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%.
Premium Insights include the analysis for trades in progress as well as those were squared to pave the way for the next sessions. See more detail on the latest trades http://ashraflaidi.com/products/sub01/access/?a=660 Non subscribers can take part here:http://ashraflaidi.com/products/sub01/
Here is a DM sent via Twittter to select clients on Monday, alerting them of the upcoming DOW30 trade. The trade was issued to all Premium subscribers later that afternoon via email, Twitter, SMS and Telegram to (Arabic clients). Have a nice weekend.
After Theresa May
Now that PM Theresa May has announced stepping down from the Conservative Party leadership as of June 7, the ongoing political chaos will shift temporarily from striking a deal on the Withdrawal...