After "Murderous" Squeeze, China Boosts Capital Controls By Ordering Banks To Limit Yuan Outflows
Submitted by Tyler Durden on 01/12/2016 - 09:17
Now that China renewed its currency devaluation over the past 2 weeks with the CNY and CNH both plunging and unleashing the latest round of cross-asset selling across the world, it was only a matter of time before China boosted, or at least tried to, capital controls once again. Which according to Bloomberg it did moments ago: when it "asked banks to limit Yuan outflows." Actually, since all Chinese banks are at least partially state-owned, change that "ask" to "order." Here are the details.
Nigerian Currency Collapses After Central Bank Halts Dollar Sales To Stall "Hyperinflation Monster"
Submitted by Tyler Durden on 01/12/2016 - 09:03
Having told banks and investors "don't panic" in September, amid spiking interbank lending rates and surging default/devaluation risks, it appears the massive shortage of dollars that we warned about in December has washed tsunami-like ashore in oil-producing Nigeria. Following the Central bank's decision this week to halt dollar sales to non-bank FX market operators, black market exchange rates spiked to 282/USD (vs 199 official) and CDS spiked to record highs implying drastic devaluations loom.
Gartman: We Are Prepared To Short More
Submitted by Tyler Durden on 01/12/2016 - 08:48
"Because this is a bear market, strength is to be sold into and we had hoped that yesterday’s early strength in the US equity futures would be of a sufficient nature that would allow us the opportunity to sell. It never came.... when it does we’ll be prepared to sell the S&P futures short."
BP Fires 4,000 As Oil Slump Deepens
Submitted by Tyler Durden on 01/12/2016 - 08:28
Just days after The Fed admitted "we got it wrong" on the "unequivocally good" low oil prices, BP has joined a long list of energy entities slashing jobs. The oil company will cut 4,000 jobs in exploration and production because of toughening market conditions "we need to take specific steps to ensure our business remains competitive and robust."
Devaluation Odds Spike To Record Highs As Market Bets Saudi Dollar Peg Will Fall
Submitted by Tyler Durden on 01/12/2016 - 08:24
Apparently, the market isn't buying the notion that a Saudi Aramco IPO will be enough to shore up Riyadh's fiscal fiasco...
Forget $20 Oil: StanChart Says "Prices Could Fall As Low As $10 A Barrel"
Submitted by Tyler Durden on 01/12/2016 - 08:16
"Given that no fundamental relationship is currently driving the oil market towards any equilibrium, prices are being moved almost entirely by financial flows caused by fluctuations in other asset prices, including the USD and equity markets,” Horsnell said. "We think prices could fall as low as $10/bbl before most of the money managers in the market conceded that matters had gone too far."
Rabobank: "Everyone Rational Wants To Sell, While Everyone Official Has Been Told To Buy"
Submitted by Tyler Durden on 01/12/2016 - 07:49
“Everyone rational wants to sell, while everyone official has been told to buy,” said Every. “By throwing good money after bad, it just delays the inevitable.”
RANsquawk Preview: BoE Rate Decision 14th January 2016
Submitted by RANSquawk Video on 01/12/2016 - 07:32Frontrunning: January 12
Submitted by Tyler Durden on 01/12/2016 - 07:32- Oil slips toward $30, traders bet on more falls (Reuters)
- Oil Plunge Sparks Bankruptcy Concerns (WSJ)
- RBS cries 'sell everything' as deflationary crisis nears (Telegraph)
- World stocks drop but Europe shrugs off oil slide, China money market surge (Reuters)
- Canadian Stocks Fall in Longest Slump Since 2002 as Oil Slides (BBG)
- "Murderous" Yuan Rate Jolts Hong Kong as Top Currency Hub (BBG)
Futures Jump After Oil Rebounds From 11 Year Low On Turkish Terrorist Attack
Submitted by Tyler Durden on 01/12/2016 - 06:50
With China now "murdering" Yuan shorts, markets are content that the Chinese debacle seems to be contained if only for a while, and so the attention of both traders and algos alike has focused on oil, which earlier in the session dragged global equities lower as it dropped by 3%, just shy of the $30 level, a new 11 year low, before staging another dramatic rebound in minutes, wiping out all losses in the aftermath of what appears to have been a deadly suicide bomber terrorist explosion on a square the middle of Istanbul's historic district.
Suicide Bomber Detonates In Central Istanbul Square: At Least 10 Dead
Submitted by Tyler Durden on 01/12/2016 - 06:21
On Tuesday we get the latest tragedy out of Turkey as at least 10 are dead in a suicide attack on Istanbul. The explosion rocked Sultanahmet Square outside the city’s Blue Mosque injuring 15 in addition to those killed.
"Fasten Your Seatbelts" - UBS Warns Of "Record Spikes In Volatility" If This Level Breaks
Submitted by Tyler Durden on 01/11/2016 - 23:40
"We would be surprised that in this highly leveraged world, in combination with a structural decline in market liquidity, a 7-year cycle decline would just be mild. We think it’s actually just the other way around and in this context we see last year’s rise in volatility as just the start of a period with exceptionally high volatility where we wouldn’t be surprised to see record spikes in volatility over the next 12 to 17 months."
Massive Coverup Exposed In Sweden As Media, Cops Hid Migrant Sex Attacks
Submitted by Tyler Durden on 01/11/2016 - 23:15
“I’m not going to answer that. No, no, no. I don’t want to talk to you”...
US Equities Tumble As PBOC "Stamps Out" Short Yuan Speculators With "Murderous" Liquidity Squeeze
Submitted by Tyler Durden on 01/11/2016 - 23:00
A jump in the overnight cost for borrowing yuan in Hong Kong is "reflecting further PBOC efforts to stamp out speculation," according to Michael Every, head of financial markets research at Rabobank Group. Hong Kong-based Every told Bloomberg in an interview, following a massive spike in overnight borrowing rates for Offshore Yuan that "a 66% rate is murderous for others being swept up in this who are not speculating." PBOC advisor Han earlier warned that short selling the yuan "will not succeed," adding that "it is pure imagination that the Chinese yuan will act like a wild horse without any rein." But as Every notes, the unintended consequences could be a problem, "imagine you needed access to CNH for other purposes for a few days," concluding ominously that "in other EM crises we see that central banks usually win a round like this, but lose in the end."
The State Of The Nation: A Dictatorship Without Tears
Submitted by Tyler Durden on 01/11/2016 - 22:40
The state of our nation under Obama has become more bureaucratic, more debt-ridden, more violent, more militarized, more fascist, more lawless, more invasive, more corrupt, more untrustworthy, more mired in war, and more unresponsive to the wishes and needs of the electorate. Most of all, the government, already diabolical and manipulative to the nth degree, has mastered the art of "do what I say and not what I do" hypocrisy.
