• Tag Archives France
  • Who Bought The New Greek Bonds: Here Is The Answer

    After triumphantly returning to the bond market three years after it last issued a euro-denominated long bond (which one year later nearly defaulted when only a third bailout prevented Grexit), this morning Bloomberg has provided details of who the lucky buyers of the just priced 3BN bond offering were. And not surprisingly, the biggest source of new funds for the Greek government (which will then use most of this to pay interest owed to the ECB) were US buyers.
    As Bloomberg notes, just under half, or 1.425BN of the 3BN deal was new money with 1.57b of existing paper rolled, with the following geographic distribution of new sources of cash:
    U. S. 44% U. K./Ireland 26% Greece 14% France 7% Spain/Portugal/Italy 3% Germany/Austria 3% Others 3% By investor type:
    Fund managers 46% Hedge funds 36% Banks/private banks 13% Others 5%

    This post was published at Zero Hedge on Jul 26, 2017.


  • The Value of Everything

    This is a syndicated repost courtesy of Kunstler. To view original, click here. Reposted with permission.
    We are looking more and more like France on the eve of its revolution in 1789. Our classes are distributed differently, but the inequity is just as sharp. America’s ‘aristocracy,’ once based strictly on bank accounts, acts increasingly hereditary as the vapid offspring and relations of ‘stars’ (in politics, showbiz, business, and the arts) assert their prerogatives to fame, power, and riches – think the voters didn’t grok the sinister import of Hillary’s ‘it’s my turn’ message?
    What’s especially striking in similarity to the court of the Bourbons is the utter cluelessness of America’s entitled power elite to the agony of the moiling masses below them and mainly away from the coastal cities. Just about everything meaningful has been taken away from them, even though many of the material trappings of existence remain: a roof, stuff that resembles food, cars, and screens of various sizes.
    But the places they are supposed to call home are either wrecked – the original small towns and cities of America – or replaced by new ‘developments’ so devoid of artistry, history, thought, care, and charm that they don’t add up to communities, and are so obviously unworthy of affection, that the very idea of ‘home’ becomes a cruel joke.

    This post was published at Wall Street Examiner on July 24, 2017.


  • Macron’s Approval Rating Plunges, Only Chirac Was Worse

    Macron, deuxime plus forte chute de popularit en trois mois aprs Chirac pic.twitter.com/MGqywBGCic
    — Le JDD (@leJDD) July 23, 2017

    A Ifop poll released on Sunday showed that the approval rating of France’s new President Emmanuel Macron tumbled by 10 points, hitting 54% in his third month in office, as voters were “either confused by plans for the tax system, shocked by a dispute with the head of the army or unsettled by upcoming labor laws reform”, according to Journal dy Dimanche.
    According to Bloomberg calculations, the 10 point slump for Macron, elected in early May, was the second-biggest decline for a French president so soon after election. Jacques Chirac dropped 15 points from his May 1995 election to July, the Paris-based pollster said. The survey for JDD was conducted by phone and online July 17-22 among 1,947 respondents.

    This post was published at Zero Hedge on Jul 23, 2017.


  • Did the City of London Just Press the Panic Button on Brexit?

    Oh the irony: EU capitals are trying to attract the very institutions that caused some of the worst financial scandals of the last ten years.
    In a sign of growing desperation, the City of London Corporation, the enigmatic city within the city that serves as the ultimate bastion of privilege in the UK, is now trying to appeal to brute populist sentiment to defend its position as the world’s most important financial center.
    In a memo to the British Treasury, MPs, and financial institutions, the City’s Brexit envoy to the EU, Jeremy Browne, bemoaned that the French are pushing for the most damaging Brexit possible, even if France doesn’t directly benefit. The memo was duly leaked to one of the UK’s most anti-EU newspapers, The Daily Mail:
    Browne’s recent meeting at the Banque de France was the worst he had had ‘anywhere in the EU’. The French, he said, ‘are crystal clear about their objectives: the weakening of Britain and the ongoing degradation of the City of London’ and plotting to ‘actively disrupt and destroy’ the UK’s financial sector when Britain leaves the EU.

    This post was published at Wolf Street by Don Quijones ‘ Jul 19, 2017.


  • Which Is Worse? America or France?

