Ashraf explains the notion of debt mutualisation vs. Eurobonds, stating that the former uses Eurobonds to refinance all debt EXCEEDING 60% of GDP. Eurobonds proceeds would go into a Eurozone Redemption Fund. ursuing the path of Eurobonds via maturity extensions (up to 25 years) & preferential interest rates would require a loss of sovereignty.
Ashraf also talks about the increasingly adversarial opposition pursued by the Germans (to further backing the Southern nations) French (against loss of sovereignty) and Italians (insistence to obtain time for recent reforms).
Ashraf also mentions the metrics reflecting danger, such as Spain 10yr yields surpassing7.5%, Italian yields regaining 6.50-6.75% and their spreads with German 10 year yields nearing 5.0% from their current levels of 4.6%.
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Nvidia earnings are due today after the closing bell. Research from Bloomberg (see chart below) indicates that gains or losses seen in the S&P500 emerging on the day of the releases, were usually reversed following day. With earnings guidance already elevated and stock up 30% off the March lows, there remains ample room for disappointment. Will the S&P500 bounce be sold the next day? Bloomberg highlights the number "$1 trillion", referring to CEO Jensen Huang's minimum projection for sales of Blackwell and Rubin AI chips in 2027. There's also the possibility of rising input/energy costs. Also, is the S&P500 or Nasdaq100 showing a right shoulder top near 7450 and 29350 respectively?
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Understanding US Dollar 2018 2019
I created this chart in December 2024, pointing to the importance of understanding some of the fundamental events shaping USD Index between 2018 and 2019. Why 2018 and 2019.
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