That's $7.7 trillion...
Source: Bloomberg World Exchange market capitalization
Takeaway: We remain bearish on the EUR/USD and reiterate our Q3 Macro theme of #EuropeImploding.
The latest poll indicates that a third Spanish election would do nothing to resolve the political impasse.
Separately, Italy’s high court has approved a constitutional referendum, setting in motion a vote from Italians on whether to strip the Senate of most of its powers in order to streamline legislation. If defeated, PM Renzi has vowed to resign.
Uncertainty breeds contempt and contempt breeds investors heading for the exits, like they have been for the past year (see below). Remember, this says nothing about the slow moving trainwreck that is European economic data. We remain bearish on the EUR/USD and reiterate our Q3 Macro theme of #EuropeImploding.
Editor's Note: The snippet above is from a note Hedgeye CEO Keith McCullough wrote for subscribers this morning. Click here to learn more.
In this complimentary edition of About Everything, Hedgeye Demography Sector Head Neil Howe discusses the so-called "gig economy."
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Takeaway: Target of Freeze Talk is sentiment not production. Saudi Arabia and Iran will not agree because the September timing is too soon.
Editor's Note: Below is a brief excerpt from an institutional research note written by Senior Energy Analyst Joe McMonigle on the resurfacing of OPEC oil production "freeze" speculation. For more information about our institutional research contact firstname.lastname@example.org.
"We’ve seen this movie before: in response to low oil prices, a few producers propose a production freeze designed to talk up crude prices but has no real impact on fundamentals.
According to recent press reports, Venezuela, Kuwait and Ecuador are again pushing a production freeze in response to the recent dip in oil prices. Since OPEC meets informally at the upcoming International Energy Forum (IEF) in Algeria on September 26-28, some market participants believe the Production Freeze 2 has real legs pushing prices higher on Monday.
However, we believe the sequel to the production freeze will end the same with no agreement in September. We remain highly skeptical that any meaningful agreement will be reached or that it changes the outlook for oil markets.
**For more information about our institutional research contact email@example.com.
This is a complimentary research note originally published August 4, 2016 by our Financials team. If you would like more info on how you can access our institutional research please email firstname.lastname@example.org. "In the past two weeks, domestic equity mutual funds have experienced their two largest withdrawals so far in 2016."
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.
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