Good morning from Germany, where planned entry of China’s state-owned shipping conglomerate Cosco Shipping Holdings into the Port of Hamburg is causing controversy. German EconMin opposes planned purchase, arguing that Hamburg port is part of the country’s critical infrastructure

Stock market roars back to life w/S&P 500 up 4.7% this week.

Far-right Meloni named #Italy 's first woman PM. President Mattarella tasked Meloni w/forming govt after holding formal talks w/all parties in parliament. Shortly after she was named PM, Meloni appointed Giancarlo Giorgetti as EconMin, who served under previous Draghi govt.

The most absurd The Economist cover right after the oil price forecast $5 in 1999. Make no mistake:
Debt to GDP ratio Italy: 150%, UK: <100%,
Econ growth since 1999 Italy: 7.7%, UK: ~40%.
Total MktCap stock mkt Italy: $484bn, UK: $2,519bn.

OOPS! #Eurozone total debt jumps >€12tn in Q2 2022.

OOPS! German 10y yields jump >2.5% for 1st time since 2011.

Good Morning from #Germany where interest rates continue to rise. 10y German yields jump to 2.47%, the highest level since 2011. With a debt level of €2.34tn in Germany, interest costs are rising significantly.

Pound gains as Liz Truss resigns as UK Prime Minister after losing support of party and public.

Looks like the biggest monetary policy experiment in economic history, Japanese-styled MMT, is not going so well right now. #Japan 's Yen briefly hit 150 against the U.S. dollar, weakest levels not seen since August 1990. cnb.cx/3Tip1Wu

Peak #inflation ? Not yet in #Germany ! German Consumer Prices (CPI) are likely to rise further after Producer Prices (PPI) remain at 45.8% in Sep, the strongest increase since 1949.

Good Morning from #Germany where more inflationary pressure is in the economic pipeline. Producer Prices #Inflation hit another fresh record. Sep PPI rose by 2.3% MoM and by an eye-watering 45.8% YoY, mainly driven by energy prices, putting pressure on ECB to keep rates raising.

This chart highlights that the recent bond market rout is not the result of an inflation scare, but is about a Dollar liquidity squeeze. 10y US real rates have jumped to 1.69%, the highest level since GFC 2009. The bond market is thus signaling stress.

OOPS! US 10y yields touched the highest since June 2008 as Fed tightening assumptions slightly higher w/75bps priced in at both 11/2 and 12/14 while the cycle ceiling stands at 4.95%.

#Gas prices continue to fall because European gas storage facilities are largely full and the weather remains mild. Has dropped below the level of 12 cents per kilowatt hour, the price of the consumer gas price cap.

UK #Inflation returns to double digits as food & energy prices soar: Sep CPI rose 10.1% YoY from 9.9% in Aug, matching a 40y high reached in Jul & exceeded economists' expectations for 10%. Bank of England & govt under pressure to act, as UK Base rate w/2.25% way below inflation.

Good Morning from #Germany , where housing rout deepens. Europace House price index, which measures avg price trend for existing properties in Germany, lost 1.1% in Sep, 5th consecutive negative monthly change. Europace Inde now -0.6% ytd. 2022 would be 1st neg year since 2009.

ECB seems not even thinking of reducing its balance sheet, and can't even manage stagnation. Total assets has risen by €6.1bn to €8,778.1bn driven by QE. Since record in Jun, balance sheet has shrunk by just €57bn. Total assets still equates to 81% of Eurozone GDP vs Fed's 35%

Long US dollar remains the most crowded trade in BofA Fund Manager Survey. Is top for the 4th month in a row w/64% of FMS investors saying it is the most 'crowded trade'; #2 Short EU equities, #3 Long ESG assets, #4 Long oil.