• (Reuters) - Britain began a fresh round of Brexit trade talks by warning the European Union that it was ramping up preparations to leave the bloc without an agreement as the two sides bicker over rules that govern nearly $1 trillion in trade. Meanwhile, (FT) the UK government admits it will break international law over Brexit treaty.
• This British regime is blatantly cheapening the concept of a rules-based international order – quite astounding!
  
  
  

 

• Japan, the world’s third-largest economy shrank an annualized 28.1% in April-June.

 

• Bloomberg: About 2.25 million mortgages were at least 90days late in July, a 450% increase from pre-pandemic levels and the biggest number since the global financial crisis, according to industry tracker Black Knight Inc.

 

• General Motors Co. said it would take a $2 billion equity stake in Nikola Corp. the maker of hydrogen fuel cell electric pickup trucks (the future ?)..… Contributing to Tesla’s plunge of 21.06% its biggest daily percentage drop. The car maker was also spurned from a group of companies being added to the S&P 500.

 

 

Suggested Reading regarding  CLO's:  The Looming Bank Collapse

Unless you work in finance, you probably haven’t heard of CLOs, but according to many estimates, the CLO market is bigger than the subprime-mortgage CDO market was in its heyday. The Bank for International Settlements, which helps central banks pursue financial stability, has estimated the overall size of the CDO market in 2007 at $640 billion; it estimated the overall size of the CLO market in 2018 at $750 billion. More than $130 billion worth of CLOs have been created since then, some even in recent months. Just as easy mortgages fueled economic growth in the 2000s, cheap corporate debt has done so in the past decade, and many companies have binged on it.