Brazil

The Mother Of All Head & Shoulder Patterns Just Completed The Right Shoulder

China was, in essence, the right shoulder to the greatest head and shoulder pattern in the history of mankind.  Central banks and federal governments will do everything in their power to maintain the present system.  They will attempt anything and likely everything to maintain what ultimately cannot be maintained.  Unfortunately, no one knows how much is too much and the economic, financial, and societal ramifications.  Invest accordingly?!?

Is China A "House Of Cards"?

Xi not only is the Commander-in-Chief in the fight against corruption; he’s now Commander-in-Chief of China’s joint battle command center as well. Yet even this awesome concentration of power does not mean that Xi is an unassailable deity. On the key drama – the state of the economy – it has emerged that in a recent interview by the People’s Daily with an anonymous “authoritative person”, printed on the front page and exposing deep economic divergence among the CCP leadership, the “authoritative person” in question was none other than Xi. He had to take to the key media read by anyone who’s anyone in China to press his point on how to fix China’s debt-ridden economy; low growth is OK, and the new normal; as for blind credit expansion/monetary easing, that’s not OK. Xi, once again, is adamant; it’s now or never to start a painful restructuring of the Chinese system.

SaxoBank CIO Warns "Central Banks Can Do Nothing"

Saxo Bank chief economist Steen Jakobsen said that zero rates, zero growth, zero productivity, and zero reforms have left a great many countries adrift in a “new nothingness”. The products of this nothingness, said Jakobsen, include apathy, stagnation and “an economic outlook based more in peoples’ heads than in reality”.

With 'Recovery' Disproved, There Is Every Need To Examine The Worst Case

There is a great deal that is wrong with mainstream economic commentary, starting with its unwavering devotion to orthodox economics and unshakable faith in their “stimulus.” No matter how little is actually stimulated there is never any doubt that the media will simultaneously forget the last one while lavishing praise on the next one. It is, however, the actual economic commentary itself that may be the most damaging. Because nothing works, every news story is printed from the shallowest, narrowest perspective. It is a grave disservice to the public and journalism.

Futures Flat Despite China Scare As Oil Rebounds Over $47

The main risk over the weekend was that markets, which have now dropped for three consecutive weeks the longest negative streak since January, would focus their attention on the latest batch of negative Chinese economic news released over the weekend, which missed expectations across the board, most prominently in Retail Sales and Industrial Production, and following Friday's disappointing new credit loan data, would sell off as the Chinese slowdown once again becomes a dominant concern. However, after some initial weakness, the risks were all but gone when first the USDJPY jumped on another round of deflationary Japanese economic data which led to renewed hopes of more BOJ easing and a jump in the USDJPY and thus US futures.

"We're Going To Do It, F**k It" - Venezuela's Maduro Orders Military Exercises For Next Weekend

"Comrades, I am ready to hand over to communal power the factories that some conservative big wigs in this country have stopped. An idled factory is a factory handed over to the people. We are going to do it, fuck it" Venezuela President Maduro boomed at a weekend rally during which he warned that "trouble-makers were fomenting violence to justify a foreign invasion" and ordered military exercises for next weekend.

Goldman Cuts 2017 Oil Price Forecast Due To Slower Market Rebalancing

"We expect that the return of some of these outages as well as higher Iran and Iraq production will more than offset lingering issues in Nigeria and our higher demand forecast. As a result, we now forecast a more gradual decline in inventories in 2H than previously and a return into surplus in 1Q17, with low-cost production continuing to grow in the New Oil Order. This leads us to lower our 2017 forecast with prices in 1Q17 at $45/bbl and only reaching $60/bbl by 4Q17."

Maduro's Last Stand: Venezuela Declares State Of Emergency

From extending the weekend, to rationing electricity, to running out of money to print money, we've been covering the real-time events that have occurred in Venezuela as it devolved into a completely failed state. Sadly, last night as starving citizens looted marketplaces in search of food, we predicted that a civil war was almost inevitable, and that Nicolas Maduro would do what he could to hang on for dear life (literally). Today we learn, with his entire socialist utopia literally crumbling beneath him, Venezuelan president Maduro has declared a 60-day state of emergency.

Another US-Sponsored Coup? Brazil's New President Was An Embassy Informant For US Intelligence

As much as we would like to believe that Michael Temer is simply the real world version of Frank Underwood, there is a much simpler explanation for the 75-year-old's dramatic ascent to the peak of Brazil's power elite. As it turns out, the Temer presidency may be nothing more than the latest manifestation of the US state department's implementation of yet another puppet government. We know this because earlier today, Wikileaks released evidence via a declassified cable that Brazil's new interim president was an embassy informant for US intelligence and military.

Genscape: "Inventories At Cushing Are Close To Maximum Operating Capacity"

Inventories at Cushing are close to maximum operating capacity, and on May 3, 2016 reached utilization just shy of 80 percent, a record high since Genscape began monitoring the hub in 2009. Genscape has never observed capacity utilization higher than 80 percent based on historical data, though utilization may breach 80 percent depending on the utilization of merchant capacity, or capacity that is leased by an owner to other users.

 

Everyone Is Still Selling: Biggest Monthly Outflow From Global Stocks Since US Downgrade

One recurring question over the past few weeks has been "who is buying" stocks in a world in which not only the smart money, but everyone else too is selling. The latest Lipper data will not provide the answer because as BofA reports, in the latest week there was another $7.4bn in outflows (the 5th straight week) driven by $4.8bn in mutual fund outflows and $2.7bn ETF outflows, leading to a $44bn equity exodus past 5 weeks, which as Michael Hartnett points out is the "largest redemption period since Aug’11", or when the US downgrade sent US stocks into a bear market tailspin.