Capital Markets

Tyler Durden's picture

It’s Not The Greeks Who Failed, It’s The EU





It’s important that we all, European or not, grasp how lacking in morality the entire system prevalent in the west, including the EU, has become. This shows in East Ukraine, where sheer propaganda has shaped opinions for at least a full year now. It’s not about what is real, it’s about what ‘leaders’ would like you to think and believe. And this same immorality has conquered Greece too; there may be no guns, but there are plenty victims. The EU is a disgrace, a predatory beast unleashed upon all corners of Europe that resist central control and, well, debt slavery really, if you live on the wrong side of the tracks. SYRIZA may be the last chance Europe has to right its wrongs, before fighting in the streets becomes an everyday reality.

 
Tyler Durden's picture

Is The US Preparing To Blame The Next Market Crash On "Russian Spies" And HFT?





Spy 1: You can ask about ETF. . . . E-T-F. E, exchange.
Spy 2: Yes, got it.
Spy 1: How they are used, the mechanisms of use for destabilization of the markets.
Spy 2: Aha.
Spy 1: Then you can ask them what they think about limiting the use of trading robots. . . .

 
Tyler Durden's picture

Russia Slams S&P Downgrade For "Excessive Pessimism"





Well that didn't take long. Russian Finance Minister Siluanov has responded to S&P's "junk" downgrade of The Russian Federation:

  • *SILUANOV: S&P DOWNGRADE OF RUSSIA SHOWS 'EXCESSIVE PESSIMISM'
  • *SILUANOV: NO REASON TO EXPECT `MASS' DEBT REDEMPTION REQUESTS

Adding in his statement that he "sees no reason to dramatize" the situation, Siluanov adds that the cut should not have any serious effect on Russia's capital markets. We assume by "dramatize," he means - they wil not be 'visiting' the local ratings agencies offices for a chat anytime soon.

 
Tyler Durden's picture

S&P Cuts Russia To Junk, Ruble Plunges To 6-Week Lows - Full Text





With the Ruble having plunged 3 handles today alone, it appears perhaps more than a few could see this coming...

  • RUSSIAN FEDERATION RATINGS CUT TO JUNK BY S&P
  • RUSSIAN FEDERATION CUT TO BB+ FROM BBB- BY S&P; OUTLOOK NEG

Putting it below investment grade for the first time in a decade. Of course, this happens just 6 days after the news first leaked that S&P would pay a $1.5 billion settlement to the US DoJ over downgrading America: one wonders just what else was in the small print?

 
Tyler Durden's picture

Syriza Forms Coalition Government With Anti-Bailout Independent Greeks: What Happens Next





There was some excitement in the capital markets overnight, when what was initially seen as an outright victory for Syriza, giving it an absolute, 151-seat majority in parliament - a fear that briefly pushed the EURUSD under 1.11 when the Euro PPT stepped in - ended up being a placing just shy of a majority with 149 seats. However, that same excitement fizzled several hours ago when the "radical left" party agreed to form a government with the "rightwing" group of the Independent Greeks in the aftermath of Syriza's historic win which harnessed the public backlash against years of belt-tightening, job losses and hardship.

 
Tyler Durden's picture

"Cheerful" Dutch Financier Becomes 4th ABN Amro Banker Suicide





Following the deaths of 36 bankers last year, 2015 has got off to an inauspicious start with the reported suicide of Chris Van Eeghen - the 4th ABN Amro banker suicide in the last few years. As Quotenet reports, the death of Van Eghen  - the head of ABN's corporate finance and capital markets -"startled" friends and colleagues as the 42-year-old "had a great reputation" at work, came from an "illustrious family," and enjoyed national fame briefly as the boyfriend of a famous actress/model. As one colleague noted, "he was always cheerful, good mood, and apparently he had everything your heart desired. He never sat in the pit, never was down, so I was extremely surprised. I can not understand." Most believe that the suicide is not related to his work at the bank, but a former colleague had noticed that on his Facebook recently changed its job title to "former." Chris leaves behind a son - who had recently been cleared of cancer.

