Capital Markets
Complacency Reigns At Epic Levels: "Few Are Ready For What Is Coming"
Submitted by Tyler Durden on 10/26/2015 16:40 -0500- Barack Obama
- Ben Bernanke
- Ben Bernanke
- Capital Markets
- Central Banks
- China
- Collateralized Debt Obligations
- Department of Justice
- Equity Markets
- Fail
- Fannie Mae
- Federal Reserve
- Financial Accounting Standards Board
- Freddie Mac
- Global Economy
- goldman sachs
- Goldman Sachs
- Japan
- Lehman
- Reality
- recovery
- Reserve Currency
- Securities and Exchange Commission
Accounting fraud remains at the heart of the fix instituted by Ben Bernanke and the ploy has been copied by authorities throughout the global financial system, including the central banks of China, Japan, and the European Community. That it seemed to work for the past seven years in propping up global finance has given too many people the dangerous conviction that reality is optional in economic relations. The recovery of equity markets from the disturbances of August has apparently convinced the market players that stocks are invincible. Complacency reigns at epic levels. Few are ready for what is coming.
ISIS, Al-Qaeda Contemplate Syrian Militant Merger Amid Russian Advance: Kremlin
Submitted by Tyler Durden on 10/21/2015 18:20 -0500If you’re looking to close on an M&A deal, now might be the time to do it before the cost of capital starts to rise. Sure, “liftoff” might have been delayed by a month (or 12) but you have to do your due diligence and make sure there are enough synergies to make it worth everyone’s time and effort. We suppose that helps to explain why, according to the Russian Defense Ministry, ISIS and al-Qaeda are contemplating a merger in the face of, how shall we say, “new entrants” in the race for Syrian market share.
Futures Halt Three-Day Rally, Drop On Energy Weakness, IBM Earnings
Submitted by Tyler Durden on 10/20/2015 05:55 -0500- 200 DMA
- Apple
- Bank Lending Survey
- Bank of New York
- BOE
- Canadian Dollar
- Capital Markets
- China
- Copper
- Crude
- Crude Oil
- default
- Equity Markets
- fixed
- goldman sachs
- Goldman Sachs
- Housing Market
- Housing Starts
- Iran
- Jim Reid
- Monetary Policy
- Morgan Stanley
- NAHB
- Nikkei
- NYMEX
- Porsche
- Price Action
- Private Equity
- RANSquawk
- recovery
- San Francisco Fed
- Saudi Arabia
- Shenzhen
- Stuyvesant Town
- Verizon
- Volatility
- Yuan
After yesterday's closing ramp "prudently" just ahead of an abysmal IBM earnings report with the lowest revenues since 2002, and the latest rally in capital markets which sent European stocks to their highest level since August on the back of a barrage of global bad data which has unleashed the Pavlovian liquidity dogs screaming for moar central bank bailouts, this morning has seen a modest decline in the Stoxx 600 driven by energy names, while S&P500 futures are set to open lower on IBM's disappointment at least until the latest massive BOJ USDJPY buying spree sends the pair to 120 and the S&P solidly in the green. The biggest political event overnight was the Canadian election, where Trudeau's liberals swept PM Harper from power, capping the biggest political comeback in the country's history; the Canadian dollar is largely unchanged after initially weakening then rising.
The World Hits Its Credit Limit, And The Debt Market Is Starting To Realize That
Submitted by Tyler Durden on 10/18/2015 20:36 -0500
Saudis Poke The Russian Bear, Start Oil War In Eastern Europe
Submitted by Tyler Durden on 10/18/2015 12:43 -0500"[Putin] hopes that when its ally Iran re-enters the global oil and gas market, Russia will somehow share in the profits, perhaps through new pipelines across Syria. He also wants to stop the Saudis from establishing export routes in Syria. Now that Russian energy supremacy in Europe also is at stake, Putin's determination to resolve the Syrian conflict on his terms can only grow."
Be Very Afraid: "The 3 EM Debacles" Loom, HSBC Warns
Submitted by Tyler Durden on 10/15/2015 18:40 -0500"In many ways, EM is showing similar symptoms to its DM counterparts of weak economic performance and over- reliance on credit. The outcome is what we call the three EM debacles: de-leveraging, depreciation (or devaluation even de-pegging) and downgrades of credit ratings."
