5 Things To Watch For

Here are the top 5 things to watch for in financial news stories that will be impacting markets for the week ahead.

1 – Gold Holds Gains From Last Week As U.S. Election Polls Tighten (Bloomberg)

gold clinton announcement

The Daily Reckoning covered the news on fall in the Mexican peso (click here) following the Friday announcement by the FBI of potential investigations regarding her email brouhaha let out.  The impact on gold was another firm indication of where the market might be headed in the fallout.  Bloomberg reported that on “Friday, prices climbed as much as 1.3 percent to the highest in a month.”  

While the news surrounding Clinton is still unfolding watching gold can offer a good indicator for where the market is headed.

To read more of the Bloomberg article click here.

2 – Economic Stress As World Runs Out Of Dollars (The Telegraph)

Ambrose Evans-Pritchard, a 30 year veteran reporter of The Telegraph, reported that global markets are currently operating in a state of fear.  He cited that the looming potential for the US Federal Reserve to raise rates too fast is leading to an “acute dollar shortage,” which then is “draining global liquidity.”  One banker out of London that was quoted by the British newspaper said, “People are terrified that QE is going to end early in Europe, and in the US we’ve already been in an earnings recession for a year and a half. Global growth is not getting any stronger despite what people seem to think.”  

This is important because it highlights a tendency for business owners and major firms to disguise poor growth earnings in the face of tightening cash flows.

To read more of The Telegraph article click here.

3 – How a Pillar of German Banking Lost Its Way (Der Spiegel)

Financial media from around the world continue to speculate about what might happen to troubled Deutsche Bank (Check out my 5 Things on DB to catch up). The real story might be best suited directly from a German perspective. Der Spiegel, a German based publication, and one of the largest in Europe released a complete guide to the storylines.

As the author’s report, “Deutsche Bank is broken. It might be able to extract itself from the 7,800 lawsuits it is currently involved in, or it may shrink to the point that it will no longer pose a systemic risk, or it may manage to find investors to help it scrape together sufficient capital to fulfill legal requirements. In the most extreme case, it may even be bailed out by the German state. But it is broken nonetheless when compared to that which it once was: a brand, a symbol, a German icon.”

While Deutsche Bank nears default, understanding the holistic story will allow a greater comprehension to what it means for the markets and your money.

To read the full story from Der Spiegel click here.

4 – Mark Carney Could Quit his Bank of England Role Within DAYS… (Daily Mail UK)

mark carney bank of england

In the wake of Brexit’s mass exodus of British political leadership, the Bank of England’s Mark Carney might be the next out the door.  The Daily Mail is reporting that he could be out as early as next week.  The governor is a native Canadian and the British news publication is reporting that he might be in the midst of a return to his homeland by next year.  His rumored replacement, MP Jacob Rees-Mogg is a potential candidate-in-waiting for the position.  

In the Daily Mail report the MP targets Carney saying, “He never seems to want to recognize the result of the referendum and get on with it. It looks like he is a sore loser.” This headline and similar reports will continue to push through in the coming days and is important to watch in the wake of uncertainty around the UK and the EU.

To read the full story from Daily Mail click here.

5 – We Risk Being Collateral Damage In The Neocon Lust For War (Peak Prosperity)

Chris Martenson of Peak Prosperity has officially begun to escalate his personal preparations in the wake of the neocons’ potential war in the coming months and years.  He pens that, “NATO is ramping up the pressure. Western media is faithfully (again) running necon talking points as if they were pearls of wisdom. We are heading back to the future.”

The piece takes a dive into the deep state of the elections and what further war escalation might mean for the future of US foreign policy.  The sentiment that Martenson outlines goes beyond financial news and is one that is both alarming and informative for investors on either the bull and bear side of the market.

David Stockman (who was interviewed by Martenson – click here) has taken issue with the neocon state and highlighted the drumbeats for war during the final presidential debate. He noted that (click here to see the tweet), “After all, Hillary the Hawk has never seen a war she didn’t embrace…” In addition to our fifth story, you’ll see that Martenson is not alone with his concern to a neocon war. To get the full scoop from Stockman – check out his latest book Trumped! A Nation on the Brink of Ruin… And How to Bring it Back for free (click here for more details).

To read the full story from Peak Prosperity click here.

Happy Halloween! Just for some added insight, we turn to Pedro da Costa for his impeccable style in summarizing the financial news day and the market. As usual, he nails it.


Craig Wilson, @craig_wilson7
for The Daily Reckoning

P.S. In need of a last minute costume for halloween? Don’t worry. We have some of the scariest on the block. They’re sure to scare the neighbors kids. Peter Coyne’s suggestions from last year are just as on point today as they were then (check it out here and below).

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