    French Fraud POITOU, FRANCE – ‘Which is worse? America or France?’ The question must be put in context. We were invited to dinner with local farmers last night. Jean-Yves and Arlette live in a modest house in the nearby town – an efficient and cozy place built about 25 years ago. They’ve added a solarium to the back, where we had dinner.
    ***
    Arlette operates a dairy farm left to her by her parents. Jean-Yves runs a cattle and cereal farm that was in his family. A son and his wife moved into the farmhouse in Jean-Yves’ place. Anticipating retirement, he and his wife moved into town.
    ‘You have Trump. But we have Macron,’ Jean-Yves said. On balance, France probably comes out ahead on that score. Macron is young, smart, and good-looking.
    ‘Yes, but he is a fraud,’ Jean-Yves continued. ‘He claims he will change things. But he is mainstream. Besides, I don’t think he can change things even if he wanted to.’
    Over the years, we’ve commented on many public figures here at the Diary. We can’t remember one we didn’t consider a fraud in some way. And so far, we don’t think we were wrong about any of them.
    French President Emmanuel Macron is hardly an outsider or a rebel. He is a graduate of France’s elite cole Nationale d’Administration. And he was finance minister under the previous president. So entrenched and unyielding is the French bureaucracy – France’s Deep State – that it would take a real firecracker to change it. Mr. Macron is not that kind of a guy.

    This post was published at Acting-Man on July 18, 2017.


  • French Riots Erupt in 20 cities

    The riots is France has been forming for the last two weeks and have now erupted violently with protesters carrying banners that read ‘Break Destroy Ravage’ that is similar to the destructive forces unleashed in Hamburg. The police report that the mob is composed of the youth. It is hard to see how these people can practice restraint when unemployment among the youth is so high because of taxes and regulation prevent small businesses from forming.

    This post was published at Armstrong Economics on Jul 16, 2017.


  • How Dumb Is the Fed?

    Bent and Distorted POITOU, FRANCE – This morning, we are wondering: How dumb is the Fed?
    The question was prompted by this comment by former Fed insider Chris Whalen at The Institutional Risk Analyst blog.
    ***
    [O]ur message to the folks in Jackson Hole this week [at the annual central banker meeting there] is that the end of the Fed’s reckless experiment in social engineering via QE and near-zero interest rates will end in tears.
    ‘Momentum’ stocks like Tesla, to paraphrase our friend Dani Hughes on CNBC last week, will adjust and the mother of all rotations into bonds and defensive stocks will ensue. We must wonder aloud if Chair Yellen and her colleagues on the FOMC fully understand what they have done to the US equity markets. […]
    Once the hopeful souls who’ve driven bellwethers such as Tesla and Amazon into the stratosphere realize that the debt driven game of stock repurchases really is over, then we’ll see a panic rotation back into fixed income and defensive stocks.

    This post was published at Acting-Man on July 14, 2017.


  • Investors Are Dumping Emerging Market Debt At A Record Pace

    Having warned that Emerging Market debt risks had hit 10-year lows (despite soaring uncertainty) and EM equity risk had hit record lows (amid record inflows), it seems the lagged impact of the collapse in the China credit impulse is finally being recognized as the largest EM Debt ETF (from JPMorgan) just suffered its largest outflows in history…
    As a reminder, in the run-up to this dumping of EM assets, expected uncertainty in Emerging Market Equities has never been lower… (in fact EEM implied vol is now less than half its lifetime average of 29.7%)
    What was even more stunning than investors’ tolerance for these risky issuers is how little compensation they’re demanding in return. Emerging Market bonds were pricing in the least ‘risk’ since Dec 2007…
    The disconnect is a result of historically low interest rates worldwide — notes in Japan, Germany and France have negative yields — as well as what skeptics see as investors’ complacency as they pour into index-based funds without scrutinizing their holdings.

    This post was published at Zero Hedge on Jul 12, 2017.


  • The G20 Beyond the Public Agenda

    Since its beginning in 1999, the G20 had been a mere finance ministers’ meeting. But when the Panic of 2008 hit, President George W. Bush and President Nicolas Sarkozy of France were instrumental in changing the G20 to the leaders’ meeting it is today.
    The Panic of 2008 was one of the greatest financial catastrophes in history. In the aftermath of the Lehman Brothers collapse in September 2008, attention turned to a previously scheduled G20 meeting of finance ministers in November.
    At the time, the G7 was the leading forum for economic coordination, but China was not in the G7 and its help would be needed to bail out the global economy.
    Once China was included, the door was open to other large emerging markets economies, such as India and Brazil. The guest list was expanded and the G20 leaders’ summit was born.

    This post was published at Wall Street Examiner on July 8, 2017.