Ignorance Is Not Bliss
Submitted by Tyler Durden on 10/15/2015 13:07 -0500You’re doing yourself a disservice if you don't have a basic working knowledge of what, say, a volatility surface means. We're not saying that we all have to become volatility traders to survive in the market jungle today, any more than we all have to become game theorists to avoid being the sucker at the Fed’s communication policy table. And if you want to remove yourself as much as possible from the machines, then find a niche in the public markets where dark strategies have little sway. Muni bonds, say, or MLPs. The machines will find you eventually, but for now you’re safe. But if you’re a traditional investor whose sandbox includes big markets like the S&P 500, then you’re only disadvantaging yourself by ignoring this stuff. Ignorance is not bliss...
Fitch Downgrades Brazil From BBB To BBB-, Outlook Negative - Full Text
Submitted by Tyler Durden on 10/15/2015 09:16 -0500Brazil's economic recession is likely to be deeper and longer than Fitch's earlier expectations and its performance has diverged materially from those of its rating peers. Medium-term prospects also look weak compared to peers and most other large emerging markets. Fitch forecasts that Brazil's economy will contract by 3% and 1%, respectively in 2015 and 2016 before recording modest growth in 2017, with risks skewed largely to the downside.
"There's No More Fat To Be Cut:" Desperate Oil Producers Cut Salaries To Save Mission Critical Jobs
Submitted by Tyler Durden on 10/13/2015 11:35 -0500In the face of stubbornly low crude prices, it's starting to look like the end of the road in the O&G space. As WSJ reports, all of the proverbial fat that can be trimmed has already been trimmed in terms of layoffs and capex. This means further cost savings will have to come from salary cuts because going forward, cutting jobs altogether would imperil companies’ ability to operate.
Why Oil Is Tumbling: Oil Hedges Were Just Rolled Over
Submitted by Tyler Durden on 10/12/2015 14:07 -0500Wwith oil volatility surging in recent months, oil producers needed to take advantage of a rally, technical or otherwise, and an oil vol lull to reestablish hedges, even if it meant at far lower prices than recent benchmarks. This is precisely what happened in the past week following one of the most torrid surges in the price of oil seen in recent years.
Backwards Capitalism: Unprofitable Companies Outperforming For Last 15 Years
Submitted by Tyler Durden on 10/12/2015 13:45 -0500Perhaps we've been doing it wrong all these years. Capitalism isn't about making money. It's about who can blow through money the fastest. When it comes to increasing shareholder value, there is, quite simply, no better way to do it.
Global Deflation Alert: Hidden EM Debts To China Could Be Immense
Submitted by Tyler Durden on 10/12/2015 11:45 -0500Though emerging economies’ debts seem largely moderate by historic standards, it seems likely that they are being underestimated, perhaps by a large margin. If so, the magnitude of the ongoing reversal in capital flows that emerging economies are experiencing may be larger than is generally believed – potentially large enough to trigger a crisis. In this context, keeping track of opaque and evolving financial linkages is more important than ever.
Deflation = Debt + Demographics + Disruption
Submitted by Tyler Durden on 10/12/2015 10:34 -0500The cyclical fallout from the Great Financial Crisis and the secular deflationary “D’s” of excess Debt, tech Disruption, aging Demographics have been the major catalysts for deflation.
Why Gold Is Surging: BofA Says To Expect A "Massive Policy Shift In 2016"
Submitted by Tyler Durden on 10/12/2015 07:09 -0500"The secular reality of deflation & inequality is intensified by recession & rising unemployment, investors should expect a massive policy shift in 2016. Seven years after the west went “all-in” on QE & ZIRP, the US/Japan/Europe would shift toward fiscal stimulus via government spending on infrastructure or more aggressive income redistribution. …buy TIPs, gold, commodities, Main Street not Wall Street."
Dell Buys EMC In Record $67BN Deal: Creates "World's Largest Private Integrated Tech Company"
Submitted by Tyler Durden on 10/12/2015 06:22 -0500Just when you thought the M&A boom is over after a surge in bond yields that Goldman has repeatedly dubbed as "recessionary", and which will make the debt cost of any funding so high that there is barely any room for execution error, moments ago as had been extensively leaked previously, private Dell announced it would acquire tech giant EMC in a deal valued roughly $67 billion, while maintaining VMWare as a publicly-traded corporation. Good luck with raising the tens of billions in debt the deal will require: our best wish to Barclays, BofA, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, RBC who will all be underwriting the required debt financing to Dell.


