Eurozone banks have fallen dramatically in the stock market despite the results of the stress tests carried out by the ECB, and the EU Banks Index is down 25% on the year despite year-long bullish recommendations from almost every broker. Continue reading The Eurozone Banks’ Trillion Timebomb
Category Archives: On the cover
Brexit. A Deal That Pleases No One
The agreement announced between the British government and the European Union has been received in the United Kingdom with criticism from all sides. The defenders of staying in the European Union consider it very negative, of course.
Oil oversupply a ‘double-edged sword’ for OPEC (CNBC)
Oil Price Roundtrip, A Headache For OPEC
Oil prices surged into the third quarter due to a combination of factors:
- Artificial supply manipulation, as OPEC maintained production cuts despite healthy demand and better inventories. We discussed it here.
- Strong leveraged buying based on reflation expectations. As the graph below shows, net length in crude oil rose significantly, only to fall abruptly as rates rise.
- Excessively optimistic demand growth estimates. In the past three months, we have seen demand estimates slashed by brokers who, at the same time, kept bullish estimates of oil prices into 2019.