Mid-East Melee: Sectarian Showdown Looms As Bahrain Cuts Ties With Iran, UAE Recalls Ambassador
Submitted by Tyler Durden on 01/04/2016 - 08:16
What began with the execution of a prominent Shiite cleric in Saudi Arabia has devolved into a full blown sectarian showdown with Bahrain cutting diplomatic ties with Iran, the UAE recalling its ambassador, Sudan expelling the Iranian mission, and Iraqi Shiites attacking Sunni mosques. In short: tinder box meet spark.
JPMorgan Crushes The BTFDers: "Sell Any Rallies"
Submitted by Tyler Durden on 01/04/2016 - 07:56
It didn't take long for the momentum-chasing fundamental strategists to readjust their immediate stock price targets on the heels of the i) failure of the Santa Rally and ii) the worst start to the year in Chinese stock market history. Case in point, moments ago JPM's equity strategy team released its first note for the year in which it says that "we take the view that equities are unlikely to perform well on a 12-24 month horizon" adding that "the regime of buying the dips might be over and selling any rallies might be the new one."
Frontrunning: January 4
Submitted by Tyler Durden on 01/04/2016 - 07:37- China stocks tank, triggers circuit breaker (Reuters)
- Stocks Slump Across Europe and Asia Following Shanghai's 7% Crash (BBG)
- China Halts Stock Trading After 7% Rout Triggers Circuit Breaker (BBG)
- Iran says Riyadh thrives on tension after relations cut (Reuters)
- Saudis and Bahrain Face Off With Iran in Worst Clash Since 1980s (BBG)
- Syrian rebel group backs Saudi move to cut ties with Iran (Reuters)
Happy New Year: Global Stocks Crash After China Is Halted Limit Down In Worst Start To Year In History
Submitted by Tyler Durden on 01/04/2016 - 06:46
It all started off relatively well: oil and US equity futures were buoyant on hopes Iran and Saudi Arabia would break out in a bloody conflict any minute boosting the net worth of shareholders of the military industrial complex, and then, out of nowhere, like a depressed China in a bull shop, the "mainland" crashed the party and it all well south very, very quickly...
China Halts Stock Trading For Day After Entire Market Crashes
Submitted by Tyler Durden on 01/04/2016 - 01:11
Following the initial halt in CSI-300 Futures at the 5% limit down level, the afternoon session opened to more carnage and amid the worst 'first day of the year' in at least 15 years, Chinese stocks collapsed further to a 7% crash. At 1334 local time, stock trading was halted for the rest of the day across all exchanges (at least two hours early). Dow futures are now down over 150 points from NYE close, Gold and Treasuries are bid, and offshore Yuan has plunged most since the August devaluation.
Dow Futures Dump 300 Points From New Year's Eve Highs As China Crashes
Submitted by Tyler Durden on 01/03/2016 - 23:37
With China closing the morning session limit down (and Yuan collapsing), US equity futures are extending their losses (even though crude futures are holding some of their gains). The initial knee-jerk jump as crude rose on Saudi tensions has been entirely erased and Dow Futures are now down 300 points from New Year's Eve highs... Happy New Year.
It's On: Saudi Arabia Severs Diplomatic Ties With Iran, "Does Not Care" If It Has Angered White House
Submitted by Tyler Durden on 01/03/2016 - 23:33
Earlier today, as Iranian police struggled to disperse protesters gathered outside the Saudi consulate in Mashhad, we said that Saudi Arabia and Iran may be on the verge of a historic diplomatic crisis after demonstrators burned the Saudi embassy in Tehran on Saturday evening. Sure enough, just hours later, Saudi Foreign Minister Adel Al-Ahmad Al-Jubeir announced that Riyadh has cut diplomatic ties with Tehran
Puerto Rico Is Greece, & These 5 States Are Next To Go
Submitted by Tyler Durden on 01/03/2016 - 22:10
As Wilbur Ross so eloquently noted, for Puerto Rico "it's the end of the beginning... and the beginning of the end," as he explained "Puerto Rico is the US version of Greece." However, as JPMorgan explains, for some states the pain is really just beginning as Municipal bond risk will only become more important over time, as assets of some severely underfunded plans are gradually depleted.
Oregon Standoff: A Terrible Plan That We Might Be Stuck With
Submitted by Tyler Durden on 01/03/2016 - 22:00
The Oregon standoff potentially forces the hand of the Liberty Movement, not the hand of corrupt government - the exact reverse of what should be happening. Ammon Bundy and companions are not the tip of the spear. Not even close. What some fear is that they are cannon fodder beckoning a nationwide government crackdown to which others will then be forced to personally respond to with equal measure. And all of this on the worst possible terms and at a very inconvenient time (executive actions on gun control mere weeks from now).
2016 Off To A Miserable Start: Asian Stocks Drop; Futures Slide After China PMI Tumbles On Dire Commentary
Submitted by Tyler Durden on 01/03/2016 - 21:31
Earlier in the session, after the surge in oil prices on fears of a spike in belligerence between Saudi Arabia and Iran, bulls were hopeful that after a poor close to 2015, at least the first trading day of 2016 would set a positive mood: after all, if there is one thing war is good for, it is to lift stock markets. And it did... for about 3 hours. Then moments ago, Caixin Media and Markit Economics released the latest December PMI, which was, in a word, a total disaster, one which promptly sent US equity futures sliding, and the Shanghai Composite tumbling some 4%... and CSI-300 Limit down.
Trump Vs Hillary: The ISIS Perspective
Submitted by Tyler Durden on 01/03/2016 - 21:30
Presented with no comment...
Nassim "Black Swan" Taleb On The Real Financial Risks Of 2016
Submitted by Tyler Durden on 01/03/2016 - 21:00
Though "another Lehman Brothers" isn't likely to happen with banks, it is very likely to happen with commodity firms and countries that depend directly or indirectly on commodity prices.
The Movies Are Becoming Just Like The Markets: A Handful Of Blockbusters And Tons Of Losers
Submitted by Tyler Durden on 01/03/2016 - 20:41
As go the markets, so go the movies. According to the WSJ, Hollywood just had its biggest-ever year at the box office in 2015, collecting $11.1 billion in ticket sales, up 7% from the previous year and surpassing the record of $10.92 billion set in 2013. All of the growth, however, occurred at the top of the heap, or in other words, 2015 was a record year "thanks to a handful of blockbusters that left a whole lot of duds in the dust." In other words, just like in the stock market, a record high portion of Hollywood "gains", or rather box office ticket sales, came from just five movies.
Spot The Difference: Salafist Edition
Submitted by Tyler Durden on 01/03/2016 - 20:30
"Black Daesh, white Daesh. The former slits throats, kills, stones, cuts off hands, destroys humanity’s common heritage and despises archaeology, women and non-Muslims. The latter is better dressed and neater but does the same things."
