"Most of the quarterly losses came from the short book. An undisclosed oil fracking short (not the Mother-Fracker) was our biggest loser, followed by Amazon, which reported a stronger quarter than we expected. In the long book, Apple (AAPL) and Macy’s were material losers. The earnings estimates for AAPL continue to fall."
A good, old-fashioned, pre-1929 depression (like the short-lived, eleven-month depression in 1920-1921, before the days of “modern” central banking and “enlightened” Keynesian intervention “cures”) is the only tonic that can clear out the malinvestment built up since the beginning of the fiat money era.
The Dow has closed at a record high for nine days in a row, so it (and U.S. equities generally) MUST be ready for a pullback, right? Not so fast. Thinking that reversion to the mean happens swiftly and reliably is something called “The Gambler’s Fallacy”. To borrow from an old capital markets aphorism, things can stay weird longer than you can stay solvent betting against them.
A historic event took place moments ago when Mark Johnson, the global head of cash FX at HSBC was arrested at JFK airport for his role in a "conspiracy to rig currency benchmarks", and specifically for frontrunning customer orders. He is the first person charged by the US in the ongoing FX rigging probe.
Pretend you’re running a corrupt government and something big and scary happens in another part of the world. Brexit, for instance. You’re quite naturally worried about the impact on your local economy and political system. What do you do? Well, one obvious thing would be to call the statisticians who compile your economic reports and tell them to fudge the next batch of numbers.
Michael Coscia, the first person convicted of spoofing after it was made a crime under the Dodd-Frank Act, was sentenced to three years in prison by a federal judge in Chicago. His real crime? Taking on the HFTs, and Citadel, and winning. Now he gets to spend 3 years in prison thinking about it. And let that be a lesson to anyone else out there who dares to do the same.
Theresa May is set to become the Prime Minister of Great Britain in the next few days. Will the new PM bring a degree of stability back to turbulent markets in a post-Brexit Britain or what does the future hold under a new Conservative leadership.
With the race for next Tory leadership and the next UK prime minister all down to two women, Theresa May and Andrea Leadsom, moments ago both BBC and Sky News reported that in a statement due shortly, Andrea Leadsom would announce she was quitting the UK leadership race which means the only candidate to be Britain’s next prime minister would be the soft pro-remain candidate Therea May.
In 2015, a Sky News reporter found “Migrant Handbooks” on the Greek island of Lesbos. It was later revealed that the handbooks, which are written in Arabic, had been given to refugees before crossing the Mediterranean by a group called “Welcome to the EU.” Welcome to the EU is funded by—you guessed it—George Soros' Open Society Foundations. Soros has not only backed groups that advocate the resettlement of third-world migrants into Europe, he in fact is the architect of the “Merkel Plan.”
For the first time since Margaret Thatcher, and only the second time in UK history, UK's next prime minister will be a woman, as the fianl choice now is that between , who was for remaining in the EU, and Leadsom, who campaigned to leave.
The British Pound is now down almost 14% from pre-Brexit spike highs at 1.5018, crashing to 1.3000 for the first time since June 1985. Goldman Sachs sees this renewed leg of weakness extending down to 1.20 within 3 months...
In today's US holiday-impacted session, the biggest overnight story was the dramatic surge in precious metals, which saw silver briefly soar above $21 following a Chinese short squeeze sending the metal as much as 7% higher overnight, its biggest one day gain since December 1, 2014. As we reported overnight, silver touched a two-year high and gold rallied for a fourth day after the Brexit vote spurred demand for havens. The catalyst is familiar: speculation central banks in some of the world’s leading economies will step up monetary stimulus in the wake of Britain’s decision to leave the European Union.