IMF Chief Pours Cold Water On Optimistic Yellen, Says Growth "Will Be Disappointing"
Submitted by Tyler Durden on 12/30/2015 - 10:22
In a guest article for Handelsblatt, Christine Lagarde warns that 2016 is likely to be a disappointment as the Fed hike and China's transition to a consumer-driven economy continue to weigh on global growth prospects. Sorry Janet, it looks like the IMF doesn't agree with your justification for liftoff.
Pending Home Sales Plunge In November, Realtors Warn Fed Over Higher Rates
Submitted by Tyler Durden on 12/30/2015 - 10:10
Having seen New Home Sales disappoint and Existing Home Sales crash in November, Pending Home Sales plunged 0.9% MoM (against expectations of a 0.7% MoM rise). Having plateaued in October near 8-month lows, today's huge miss was driven by a plunge in sales in The West (-5.5%) and NorthEast (-3.0%). Home sales rose just 2.6% YoY - the weakest since October 2014. The excuse factory was busy with weather, home prices, and inventory trotted out but, perhaps most notably, Realtors warned that higher mortgage rates will temper sales growth in an explicit threat to Janet to "hold."
Junk Isn't Very Noble: Asia's Largest Commodity Trader Responds To Moody's Downgrade
Submitted by Tyler Durden on 12/30/2015 - 09:48
For now Noble refuses to throw in the towel, and overnight released the following statement on the Singapore Exchange where its massively beaten down stock trades.
Stocks Down, Bonds Down, Gold Down, Crude Down, Dollar Down
Submitted by Tyler Durden on 12/30/2015 - 09:25
Sell Mortimer, Sell!
Not "Buying" The Santa Rally: In Week When S&P Rose 2.8%, The Smart Money Sold (Again)
Submitted by Tyler Durden on 12/30/2015 - 09:09
"Last week, during which the S&P 500 rallied 2.8%, BofAML clients were net sellers of US stocks for the second week, in the amount of $0.7bn. (Globally, our colleagues who track EPFR flow data have noted flows out of the US but into Europe and Japan in recent weeks). Net sales were chiefly due to institutional clients last week, who have sold stocks for eight consecutive weeks. Buybacks by corporate clients decelerated vs. the prior week, and YTD are tracking over $40bn, below last year’s record $45bn." So the smart money was selling, companies were not buying back, and stocks rallied nearly 3%.
Martin Shkreli's KaloBios Files Chapter 11: Full Bankruptcy Filing
Submitted by Tyler Durden on 12/30/2015 - 08:51
Thus ends KaloBios' "turnaround in progress" - two months after it was dragged out of bankruptcy by Martin Shkreli in an attempt to crush the company's shorts and unleash a massive squeeze, Kalobios is again, well, bankrupt.
The Catastrophic Threat Of Bail-Ins
Submitted by Tyler Durden on 12/30/2015 - 08:48
Once upon a time, we had strong, vigorously enforced laws that made a bank the safest place to store paper assets. That is no longer. Now banks are where your wealth is most likely to be stolen – and by the bank itself. Thanks to the bail-in, the term “bank robbery” now has an entirely different meaning.
Oil Slumps As Saudis "Won't Change" Policy, Russia Rethinks 2016 Price Forecast
Submitted by Tyler Durden on 12/30/2015 - 08:19
“We will satisfy the demand of our customers. We no longer limit production. If there is demand, we will respond. We have the capacity to respond to demand," Saudi oil minister Ali al-Naimi told reporters on Wednesday, underscoring the kingdom's belligerent stance as "lower for longer" heads into 2016. Meanwhile, Russia's Finance Ministry may reconsider its forecast for $50/bbl crude, a move which could inflate Moscow's budget deficit.
Turkey Foils New Year's Eve ISIS Suicide Plot
Submitted by Tyler Durden on 12/30/2015 - 08:02
Even as Islamic State oil continues to flow from Syria and Iraq through Turkey, Ankara says it's cracking down on ISIS sleeper cells. In the latest example, Turkey has arrested two men the government says were planning a suicide attack on New Year's Eve in the country's capital.
Frontrunning: December 30
Submitted by Tyler Durden on 12/30/2015 - 07:55- Oil rebound fizzles, sending global shares lower (Reuters)
- Saudi Arabia Won’t Change Oil Production (WSJ)
- China suspends forex business for some foreign banks (Reuters)
- Republicans come up short in search for diverse voters in 2016 election (Reuters)
- Oil Prices Become a Problem for U.S. Steelmakers (BBG)
- Oil-Producing States Battered as Tax-Gushing Wells Are Shut Down (BBG)
Global Stocks, Futures Dragged Lower By Commodities As Oil Slumps Back Under $37
Submitted by Tyler Durden on 12/30/2015 - 07:02
With just two days left in 2015, the main driver of overnight global stocks and US equity futures remains the most familiar one of all of 2015 - crude oil, which, after its latest torrid bounce yesterday has resumed the familiar "yoyo" mode, and again stumbled dropping below $37 on yesterday's surprising API 2.9 million crude inventory build, as well several more long-term "forecasts" by OPEC members, with Kuwait now budgeting for $30 oil, while Venezuela's Maduro said the oil price fell to $28/bbl and is "headed downward." As a result U.S. futures declined and European stocks fell, extending their worst December drop since 2002 in thin volume on the last full trading day of the year.
The Big Short's Michael Burry Warns "The Little Guy Will Pay" For The Next Crisis
Submitted by Tyler Durden on 12/29/2015 - 23:45
"We are right back at it: trying to stimulate growth through easy money. It hasn’t worked, but it’s the only tool the Fed’s got. The biggest hope I had was that we would enter a new era of personal responsibility. Instead, we doubled down on blaming others, and this is long-term tragic..."
China Suspends Foreign Banks' FX Trading As Offshore Yuan Spread Signals Massive Outflows
Submitted by Tyler Durden on 12/29/2015 - 22:50
For the first time since the August collapse, Offshore Yuan is trading over 1000 pips weaker (relative to the USDollar) than onshore Yuan, signalling outflows are once again escalating. Following the chaos in HIBOR money-markets, Offshore Yuan has crashed to 6.5970 (below August spike lows) to the weakest since Dec 2010. On the heels of this recent divergence between on- and off-shore Yuan, China has suspended some foreign banks from FX trading, we suppose to try and stem the capital outflows.
In Latest NSA Spying Scandal, World Learns Obama Lied Again; Congress Furious it Was Spied On
Submitted by Tyler Durden on 12/29/2015 - 22:45
"The bottom line is that people around the world, regardless of their nationality, should know that the United States is not spying on ordinary people who don’t threaten our national security, and that we take their privacy concerns into account in our policies and procedures. This applies to foreign leaders as well." - Barack Obama, January 17, 2014
Sweden's First Month Of 'Islamic Multiculturalism' - Rapes, Acquittals, & Severed Heads
Submitted by Tyler Durden on 12/29/2015 - 22:45
Some 30 Muslim men thought that the woman was in violation of Islamic sharia law, by being in Sweden unaccompanied by a man. They thought that she should therefore be raped and her teenage son killed. At first, the woman did not want to call the police. "She felt sorry for him [the rapist] ... and was afraid he would be deported back to Iraq." Two Swedish citizens were convicted by a Gothenburg Court of joining an Islamist terror group in Syria and murdering two captives. Video evidence showed one victim being beheaded. One week after Sweden raised its terror alert level to the highest ever, the police raised another alarm -- saying their weapons are simply not good enough to prevent a potential terror attack.
