Bank of England
- Stocks slip for fifth straight day, euro holds steady (Reuters)
- VW recall letters in April warned of an emissions glitch (Reuters)
- VW Cheating Scandal Threatens to Ensnare BMW as Probe Widens (BBG)
- Pope Francis set to address fractious U.S. Congress (Reuters)
- Norway Cuts Rates to Record Low to Save Economy From Oil Slump (BBG)
- Taiwan Cuts Rate for First Time Since 2009 as Exports Falter (BBG)
- Janet Yellen to speak at UMass on Thursday (Daily Collegian)
- A Big Bet That China’s Currency Will Devalue Further (NYT)
- Debt Relief for Students Snarls Market for Their Loans (WSJ)
- Global Stocks Steady Despite China Slowdown (WSJ)
- European Recovery Saves Markets From China Gloom as Stocks Rally (BBG)
- Pope starts U.S. trip with tone of conciliation (Reuters)
- FBI Said to Recover Personal E-Mails From Hillary Clinton Server (BBG)
- Volkswagen chief faces grilling by board over diesel scandal (Reuters)
- 'European Detroit' Fear Grips VW Company Town as Scandal Widens (BBG)
- Berlin finds itself caught up in Volkswagen scandal (FT)
Quantitative easing, as this policy is known, has bailed out bonus-happy banks and made the rich richer. Banks have been the biggest beneficiaries, with their 20- or 30-times leveraged balance sheets. Asset managers and hedge funds have benefited, too. Owners of property have made out like bandits. In fact, anyone with assets has grown much richer. All of us who work in financial markets owe a debt to QE.
Non-bombasitc overview of the investment climate. No, the sky is not falling. This is not the end of days.
Just three short years ago, Bank of England chief economist Andy Haldane appeared a lone voice of sanity in a world fanatically-religious Keynesian-esque worshippers. Admissions in 2013 (on blowing bubbles) and 2014 (on Too Big To Fail "problems from hell") also gave us pause that maybe someone in charge of central planning might actually do something to return the world to some semblance of rational 'free' markets. We were wrong! Haldane appears to have fully transitioned to the dark side, as The Telegraph reports, he made the case for the "radical" option of supporting the economy with negative interest rates, and even suggested that cash could have to be abolished.
- Wall Street Has Doubts About Fed Lifting Interest Rates (WSJ)
- Global stocks at three-week highs as Fed decision looms (Reuters)
- Charting the Markets: The World Awaits the Fed (BBG)
- Powerful quake off Chile slams waves into coastal towns; eight killed (Reuters)
- As Fed Storm Brews, Europe Stocks Seen Weathering Turmoil Best (BBG)
- Fiorina's rise adds another insurgent to U.S. election fray (Reuters)
- Contrarian CEOs tell the Fed: Go ahead, raise my rates (Reuters)
- Goldman Warns Markets Unprepared for Fed as Treasuries Seesaw (BBG)
- Investors Look Beyond Fed Meeting, See Low Rates (WSJ)
- Volatility seen lingering no matter what the Fed does (Reuters)
- What Rising Interest Rates Would Mean for You (BBG)
- China Stocks Jump in Last Hour of Trading on State Support Signs (BBG)
- No Escape for China Hedge Funds Overwhelmed by Stocks Crash (BBG)
- Hedge Fund Bridgewater Defends Its ‘Risk-Parity’ Strategy (WSJ)
The UK Labor Party's new leader Jeremy Corbyn has, rather unsurprisingly, is making controversial headlines already. His appointment of John McDonnell - an outspoken opponent to the independence of central banks: "in the first week of a Labour government, democratic control of the major economic decisions would be restored by ending the Bank of England’s control over interest rates," - as shadow chancellor has been met with derision in the British press. Initially described as a "nutjob" by The Telegraph, McDonnell's 'plan' to close the deficit is simple - instead of cutting spending, he will dramatically raise taxes on businesses and the rich. The Telegraph then watered-down their perspective, we think, slamming McDonnell's policy as "cloud cuckoo land economics."
- China stocks slide as data raises fresh economy worries (Reuters)
- Was Tom Hayes Running the Biggest Financial Conspiracy in History? (BBG)
- The Fed’s Policy Mechanics Retool for a Rise in Interest Rates (NYT)
- Germany re-imposes border controls to slow migrant arrivals (Reuters)
- Thousands flee California wildfire as homes go up in flames (Reuters)
- Bavarian minister says German border controls could last for weeks (Reuters)
- China sells record FX in August, shows pressure after devaluation (Reuters)
Perhaps after intervening every single day in the past week (remember that FT piece saying the PBOC would no longer directly buy stocks... good times) in either the stock or the FX (both on and offshore) market, China needed a day off; perhaps even the algos got tired of constantly spoofing the E-mini and inciting momentum ignition, but for whatever reason the overnight session has been oddly uneventful, with no ES halts so far, few USDJPY surges (then again those come just before the US open), and even less violent CNY or CNH moves, leading to virtually unchanged markets in Japan (small red) and China (small green). And while the initial tone in Europe has been modestly "risk off", it is nothing in comparison to the massive gyrations that have become a stape in the past few weeks.
RANSQUAWK BoE Preview: The minutes release is expected to once again show an 8-1 vote split in favour of keeping rates on holdSubmitted by RANSquawk Video on 09/09/2015 07:01 -0500
• All surveyed analysts expect the Bank of England to keep monetary policy unchanged, with the bank rate at 0.5% and the Asset Purchase Facility at GBP 375bln
• Headline UK CPI printed at 0.1% for July, still well below the BoE’s mandated 2% target
• The accompanying minutes release is expected to once again show an 8-1 vote split in favour of keeping rates on hold
Silver premiums continue to move higher, while premiums on gold have remained steady. UK households are sitting on a £173 billion debt time bomb after once again being lured into a spending splurge by banks and credit card companies.
Global Risk-On Euphoria: Japan's Nikkei Soars 7.7%, Biggest One Day Move In Seven Years; Futures SurgeSubmitted by Tyler Durden on 09/09/2015 05:53 -0500
And to think all it took was Gartman going short of stocks in 25% correction terms yesterday...
The centrally-planned house of cards is finally starting to shake uncontrollably.
Keys in the week ahead: equity markets--still look lower; China--volatility likely to continue; Fed--market says no Sept hike