Friday July 1 Daily Market Primer

Happy Forth of July!  Did somebody say low for long?  US Treasuries jumped, driving yields to historic lows, with the US 10 year at 1.42% and the 30 year at 2.21% as the VIX continued to fall.  Stocks had another good day in the US, with the S&P and Dow both up 1.3%, and were followed up markets in Asia and Europe, as it seems like the equity market is trying to put the hit from Brexit behind it.  Oil is down slightly below $50.  US stocks have opened up about ¼%.

Things seem to be settling down in the UK political arena after a chaotic day, with Boris Johnson sidelined and five candidates in the running for PM.  Barclays and HSBC said they would stay in the UK despite the Brexit, not surprising given their British roots and the costs and uncertainties of moving major bank headquarters.

BOE Governor Mark Carney talked about additional monetary easing this summer, which may be what is fueling stock gains in Europe.  European Banking giant Deutsche Bank shares got blistered since last week on Brexit worries, the IMF calling it the riskiest financial institution in the world (ouch), and the failure of its relatively tiny US arm to pass the Fed’s stress test for the second consecutive year.  DB is the new poster child for wider Euro banking sector woes which have effected the UK and Swiss banks, and the stock is down 45% this year http://bit.ly/DBDrop.

	LAST	CHANGE	% CHG
DJIA	17929.99	235.31	1.33%
Nasdaq	4842.67	63.43	1.33%
S&P 500	2098.86	28.09	1.36%
Russell 2000	1151.92	20.31	1.79%
Global Dow	2320.79	9.28	0.40%
Japan: Nikkei 225	15682.48	106.56	0.68%
Stoxx Europe 600	331.92	2.04	0.62%
UK: FTSE 100	6554.79	50.46	0.78%
CBOE Volatility	15.3	-0.33	-2.11%
Australia: S&P/ASX 200	5246.6	13.2	0.25%
China: Shanghai Composite	2932.48	2.87	0.10%
Hong Kong: Hang Seng	20794.37	358.25	1.75%
India: S&P BSE Sensex	27144.91	145.19	0.54%
France: CAC 40	4274.87	37.39	0.88%
Germany: DAX	9769.8	89.71	0.93%
Italy: FTSE MIB	16238.95	41.17	0.25%
Spain: IBEX 35	8270.8	107.5	1.32%
U.S. 3 Month	0.264	0/32
U.S. 2 Year	0.574	0/32
U.S. 5 Year	0.972	5/32
U.S. 10 Year	1.424	14/32
U.S. 30 Year	2.215	1 17/32
Crude Oil	48.15	-0.18	-0.37%
Brent Crude	49.49	-0.22	-0.44%
Natural Gas	2.89	-0.028	-0.96%
Reuters-Jefferies CRB	192.562	-0.012	-0.01%
S&P GSCI	372.99	-1.05	-0.28%
E-mini S&P 500	2089	-1.25	-0.06%

Puerto Rico is defaulting on its municipal bonds, which was widely anticipated by the market.  Here is a quick summary:

•  Puerto Rico –defaulting today, including G/O’s
•  Obama signs oversight bill, no money just management…keys
•   No lawsuits allowed until next Feb
•   Puerto Rico G/O’s rally 2 pts on news
•   Puerto Rico Electric Power Authority did cut last minute deal, avoiding default on $415mm due today – that was a pleasant surprise for bondholders

Tesla is facing its first autopilot related death, and Apple may buy the music streaming company you’ve never heard of, Jay Z’s Tidal, to curry favor with more high profile musicians.  Tidal has about 4.5 million subscribers to Apple Music’s 15 million.

Apologies for dropping the newsletter so late this morning, and hopefully you haven’t already read all these stories, so here’s the news:

Treasury yields

Yields on U.S. 10- and 30-year Treasuries hit new historic lows this morning, as bonds across the world surged. In Europe, Spanish yields also hit a record low while Italian bonds rose. The European Central Bank is said to be looking at changing the rules of its asset-purchase program to increase the securities it's eligible to buy as rising bonds push more yields below the bank's deposit rate.

