• GoldCore
    04/23/2014 - 05:14
    Bloomberg Television’s “On The Move Asia” had a fascinating interview with Albert Cheng, the World Gold Council’s Managing Director, Far East. He discussed China’s gold market and what’s driving the...

Bad Bank

Tyler Durden's picture

Barclays Latest To Exit Commodity Trading, Layoff Several Thousand Staff





With JPMorgan and Deutsche Bank having exited the commodities business (and numerous other banks discussing it ahead of the Fed and regulators' decisions over banking rules of ownership), it appears a few short months of regulatory scrutiny is enough to warrant more broad-based cuts across bulge-bracket banks historically most manipulated and profitable business units. As The FT reports, Barclays, one of the world’s biggest commodities traders, is planning to exit large parts of its metals, agricultural and energy business in a move expected to be announced this week. This comes on the heels of Barclays shuttering its power-trading operations (after refusing to pay $470mm in fines) with CEO Jenkins expected to announce several thousand layoffs. This leaves Goldman (for now), Mercuria (ex-JPM), and Glencore to run the commodities world.

 


Tyler Durden's picture

Austria Demands "Profitable" Bondholders Pay Up Before Bad Bank Bailout





While, for now, depositors at Austria's Hypo-Alde-Adria-Bank (nationalized in 2009) have not had assets confiscated, Austrian authorities are shifting in an unusual (scary precedent-setting) direction. Amid the resignation of the bank's CEO, the government is taking aim at 'speculators' who dared to buy the bank's bonds below par - and made money therefore on the back of the taxpayer. "What financial markets expect is not always what you want politically," Austria's finance minister warned, "if someone buys today at a lower price, saying ‘shortly, I’ll get 100 back,’ that’s what’s agitating the people."It seems Europe has a new template.

 


Tyler Durden's picture

Futures Sneak Above 1800 Overnight But Yellen Can Spoil The Party





A sneaky overnight levitation pushed the Spoos above 1800 thanks to a modest USDJPY run (as we had forecast) despite, or maybe due to, the lack of any newsflow, although today's first official Humphrey Hawkins conference by the new Fed chairman, Janet Yellen, before the House and followed by the first post-mortem to her testimony where several prominent hawks will speak and comprising of John B. Taylor, Mark A. Calabria, Abby M. McCloskey, and Donald Kohn, could promptly put an end to this modest euphoria. Also, keep in mind both today, and Thursday, when Yellens' testimoeny before the Senate takes place, are POMO-free days. So things may get exciting quick, especially since as Goldman's Jan Hatzius opined overnight, the third tapering - down to $55 billion per month - is on deck.

 


Tyler Durden's picture

Guest Post: Will Austrian Bank Woes Be Again the Catalyst For A European Kondratieff Winter?





Sad affairs have been heating up in the tiny Alpine republic in the center of the European Union. While Austria experiences record unemployment at record growth rates and tax revenues  have fallen behind optimistic projections, the looming bankruptcy of a mid-sized regional bank, Hypo Group Alpe Adria (HGAA), may propel the country to the disdained position of being the catalyst for a new round of bank failures due to interwoven banks risks on both the domestic and the international level. On Monday Austrian financial market authority FMA publicly said what the official Austria never wanted to hear as it is now confronted with a widening public discussion on a problem it had surrealstically hoped to brush under the carpet. Austria's banking woes look eerily similar to the failure of Creditanstalt in 1931 that was the fuse for the last European Kondratieff winter.

 


Tyler Durden's picture

Frontrunning: February 3





  • Emerging-Market Rout Seen Enduring on Low Real Rates (BBG)
  • After rocky January, markets eye data and central banks (Reuters)
  • Europe will feel the pain of emerging markets  (FT)
  • Lloyds delays dividend prospect after mis-selling charge (Reuters)
  • Snow Set to Snarl New York Commute as U.S. Flights Halted (BBG)
  • Rate Decision to Drive Yellen's Early Agenda  (Hilsenrath)
  • Thai protesters move to downtown Bangkok in bid to topple PM (Reuters)
  • China says Japan's 'hype' on air defence zone spreads tension (Reuters)
  • Hedge funds seek 1.8 billion euros damages from members of Porsche's owning family (Reuters)
 


Tyler Durden's picture

Hungover Markets Enter November With Quiet Overnight Session





After a blistering October for stocks, drunk on yet another month of record liquidity by the cental planners, November's first overnight trading session has been quiet so far, with the highlight being the release of both official and HSBC China PMI data. The official manufacturing PMI rose to 51.4 in October from 51.1 in September. It managed to beat expectations of 51.2 and was also the highest reading in 18 months - since April 2012. October’s PMIs are historically lower than those for September, so the MoM uptick is considered a bit more impressive. The uptrend in October was also confirmed by the final HSBC manufacturing PMI which printed at 50.9 which is higher than the preliminary reading of 50.7 and September’s reading of 50.9. The Chinese data has helped put a floor on Asian equities overnight and S&P 500 futures are nudging higher (+0.15%). The key laggard are Japanese equities where the TOPIX (-1.1%) is weaker pressured by a number of industrials, ahead of a three day weekend. Electronics-maker Sony is down 12% after surprising the market with a profit downgrade with this impacting sentiment in Japanese equities.

