Archive - Oct 30, 2015 - Story

• World stocks on course for best month in four years (Reuters)
• Global Stocks Up Amid Stimulus Hopes (WSJ)
• BOJ Refrains From Adding Stimulus Even as Inflation, Growth Wane (BBG)
• U.S. Avoids Debt Default as Congress Passes Fiscal Plan (BBG)
• China naval chief says minor incident could spark war in South China Sea (Reuters)
• Exclusive Club: No High-Frequency Traders Allowed at Luminex (WSJ)

As Beijing fights to keep "Mr. Chen" and his "yellow loafers," tea, and Snickers bars from smuggling billions out of the country on behalf of Chinese citizens fearing an economic implosion and a double-digit deval, capital account convertibility may counterintuitively be one of the PBoC's most effective weapons as loosening capital controls will both calm the panicked masses and support the IMF SDR bit. Still, as Citi's David Lubin puts it, "China should expect to see gross capital outflows for the foreseeable future [and] it's not even clear that SDR inclusion will lead to a net capital inflow to China." 

Back in September we explained why, contrary to both conventional wisdom and the BOJ's endless protests to the contrary, neither the BOJ nor the ECB have any interest in boosting QE at this - or any other point - simply because with every incremental bond they buy, the time when the two central banks run out of monetizable debt comes closer. Since then the ECB has jawboned that it may boost QE (but it has not done so), and overnight as reported previously, the BOJ likewise did not expand QE despite many, including Goldman Sachs, expecting it would do just that.

Just 5 days after holding a call to "confirms appropriateness of accounting" vis-a-vis Philidor, Valeant has just confirmed all the negative press when moments ago it formally announced it was terminating its relationship with Philidor.  "The newest allegations about activities at Philidor raise additional questions about the company's business practices," said J. Michael Pearson, Valeant's chairman and chief executive officer. "We have lost confidence in Philidor's ability to continue to operate in a manner that is acceptable to Valeant and the patients and doctors we serve."