U.K. Conservative Party's leadership contest

Yesterday, U.K. politics progressed at breakneck speed with Justice Secretary Michael Gove — formerly a trusty ally to "Leave" campaign figurehead Boris Johnson — declaring his own candidacy and forcing Boris to back out of the race by noon. With all five candidates for Tory party leadership now clear, Friday looks to be calmer. All of them including the favorite, the formerly "Remain"-inclined Theresa May, have emphasized that they'll work toward an orderly divorce from the European Union, dimming financial markets' hopes that a Brexit can be averted. Sell any sterling rally because "Brexit is for real," Bank of America Corp. strategists have said, targeting a GBP/USD rate of 1.25 sooner rather than later. There's also an election to look forward to in Australia on Tuesday.

Carney signals easing

“Some monetary-policy easing will likely be needed over the summer,” Bank of England Governor Mark Carney said in a televised address Thursday, a statement that is fueling bets of a rate cut and quashing the rally in the pound. As some of his key defenders in government rule themselves out of a Tory leadership bid, he took the opportunity to rebuke those who said he'd overstepped the line in warning of economic distress ahead of the vote. “What we said in terms of the risks to the economic outlook, in terms of the risks to financial stability — does anyone in this room not think that those risks have begun to manifest?,” he asked.

Euro area unemployment falls, manufacturing rises

Unemployment in the euro area dropped to 10.1 percent, the lowest level in almost five years, with Spanish unemployment falling below 20 percent for the fist time in six years. Manufacturing PMI for the currency zone increased to 52.8 according to London-based Markit Economics. Manufacturing in the U.K. rose to 52.1, its fastest pace in five months, with all survey responses received before the U.K. vote to leave the European Union.

Markets on the rise

Global equities continue their ascent this morning as central bank easing expectations increase. The MSCI Asia Pacific Index rose 0.6 percent overnight, with Japan's Topix index gaining 0.7 percent for its biggest weekly gain since April. In Europe, the Stoxx 600 Index was 0.2 percent higher at 5:05 a.m. New York time, with London's FTSE 100 Index gaining 0.3 percent. S&P 500 futures were down 0.4 percent.

Puerto Rico is set to default. Puerto Rico is expected to miss its bond payments due on Friday. On Wednesday, the governor of the commonwealth, Alejandro García-Padilla, wrote an article for CNBC saying Puerto Rico would miss more than $1 billion in general obligation bonds. The commonwealth is estimated to have defaulted on $562 million of debt service payments since August, according to Moody's data. The default will come despite President Obama signing the Puerto Rico Oversight, Management, and Economic Stability Act, or Promesa, into law on Thursday. Promesa will help Puerto Rico restructure its $70 billion of debt.
Tesla's Autopilot system is being investigated. Federal authorities are looking into the connection between Tesla's Autopilot system and a fatal crash. Tesla has confirmed that its Autopilot system was active during a fatal crash that took place on May 7 in Williston, Florida. In an emailed statement to Business Insider, National Highway Traffic Safety Administration spokesman Bryan Thomas wrote, "NHTSA's Office of Defects Investigation will examine the design and performance of the automated driving systems in use at the time of the crash."
Phil Knight is stepping down from Nike's board. Nike cofounder and chairman of the board Phil Knight says he plans to step down at some point during 2016, the AP reports. Knight reportedly wants Nike president and CEO Mark Parker to slide into the role of chairman upon his own departure. Knight has been a director for Nike since 1968, the AP says.
Apple is reportedly in talks to buy Tidal. People familiar with the matter told The Wall Street Journal that Apple is in talks to buy rap mogul Jay Z's music-streaming service. The amount of money was not revealed. An acquisition would help Apple further penetrate the music-streaming business, as Tidal has a catalog of 40 million songs and a subscription base of 4.2 million users, according to The Journal. Jay Z purchased Tidal back in March 2015 for $56 million.
China's manufacturing sector is contracting. China's Caixin manufacturing PMI fell to 48.6 in June, down from 49.2 in May. The decline pushed China's manufacturing sector further into contraction and made for the weakest reading since January. Additionally, China's manufacturing PMI slipped to 50.0 from 50.1, suggesting the sector is neither expanding nor contracting. Notably, China's yuan settled down 0.2% at 6.6603 and is near its weakest level since 2010.
Japan's deflation is intensifying. Consumer prices in Japan fell 0.4% in May, a bit faster than the 0.3% decline experienced in April. The May reading was the third straight monthly decline, and it marked the biggest single-day drop since May 2013. Additionally, prices in Tokyo fell 0.5%, matching the previous month's decline. The inability to lift pricing pressure has many expecting that the Bank of Japan will increase its already massive stimulus program at its next meeting on July 16. The Japanese yen is stronger by 0.5% at 102.69 per dollar.
2 of the UK's biggest banks say they will stay in the UK despite Brexit. HSBC and Barclays say they will keep their headquarters in the UK despite the outcome of Brexit vote. The Financial Times reports that HSBC chairman Doug Flint told attendees at an event on Thursday that moving the company's headquarters wasn't subject to a review. Likewise, Barclays CEO Jes Staley told the BBC that Barclays would stay "anchored in Great Britain."
Apple is reportedly in talks to buy Tidal. People familiar with the matter told The Wall Street Journal that Apple is in talks to buy rap mogul Jay Z's music-streaming service. The amount of money was not revealed. An acquisition would help Apple further penetrate the music-streaming business, as Tidal has a catalog of 40 million songs and a subscription base of 4.2 million users, according to The Journal. Jay Z purchased Tidal back in March 2015 for $56 million.

