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6 Charts: Begging For Bailouts Hits An All-Time High

6 Charts: Begging For Bailouts Hits An All-Time High - Bear crossing cartoon 09.29.2015 


Bailouts and central market planning galore.


That's the macro morning update today.


On Friday, Italy's oldest bank, Monte dei Paschi, announced it had found a "definitive solution" for solving its legacy of bad loans, which would raise €5 billion from private investors and sell €9.2 billion of bad debts. Shortly thereafter it was announced that Italy's third largest bank had failed EU stress tests. If the global economy and financial markets came under pressure, Monte dei Paschi's financial position would be wiped out.


European markets did not respond kindly to the news, with equity markets down between -0.4% and -1.2% today.





Meanwhile, in Asia...


Central-market planning isn't working out so well. Nevertheless, the begging for bailouts continues. Despite rumors that the BOJ could ultimately end up pursuing helicopter money, the Nikkei is up a whopping 0.4% overnight, bringing its year-to-date performance to -12.6%.


6 Charts: Begging For Bailouts Hits An All-Time High - nikkei 8 1

Over in China


The politburo is trying to manufacture a soft landing for its slowing economy but hasn't been able to prevent carnage in the Chinese stock market. The crash continues...




Oil is down -16% in the past month, as reflation continues to deflate. 


Bull Markets?


Gold, on the other hand, continues its rally as blind faith in central bankers continues to wane. That's long been our case for holding gold and it is gaining increasing credence among investors as money managers like DoubleLine Capital CEO Jeffrey Gundlach say "sell everything," buy gold.



The other bull market worth watching, which has also been our favorite Macro position for some time now, is Long Bonds (TLT). On that front, the year-to-date scorecard is as follows:


  • TLT: +16%

  • S&P 500: +6%


Bottom Line...


Central market planners have been doing their damndest to mask their country's underlying economic issues but when reality sets in the resulting carnage is often sharp and painful. 

Daily Market Data Dump: Monday

Takeaway: A closer look at global macro market developments.

Editor's Note: Below are complimentary charts highlighting global equity market developments, S&P 500 sector performance, volume on U.S. stock exchanges, rates and bond spreads, key currency crosses, and commodities. It's on the house. For more information on how Hedgeye can help you better understand the markets and economy (and stay ahead of consensus) check out our array of investing products




Daily Market Data Dump: Monday - equity markets 8 1


Daily Market Data Dump: Monday - sector performance 8 1


Daily Market Data Dump: Monday - volume 8 1


Daily Market Data Dump: Monday - rates and spreads 8 1


Daily Market Data Dump: Monday - currencies 8 1


Daily Market Data Dump: Monday - commodities 8 1

Still Crashing... Rolling The Dice In China's Shanghai Comp Casino

Takeaway: China's Shanghai Comp is down another -0.9% overnight after dropping -1.1% last week, taking its crash to -43% from its 2015 high.

I'm having a hard time seeing a “bottom” in any non-made-up time series. After falling another -1.1% last week, Shanghai Comp loses another -0.9% overnight (taking its crash to -43% since June 2015) as the Yuan continues to hit new lows.



Still Crashing... Rolling The Dice In China's Shanghai Comp Casino - China crash cartoon 08.25.2015 


Editor's Note: The snippet above is from a note Hedgeye CEO Keith McCullough wrote for subscribers this morning. Click here to learn more.


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CHART OF THE DAY: Celebrate 1% GDP While It Lasts

Editor's Note: Below is a brief excerpt and chart from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more.


"... That’s right. Don’t be afraid of a 1.2% US GDP number ahead of the toughest 2-year comparison of #TheCycle for Real PCE Growth (Q3). Celebrate it, while it lasts! Consensus is now very long of both stocks and bonds on a clean cut #GrowthSlowing GDP TREND."


CHART OF THE DAY: Celebrate 1% GDP While It Lasts - 08.01.16 EL Chart

REPLAY! This Week On HedgeyeTV

Our deep bench of analysts take to HedgeyeTV every weekday to update subscribers on Hedgeye's high conviction stock ideas and evolving macro trends. Whether it's on The Macro ShowReal-Time Alerts Live or other exclusive live events, HedgeyeTV is always chock full of insight.


