Archive - Sep 14, 2015

TURNBULL WINS PARTY BALLOT TO BECOME AUSTRALIAN PRIME MINISTER

"The eagerly awaited Fed meeting is upon us. Regardless of the actual decision, we suggest that the market impact could end up being positive. If the Fed does raise rates, but at the same time reassures the market that this will be a gradual process, it would be received well. If, on the other hand, the Fed delays the move, this could be interpreted as a signal that the Fed is aware of and is responding to recent market concerns." - JPM

• China stocks slide as data raises fresh economy worries (Reuters)
• Was Tom Hayes Running the Biggest Financial Conspiracy in History? (BBG)
• The Fed’s Policy Mechanics Retool for a Rise in Interest Rates (NYT)
• Germany re-imposes border controls to slow migrant arrivals (Reuters)
• Thousands flee California wildfire as homes go up in flames (Reuters)
• Bavarian minister says German border controls could last for weeks (Reuters)
• China sells record FX in August, shows pressure after devaluation (Reuters)

Silver is poised to see massive buying. Brave contrarians willing to buy silver and its miners low before this becomes widely apparent stand to earn fortunes. 

News That Matters

While any moves in the US stock market ahead of Thursday are largely irrelevant, as only Yellen's statement in 4 days will unleash epic algo buying or short covering (yes, according to JPM the Fed statement is bullish no matter what), it is what happened in China that is concerning, because while we had expected Chinese stocks to go nowhere in particular now that index future trading volumes have plunged by 99% or perhaps rise on hopes of even more easing after the latest terrible economic data, the Shanghai Composite dropped 2.7%, but it was the retail darling Shenzhen Composite which tumbled 6.7% - its worst selloff since August 25, while China's Nasdaq, the ChiNext crashed -7.5%.

· Thursday brings the much anticipated FOMC rate decision, with analysts split in their forecasts as to whether the central bank will hike rates after recent volatility in global markets

· A number of other events take place this week including rate decisions from the BoJ and SNB as well as releases of the German ZEW survey and the latest UK inflation & employment data