Sweet Happenings
Mondelez made a roughly $23 billion bid for Hershey, but the snack giant’s effort to create the world’s largest candy maker at a time when both companies’ sales are under pressure was promptly rebuffed on Thursday. Still, Hershey shares surged 17% on news of the offer and remained elevated even after the company rejected the bid, indicating investors believe Mondelez won’t be discouraged. But a takeover of Hershey would face obstacles. Any deal would require the approval of the Hershey Trust, which holds 81% of the company’s voting power and has a history of vetoing deals. A shake-up in the trust’s board, a need for diversification and a state investigation could change things. Meanwhile, some analysts espouse a theory that Mondelez’s bid was a defensive move, designed to fend off a bidder of its own.

Shakespearean Drama
The British political drama turned ally against ally on Thursday. In a tumultuous turnabout, U.K. Justice Secretary Michael Gove threw his hat in the ring to become the country’s next prime minister, blindsiding former London mayor Boris Johnson, who announced he won't be running. The move throws into question the political future of Mr. Johnson, the figurehead of the Brexit campaign. Home Secretary Theresa May, who had backed staying in the European Union, also entered the fray to succeed Prime Minister David Cameron and is considered a front-runner now, along with Mr. Gove. While markets have largely recovered their losses since last week’s vote, the pound is still well below its previous levels. Bank of England chief Mark Carney warned the economy would soon feel the strain and said that further interest-rate cuts will be needed. Meanwhile, following the U.K.’s vote to leave the EU, London’s position as the continent’s premier financial center is under threat, and officials in Paris, Frankfurt and Dublin aren’t wasting time in trying to hasten its downturn.
Stock markets around the world are mostly higher. Japan's Nikkei (+0.7%) led the advance in Asia and Britain's FTSE (+0.3%) paces the gains in Europe. S&P 500 futures are down 5.25 points at 2,085.00.

US economic data flows. Markit US manufacturing PMI will be released at 9:45 a.m. ET, while both ISM manufacturing and construction spending will cross the wires at 10 a.m. ET. US auto sales will be released throughout the day.

Regulators open investigation into fatal crash in Tesla involving autopilot.

Hedge funds set for worst first half since 2011.

Brexit forces stretched central banks to do more with less.

Spain has 5 million unemployed and is running out of workers.

Venezuela mess prods China to reassess Africa lending spree.

Libor conspicuously stable as Brexit roils global markets.

ECB research says euro area output gap is 6 percent.

Donald Trump Faces Rocky Terrain in Colorado

Woes Confound Rio in Run-Up to Olympic Games

Istanbul Airport Bombers Were From the Former Soviet Union, Turkey Says

Deutsche Bank Shares Hit Over 30-Year Low After Fed, IMF Rebuke

Tidjane Thiam’s One-Year Anniversary Gift at Credit Suisse: Brexit Upheaval

It looks like the world might get a break from the non-stop Brexit talk today. At the time of writing there have been no new dramatic plot developments in U.K. politics. So instead let's talk about the U.S. economy, which really hasn't been that bad. The Atlanta Fed's GDPNow forecast shows growth tracking at 2.7 percent. Yesterday's initial jobless claims report came in below 270,000 for the week, which is rock solid. And the Chicago Purchasing Manager's Index surged in June, from 49.3 to 56.8. Today we get a bunch of data: Markit U.S. PMI, ISM Manufacturing, Construction Spending, and Vehicle Sales. And then of course next Friday we get the big one, the June jobs report. Thanks to Brexit and the May jobs report, the markets are pricing the next Fed hike far out into the distance. But if you clear away the smoke, it may turn out that the actual conditions on the ground aren't that bad.

