Foreign Central Banks Furiously Dump US Treasuries: Record $47 Billion Sold In First Two Weeks Of 2016
Submitted by Tyler Durden on 01/17/2016 - 18:58
According to the latest Fed data, after a drop of $12 billion in the first week of the year, another $34.5 billion in Treasurys held in custody was sold in the week ended January 13, bringing the total to just $2.962 trillion, below the previous recent low recorded in early November, and at levels not seen since April 2015. Adding up the flows from the first two weeks of the year reveals the worst and most custody holdings "outflowing" start to the year in history.
Wells Fargo's Problem Emerges: $17 Billion In Junk Energy Exposure
Submitted by Tyler Durden on 01/17/2016 - 18:37
<Q - Mike L. Mayo>: What percent of the $17 billion is not investment grade?
<A - John R. Shrewsberry>: I would say most of it. Most of it.
<Q - Mike L. Mayo>: So most of the $17 billion is non-investment grade.
<A - John R. Shrewsberry>: Correct.
The "Putin Is Isolated" Meme Officially Dies As Japan Calls For Closer Ties With Russia
Submitted by Tyler Durden on 01/17/2016 - 18:30
“As chair of the G7, I need to seek solutions regarding the stability of the region as well as the whole world. I believe appropriate dialogue with Russia, appropriate dialogue with president Putin is very important.”
Oil Plunges To $28 Cycle Lows As Iran Supply Looms, Stocks Slide
Submitted by Tyler Durden on 01/17/2016 - 18:05
February WTI Crude futures have plunged to new cycle lows at $28.60 (down 2.7%) as Iran supply looms over an already over-glutted global crude market. Brent is down even more (-3.7%). Dow futures are down 60 points at the open.
"China Banks Seem To Be Doing Whatever They Can To Avoid Paying Anyone In Dollars"
Submitted by Tyler Durden on 01/17/2016 - 17:53
What has been going on lately? Well if there is a common theme, it is that China banks seem to be doing whatever they can to avoid paying anyone in dollars. We are hearing the following...
The State Of Our Denial Is Strong
Submitted by Tyler Durden on 01/17/2016 - 17:20
Well, things did 'change'...
What Just Happened With OIL?
Submitted by Tyler Durden on 01/17/2016 - 16:55
What's wrong with this picture?
Syria 4 Years On: Shocking Images Of A Post-US-Intervention Nation
Submitted by Tyler Durden on 01/17/2016 - 15:20
Cracks At The Core Of The Core
Submitted by Tyler Durden on 01/17/2016 - 14:50
It is the “Core of the Core” that now concerns us the most. That is where Federal Reserve (and global central bank) policies have left their greatest mark. It is at the “Core of the Core” where momentous misperceptions and market mispricing have become deeply entrenched. It’s the “Core of the Core” that has attracted enormous amounts of “money” over recent years. It’s also here where I believe leverage has quietly been used most aggressively. Over recent years it became one massive Crowded Trade. Now the sophisticated players must contemplate beating the unsuspecting public to the exits.
US Bank Counterparty Risk Soars After Energy MTM Debacle
Submitted by Tyler Durden on 01/17/2016 - 14:21
A few dots are starting to be connected now that we have exposed the debacle of The Fed's decision to allow banks to mark-to-unicorn their energy loans. "Something" was wrong in recent weeks as the TED-Spread surged (implying rising counterparty uncertainty among banks) and then the last week - since The Fed's alleged meeting with banks - has seen financial credit and stocks crash. 2008 all-over-again as "when in doubt, sell 'em all" is back for the US financial system.
JPM Explains How Crude Carnage Creates $75 Billion SWF "Contagion" For Equities
Submitted by Tyler Durden on 01/17/2016 - 13:50
"Assuming selling in accordance to the average allocation of FX Reserve Managers and SWF across asset classes, we estimate that the sales of bonds by oil producing countries will increase from -$45bn in 2015 to -$110bn in 2016 and that the sales of public equities will increase from -$10bn in 2015 to -$75bn in 2016."
Iran Unleashes Oil Flood, Will Quintuple Crude Revenue In 2016
Submitted by Tyler Durden on 01/17/2016 - 13:31
Iran is about to get a lot richer and according to President Rouhani, "everybody is happy except the Zionists, the warmongers who are fuelling sectarian war among the Islamic nation, and the hardliners in the U.S. congress."
Peak Desperation: Clinton Campaign Deploys Wall Street 'Strategist' To Attack Bernie Sanders
Submitted by Tyler Durden on 01/17/2016 - 13:16
Hillary Clinton’s campaign is absolutely imploding right now. When people get desperate, they do desperate things, and the latest move by the Clinton campaign reeks of putrid, panicked desperation. Of course, it makes perfect sense that Hillary Clinton, JP Morgan and Bank of America would share the same strategist. After all, they are the exact same brand.
Mid-East Massacre: Qatar Crashes, Saudi Stocks Plunge Most Since Black Monday
Submitted by Tyler Durden on 01/17/2016 - 12:41
Broad middle-east and african stock markets crashed over 5%, erasing any gains back to November 2008 as the carnage from last week continues. From Kuwait (-4.3%) to Qatar (-8%) it was a bloodbath as Saudi Arabia Tadawul Index plunged 5.4% - the most since Black Monday (now down over 50% from their 2014 highs). These losses are far in excess of US 'catch-up' moves and suggest a dark cloud over Asia this evening.
US Economy – Slip-Sliding Away
Submitted by Tyler Durden on 01/17/2016 - 12:13
It must be China. Or the weather, which is usually either too cold or to warm – somehow the weather is just never right for economic growth. Surely it cannot be another Fed policy-induced boom that is on the verge of going bust? Sorry, we completely forgot – the Fed is never at fault when the economy suffers a boom-bust cycle. "[An] oversold market can easily become more oversold when it keeps being inundated with evidence that economic conditions are not what they were thought to be."