  • Who Knew? German Central Bank Has Been Selling Gold For More Than A Decade

    Authored by Louis Cammarosano via Smaulgld.com,
    Deutsche Bundesbank gold reserves shrink 45 tons over the past ten years.
    German Central Bank holdings fall From 3,420.6 tons at the end of Q2 2007 to 3375.6 tons, a drop of 1,446,783 ounces. German gold reserves have decreased 1.3% over ten years.
    Bring the Gold Home & Sell Some Deutsche Bundesbank, the central bank of Germany, has gained a high profile for its insistence on repatriating a good portion of its gold from vaults at the New York Fed, the Bank of England of London and the Bank of France in Paris. We have been covering the German gold repatriation story since they made their request in 2013 here, here, here and here.
    The German repatriation requests aimed to rebalance the Deutsche Bundesbank’s gold holdings from nearly 70% held abroad to 50% held within Germany’s borders. The German Central Bank announced earlier this year that it has nearly completed its plan to repatriate its gold.


    This post was published at Zero Hedge on Jul 8, 2017.


  • Gunmen Open Fire On Crowd Outside Mosque In Avignon, France

    A shootout erupted around 10:30pm on Sunday night in Avignon, southern France, when two gunmen opened fire on a crowd outside the Arrahma mosque leaving either people injured, La Provence newspaper reports.
    Gunmen open fire on crowd outside mosque in France leaving eight injured – Mirror Online — Tommy Robinson (@TRobinsonNewEra) July 2, 2017

    This post was published at Zero Hedge on Jul 2, 2017.


  • France’s President Says He is TOO SMART to Communicate with the Fools Who Voted For Him

    The French President Emmanuel Macron will break with the long-standing tradition of the President making a speech on Bastille Day to celebrate winning independence. He says his ‘complex thoughts’may prove too much for journalists. The truth is, his agenda is to surrender the independence of France and hand it to Brussels. He has no interest in celebrating Independence Day when he intends to end that independence. Just astonishing. We now have a president in France who is too intelligent to communicate with the scum beneath time for they are just stupid fools. Perhaps so – since they elected him.
    Armstrong Economics

    This post was published at Armstrong Economics on Jul 1, 2017.


  • Draghi Doesn’t See ‘Bubbles’ – Let Me Show You Some

    Mario Draghi has again missed an exceptional opportunity to adjust monetary policy. By ignoring the huge risks that are being created from the brutal inflation of financial assets, saying that ‘there are no signs of a bubble,’ the European Central Bank (ECB) remains adamantly focused on creating inflation by decree, denying the effects of technology, demography, and overcapacity.
    ‘No signs of bubble’? I’ll show you some of them myself.
    The percentage of debt of major countries ‘bought’ by the ECB: Germany, 17%, France 14%, Italy 12%, and Spain 16%. In all cases, in 2016 and 2015 the ECB was the largest buyer of said countries’ net emissions. Ask yourself a question: On the day the ECB stops buying, which of you would buy peripheral or European bonds at these prices? Clearly, the first sign of a bubble is the absence of demand in the secondary that offsets the impact of the ECB. It indicates that the current price is simply unacceptable in an open market, even if the recovery is confirmed, especially because rates do not even reflect a minimum real return, being below inflation.

    This post was published at Ludwig von Mises Institute on June 24, 2017.


  • EU Political Class Rides Roughshod over Citizens’ Concerns & Frustrations as it Pushes Integration

    2017 has been a surprisingly kind year for the European Union – so far! Staunchly pro-EU candidates not only survived the gauntlet of national elections in France and the Netherlands but emerged triumphant. The once-imminent threat of political populism is now on the wane, we are led to believe. As if to prove that point, even the UK government is struggling to preserve a united front to see out Brexit after recent elections delivered a hung parliament.
    The governments of the EU’s two core nations, Germany and France, appear to share a unified sense of purpose. Merkel has expressed a willingness to go along with two central French demands – the appointment of a Eurozone finance minister and the creation of a common budget – as long as certain conditions are met. ‘We can of course think about a Eurozone budget as long as it’s clear that this is really strengthening structures and achieving sensible results,’ she said.
    Ms. Merkel’s surprise overture, however qualified, suggests the stalled process of EU integration could kick back into life sooner than most experts had expected. Particularly surprising is the timing of Merkel’s comments, coming as they do ahead of make-or-break general elections in September.

    This post was published at Wolf Street by Don Quijones ‘ Jun 22, 2017.


  • Secular Stagnation?