Source: Bloomberg, BI, WSJ, 

Wednesday June 29 Daily Market Primer

Stocks recovered in the US Tuesday and around the world for the second day on Wednesday, as markets adjust to the new reality of Brexit.  Oil moved up and US bond yields rose slightly.  The pound rose for a second day and is now 2.2% off the bottom, with a long way to go to get back to pre-Brexit values.  US equity futures are pointing to a strong opening of up .8%

ECB President Mario Draghi gave a speech to the EU leadership saying he expects Brexit to cut Eurozone growth by .5% per year for three years http://bit.ly/DraghiEuroZone.  French President Francois Hollande called for an end to clearing Euro denominated trades in the UK, which would be a blow to London and the UK economy.    UK PM David Cameron asked EU leadership for flexibility of “freedom of movement” and did not get it, and likewise did not yield to pressure to execute Article 50 of the Lisbon treaty and begin the EU withdrawal process right away.

	LAST	CHANGE	% CHG
DJIA	17409.72	269.48	1.57%
Nasdaq	4691.87	97.42	2.12%
S&P 500	2036.09	35.55	1.78%
Russell 2000	1107.3	17.65	1.62%
Global Dow	2260.54	28.91	1.30%
Japan: Nikkei 225	15566.83	243.69	1.59%
Stoxx Europe 600	323.53	6.83	2.16%
UK: FTSE 100	6271.85	131.46	2.14%
CBOE Volatility	17.65	-1.1	-5.87%
DJ Asia-Pacific TSM	1352.08	21.9	1.65%
Australia: S&P/ASX 200	5142.4	39.1	0.77%
China: Shanghai Composite	2931.59	19.03	0.65%
Hong Kong: Hang Seng	20436.12	263.66	1.31%
India: S&P BSE Sensex	26740.39	215.84	0.81%
France: CAC 40	4183.08	94.23	2.30%
Germany: DAX	9585.84	138.56	1.47%
Italy: FTSE MIB	15836.83	235.21	1.51%
Spain: IBEX 35	8057.3	222.3	2.84%
U.S. 3 Month	0.264	0/32
U.S. 2 Year	0.629	-1/32
U.S. 5 Year	1.025	-2/32
U.S. 10 Year	1.474	-2/32
U.S. 30 Year	2.265	6/32
Crude Oil	48.36	6/32	1.07%
Brent Crude	49.7	0.44	0.89%
Natural Gas	2.969	0.079	2.73%
Reuters-Jefferies CRB	192.991	1.446	0.75%
S&P GSCI	375.07	2.97	0.80%
E-mini S&P 500	2044.5	16	0.79%

Donald Trump gave a speech outlining a protectionist presidency that according to the WSJ repudiates decades of Republican trade policy http://bit.ly/TrumpsTrade.   The 800 page GOP report on Benghazi which took two years to write did not give the Trump campaign any additional ammo against Hillary Clinton, spreading the blame broadly to the CIA and the US government.   Islamic State hit Istanbul airport with a very severe terrorist attach that killed 40 and injured hundreds more, contributing to the instability of the region.  Dallas based pipeline operator Energy Transfer Equity is spiking its $33 billion takeover of Williams Companies, siting “failure of merger conditions”. 

Here’s the news:

Brexit political fallout

British Prime Minister David Cameron attended what promises to be his last meeting of the leaders of all 28 European Union member states yesterday. German Chancellor Angela Merkel said afterwards that she sees no way back from Brexit for the U.K., while French President Francois Hollande warned of the threat to London's financial market following an exit. In Britain, survey data show that economists are divided on whether the country will fall into a recession in 2016 or 2017.

Markets rally

The MSCI Asia Pacific Index advanced 1.8 percent overnight as the global stock rally continues and volatility falls. In Europe the Stoxx 600 Index was 2.1 percent higher at 5:55 a.m. ET while in London the FTSE 100 was 2.2 percent higher — in local currency. The pound climbed 0.5 percent to $1.3400. S&P futures were 0.7 percent higher.

