One Week After Trolling Zero Hedge For Being Negative, Jefferies Posts Worst Quarter Since Financial CrisisSubmitted by Tyler Durden on 03/15/2016 11:23 -0400
Moments ago Jefferies, which is still on the investment banking cycle of reporting where its earnings (and in this case, losses) arrive one month ahead of the other banks, and as such is a good bellwether into overall Wall Street revenue trends, reported an absolute disaster of a quarter, its worst since the financial crisis.
For the thousands of new entrants into the oilfield services (OFS) industry in the past 15 years - both workers and companies – if you didn’t know what senior secured lending covenants were a year ago, you sure do now. Many new borrowers are enduring a painful education on the legal implications of the lending documents they signed. There is said to be lots of capital on the sidelines looking for deals. OFS owners and managers up against a debt wall should consider finding some.
The technical situation for the gold price has sharply improved, to the evident surprise of many mainstream analysts, but what are the reasons behind the turnaround, and implications for the future?
"...markets have essentially lost confidence in the ability for central banks to stoke growth and inflation... we see very few reasons to be excited by today’s action or any development since the February 11th market lows."
All of life’s odds aren’t 3:2, but that’s how you’re supposed to bet, or so they say. They are not saying that so much anymore, or saying that history rhymes, or that nothing’s new under the sun. More and more 'they's seem to be figuring out that past economic and market experiences can’t be extrapolated forward - a terrifying prospect for the social and political order.
What 3 pieces of information would you need to confidently call the 2016 end-of-year level on the S&P 500?
"In retrospect the idea that an increasingly internationalized political elite would automatically remain faithful agents of their own populations should have rang alarm bells." Who are the internationalized political elite faithful too?
“by [any] measure, California’s Big Three public pensions are dangerously underfunded, putting current and future taxpayers at risk.... those relying on public pensions for their retirement are not only going to be requesting funds that simply aren’t there, they are going to be requesting funds from pension systems who have yet to face the third recession in 15 years."
And then there’s S&P’s “pessimistic scenario.”
As A Frenzied Wall Street Buys Shale Equity Offering At A Record Pace, Exxon's CEO Has A Stark WarningSubmitted by Tyler Durden on 03/02/2016 13:23 -0400
Investors have pumped a whopping $9.2 billion in new equity into energy companies year to date, the most since Bloomberg records began in 1999. The euphoria won't last, and the equity issuance window is already closing: confirmation of this comes from none other than Exxon CEO Rex Tillerson who moments ago said that the "wave of oil equity issuances is destroying value", adding that "global economic conditions are not inspiring", that "demand won't solve it quickly" and that "we're still oversupplying the market."
Eric Hunsader Explains To CNBC That "Markets Are Always Rigged" And What He May Spend His $750,000 Prize OnSubmitted by Tyler Durden on 03/01/2016 22:04 -0400
Q. Just looking at the history of markets, aren't they always rigged to some degree?
A. Yes, they are always rigged.
Saudi Arabia's vast store of UST reserves fell by some $14.3 billion this month, as the kingdom struggles to support the riyal peg, fund the war in Yemen, and pay for generous governemnet subsidies.
Collin Crownover, head of currency management at State Street Global Advisors Inc., which oversees about $2.4 trillion, who during a panel presentation said that "we are concerned. During volatile periods, market participants are backing away until conditions settle down, making it harder to complete large orders."“A lot of the electronification of the market, which by and large is a good thing, has led to kill switches on a lot of that algorithmic-provided liquidity,” Crownover said. “The liquidity just dries up in a stressed market.”
A little under one year after the ECB launched its own QE of €60 Billion/month in bond purchases in early March 2015, a process which has resulted in the ECB monetizing over €670 billion in European - mostly German - sovereign paper, moments ago Eurostat reported European February inflation (even though the month is not over yet), and it was a shock, with headline inflation tumbling form +0.3% Y/Y in January to a depressing -0.2% in February, the worst print since January 2015. It was expected to drop to "only" 0.0%.
If, and when, a run on physical cash begins, there will be roughly $1 dollar in physical to satisfy $10 dollars in savers' claims, a ratio which drops to 20 cents of "deliverable" cash if the $100 bill is taken out of circulation.