Banks are preparing for an ‘economic nuclear winter’

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The first half of 2016 has been a roller-coaster for financial markets. A combination of uncertainties surrounding the U.K.’s vote to leave the European Union and weaker-than-expected corporate earnings results across the region means a tough second half looms.

European banks, in particular, have had a very tough six months as the shock and volatility around Brexit sent banking stocks south. Major European banks like Deutsche Bank and Credit Suisse saw their shares in free-fall after the referendum’s results were announced. In the U.K., RBS was the worst-hit, with its shares plunging by more than 30 percent since June 24.

The current uncertainty over when the U.K. will start the process of quitting the EU has banks on tenterhooks. But a source told CNBC that banks are “preparing for an economic nuclear winter situation.”

Food seizures begin: Venezuela farmers ordered to turn over their food to the government

(NaturalNews) As Venezuela’s economy continues to worsen — its currency having entered “free fall mode,” according to the Financial Times — the desperate Maduro government has taken the extreme measure of nationalizing the nation’s food industry.

Venezuelan farmers and food producers are now required to sell anywhere from 30 percent to 100 percent of their products to state-owned stores. The order covers staple foods such as rice, milk, oil, sugar and flour.

The Euro & The Waterfall Projection – Judgment Day

 

We have not seen a Waterfall Projection on any market in years. All of a sudden, it showed up in Euro and in Oil. Those who have been with us for decades will notice that the projection for the high was virtually a perfect formation at the top of the circle based upon the Pi derivative. That meant we should have then stayed within the circle forming that sharp curve (Waterfall) that will then rush to the bottom of the projection. Note we fell and supported perfectly on it, bounced for one week and then fell out of bed pushing through the bottom of the Pi Cycle projection. You cannot get any more bearish than that for the future long-term.

As Euro Slides, Strategists Cut Forecasts

Some Investors See Single Currency Falling to Parity With U.S. Dollar

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A day after the European Central Bank unveiled its bond-buying program, the single currency still was in free fall, blowing past analysts’ expectations for how low the euro can go.

Some investors now say the euro could fall to the point where it is on equal footing with the U.S. dollar for the first time since it climbed above the buck in late 2002.

“If you would have asked me a few months ago, I would’ve said that parity could be in the cards in the years ahead. Now, we can’t rule it out anymore even by the end of this year,” said Thomas Kressin, head of European foreign exchange at Pacific Investment Management Co., or Pimco, which has $1.68 trillion under management.