Argentina

Argentina’s shares rallied nearly 8% on Wednesday on Mauricio Macri challenging the populist government. The country could clearly benefit form a “changing of the guard”.

argentina

The Draghi effect

In the Eurozone, Mario Draghi suggested that the ECB is ready to expand its monetary easing efforts: so the Swiss 10yr yield hit record low!

chf

China outflows

Outflows from China have been quite severe through September. There are indications however that the figures in October are materially better.

China

Gold

This wedge in gold should give technical analysts some food for thought. A breakout coming?

gold

Japan jobs

In Japan, labor shortages persist as the jobs-to-applicants ratio spikes. Japan desperately needs some immigration but that’s unlikely to happen any time soon.

Japan jobs

Volkswagen

have Volkswagen shares falling below €100 :

vw

Many are suggesting that this is a unique buying opportunity. However it’s hard to get excited about VW when the US fines could end up being a third of the firm’s market cap. Then there will be fines from other nations such as Canada, and tons of lawsuits. Ultimately this could be an interesting acquisition target for someone.

Here is the firm’s CDS-implied default probability.

vw 1

Brazil woes !

The collapsing real which has breached 4 reais to one dollar – now at record lows :

real

Brazil’s 10-year government bond yield is above 16% as investors flee. There is no “soft landing” here. Brazil’s economy is in serious trouble.

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