Bill Blain explains the big issue of the day in less time than it takes to burn the toast..
Shard Strategist Bill Blain explains why the EU’s new Euro €500bn recovery fund is a political compromise that won’t solve Europe’s chronic under-performance, but will simply maintain the illusion Europe is committed to unity and growth, while further centralising power in Brussels.
Germany's Constitutional Court lobs a hand-grenade into the ECB's QE plans and sinks hopes of a unified European response to bail out Italy and Southern Europe. Euro members are effectively trapped in the Euro - which is killing their economies.
Boeing’s new $25bn bond issue illustrates how markets are simply arbitraging Central Banks' QE Infinity bailout. Bill concludes Karl Marx will be laughing at the failure of Capitalism and market greed.
In Bonds There is Truth - Bill Blain explains how QE Infinity (QEI) and corporate bonds have consequences for all financial assets. The disconnect between the expectations of economic downturn versus the rally in financial assets is widening. This is only partially due to the Coronavirus peaking and the moves to ease lockdown. Its largely due to the success of QEI and other government support programmes distorting markets.
Bill Blain looks ahead to how the global economy is likely to change and adapt as it reopens. At the Macro level, it’s going to raise issues for some economies and regions, create major tensions for some sectors and individual stocks, but offer some great opportunities for others.
Bill Blain explains how euphoric markets are dangerously ahead of the dismal economic reality, stock and corporate bond markets have been fuelled by QE infinity, and hopes the C-19 crisis can be quickly resolved. Bill suggests there will be months of slowdown before containment measures can be significantly eased, while the global economy heads into a massive dip, and potentially even depression.SHOW MORE
In this week's Financial Lite-Bite, Bill describes the gap between the market’s short-term positive reaction to government stimulus packages and QE infinity, and the mid-long term damage that will likely drag the global economy into recession, and even a full scale depression!
The End of Capitalism?
Coronavirus and the Economy
Bill Blain examines the 7 major Themes likely to face markets over the coming decade
What's going wrong at Boeing and how it impacts aviation investments. Its not just the 737 Max - Boeing is a company that's made mistakes that defy gravity!
The current stock market melt-up is founded on optimism about a trade deal - but its merely an accomodation and raises the likelihood of a bond market meltdown causing a crisis.
Aramco - Why the IPO is likely to struggle and what it says about the future for Saudi.
How the Global Automotive Industry is changing the global economy. China and the US likely to prove winners as new supply chains develops and the US will also see a boost from a resurgent Military Industrial Complex