• GoldCore
    01/31/2015 - 05:00
    We are witnesses to an epic failure of planning, statecraft and social justice. Regardless of where your politics be, these elements are critical for a modern globally connected economy to function....

Archive

January 29th

Tyler Durden's picture

Gold & Silver Extend Losses - Biggest Drop Since 2013





Because nothing says dump gold and silver like an aggressively escalating currency war...

 

Tyler Durden's picture

This Is Why The ECB's QE Will Work, According To The ECB





Earlier, we laid out a very reasonable explanation by none other than Europe's largest insurer AXA why the ECB's QE will fail. The ECB did not like ththis, so it decided to reply. This is how the ECB just "crushed" AXA's logic.

COEURE SAYS QE WILL WORK BECAUSE IT IS BIG

And scene.

 

Tyler Durden's picture

5 Year Auction Yield Tumbles To Lowest Since May 2013





As we previously noted, yesterday's 2 Year auction was an absolute blockbuster and accurately guessed the general direction of the bond market following yesterday's FOMC announcement. Moments ago, the US Treasury sold $35 billion in 5 Year paper, the first of two Note auctions, with the 7 Year due at 1pm today, and like yesterday it too was a very strong auction, with the High Yield tumbling from 1.739% last month, when most were assuming a rate hike is imminent to just 1.288%, stopping through the 1.295% When Issued, and suggesting that the relentless collateral shortage of the past 2 years simply refuses to go away. This was also the lowest closing yield of a 5 Year auction since May 2013.

 

Bruno de Landevoisin's picture

Greece should Ice the Troika!





Threaten to go all Icelandic on the Troika's Medieval ass, or go home, and certainly don't bring a knife to a gunfight!

 

Tyler Durden's picture

Marissa Mayer's (Value) Added: Yahoo Is Now Worth A Negative $1 Billion





Yahoo! shares are down meaningfully during the last two trading days due to the decline in BABA shares, even though Yahoo! announced this week the best-case scenario for its shareholders in the form of a tax-free spin-off of its entire equity position in BABA (see our note here). The trading has created an unusual dislocation, in our opinion. Assuming 1) that the BABA stake trades at a 10% discount to BABA as a SpinCo (and, therefore, is worth $33/YHOO share at current BABA levels), and 2) that its 35% equity stake in Yahoo! Japan is valued using a 44% discount to the current market value (i.e., a 38% tax rate plus a 10% liquidity value), then the core Yahoo! business is currently valued at nearly a negative enterprise value of $1bn.

 

Tyler Durden's picture

AXA Investment Managaer Explains Why The ECB's QE Has Already Failed Using "Widget Makers"





"People say, 'Sell government bonds and lend money to widget manufacturers.’ It doesn’t really work like that." Hayes says, adding that "Low yields don’t necessarily mean more lending to the real economy; time and confidence are key elements and last 6 years have shown QE can’t control those." In short: it hasn't even started and QE is already a complete failure. Good job central-planners.

 

Tyler Durden's picture

Crude Crumbles To Fresh Lows: $43 Handle





Yet again this morning's "bounce" to $45 was heralded as maybe possibly could be the stability that markets are looking for. And once again it was not as WTI makes fresh cycle lows to a $43 handle.. and once again, energy stocks plunged back to energy credit's reality...

 

Tyler Durden's picture

It Will Now Cost You 0.5% To Save Money In Denmark: Danish Central Bank Cuts Rates For Third Time In Two Weeks





When the Danish Central Bank cut rates precisely a week ago, going from NIRP to NIRPer, and pushing the deposit rate from -0.2% to -0.35%, the sense of desperation was already in the air: after all this was already the second rate cut by the Denmark's monetary authority in one week, all in the hope of preserving the peg to the DEK to the EUR. That sense of desperation just hit a fever pitch moments ago, when the Dutch central bank just went NIRPest, and cut rates across the board yet again, and made it even more costly to save money in the north European country, where the Deposit rate has just been cut from -0.35% to -0.5%!

 

Tyler Durden's picture

Pending Home Sales See 2nd Biggest MoM Plunge Since May 2010





The 3.7% plunge MoM in December's pending home sales is the 2nd largest since May 2010, drastically missing expectations of a 0.5% rise in sales (buoyed by exuberance from homebuilders). All regions saw weakness but the Northeast was worst with a 7.5% MoM plunge (so weather will be blamed we are sure - though it appears analysts never thought of that). Inventories fell for the first time in 16 months but NAR's chief economist proclaims it is time for "current homeowners to realize their equity gains and trade-up." Yep - more leverage...

 

Tyler Durden's picture

Putin's Unexpected Victory: Europe Furious That Greece Is Now A Russian Sanctions Veto





Two days ago, Zero Hedge first, and shortly thereafter everyone else, pointed out something stunning: the biggest surprise to emerge so far out of the new anti-Troika/austerity Greek government was not so much its intention to proceed with the first test of "Odious Debt" - this was largely known in advance - but its dramatic pivot away from Germany and Europe, and toward Russia: The most important message that Tsipras is sending to Europe is that (after meeting the Russian ambassador first upon his election) Greece is now effectively a veto power when it comes to future Russian sanctions!

 

Tyler Durden's picture

All Major US Equity Indices Are In The Red Post-QE3





It appears the Central Bank control is failing...

 

Tyler Durden's picture

BABA Bye Bye: Chinese MegaCap Plunges Below Post-IPO First Print





Alibaba is down over 10% this morning following a disappointing earnings release. This comes on the heels of selling pressure after the Chinese government released its report claiming significant "issues" at China's richest man's company. A combination of weak revenues, a 28% plunge in net income, slower than expected growth on its Tmall platform (and disappointment at the progress into mobile advertising) have sent the stock tumbling back near Facebook's market cap.

 

Tyler Durden's picture

Early Warning Signs





If, as Kyle Bass so eloquently noted previously, "buying gold is just buying a put against the idiocy of the political cycle. It's That Simple," then recent (post-QE3) activity suggests the narrative is changing fast... Perhaps Larry Summers was right last week in Davos, "we have to recognize that the era when central bank improvisation can be the world’s growth strategy is coming to an end."

 

Pivotfarm's picture

No Consensus on Rate Environment, Alibaba Misses





How will the FOMC handle the rate environment? What's the impact from Alibaba's Miss

 

Tyler Durden's picture

Initial Jobless Claims Collapse To 15 Year Lows But Shale States Job Losses Explode





After 4 weeks missing expectations (and 3 above the crucial 300k mark), initial jobless claims totally and iutterly collapsed last week. Printing 265k (beating the 300k expectation by the most in years), the 13.9% drop WoW was the biggest since September 2005!!! This is the lowest initial claims data since the financial crisis and in fact the lowest since April 2000. But it is the story from the Shale states that is most troubling as initial claims through the 2nd week of January (data is lagged by state) show a massive surge in initial claims as unambiguously good news is very much not for many thousands across these regions.

 
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