Australia

Frontrunning: September 22

  • North Korea Ramps Up International Rancor With H-Bomb Threat (WSJ)
  • A nuclear test over the Pacific? Logical, terrifying (Reuters)
  • What's a 'dotard'? Kim's insult to Trump (Reuters)
  • From Rubble and Ruin, a Mexican Town Wonders How to Rebuild After the Earthquake (WSJ)
  • Bonuses Are Shrinking. Blame Hurricanes and Trump (BBG)

Metals Massacre - Iron Ore Enters Bear Market, Copper Collapses To 1-Month Lows

The hype surrounding the credit-fueled resurgence in base metals in the first half of 2017 has crashed and burned on the altar of reality in China's slowdown with industrial metals from copper to iron ore and zinc all plunging in the last two weeks. Odd that we don't hear much from mainstream business media discussing the implications for a global coordinated economic growth narrative...

Trump's China-Sanctions Madness Imperils The Dollar

"If the US wants to really continue with this sanctions game, it need also be prepared to face the reality that its not 1989, and that the world may not be willing to treat dollars and US sanctions in the way the US expects it to. The likely response will only be the latest evidence that the US 'unipolar moment' is over. "

Global Stocks Storm To New Record High Ahead Of Historic Fed Announcement

Last week's bullish sentiment that sent the S&P not only to a new all time highs, but a burst of last-second buying pushed above 2,500 for the first time ever, has carried through to the new week, with European and Asian shares rallying across the board, US futures again the green, and world stocks hitting a new record high on Monday ahead of a historic Fed meeting.

"Starts With A Whimper, Ends With A Bang": Trader Previews Fed's Balance Sheet Reduction

"The whole set-up is reminiscent of the 2000 millennium bug anxieties. For all the dire warnings of IT Armageddon, the change came and went without much fuss, but the dot-com bubble that we all knew had become massively overblown did eventually pop. And the fact that it burst later rather than on cue made the collapse all the more spectacular."

FX Week Ahead: Central Bank Credibility Slips Yet Again, Fed Up Next

The stand out risk event of the week is clearly the FOMC meeting and announcement on Wednesday, and the focus will be on whether the Fed are ready to balance out the odds of another 25bp hike on the table for this year. We know they are more comfortable in moving having prepared the market first, although we are close to 50/50 again, but only just. 

BIS Finds Global Debt May Be Underreported By $14 Trillion

"Contracts worth tens of trillions of dollars stand open and trillions change hands daily. And yet one cannot find these amounts on balance sheets. This debt is, in effect, missing" the BIS finds in its latest quarterly assessment, which is a concerning as "the missing debt amounts to some $13-14 trillion."

World Stocks Pull Back Amid Rising Concerns Of A Market Correction

For the first day in three S&P futures have pulled back modestly from record levels as some investors cautioned that gains had gone too far, too fast, European shares are mixed while Asian equities extended their longest rising streak in almost two months as continued gains in Japan and India offset the losses in Hong Kong.

Why Nobody Can Trust Facebook

"It becomes harder and harder to overstate the corruption and treachery of the online ad industry..."