Europe in Deflation: Got (cheap) Milk?

By: Elliott Wave International

In the early 1990s, two simple words from a genius ad campaign radically transformed the way the U.S. consumer saw it: "Got Milk?"

Suddenly, the narrative changed from an obligatory drink you had to finish as a kid, along with eating your vegetables -- into a sexy, funny, and above all desirable treat for all ages.

Until now.

In Europe, in 2015, famous celebrities donning milk mustaches no longer light the public's passion for lactose -- as prices for milk have spoiled. Here, a September 8, 2015 CNN Money article captures the curdled state of affairs:

"So much milk is sloshing around the European Union that milk is often cheaper than bottled water. In UK, a liter bottle of water costs around $1.50, a liter of milk $1... Wholesale milk prices have collapsed by 20% this year."

(Idea for a new campaign pitch: "Got (really, really, dirt cheap) Milk?")

Except that, it's not just the price of milk that's gone sour. According to data from April 2015, "supermarket prices in the UK have fallen at the steepest rate in eight years," including meat, milk, cheese, and vegetables. (The Telegraph) Continue reading "Europe in Deflation: Got (cheap) Milk?"

All eyes on ECB's Draghi to fight crisis

European Central Bank president Mario Draghi has already taken Europe's monetary authority into uncharted territory.

Now, with the debt crisis in Europe threatening further disaster, he may have to push it even farther into the unknown to save the euro.

The 17 countries that use the euro are struggling as economies across the region face deepening recessions. Spain and Italy, the two chief trouble spots, are threatened with a financial collapse that could tear the 13-year old currency union apart and rock the global economy. Continue reading "All eyes on ECB's Draghi to fight crisis"

Oil falls below $84 amid waning EU euphoria

Associated Press

The price of oil fell below $84 a barrel Monday, unwinding some of the massive gains made Friday, when investors cheered the latest EU plans to tackle the continent's debt and economic woes. Signs of an economic slowdown in China also weighed on markets.

By early afternoon in Europe, benchmark oil for August delivery was down $1.35 at $83.61 a barrel in electronic trading on the New York Mercantile Exchange.

In London, Brent crude for August delivery was down $1.50 at $96.30 per barrel on the ICE Futures exchange.

On Friday, crude soared $7.27 to close at $84.96 in New York after the leaders of the 27 European Union countries said that they would seek to centralize regulation of European banks and, if necessary, bail them out directly, instead of funneling loans through governments that already have too much debt.

The EU said it also plans to ease borrowing costs for Italy and Spain, the third- and fourth-largest of the 17 economies that use the euro, stop mandating painful budget cuts to every country in need of emergency financial aid and tie their budgets, currency and governments more tightly. Continue reading "Oil falls below $84 amid waning EU euphoria"

I wouldn't look for China to save the world

It's the last day of the month and what a terrible trading month it has been for most investors! The month of May saw all the major indices turn negative based on our Trade Triangle Technology. This is not something to be taken lightly, as it foretells of the future trends for all of the major indices.

We have come to the end of the road and the can cannot be kicked any further. It is the moment of truth for investors and the moment of truth for politicians worldwide. It is the moment no one wants to face. Continue reading "I wouldn't look for China to save the world"

The Fed Resumes Printing

If you haven’t heard by now, the Fed is back at it! Bud Conrad of Casey Research has written a great article on how it is affecting current markets and what to expect in the near future. Be sure to take a look and comment below with your own thoughts. For more from Bud and Casey Research click here.

The Federal Reserve recently announced important policy changes after its Federal Open Market Committee (FOMC) meeting. Here are the three most important takeaways, in its own words: Continue reading "The Fed Resumes Printing"