Archive - Oct 21, 2015
More QE Will Not Save Stocks This Time
Submitted by Phoenix Capital Research on 10/21/2015 13:27 -0500The hype and hope of more QE misses the point...The bull market of the last six years is likely over.
Citi Expects Imminent Easing From Central Banks Of China, Australia, Japan And Europe
Submitted by Tyler Durden on 10/21/2015 13:04 -0500"With disinflationary global conditions and sluggish pay growth, most advanced economies are likely to remain locked into low-flation, and we expect headline and core inflation rates will continue to run below target and below central bank forecasts next year. Against this backdrop, we expect further near-term easing from the PBOC, RBA, BOJ and ECB and forecast only very gradual and delayed tightening by the Fed (starting around March 2016) and BoE (starting around end- 2016)."
VRX Halted Down 40%, Issues Statement, Says "Citron's Report Is Erroneous"
Submitted by Tyler Durden on 10/21/2015 12:35 -0500Valeant Pharma is halted for the 4th time today, this time for news pending, as the stock has lost 40% of its value since the open...
Stocks Slammed Into Red For Week As Biotechs Break Key Support
Submitted by Tyler Durden on 10/21/2015 12:28 -0500The "moar easing" hope-strewn panic-buying of the last few days is rapidly turning into regret as US equity markets tumble back into the red for the week. The biggest driver today appears to be pressure on the Healthcare sector driven by Biotechs collapse and break below a key uptrend... As one veteran trader noted... The plunge in stocks has a very 'liquidation' feel to it...
O Wage Inflation, Where Art Thou?
Submitted by Tyler Durden on 10/21/2015 11:49 -0500Currently, wage growth is the middle of its 5 year range - the last reading was just 1.63%. Positive wage growth is a good thing. Still, it is not accelerating the way it would if we were at full employment. The US labor markets are not weak but they are not as strong as some of the headline data suggests they are. If we look beneath the surface then it is clear that there are multiple explanations for the lack of growth in wage inflation...
WalMart Lied: Must Remove "Made In USA" Logos From Products Made In China, Thailand
Submitted by Tyler Durden on 10/21/2015 11:31 -0500"As examples of products that were not made entirely in the US — contrary to their billing — it highlighted a sandwich bag that was produced in Thailand and a toy car that was assembled in the US with some imported parts, including a Chinese steering wheel."
Joe Biden Announces He Will Not Run For President, "Window Has Closed" - Live Feed
Submitted by Tyler Durden on 10/21/2015 11:11 -0500*BIDEN SAYS HE WON'T SEEK DEMOCRATIC PRESIDENTIAL NOMINATION
*BIDEN: ATTEMPT TO UNDO OBAMA LEGACY WOULD BE `TRAGIC MISTAKE'
Embattled Theranos Founder Elizabeth Holmes Makes First Public Appearance Since Crushing WSJ Report
Submitted by Tyler Durden on 10/21/2015 10:57 -0500One day Palo Alto-based medical-laboratory-services company Theranos was worth $9 billion (with its 31 year old CEo Elizabeth Holmes owning about half of this), a day later - following a crushing review of the company's business practices - not only is the company (and Holmes) worth far less, but the venture investors who gave the company hundreds of millions in cash have quickly become the "due diligence-free" laughing stocks of Silicone Valley.
We Didn't "Financially Engineer" Our Way Out Of The Great Depression, We Won A World War
Submitted by Tyler Durden on 10/21/2015 10:51 -0500The arms race of devaluation is not free and has come at the cost of massive global debt expansion. The world has simply shifted private debt to the public balance sheet. The next major global crash will likely be driven by unhealthy sovereign credit rather than corporate credit. The next Lehman moment will be the financial collapse of a major developed country instead of a bank.
Carl Icahn Launches Super PAC To Promote "No Brainer" Tax Reform, Combat Tax Inversions
Submitted by Tyler Durden on 10/21/2015 10:11 -0500We expect the ultimate outcome of Carl Icahn's Super PAC will be to make it easier for activists to pressure management teams into buying back even more of their shares - perhaps by granting them a tax amnesty on repatriating some of the $2 trillion in offshore cash if used for shareholder friendly activity - but then again we tend to be cynical.
New Oil Order: Russia Again Tops Saudi Arabia As China's Largest Crude Supplier
Submitted by Tyler Durden on 10/21/2015 10:10 -0500As a desperate Saudi Arabia taps the bond market to mitigate the SAMA drawdown while simultaneously attempting to muscle in on Moscow's Eastern European market share, Russian crude sales to China soared 42% in September. The result: for the second time this year, Russia has overtaken Saudi Arabia as the number one crude supplier to Beijing.
Voices From The Real World - The 8 Biggest Questions On Investors' Minds
Submitted by Tyler Durden on 10/21/2015 09:54 -0500"Real investors" are simultaneously nervous and hopeful, confident yet resigned. Yes, their basic belief in equities as an investment class is sound and supported by the last five years of good performance. At the same time, they understand the nuances of the bear case extremely well and are prepared for a long slog of lower returns.
Crude Slammed To $44 Handle After Inventory Surges Most In 7 Months
Submitted by Tyler Durden on 10/21/2015 09:36 -0500The DOE just reported an 8.028mm barrel inventory build in crude stocks, even larger than the API reported data. This is the highest weekly build since April 3rd and is dramatically higher than expected. Crude prices are pressing on lower, with the new Dec contract now trading with a $44 handle. To make matters worse, US crude production was unchanged.
