No Paine, No Declaration

From Forward Guidance To Market Guidance: Warsh's Reflexive Wrecking Ball? Authored by Nohshad Shah, Citadel Securities EMEA Head of Fixed Income, The Fed sounds hawkish... but markets are testing the reaction function Chair Warsh was unequivocal that there is “no soft inflation target”, that five-plus years of above-target inflation cannot be cured by nine weeks of better data, and that this Fed “will not waver”. Yet despite that language…and three members preferring an immediate hike…the FOMC again declined to move. Warsh instead repeatedly highlighted the large rise in nominal and real Treasury yields since June,...

France's €107 Billion Deficit Shock: The Next Euro Debt Crisis? Submitted by Thomas Kolbe Tuesday marked another low point for European fiscal stability. France, a cornerstone of the euro system, confirmed once again that it remains a leading candidate and potential trigger for a future euro financial crisis. According to the French Ministry of Finance, the deficit of the French central government amounted to around €107 billion by the end of June. These are staggering figures – a deficit that is 14.4 percent higher than originally planned by the government. Source Unless the government...

Oil Market Has Reached an "Inflection Point": Energy Aspects By Tsvetana Paraskova of OilPrice.com Crude oil prices are poised for further increases and the trending trajectory is higher, as global inventory drawdowns have accelerated and China is back to buying significantly higher crude oil volumes than in the spring, Energy Aspects founder and market intelligence director, Amrita Sen, told CNBC on Friday. The intensified shipping risks in the Middle East with tanker attacks in the Strait of Hormuz and the Houthi threat in the Red Sea are hampering crude oil supply to...