Tiffany Stock Tumbles After Revenue And Profit Drops, EPS Slide 16%; Forecast Cut; Strong Dollar BlamedSubmitted by Tyler Durden on 08/27/2015 - 07:58
Even the rich are starting to feel the pinch, at least according to the favorite jeweler of the upwardly mobile middle-to-upper class (especially in China and Japan), Tiffany & Co., which earlier today reported Q2 EPS of $0.86, below the $0.91 expected, with GAAP EPS of $0.81 some 16% below the $0.96 record last year. Like other retailers, TIF was quick to blame the surging dollar (which isn't going anywhere if the Fed indeed proceeds with a rate hike), blaming it for lowering the value of the Tiffany’s sales overseas, where the company gets most of its revenue. Currency fluctuations also have kept tourists from making purchases at U.S. stores, dealing a second blow to revenue.
- Virginia TV journalists killed by suspect with 'powder keg' of anger (Reuters)
- Policeman shot to death and three women stabbed, one fatally, in Louisiana (Reuters)
- China Intervened Today to Shore Up Stocks Ahead of Military Parade (Reuters)
- Margin Calls Bite Investors, Banks (WSJ)
- "Computer glitch" is preventing dozens of mutual funds, ETFs from promptly pricing their securities (WSJ)
- Oil prices rise more than 4 percent as equities rally (Reuters)
- Oil Industry Needs Half a Trillion Dollars to Endure Price Slump (BBG)
Aggressive Chinese Intervention Prevents Another Rout, Sends Stocks Soaring 5% In Last Trading Hour; US Futures JumpSubmitted by Tyler Durden on 08/27/2015 - 06:48
After a 5 day tumbling streak, which saw Chinese stock plunge well over 20% and 17% in just the first three days of this week, overnight the Shanghai Composite was hanging by a thread (and threat) until the last hour of trading. In fact, this is what the SHCOMP looked like until the very end: Up 2.6%, up 1.2%, up 2.8%, up 0.6%, up 2%... down 0.2%. And then the cavalry came in: "Heavyweight stocks like banks and insurance companies helped pull up the index, and it’s possibly China Securities Finance entering the market again to shore up stocks," Central China Sec. strategist Zhang Gang told Bloomberg by phone. Net result: the Composite, having been red just shortly before the close, soared higher by 156 points or 5.4%, showing the US stock market just how it's down.
On Tuesday evening, we quantified the staggering cost of China’s near daily open FX operations in support of the yuan. In short, the new currency regime has led the PBoC to dump more US paper in the past two weeks than it had YTD. In conclusion, we asked if anyone else was set to join China in liquidating US Treasurys at a never before seen pace. Here's the answer and what it means for the US economy and monetary policy going forward.
Just as the Roman Empire ended in the destruction of the Roman people, the American Empire will end in the destruction of the American people. Judging from histories, Roman citizens were superior to American citizens; yet, Rome failed. Americans shouldn’t expect any other outcome. The price to be paid for insouciance, self-satisfaction, and complicity is high.
Virgina Killer Sent "Suicide Note" To ABC, Says Massacre Is "Race War" In Reaction To Charleston ShootingSubmitted by Tyler Durden on 08/26/2015 - 21:35
“Why did I do it? I put down a deposit for a gun on 6/19/15. The Church shooting in Charleston happened on 6/17/15…”
"Yes, it will sound like I am angry...I am. And I have every right to be. But when I leave this Earth, the only emotion I want to feel is peace....”
“The church shooting was the tipping point…but my anger has been building steadily...I’ve been a human powder keg for a while…just waiting to go BOOM!!!!”.
Japan's Kuroda Denies Existence Of Currency War As China Devalues Yuan To Fresh 4 Year Lows, Injects CNY150bn LiquiditySubmitted by Tyler Durden on 08/26/2015 - 21:20
The night began much like any other morning in Asia - with pure comedy gold from Japanese leadership with BOJ's Kuroda saying he is "not concerned about currency wars, there is no currency war," adding that he has "no plans for further easing." That coincided with a drift lower in Japanese stocks from the US close - but mots of Asian stock markets were green buoyed by America's victory against malicious sellers for the first time in a week. Meanwhile, in China, margin debt drops to a 7-month lows (but is still up 133% YoY). But as rumor-mongers face death squads and any broker caught not buying with both hands and feet faces prison, it is no surprise that Chinese stocks are higher in the pre-open (A50 +5%, CSI +2.7%) but large corporate bond issues are being canceled willy nilly even as China devalues Yuan to fresh 4-year lows (6.4085) and adds CNY150bn liquidity.
North Dakota Becomes First State To Legalize Drones Weaponized With Tasers, Tear Gas, Rubber Bullets & Sound CannonsSubmitted by Tyler Durden on 08/26/2015 - 21:10
You could see the writing on the walls years ago. In an increasingly authoritarian, lawless, surveillance state like America, it was always inevitable that drones would be weaponized. In North Dakota, this is now a reality.
China has been the epicenter of recent market concerns as global markets focus on China's growth trajectory. Equity markets have been hit hard but the question is - how much further is there to go before it's over? Goldman Sachs looks at what the options market telling us? With HSCEI implied volatility over 40, a significant term structure inversion, and high skew, Goldman warns options all signal caution ahead.
Dow Follows Biggest Crash Since Lehman With Third Biggest One Day Surge Ever As China Dumps TreasurysSubmitted by Tyler Durden on 08/26/2015 - 20:05
"Much like buying other pricey items such as cars, houses or jewelry, you’re now able to finance goods (borrow money) from a credit company as long as you agree to pay it all back, with interest. Partnering with AFFIRM, Flight Club kicks such as the ”Fragment” Air Jordan 1 is at $123.01 USD a month, while the Nike Air MAG is at $702.90 USD a month."
Too big to control, too volatile to be predictable, and too full of contradictions to achieve stability, China is a society that is on the edge of coming completely unglued. And so, appealing to the typical American conceit that nothing that ever happens to us is our own fault, scapegoating is a reflection of widespread economic ignorance. For the reality is that the policies of our own rulers limn those of the Chinese: pump-priming the currency, flooding the US economy with money, and creating massive bubbles is something they learned from us. And those policies are having the same effect here as they are having in China.
Why does one need a handheld flamethrower, you ask? Here are some "ideas" from the Ion Productions' official XM42 website: 1) start your bonfire from across the yard, 2) kill the weeds between your cracks in style, 3) clearing snow/ice, 4) controlled burns/ground-clearing of foliage, 5) insect control.
In the current deluge of wannabe leaders clamoring for attention and trying to convince us that they are the boss who should be applying rules to us, it strikes me that all of them are looking backward and none are looking forward. So, since none of this crowd is going to venture anywhere outside of their hermetically sealed status quo, we’d like to offer an example of something a real leader might say...