Considering that we are at a 5000 year global all time low in interest rates the markets maybe reverting to the mean...this will be extremely painful. The cost of money has been a reliable market signal right up to the GFC, after which it never reflected the real risk inherent in multiple investment avenues. NIRP is just a facet of that misnomer. Bonds from CCC, junk, investment grade, AT1/CoCo and sovereigns are about to be very expensive to service. A decade long(probably longer) sellside is coming for most developed markets. My take is that that development will tip the balance back to emerging and frontier markets in the long run.
http://www.thefiscaltime...l-Bank-About-Blow-Market

Eurozone is a basket case. Quite possibly the market has stopped pricing in inflation expectations and is focused on increasing default probabilities hence the spike in bond yields.

ECB's QE program runs out in March of next year. The 'blue-chip economy' of the Eurozone is Germany but it is of late extremely anti-QE led by Deutsche and Commerzbank. In addition there is not much monetizing room left for the ECB to explore. This could mean that Eurozone QE has a maximum of seven months...another development being priced in by the bond markets.

Meanwhile, funds from the peripheral EU economies is still piling in the bunds despite falling prices.

http://www.telegraph.co....n-and-that-is-dangerous/

[quote=alutacontinua]DB leading banking stocks into the red today.....

http://www.usnews.com/ne...justice-dept-settlement[/quote]
Deutsche Bank was slapped with a $14billion fine. Single digit prices are almost becoming a reality for this stock. Coming at a time when it can barely walk, this s a good example of Murphy's law at work.

I wonder how the markets will react? Another down trend?

http://www.nation.co.ke/...7230-vud7roz/index.html

MONEY MARKETS - Dollar Libor hits 7-year-plus Peak Before Fed Meeting

Quite tense out there...

*ss covering time for banks across the world. Threats to their businesses are coming in all shapes and sizes.

DB has realized that a tad too late. They are now trying to massage their derivatives numbers in preparation for another capital raising exercise... that is if they can survive that long.

[quote=lochaz-index]EU is pressing forward with its self destruction on most issues. The latest is in the form of consolidated corporate profit reporting draft law with an eye on the capital inflows pie currently being enjoyed by the UK(brexit fame) and Ireland. https://www.theguardian....ckdown-pierre-moscovici[/quote]
Protectionism and nationalism are gaining currency lately at the expense of globalism. Corporate America with a foothold in Europe is sensing a case of selective application of the law by the EU. Regulators are way over their heads if they think this corporate witch hunt will aid their cause. Add labor union shenanigans in France where companies can't fire workers and Europe's corporate scene is messy at best. EU and euro demise is taking shape in earnest.
http://www.marketwatch.c...ompanies-away-2016-09-21

Forget about any CB action. The days of don't fight the FED were or are about to be extinguished. They had their chance to be proactive and missed the opportunity. At the very most any rate hike or cut is going to achieve short term results (and even this is questionable) but at the same time have disastrous consequences both in the medium and long term aka their job description is that of damage limitation...a task they will also miserably fail to accomplish. Watch the markets instead coz it's what even the central bankers are doing anyway.

The CB's are behind the curve now - not that they are willing to admit it - and the party has to come to an end. If anything huge implodes in Q4, things will turn south pretty fast and 2017 is when most of the damage will be done.

World trade has been shrinking for the longest while. The juggernaut that is the German export machine is choking coz of this strain. A US recession is all but the last nail in the coffin to this business cycle. Whether it goes down on its own accord (thanks to its own excesses) or under the weight of a contagion from elsewhere is a flip of the coin kind of probability.

China that so ably acted as the saviour during the GFC is this time around part of the problem and a big part of the problem for that matter.

If you thought GFC was bad, buckle up, this is not going to be a pleasant experience. I cannot emphasize how important holding your nerve will be if one is to survive the carnage and/or thrive there after.

America is smiling. This also means an end to tax havens in the carribean.