Savings Rate Rises To Highest Since April As Spending, Income Growth Drops

The mid-year bounce is over. Both Personal Income (+0.1% vs +0.2% exp) and Personal Spending (+0.1% vs +0.2% exp) missed expectations and slowed dramatically. This is the weakest spending growth since January and weakest income growth since March driving the savings rate to its highest since April.

SUNE Slumps After Buy-The-Tepper-Rumor Fails

Sun Edison's meltup yesterday on news that hedge fund manager David Tepper would be appearing on CNBC (and nothing else) has been entirely removed as Tepper exclaimed this morning, with regard rumors "there must be some really good ganja coming into the country." Well if that doesn't sum up the entire market, we don't know what does...

Frontrunning: October 30

  • 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)

Yuan Soars Most In A Decade As China Moves To Relax Capital Controls

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." 

Futures Fade Overnight Ramp After BOJ Disappoints, Attention Returns To Hawkish Fed

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.

Valeant Terminates, Will Shut Down Scandal-Ridden Philidor After "Losing Confidence"

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."

The Ghost Cities Finally Died: For China's Steel Industry "The Outlook Is The Worst Ever Amid Unprecedented Losses"

In late 2014 something happened: for whatever reason the most unregulated aspect of China's financial system, its shadow banks, not only stopped lending money but actually went into reverse, thus putting a lid on China's Total Social Financing expansion, which had been the world's "under the radar" growth dynamo for so many years. At that moment not only did China's ghost cities officially die, but it meant an imminent collapse for China's steel industry. That collapse has arrived.

The Demobilization Of The American People & The Spectacle Of Election 2016

The desire to take the American public out of the “of the people, by the people, for the people” business can minimally be traced back to the Vietnam War, to the moment when a citizen’s army began voting with its feet and antiwar sentiment grew to startling proportions not just on the home front, but inside a military in the field.  It was then that the high command began to fear the actual disintegration of the U.S. Army. From that moment on, the urge to demobilize the American people and send them to Disney World would only grow.

AsiaPac Calm Before BoJ Storm, Japanese Household Spending 'Unexpectedly' Drops As China Releveraging Continues

As all eyes, ears, and noses anxiously await the scantest of dovishness from Kuroda and The BoJ tonight (despite numerous hints that they will not unleash moar for now), the data that was just delivered may have helped the bad-news-is-good-news case. Most notably Japanese household spending dropped 0.4% YoY (with tax hike issues out of the way) missing expectations by a mile as the 'deflationary' mindset remains mired in Japanese heads. AsiaPac stocks are hovering at the week's lows unable to mount any bid as China fixed the Yuan notably stronger and instigated a new central pricing plan for pork prices (which suggests concerns about inflation domestically). Once again Chinese margin debt reaches a new 8-week high as 'stability' has prompted releveraging among the farmers and grandmas.

Australia Proposes Eliminating Passports. There's Just One Problem...

Passports are nothing more than a form of control - a way to obtain oodles of personal information and to restrict one of the most basic freedoms of humanity - the freedom to move. So you can imagine how excited we were when we read about Australia’s government announcing a program to eliminate passports. Great news, right? Well, no...