    In today’s Outside the Box my good friend Charles Gave shares an instructive ‘Tale of Two Countries.’ Since 1981 in the UK and France, structural growth rates have diverged: The rate has fallen by two-thirds in France, while in the UK it has risen. Why? Well, to begin with, in the UK Margaret Thatcher was elected prime minister in 1979 and almost at once reduced the role of the bureaucracy in managing economic activity and dialed back government spending as a percentage of GDP. Meanwhile, in France, Franois Mitterrand was elected president in 1981 on a platform that expressly aimed to expand the scope of government.
    The effects on growth were predictable, says Charles, having been explained by Joseph Schumpeter in his 1942 book Capitalism, Socialism and Democracy.
    More recently, in the US, when government spending as a percentage of GDP shot up from 33% to 39% during the Great Recession, our growth rate fell from 2.5% to less than one percent. And that, says Charles, is the story on US stagnation – not the more fashionable narrative of ‘secular stagnation.’

    This post was published at Mauldin Economics on JUNE 21, 2017.


  • Macron Wins French Parliamentary Majority Amid Record Low Turnout: Live Feed

    Live feed:
    Despite pollsters’ projections of pro-Macron candidates receiving up to 450 seats (in France’s 577-seat lower house), a record low turnout has left Macron with just 360 seats (but still a massive majority) and Le Pen’s National Front with just 6 seats.
    French polling agencies are projecting that President Emmanuel Macron’s new centrist party will have a large majority in the powerful lower house of parliament and a clear mandate to overhaul the way France works and does business. As AP reports, the projections from Sunday’s second-round legislative elections suggest that Macron’s Republic on the Move! party handily beat the traditional left and right parties that have led the National Assembly for decades. The pollsters project that Macron’s candidates and their allies won as many as 360 seats in the 577-seat chamber. That was less than some had expected after its crushing victory in last week’s first-round vote.
    With roughly 130 seats, the Republican party is looking at a better result than initially expected: they become the biggest opposition party albeit significantly weaker according to France24.
    Pollster Kantar Sofres estimates outcome of second and final round of parliamentary election based on sampling of early votes.

    This post was published at Zero Hedge on Jun 18, 2017.


  • How Precious Metals Can Help Protect Your Wealth from Hackers

    Could your wealth be hacked? It’s a threat most investors overlook. But they do so at their own peril.
    Learn How to Exploit the Gold Frenzy! If elections can be hacked, then so can bank and brokerage accounts, as well as any online platforms for digital currencies.
    More than five months into Donald Trump’s presidency, the ‘Russia hacked the election’ conspiracy theories still won’t go away. They’re expanding to also implicate Russian hackers for meddling in elections in France and elsewhere. The latest Russian hacking story centers on Qatar.
    According to the Guardian, ‘An investigation by the FBI has concluded that Russian hackers were responsible for sending out fake messages from the Qatari government, sparking the Gulf’s biggest diplomatic crisis in decades.’
    Choose From 10-100oz Pure Silver Trusted Bullion Dealer – Buy Now! silvergoldbull.com The Russian government has repeatedly denied involvement in these hacking campaigns. Regardless of whether the news about Russian hackers is fake, the threat of cyber-attacks is very real.
    In recent months, major e-mail providers and e-commerce sites have been hit by hackers. They often take customers’ information and try to sell it on the dark web.

    This post was published at GoldSilverWorlds on June 17, 2017.


  • French Parliament Elections Tomorrow June 18th

    Macron was hoping to have a super majority that his new party would sweep the election to give him ultimate power. However, the latest poll taken by BFMTV showed a stunning 61% of French voters did not want the 39-year-old’s party to take the National Assembly. The majority of French voters have said they will vote against Macron’s party to prevent a ‘crushing’ majority in parliament. Most have responded that they would vote for a rival party in the second round in a bid to ‘rectify’ the the decision.
    It is looking more and more that the vote for Macron was not in support of him handing sovereignty to Brussels. The election point overlooked by everyone is the fact that Le Pen beat ALL mainstream parties. There is no mandate for the surrender of rights in France to a new Federalized Europe. The election is this Sunday, June 18th. We will see the results soon.

    This post was published at Armstrong Economics on Jun 17, 2017.


  • “Lynching Epidemic” Breaks Out In Venezuela

    The public-safety infrastructure in Venezuela has been degraded to such a degree that citizens now take justice into their own hands. Agence France Presse reported that lynchings have risen sharply over the last year and a half as political and economic instability in the crumbling socialist republic has worsened. Witnesses who spoke to AFP said a 22-year-old man who was set on fire at an anti-government demonstration in May was actually lynched after being accused of stealing by the crowd – not because he was a government sympathizer, as President Nicolas Maduro had suggested at the time.
    As AFP alleges, “it is not just the country’s economy and political system that are sick, but society itself, experts say. An epidemic of lynchings is one of the most gruesome symptoms.“


    This post was published at Zero Hedge on Jun 16, 2017.