Rabobank: "Don't Ask What The Final Destination For This Flight Is. You Really Don't Want To Know" Tyler Durden Thu, 06/04/2020 - 09:16 Submitted by Michael Every of Rabobank Come Fly With Me Last night before turning in the US was threatening to cease all inbound Chinese airlines if China would not open up to US airlines going the other way. On waking up, China has now allowed some limited US airlines to enter, matching the ones going the other way. “Negotiations will be short,” as they say. Bilateral reciprocity achieved through threats; don’t think that message goes unnoticed in the US. Indeed, just as Hong Kong does not hold its annual 4 June commemoration of 1989’s Tiananmen Square, Secretary of State Pompeo tweeted an image of himself standing next to a wanted Chinese dissident. (Imagine if the Chinese Foreign Minister was tweeting images with Edward Snowden.) Moreover, the Wall Street Journal editorial yesterday by former World Bank head Paul Wolfowitz argued the US should instigate investigations into the foreign assets of senior members of the Chinese Communist Party to punish it for its moves on Hong Kong. Still, let’s ignore all that and allow markets to sing “Come fly with me”. Indeed, Germany has agreed a major fiscal stimulus program. That Europe’s very own ‘Nikita Khrushchev’ (“Nobody touch anything! I like things exactly the way they are!”) Angela Merkel managed to shepherd through EUR130bn in tax cuts and spending, 30% higher than expected, through is a real achievement. There will even be new money for new things like a 5G roll-out…just as one German telco follows the lead of two in Canada and drops China’s Huawei. More money for European firms then. “Come fly with me, let's fly.” Meanwhile, in the US we saw the ADP’s projection of US job losses at “only” 2.8m for May vs. 9m expected and 19.5m for April, meaning that things are moving from the we-can’t-even-begin-to-describe-it terrible to just the worse-of-the-Great-Depression-era bad. “Come fly with me, let's fly, let's fly away.” We have also seen the criminal charges against the police officers in the George Floyd case in the US upgraded and widened to all four involved, which may go some way towards assuaging protestor anger. There also appears --from a great distance-- to be generally a more peaceful if defiant tone to the US protests, although things remain extremely tense. The market naturally has no idea how this whole situation can be resolved in a market-friendly way, but presumes it will be…”because markets”. Lastly, we get to hear from the ECB today, who are likely to spray more liquidity into a marketplace that is so desperately short of it already. Ironically, with so much going ‘right’ we still saw a fading of the recent rally in the Asian session. Still, some turbulence is to be expected, right? Just don’t ask what the Final Destination for this particular flight is. You really don’t want to know, trust me. Come fly with me, come fly, let’s fly away; If stocks just use some FOMO moves; A new high’s still in play; Come fly with me, let's fly, let's fly away Come fly with me, let's float down to the EU In wurst-land there's a central bank; And it'll toot its flute for you Come fly with me, let's take off in the blue Once I get you up there; Where the stocks are rarefied; We'll just glide; Starry-eyed Once I get you up there; I'll be holding stocks so near You may hear; Bloomberg cheer, 'cause this bull run’s forever Market-wise, it's such a lovely day; Just say the words and we'll beat the birds Down to Marina Bay; It is perfect for a flying honeymoon, they say Come fly with me, let's fly, let's fly away Once I get stocks way up there; Where the P-Es are rarefied; We'll just glide…; Once I get you up there; Even if earnings are hard to find; We'll just glide; Starry-eyed Once liquidity’s up there; I'll be holding stocks so near You may hear; Bloomberg cheer, 'cause we're all rich together Market-wise, it's such a lovely day; You just say the words and we'll beat the birds Down to Marina Bay; and next SpaceX fly to the moon, they say Come fly with me, let's fly let's fly; Pack up let's fly away! Now please take off your headphones and fasten your seat belts. And prepare to brace.