Friday, June 24, 2016

BREXIT; The exact contents of a text concerning financial markets sent on June 17, 2016

I think we are in an inflection point

Fasten your seat belt.

I am net short most financial markets

George Hartzman

"European, Asian stocks and S&P futures plummet, as U.K. votes to leave European Union membership. FX carry trades everywhere go haywire, with the Dollar and Yen spiking while the Cable overnight plunged to 30 year lows and at last check was trading just around 1.37, down 1,300 pips from yesterday's highs.
A modest rebound was experienced when first the Bank of England and shortly after all other central banks promised to pump virtually unlimited liquidity into the financial system. Ironically, all of this takes place a day after Fed’s stress tests showing all 33 banks exceed minimum requirements  - we may find out just how "unstressed" they are as soon as today.

It’s scary, and I’ve never seen anything like it. 

We’re going to see outflows from basically any kind of cyclical asset. 

A lot of people were caught out, and many investors will lose a lot of money.

James Butterfill, head of research and investments at ETF Securities

...U.K. Votes for Brexit as Cameron Resigns After Historic Rupture: Prime minister to step down as Johnson weighs next step

Expect massive central bank monetary intervention

Pound Plunges to 30-Year Low as U.K. Assets Slide on Brexit: ‘There are certain days you never forget,’ says HSBC’s Bloom

Carney Pledges $345 Billion to Fund First Line of Brexit Defense: Markets bets on a July interest rate cut climb to 50%

Nationalist Parties Seize on Brexit to Demand Own EU Referendums: Le Pen, Wilders, Northern League call for vote'

Expect multiples of other countries trying to get out
of the Ponzi scheme that is the European Union

...As the win for the Leave campaign in the EU referendum became clear, global equities plunged with the FTSE 100 falling as low as 8%, led by sharp losses in financials with UK banks (Barclays, Lloyds, RBS) lower by around 30% which has seen the iTraxx senior financials 5yr index (CDS on banks) soar to its highest level since February. As such, the fear of contagion from this outcome has seen European bourses heavily in the red (DAX -10%, Euro Stoxx -9%), while the E-mini S&P 500 saw a 5% fall to hit limit down.

...Finance Chiefs Dismay Brexit as Bank Stocks Plunge Across Europe: Deutsche Bank CEO calls decision “negative on all sides”

SNB Steps Into Currency Market Amid Brexit-Induced Stress: Swiss policy makers have repeatedly threatened interventions

...S&P Prepares U.K. Ratings Downgrade as Britain Votes to Leave EU: S&P sees period of uncertainty that may prevail for years

...IAG Sees Brexit Volatility Reducing Profit Growth This Year: No longer sees absolute op. profit increase in FY like ’15

...BoJ Governor Kuroda said he is ready to supply sufficient liquidity and to carefully watch effects on markets.

...HSBC, Standard Chartered Lead Asia Bank Rout as U.K. Votes ‘Out’: Banks have warned of U.K. job cuts in case of Brexit

Brexit Brings Short-Lived Pain for India’s Largest IT Exporters

...In commodities, heading into the North American crossover, WTI and Brent crude futures remain pressured on the back of the strength in the greenback"