Below is a taste of the most recent week in HedgeyeTV. (Like what you see? Click here to subscribe for free to our YouTube channel.)




1. This Overlooked Housing Investigation Has Huge Investing Implications (7/29/2016)



In this excerpt from The Macro Show, Hedgeye Housing analyst Josh Steiner explains the findings of a recent Treasury Department investigation that has significant implications for housing investors. 


2. REPLAY | About Everything with Neil Howe: Earnings Smaller Than They Appear (7/28/2016)



In this complimentary edition of About Everything, Hedgeye Demography Sector Head Neil Howe discusses the growing use of "pro forma" accounting and explains the broader implications for investors.

Click here to read Howe’s associated About Everything piece.


Click here to access the associated About Everything slides.


3. Under 60 Seconds: 3 Takeaways From Hilton's Earnings Report (7/27/2016)



Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan shares three key conclusions from Hilton's earnings report and why it remains on the Best Ideas list as a short.


4. Why We’re Positive On Las Vegas Sands And Its Fat Dividend (7/27/2016)



In this brief excerpt from The Macro Show this morning, Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan explains why he likes Las Vegas Sands (LVS).


5. Under 60 Seconds: 3 Takeaways From Twitter's Earnings Report (7/27/16) 



Hedgeye Internet & Media analyst Hesham Shaaban shares three key conclusions from Twitter's worse-than-expected earnings report.


6. The Long-Term Twitter Story Isn’t Good (7/26/2016)



In this excerpt from The Macro Show, Hedgeye analyst Hesham Shaaban goes granular on the major headwinds facing Twitter. “Over the last two plus years, management has inflicted so much damage on its model that we really can’t see a way to fix it,” says Shaaban. “If Twitter can figure this out, there’s a ton of upside, given how badly the stock has been dinged throughout its public history. We just can’t see it—not yet at least.”


7. Lazard: Cheap On The Wrong Numbers (7/25/2016)



In this excerpt from The Macro Show earlier today, Hedgeye Financials analyst Jonathan Casteleyn reiterates his short call on Lazard ahead of its earnings report on Thursday.

This Week In Hedgeye Cartoons

Our cartoonist Bob Rich captures the tenor on Wall Street every weekday in Hedgeye's widely-acclaimed Cartoon of the Day. Below are his five latest cartoons. We hope you enjoy his humor and wit as filtered through Hedgeye's market insights. Bob is on a much-deserved summer vacation. While he kicks back and relaxes, we're going into the Hedgeye Vault and highlighting some of his best work. (Click here to receive our daily cartoon for free.)




1. GDP Stink Bomb (7/29/2016)

This Week In Hedgeye Cartoons - GDP cartoon 05.29.2015



Considering Friday's dismal 1.2% second quarter GDP reading, we bring you another audience favorite


2. Fallen... (7/28/2016)

This Week In Hedgeye Cartoons - Oil cartoon 12.09.2014


Oil has tumbled -25% off the recent high.


3. Volcker To Yellen (7/27/2016)

This Week In Hedgeye Cartoons - Fed Chairmen cartoon 02.03.2016


In light of this week's Fed decision to hold rates steady today...


4. In Case You Didn't Know (7/26/2016)

This Week In Hedgeye Cartoons - Fed lady cartoon 06.25.2016  1


A relevent cartoon ahead of the Fed's policy announcement.


5. Iceberg(s) (7/25/2016)

This Week In Hedgeye Cartoons - Greek iceberg cartoon 06.30.2015


Given the resurgence of Europe’s ongoing, multifaceted issues, we bring you this cartoon, originally published in June 2015. It's just as fitting today as investors fret over Italian bank solvency and a host of other issues in Europe.

Attention Students...

Get The Macro Show and the Early Look now for only $29.95/month – a savings of 57% – with the Hedgeye Student Discount! In addition to those daily macro insights, you'll receive exclusive content tailor-made to augment what you learn in the classroom. Must be a current college or university student to qualify.