Abu Dhabi

Tyler Durden's picture

Malaysian Ringgit Tumbles After 1MDB Default Raises Spectre Of Sovereign Failure





Update: after widening by 2bps earlier, Malaysia CDS is now +4 at 167bps and starting to move as macro "analysts" finally catch up on the entire story and comprehend the implications.

Malaysian CDS rose to near 3-month highs and the Ringgit has spiked over 300 pips - back near recent lows - after the Malaysian slushfund government investment fund 1MDB is reportedly in default. This is exactly the scenario we laid out last week that initially sent the currency lower and CDS higher, as the Abu Dhabi sovereign wealth fund has by all appearances started a potential waterfall default on Malaysian sovereign debt (due to cross-default triggers at the sovereign).

 
Knave Dave's picture

Dohaha, Slippery Oil Prices Laugh at Nearly Everyone





Irrational market exuberance hits its zenith after Doha talks fail as oil prices rise, instead of fall, because of minor Kuwait oil strike, then stay up after the strike fails within a day, then rise more when Saudis promise to retaliate with more production and stay up when Russians promise to retailiate with still more production.

 
Tyler Durden's picture

Malaysia CDS Spike After Abu Dhabi Puts Scandal-Ridden 1MDB In Default





The dispute between an Abu Dhabi sovereign fund and Malaysia’s troubled state fund 1MDB over more than $1bn in missing payments hit a crescendo on Monday when the Emirates investment vehicle said its Malaysian counterpart was “in default” on an agreement between the two and terminated the deal.  Promptly thereafter, Malaysia 5 year CDS spiked by 11 bps, the most since March 21, to 163 bps as the market starts to quietly ask whether this ongoing scandal may just drag down the entire Malaysian state.

 
Tyler Durden's picture

Frontrunning: April 13





  • China trade surprise gives stocks a lift (Reuters)
  • JPMorgan profit hurt by drop in investment banking revenue (Reuters)
  • About 40,000 Verizon workers launch strike (Reuters)
  • Regulators Set to Reject Some Big Banks’ ‘Living Wills’ (WSJ)
  • More Startups Are Getting Lower Valuations Than Joining the Billion-Dollar Club (BBG)
  • Closures and court cases leave Turkey's media increasingly muzzled (Reuters)
 
Tyler Durden's picture

Manhattan's Real Estate Woes Get Worse: No Demand In Building Where Ackman Splurged $90 Million





Luxury real estate developer Extell Development Co can’t sell luxury condos at what may be New York's premier ultra luxury destination, the One57 tower, which it is attributing it to the fact that there is an abundant supply of condos already on the market. As a reminder, One57 is where Bill Ackman paid $91.5 million in April 2015 for a condo (which he hoped to flip), just a few months before Valeant, and his fund, suffered staggering losses. Perhaps that should have been the tell.

 
Tyler Durden's picture

Even Goldman Says OPEC Doha Meeting Will Be A Dud: "Don't Expect A Bullish Surprise"





"We do not expect the meeting to deliver a bullish surprise as we believe production cuts make little sense given it has taken 18 months for the rebalancing to finally start. In addition, any resolute agreement that would support prices from current levels would prove self-defeating, in our view, as we believe that sustained low prices are required for the nascent non-OPEC supply adjustments to deliver a deficit in 2H16. Finally, a production freeze at recent production levels would not accelerate the rebalancing of the oil market as OPEC (ex. Iran) and Russia production levels have this year remained close to our 2016 average annual forecast of 40.5 mb/d." - Goldman

 
Tyler Durden's picture

Iraq Is Latest To Announce Record Oil Production: Why This Is Just The Beginning Of The Supply Glut





According to the state-run Oil Marketing Co., Iraq increased crude output to a record level in March, ahead of the long-awaited April 17 meeting in Qatar where OPEC members and other producers may or may not (they won't) agree to cap production to curb a global glut. Crude output in OPEC’s second-biggest producer rose to 4.55 million barrels a day last month from 4.46 million barrels in February, while exports increased to 3.81 million barrels a day in March from 3.23 million the previous month.

 
smartknowledgeu's picture

Why Did the 9/11 Commission Not "Follow the Money?", by Lars Schall





Lars Schall explores the time-honored tradition of following the money in an attempt to discover answers to yet unresolved questions regarding the terrorist attacks of 9/11 in New York City. Mr. Schall is an independent investigative journalist that has produced many hard-hitting pieces regarding Central Bankers' manipulation of gold prices, and the failure of the US Central Bank (The Federal Reserve) to return all of Germany's gold reserves in the past.

 
Tyler Durden's picture

America's Top Rogue Mercenary - Blackwater's Erik Prince Is Under Federal Investigation





"...the inquiry was abandoned after Blackwater’s top manager there issued a threat: “that he could kill” the government’s chief investigator and “no one could or would do anything about it as we were in Iraq," according to department reports. There’s only one way to stop a guy like this - lock him up. For once, do your job Department of Justice.

 
Tyler Durden's picture

The Strange Story Of The Goldman Banker Subpoenaed In Malaysian Slush Fund Probe





By late January, Tim Leissner was irritated. So was Goldman. And so was the FBI.

 
Tyler Durden's picture

Goldman Banker Behind Malaysia Slush Fund Leaves Bank





Regular readers know Tim Leissner. Leissner was the powerful Goldman banker responsible for financing Malaysian PM Najib Razak’s giant slush fund, known as 1MDB. On Wednesday, the bank has confirmed his exit, just as authorities across the globe probe the fund's financing for evidence of malfeasance.

 
Tyler Durden's picture

WTI Surges Above $33 Despite IEA 'Glutter'-For-Longer Warnings





WTI crude prices are up almost 6% this morning with April (the new front-month) trading above $33.50 - testing post-DOE plunge stops. The irony of the ramp is that it comes amid terrible global PMIs (demand), a report from IEA of oil staying in glut for longer than expected (supply), and warnings from Abu Dhabi's biggest bank that $20 oil is possible. Oh well, we are sure the algos know what they are doing... despite veterans of the 1980s oil glut warning it could take 7 to 10 years to emerge from the current slump.

 
Tyler Durden's picture

Sovereign Wealth Funds May Sell Half Trillion In Stocks This Year





Last month, JPMorgan estimated that persistently low oil prices will likely force sovereign wealth funds to sell some $75 billion in global equities in 2016. According to the Sovereign Wealth Fund Institute, that figure is off. By a lot.

 
Tyler Durden's picture

UAE Offers India Free Oil To Ease Storage Woes





In an oil sector first, the oil-rich United Arab Emirates (UAE) has offered free oil to India in return for a storage deal at India’s planned underground facility as the supply glut worsens and some analysts predict that "peak storage" could sending prices crashing further.

 
Syndicate content
Do NOT follow this link or you will be banned from the site!