Bond rally continues

This morning Ireland became the latest country to set a new all-time record low 10-year bond yield when it dropped to 0.613 percent. In Japan, negative yields on government bonds seem to have become self-reinforcing, which could soon see every maturity of the country's debt yielding below zero. Treasuries are heading for their biggest rally since 2011, which has economists warning that the gains can't continue into next year. There was some good news in the corporate-debt market this morning too as Molson Coors Brewing Co. is selling euro-denominated bonds, the first offering in Europe since the Brexit referendum.

Turkey attack

Islamic State is being blamed for coordinated suicide attacks at Istanbul's international airport that left at least 40 people dead — 13 of them said to be foreign nationals. Turkey’s Borsa Istanbul 100 Index was 0.2 percent lower at 6:00 a.m. ET with airline stocks hit hardest. The attacks are a further blow to President Recep Tayyip Erdogan who has moved to heal rifts with Israel and Russia in recent days in a bid to boost the economy.

Fed rate rise a long way off

'One and done' seems to be the tale of the current Fed hike cycle. Money market derivatives now point to the next rate rise not coming until Jan 31, 2018. Federal Reserve Governor Jerome Powell warned yesterday that global risks have shifted further to the downside since the U.K. voted to leave the European Union. The shift in Fed expectations can be clearly seen in the fact that money markets are now pricing in a greater chance of a cut, rather than a hike, for the rest of this year.

Target Turkey
Suicide bombers struck Turkey’s busiest airport on Tuesday, killing at least 41 people and injuring scores more in the deadliest of a string of attacks in Istanbul this year. Three bomb blasts shook the arrivals area of the international terminal at Istanbul Atatürk Airport at around 9:22 p.m. One assailant set off a bomb after being shot by police near a checkpoint just inside the terminal, and two other attackers blew themselves up outside—one near the entrance and one in a parking lot across the street, according to a Turkish official. No group had claimed responsibility hours after the attack. However, Prime Minister Binali Yildirim said initial findings of an investigation suggested Islamic State carried out the assault. Passengers and workers at the airport described the chaos after the attack.

With or Without You
British Prime Minister David Cameron began the knotty process of extricating his country from the European Union on Tuesday at his last summit with leaders of the other 27 member states, who told him there would be no special deals for ex-members. He urged the EU to be flexible on the treaty rule that grants EU citizens the right to live and work in other member countries if it wanted to maintain close economic ties with the U.K., but European leaders spurned that call—at least for now. The race to replace Mr. Cameron is under way, with the front-runners widely seen as Boris Johnson, former mayor of London, and Theresa May, the home secretary. Meanwhile, Wall Street is tallying up the winners and losers after the wild market reaction to last week’s vote. One theme has emerged early—the computers got it right and the humans got it wrong.

Trading Places
Donald Trump offered a starkly protectionist view on trade in an unusually detailed speech on Tuesday, pledging to scrap the current North American Free Trade Agreement, kill America’s involvement in the Trans-Pacific Partnership and label China a currency manipulator. The presumptive Republican nominee’s trade proposals amount to a wholesale rejection of longstanding Republican orthodoxy and leave the party with a candidate arguing against the very policies that most GOP leaders have enacted and supported. Mr. Trump’s speech put him closer ideologically to recent Democratic presidential candidates than to Republicans, and drew condemnation from both Democrats allied with Hillary Clinton and Republicans who have long sought to boost U.S. trade. Meanwhile, Mrs. Clinton promised to democratize technology, including the goal to connect every U.S. home to high-speed internet.