 


Tyler Durden's picture

October FOMC Week Starts With Traditional Overnight Meltup





Just as it is easy being a weatherman in San Diego ("the weather will be... nice. Back to you"), so the same inductive analysis can be applied to another week of stocks in Bernanke's centrally planned market: "stocks will be... up." Sure enough, as we enter October's last week where the key events will be the conclusion of the S&P earnings season and the October FOMC announcement (not much prop bets on a surprise tapering announcement this time), overnight futures have experienced the latest off the gates, JPY momentum ignition driven melt up.

 


Tyler Durden's picture

Rumors Of Spain's Housing Market Resurrection Are Greatly Exagerated





Two days after Spain reported its first positive sequential GDP print (unclear just how adjusted the definition of GDP was to get to this watershed moment after 9 quarters of declines) and a day after it unemployment supposedly dropped more than expected (what was left unsaid is that the Spanish working age population dropped 85,200 in Q3 and -279,000 YoY and that of the 39,500 "jump" in Q3 employed people, virtually all were self-employed or temps while employees on permanent contracts were down by 146,300), the 5 second attention span investing herd is now convinced the housing market in Spain has dropped. This was "formalized" after billionaire Bill Gates invested $155 million, also known as pocket change, in Spain's infrastructure group Fomento de Construcciones & Contratas. Surely, if anyone knows how to time housing market turns it is the guy who brought us MS-DOS 3.1. Unfortunately, the mythical housing bottom may have been just that - mythical - following news that Spain's bad bank (oh yeah - lest we forget, Spain has a wonderful rug under which it can hide all insolvent bank NPLs)  failed to attract high enough bids in its first sale of commercial real estate and will cut the size of the portfolio being offered to make it easier to sell, according to Bloomberg which cited three people familiar with the matter.

 


Tyler Durden's picture

Frontrunning: October 25





  • Contractors describe scant pre-launch testing of U.S. healthcare site (Reuters)
  • Carney Says BOE Revamp Offers Wider Access to Cheaper Funds (BBG)
  • Help wanted in Fukushima: Low pay, high risks and gangsters (Reuters)
  • Merkel and Hollande to change intelligence ties with US (FT)
  • Twitter IPO pegs valuation at modest $11 billion (Reuters)
  • NSA monitored calls of 35 world leaders after US official handed over contacts (Guardian)
  • Officials alert foreign services that Snowden has documents on their cooperation with U.S. (WaPo)
  • Scottish Nationalists Lose Vote After Plant Threatened With Axe (BBG)
  • Fernández contemplates a train wreck in Argentine elections (FT)
  • Irish Government will consider ‘best options’ for bailout exit (Irish Times)
 


Tyler Durden's picture

Futures Slump As China Tapering Fears Trump Hope Of Extended Yellen Liquidityhose





There was some hilarious news overnight: such that supposedly Spain's GDP rose 0.1% in Q3 thus ending a 2+ year recession. There is no point to even comment on this "recovery" - we will merely remind that starving your economy of imports for the sake of generating a GDP-boosting trade surplus, while consumption declines, solves nothing and point readers to charts of Spanish non-performing loans, housing prices, and unemployment, oh and the massive Bad Bank of course, and leave it at that. In terms of real news, futures are lower following a drubbing in Asia over the previously discussed concerns over tighter Chinese monetary policy. Amusingly, as Reuters notes, this has hit global shares still high on hopes of extended U.S. stimulus on Wednesday, when the dollar tentatively steadied at an eight-month low after its latest slide. The immediate casualty is the USDJPY, which continues to slide and is approaching the 200SMA. In short: fears that China may have resumed tapering have offset yesterday's hope that "horrible" job numbers mean no Fed tapering until mid-2014.... New Normal fundamentals.

 


Tyler Durden's picture

A Suddenly Nervous China Tells The US To "Earnestly Take Steps" To Avoid A Default





While the world's largest hedge fund, the Fed, may not care about the performance of its "bad bank" assets, and thus is largely ambivalent if the US Treasury defaults on the $2 trillion in US paper held by Ben Bernanke, others don't have the luxury of merely printing away any incurred MTM losses. Such as America's largest foreign creditor China, which at last check held at least $1.277 trillion in US Treasurys, which after realizing with a substantial delay that the US Congress is not precisely a "rational actor" and its bonds may be materially impaired in the case of a technical default, is starting to panic. In an oped in the largest media publication, China Daily, vice finance minister Zhu Guangyao, warned that the "clock is ticking" to avoid a US default that could hurt China's interests and the global economy. Somehow we doubt Boehner or Obama are particularly concerned about what happens to "Chinese interests."  Of course, if China so wishes, it can pen an Op-Ed in the NYT and tell the US just what will happen if $1.3 trillion in US Treasurys were suddenly to be dumped in a liquidation fire sale.

 


smartknowledgeu's picture

SmartKnowledgeU Exclusive Interview with World Bank Whistleblower Karen Hudes, Part Two





Here is Part Two of our exclusive interview with World Bank Whistleblower Karen Hudes in which I discuss with Ms. Hudes the need to end an immoral fractional reserve banking system that continually drains the wealth of citizens without their consent and without their knowledge.

 


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