The Asian Axis Of Junk Debt Evil
Submitted by Tyler Durden on 01/14/2016 - 12:00
The (anti)correlations between Chinese FX and US junk debt raises an intriguing question that is somewhat chicken and egg. While Chinese financial conditions were terrible to the point of near disaster, junk bonds were, on the whole, almost inconceivably placid at the same time. But now that Chinese factors regarding the likely Asian “dollar” state have gone on and gone so far, it appears as if the US junk bubble can no longer idly withstand it. Again, all indications here are for renewed selling and participation in the “run.” Does that mean the Asian “dollar” is driving the junk bubble?
European Gun Sales Soar On Refugee Fears As "Racist Vikings" Prowl Finland's Streets
Submitted by Tyler Durden on 01/14/2016 - 11:49
JPMorgan Just Did Something It Has Not Done In 6 Years
Submitted by Tyler Durden on 01/14/2016 - 10:52
When skimming through the company's loan loss reserve disclosure, we found that in Q4 JPM did something it hasn't done in 6 years: for the first time in 22 quarters, or since March 2010, JPM actually increased its loan loss provisions by $89 million, instead of reducing these.
Stock Buying-Panic Ensues As Fed's Bullard Says "Oil Has To Bottom Sometime"
Submitted by Tyler Durden on 01/14/2016 - 10:36
Seriously?
Cheap Oil Hits Housing In North Dakota, Texas, & Others
Submitted by Tyler Durden on 01/14/2016 - 10:32
Most Americans will still welcome low prices at the pump. But in the oil boom towns of yesterday, the slowdown is very much being felt - "The jobs are leaving, and if an area gets depopulated, they can't take the houses with them and that's dangerous for the housing market."
Subprime Auto Canary: Deutsche Bank Probes Employees For "Exaggerating ABS Demand"
Submitted by Tyler Durden on 01/14/2016 - 10:10
“Deutsche Bank AG officials are reviewing whether some employees exaggerated demand as they marketed new securities backed by risky auto loans, potentially suppressing yields for investors,” Bloomberg reports. "The bank has looked at communications between the employees and investors to determine whether such marketing practices were normal salesmanship or if they crossed a line, said the person, who asked not to be named because the matter is private.”
FANGs, Dow Enter Correction, Tesla Tumbles
Submitted by Tyler Durden on 01/14/2016 - 09:53
But they said "never sell" - FANTAsy stocks are in trouble with FANGs down 11.5% year-to-date and Tesla plunging over 17% since the holidays... the last pillar of US equity market strength has officially broken...
More Strategists Throw In The Towel: "Things Will Only Get Worse"
Submitted by Tyler Durden on 01/14/2016 - 09:28
Having been abandoned by equity analysts, perhaps investors could find some solace in the Treasury analyst community. Alas no: as Bloomberg notes this morning, citing independent Treasury strategist Marty Mitchell, "our concern is that things will only get worse (effects of commodity super-cycle, bankruptcies, debt defaults, hedge fund redemption/failures, global economic slowdown, equity weakness, global debt deleveraging, etc, etc) before they get better."
Maybe Valuations Do Matter
Submitted by Tyler Durden on 01/14/2016 - 09:09
The raging bulls were so sure of themselves a few months ago. Valuation measures were for suckers. This time was different. It’s the new Obama economy. Profits are so old school. We suddenly sense a little panic amongst the big swinging dick Wall Street traders. Not too much scorn and laughter being directed towards John Hussman lately.
China Exports Most Deflation To The US Since December 2009
Submitted by Tyler Durden on 01/14/2016 - 08:51
While the trend of US trade partners exporting deflation either across the Atlantic or Pacific continues, one name continues to stand out. China.
Continuing Jobless Claims Surge Most Since 2009 As Initial Claims Hit 6-Month Highs
Submitted by Tyler Durden on 01/14/2016 - 08:37
Something has changed! After years of consistent down-trend in initial jobless claims, the regime has change since mid-October to an uptrend. This past week saw claims rise 7k to 284k leaving the less-noisy 4-week average at 279k - its highest since early July 2015. Continuing claims also rose to 5 months highs (up over 4% in the last 3 months - the most since June 2009).What many appears to be unable to grasp is that we have seen the best and history tells us what comes next...
Gold & Silver Slammed After ECB/Basel Committee Comments
Submitted by Tyler Durden on 01/14/2016 - 08:23
A combination of ECB minutes showing some members looking for more stimulus and Basel Committee publishing final risk rules which will mean stiffer capital demands from banks has sparked weakness in EUR (sending the USD higher) and sparking and instant slam-down in gold and silver.
'Slumlord' Buffett's "Disturbing Business Model" To Be Probed By Feds
Submitted by Tyler Durden on 01/14/2016 - 08:10
At Berkshire’s annual meeting last May, Buffett said he made “no apologies whatsoever” about Clayton’s “exemplary” lending, in response to a question about an earlier Seattle Times story saying that Clayton trapped borrowers into unaffordable loans on depreciating homes. Well it seems the billionaire will need to send some more donations in as yesterday, four members of Congress sent a joint letter demanding an investigation into predatory practices at Warren Buffett’s mobile home unit Clayton Homes.
Frontrunning: January 14
Submitted by Tyler Durden on 01/14/2016 - 07:55- Islamic State launches militant assault on Indonesia's capital (Reuters)
- Three winners emerge in $1.6 billion Powerball jackpot (Reuters)
- European Stocks Tumble, Credit Markets Weaken on Growth Concern (BBG)
- Stocks and commodity currencies floored by new oil plunge (Reuters)
- China Bear Market Looms as PBOC Fails to Stop Flight to Safety (BBG)
- Anxious phone calls, tense moments before Iran's Supreme Leader okayed U.S. sailors' release (Reuters)