Britain probably won't leave the EU until 2019. Citi says Article 50 — the mechanism under the Lisbon Treaty in which a country tells the European Union it is leaving the bloc and thereby gives a two-year notice period — isn't likely to be triggered anytime soon. The bank believes the ruling Conservative Party will first find a new prime minister, and then political conferences are likely to be held before a potential general election. After all that happens, the new government could trigger Article 50 upon entering office, Citi says.
Mario Draghi says Brexit could reduce eurozone GDP. Speaking in front of EU leaders on Tuesday, European Central Bank head Mario Draghi said the British exit from the EU, or Brexit, could shave 0.3 to 0.5 percent off eurozone growth over the next three years. Reuters reports, citing an EU official, that Draghi said the slowdown in growth was likely to come from a softening in the British economy and a slump in UK trade. Additionally, Draghi reportedly told leaders lower stock prices could lead to a higher cost of capital, which could weigh on growth.
The British pound is higher. The pound continues to claw its way back after its steep slide in response to the Brexit. Sterling dropped about 11% from its high on Thursday into Monday's trade. Wednesday's 0.5% gain has the pound up to 1.3410, 2.2% off its recent low.
A huge energy deal is being terminated. Energy Transfer has terminated its $33 billion merger with Williams because of a "failure of conditions under the merger agreement." According to Bloomberg, Energy Transfer was able to back out of the deal after it was discovered that a combination wouldn't free investors from their tax liabilities. Williams shareholders approved the deal Monday and are appealing.
Nike's futures sales disappointed. The athletic-apparel giant reported adjusted earnings per share of $0.49, beating the Bloomberg consensus by a penny. Revenue rose 6% to $8.2 billion but was a bit shy of the $8.28 billion that was expected. The closely followed worldwide futures orders jumped 11%, missing the 13% increase that analysts were anticipating. Shares of Nike were down by as much as 6% in after-hours trade.
Sony cut its 2017 revenue target. The electronics company lowered its fiscal-year 2017 revenue target to a range of 1 trillion to 1.05 trillion yen ($9.76 billion to $10.25 billion) for the year starting April 2017, citing slowing global demand for smartphones. The new target is down from Sony's estimate of 1.3 trillion to 1.5 trillion yen.
Global Markets Steady After Brexit-Related Rout
Fidelity Just Made Buying an Index Fund Vanguard-Cheap
Fed "stress tests" results are coming. Last week, the first part of the Fed's stress tests were released, showing that all of the big banks met their capital requirements. At 4:30 p.m. ET, the second-round results of the tests will be released. The results will show whether the banks can proceed with their plans to return capital to shareholders through dividends or buybacks.
Global markets continue to rally. Spain's IBEX (+3%) leads the gains in Europe after Japan's Nikkei (+1.6%) paced the advance in Asia. S&P 500 futures are up 12.75 points at 2,041.25.
Earnings reports trickle out. General Mills and Monsanto report ahead of the opening bell.

US economic data picks up. Personal income and spending will be released at 8:30 a.m. ET, and pending home sales will be announced at 10 a.m. ET. Then, at 10:30 a.m. ET, US crude-oil inventories are due out. The US 10-year yield is down 1 basis point at 1.46%.

$291M flows into BlackRock's high-yield bond ETF

BlackRock's high-yield bond exchange-traded fund brought in $291 million Friday, capitalizing on investors' thirst for yield after the UK decided to leave the EU.

Bloomberg (28 Jun.) 

France's Hollande calls for London to stop euro clearing

Euro-denominated trades must no longer be cleared in London, French President Francois Hollande says. The call had been expected, given Britain's decision to leave the EU.

Bloomberg (29 Jun.),  Financial Times (tiered subscription model) (29 Jun.) 

Victims of Brexit's real-time recession already feeling the pain.

Bitter Scotland weighs its own divorce.

Benghazi report has no major revelations about Clinton's role.

European banks spend billions to get U.S. units fit for the Fed.

Hong Kong’s richest man isn’t worried about the survival of his $80 billion empire. 

Lehman Brothers said to sell one of its last property holdings.

Pro-‘Brexit’ city of Sunderland glad to poke establishment in the eye.

If there's one strategy that's worked well for U.S. investors since the financial crisis, it's "buy the dip." Every time it's appeared as though this big bull market will come to an end, stocks have ended up defying those predictions. With markets around the world plunging in the immediate aftermath of last Thursday's referendum, the question obviously arises of when the strategy will stop working. In an interview yesterday on BloombergTV, BlackRock Inc.'s head of asset allocation Russ Koesterich expressed skepticism about whether investors will continue have it so easy. He argued that "buy the dip" has worked because each time there's been a downturn, there's been a policy response from a major central bank. But that dynamic could change if people perceive central bank stimulus as losing its efficacy. "If we're going to see stocks move higher, it has to be on the basis of better fundamentals, which have to come from a better global economy," he said. Of course, there are more important things in the world than coming up with policies that make investors happy... There's the broader issue of why voters appear to be turning against consensus political and economic views. In a conversation with BloombergTV yesterday, Mohamed El-Erian, chief economic adviser at Allianz SE, said the good news is that there's a growing recognition of the need for a new "inclusive" growth model in the developed world that doesn't leave so many behind. The bad news: He doesn't see the Brexit vote as being a big enough catalyst to get the political class to try a new approach. It's going to take something more dramatic.

Source: Bloomberg, BI, WSJ, CFAI Fin. Newsbrief, Reuters