As Bloomberg reports, "China has cut its holdings of U.S. Treasuries this month to raise dollars needed to support the yuan in the wake of a shock devaluation two weeks ago, according to people familiar with the matter. Channels for such transactions include China selling directly, as well as through agents in Belgium and Switzerland, said one of the people, who declined to be identified as the information isn’t public. China has communicated with U.S. authorities about the sales."
Just over half a trillion dollars: that's how much cash US shale producers and other oil industry companies will need to repay in maturing debt over the next 5 years.
Yuan Strengthens Most Since March, China Unveils New Bailout Source After Rescue Fund Runs Out Of Fire-PowerSubmitted by Tyler Durden on 08/27/2015 - 21:20
Update: China readies new bailout mechanism - pooling CNY2 Trillion of Pension funds for "investment"
A busy night in AsiaPac before China even opens. Vietnam had a failed bond auction, Japanese data was mixed (retail sales good, household spending bad, CPI just right), Moody's downgrades China growth (surprise!), China re-blames US for global market rout, and then the big one hits - China's bailout fund needs more money (applies for more loans from banks) - in other words - The PBOC just got a margin call. China margin debt balance fell for 8th straight day (although the short-selling balance picked up to 1-week highs). China unveiled some economic reforms - lifting tax exemption and foreign real estate investment rules. PBOC fixesds the Yuan 0.15% stronger - most since March, but even with last night's epic intervention, SHCOMP looks set for its worst week since Lehman.
Managing markets is hard, especially when you’re doing it on a daily basis and sometimes you have to get creative, which is why we weren’t entirely surprised on Thursday when trader chatter indicated that at least one big Chinese bank (on behalf of the PBoC of course) was stomping around in the onshore swaps market...
Just two weeks ago we explained in a few simple charts why US auotmakers have a major problem looming over them. Today, as Reuters reports, that "if we build them, they will come" strategy has imploded as China's largest automaker warns "the domestic market situation in the second half of the year remains grim." With Q2 US GDP driven by a massive inventory surge, and the majority of that from autos, any hope for a sales rebirth to burn through that over-burden is a long-lost dream now as SAIC sees little to no growth over 2014.
"Despite a slight tightening in the maize carryover, global grain stocks are forecast at 447m t, a 29-year peak."
It's Not A Devaluation If The Ministry Of Truth Says So: China's "Style Council" Takes On Currency TradingSubmitted by Tyler Durden on 08/27/2015 - 20:15
... comes from Dan Loeb of Third Point, who as Gawker points out was a member of the hacked cheating website: due diligence.
It’s all emotional bullshit because what one hardly ever reads about from these Trumpeteer Marionettes is an actual discussion about Trump on the issues. It’s more important to squeeze out yet another orgasmic fountain of joy because he threw out some Univision reporter; “Oh, look! Isn’t zee Donald just Wunderbar!!” Screw that. So, let’s look at what The Donald believes... by his own words.
During Monday's flash crashing mayhem, the fragility of the ETF pricing system was exposed for all to see. While common sense dictates that the extreme market moves, trading halts, and tripped circuit breakers may have had quite a lot to do with the epic divergences between NAV and unit pricing, the real culprit was a "computer glitch" caused by a botched "systems change" last Saturday. The fact that the trouble calculating NAVs across nearly 800 mutual funds happened on the very same day as the flash crash is strictly coincidence.
The Summer of 1929 was unusually hot, with the stock market going up and down like a roller coaster, making investors and pundits almost dizzy. That is, until the great push up to the very height of the market in early September. It was the laissez-faire abuses of the 1920’s, the reign of supply side economics, the institutionalized political corruption of easy money, an oversized, overly influential and powerful financial/industrial sector that set the stage for the terrible Depression of the 1930’s. It also gave rise to the many reforms introduced by the FDR administration. Most of which have been steadily overturned, one by one, by the big money interests who care for nothing but themselves, and would do it again, and again, if allowed to do so.
In The Matrix in which Americans live, nothing is ever their fault. Nowhere in the Western media other than a few alternative media websites is there an ounce of integrity. The Western media is a Ministry of Truth that operates full-time in support of the artificial existence that Westerners live inside The Matrix where Westerners exist without thought. Considering their inaptitude and inaction, Western peoples might as well not exist. More is going to collapse on the brainwashed Western fools than mere stock values.