Archive - Aug 10, 2015

• Grim China data keeps stimulus hopes alive (Reuters)
• Berkshire Hathaway to Buy Precision Castparts for About $37 Billion (BBG)
• Greece, lenders in final push to seal new bailout (Reuters)
• Quantitative Easing With Chinese Characteristics Takes Shape (BBG)
• Greece nears €86bn accord with creditors (FT)
• Oil Futures Signal Weak Prices Could Last Years (WSJ)
• Drop in long-term investment hinders eurozone recovery (FT)
• Two shot in Ferguson amid standoff between police, protesters (Reuters)

Cry havoc and let slip the algos of war... WTI Crude prices are flip-flopping faster than Hillary Clinton at a fundraising event... on no news whatsoever...

Following last week's bad news for the economy (terrible ADP private payrolls, confirmed by a miss in the NFP) which also resulted in bad news for the market which suffered its worst week in years, many were focused on how the market would react to the latest battery of terrible economic news out of China which as we observed over the weekend reported abysmal trade data, and the worst plunge in Chinese factory prices in 6 years. We now know: the Shanghai Composite soared by 5%, rising to 3,928 and approaching the key 4000 level because the ongoing economic collapse led Pavlov's dog to believe that much more easing is coming from the country which as we showed last night has literally thrown the kitchen sink at stabilizing the plunge in stocks.

Just as the Ferguson night turned violent, again, and at least two people were struck by gunfire during the latest riot to "commemorate" the death of Michael Brown, reports of violence came from another part in the world, Turkey where moments ago CNN Turk reported that two attackers, a man and a woman, opened fire on the U.S. consulate building in Turkey's biggest city, Istanbul, on Monday and fled when police shot back.

· US data is set to remain in focus as participants continue to try to gauge the possibility of a September rate lift off

· Key data out of the Eurozone this week includes Q2 GDP as well as German ZEW

It began in Dec 2008. To understand it, it is necessary to understand two principles. The first is that gold is money and the dollar is credit (which is currently worth 28.4mg gold). For the second, we emphasize it's not just price, but separate bid and ask prices.