investor Cash On "Whore Card"

Texas businessman Chris Faulkner charmed hundreds of investors and major media companies into believing he had extensive experience in energy markets, but, as Bloomberg reports, it turns out the self-proclaimed "frack master" had none and that at least $30 million he raised was spent on strippers, escorts, lavish vacations and other personal expenses.

UN OFFICIAL FOUND DEAD WAS SET TO TESTIFY AGAINST HILLARY CLINTON SAME DAY. “BARBELL FELL ON HIS NECK”

by Richard Saunders, Hidden Americans:
It sure is amazing how lucky the Clinton’s have got when people are going to testify against them and then they die.
Ashe was due in court Monday with his Chinese businessman co-defendant Ng Lap Seng, who is charged with smuggling $4.5 million into the US since 2013 and lying that it was to buy art and casino chips.
Ng was identified in a 1998 Senate report as the source of hundreds of thousands of dollars illegally funneled through an Arkansas restaurant owner, Charlie Trie, to the Democratic National Committee during the Clinton administration. (Ng was not charged with any crime.)
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FAMOUS TECHNICAL ANALYST NOW PREDICTING CRASH DURING JUBILEE TIME PERIOD

by Jeff Berwick, The Dollar Vigilante:
The flurry of banksters, ex-banksters (Alan Greenspan), insiders (Soros) and billionaires all warning we are on the edge of collapse now continues with a famous technical analyst.
In an interview with Business Insider, Sandy Jadeja just predicted market crashes in late August, late September and late October.
Jadeja is a famous technical analyst and chief market strategist at Core Spreads. He previously made no less than four accurate predictions of market crashes based on his charts and technical analysis. His latest dates are right around the Jubilee year end-date on October 2nd, 2016.
2016 is a “building” year where the top banking elites are preparing for the next and final step toward world government. It likely will include some sort of washing away of the current financial and monetary order to bring in the new.
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‘No Future for TTIP’: German Politician Slams Deal for ‘Dividing’ the World

by Kai Pfaffenbach, Sputnik News:
The TTIP free trade agreement, in negotiations since 2013, involves the creation of a free trade zone between Europe and the United States. In an interview with Sputnik, German politician Alexander Gauland commented on the prospects of the implementation of the deal.
According to member of the German party Alternative for Germany (AfD) Alexander Gauland, negotiations on the TTIP are likely to come to a standstill.
“Probably, they will fail. I constantly said that we are against TTIP, among others, for geostrategic reasons. Because this is again an agreement that expands up to Russian borders and doesn’t ensure the European security architecture. This agreement is another division of the world. In my view, this approach is principally wrong,” the politician told Sputnik.
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We Just Witnessed The Greatest One Day Global Stock Market Loss In World History

by Michael Snyder, The Economic Collapse Blog:
More stock market wealth was lost on Friday than on any other day in world history. As you will see below, global investors lost two trillion dollars on the day following the Brexit vote. And remember, this is on top of the trillions that global investors have already lost over the past 12 months. It is important to understand that the Brexit vote was not the beginning of a new crisis – it has simply accelerated a global financial crisis that started last year and that was already in the process of unfolding. As I noted on Friday, we have been waiting for “the next Lehman Brothers moment” that would really unleash fear and panic globally, and now we have it. The next six months should be absolutely fascinating to watch.
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250+ Examples of Natural Remedies Beating Pharmaceuticals

by Sayer Ji, GreenMed Info:
You hear a lot about ‘natural healing’ these days, but did you know that a sizable body of scientific literature actually supports the idea that natural medicine is safer and more effective than conventional, drug-based medicine?
One of the greatest if not the greatest triumph of biomedical science today is its role in validating ancient healing modalities that long before the advent of science, and even recorded history itself, were passed down “orally” from generation to generation in the vast body of folkloric medical knowledge that still forms the basis for the majority of the world’s primary health care system.
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If the Public Shouldn’t Have Them, Why Does the IRS Need AR-15s?

by Michael Krieger, Liberty Blitzkrieg:

Here we go again. Stuck in the aftermath of a horrific shooting and all politicians think to do is scheme about how to take more rights from the citizenry. There are no good guys here. The Democrats want to railroad over due process by denying firearms to people on Orwellian watch lists, while Republicans plot to give the FBI more warrantless surveillance powers. This is the authoritarian knee-jerk response to tragedy we get from the U.S Congress.
Hypocritically, when it comes to foreign policy, all we hear are incessant calls for more militarism, more war and more regime change. As I warned in yesterday’s post, Is the Syrian War About to Experience a Major Escalation? — 51 State Department officials just issued a cable calling for the bombing of Syria’s Bashar al-Assad. An event likely to lead to direct confrontation with Russia.
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