 
Tyler Durden's picture

"QE Benefits Mostly The Wealthy" JPMorgan Admits, And Lists 8 Ways ECB's QE Will Hurt Everyone Else





Over the past 48 hours, the world has been bombarded with a relentless array of soundbites, originating either at the ECB, or - inexplicably - out of Greece, the one place which has been explicitly isolated by Frankfurt, that the European Central Bank's QE will benefit everyone. Setting the record straight: it won't, and not just in our own words but those of JPM's Nikolaos Panigirtzoglou, who just said what has been painfully clear to all but the 99% ever since the start of QE, namely this: "The wealth effects that come with QE are not evenly distributing. The boost in equity and housing wealth is mostly benefiting their major owners, i.e. the wealthy." Thank you JPM. Now if only the central banks will also admit what we have been saying for 6 years, then there will be one less reason for us to continue existing. 

 
Tyler Durden's picture

America's Ultra Luxury Housing Bubble Has Burst: "Deals Have Slowed To A Trickle"





As we further showed, the bulk of foreign demand for New York's most expensive properties, originated in China, Russia and various other oligarch-controlled nations, where the impetus to launder illegally obtained hot money meant an impulse to buy US real estate sight unseen and virtually at any price. And all of it, of course, all cash. No mortgages.  That onslaught of foreign oligarch demand is ending, and with it so is the bubble that luxurious New York real estate found itself in on the back of some $12 trillion in central bank liquidity created out of thin air in the past 6 years. Business Week cites Manhattan real estate agent Lisa Gustin who listed a four-bedroom Tribeca loft for $7.45 million in October, expecting a quick sale. Instead, she cut the price this month by $550,000. “I thought for sure a foreign buyer would come in"... They didn't.

 
Bruce Krasting's picture

SNB - Post-Mortem





My conclusion is that the SNB deliberately screwed the market, and in the process shot itself in the foot for 30-50 billion dollars. What were they thinking?

 
Tyler Durden's picture

Draghi's Looming "Anti-Integration" QE: It's The Structure (Not Size) That Matters





There are more important factors than merely looking at the total size of the QE program that is apparently coming next week from the ECB. the greatest probability in my opinion, and the only way we believe Draghi can retain enough votes, is for the Council to reject risk sharing (as suggested in the Der Spiegel article). This means QE will be implemented by the National Central Banks who would be responsible for the purchasing of their own debt. We believe this structure is of critical importance, because unlike other ‘bail-out’ structures, such an action is anti-integration. It would be a step back-ward; a step away from being a union.

 
Bruce Krasting's picture

End of CB Power - SNB Folds





Anyone who continues to believes in the all powerful CB after today is a fool.

 
Tyler Durden's picture

Day After SEC Charges HFT Trader With Spoofing, Another HFT Spoofer Sends S&P Soaring





Just yesterday, the SEC charged Canadian Aleksandr Milrud with orchestrating a lucrative market manipulation scheme that relied on "layering" in which a trader places orders solely to trick others into buying or selling at artificially inflated or depressed prices... So we found it ironic that twice today, Nanex exposed examples of the "spoofing" manipulation in crude oil futures (which soared) and S&P 500 e-mini futures (which soared)... These are your "most liquid and transparent capital markets in the world."

 
Tyler Durden's picture

Wednesday Humor: Maxine Waters Takes On HFT Rigging And Broken Markets





Yesterday was a bad day for the HFT lobby, after not one but two incidents which exposed the high frequency parasites doing what they do best, and perhaps only: rigging markets.  And since it would be laughable if its wan't tragic, we decided to make it even more laughable, by noting that none other than intellectual titan in the House of Representatives, Maxine Waters, had a few choice words to say about the latest HFT rigging busts. That's right: Maxine Waters now opines on market microstructure issues.

 

 
Tyler Durden's picture

Market Wrap: Futures Rebound, Ignore Continuing Crude Crash, 10Y Under 1.9%, 30Y Near Record Low





So far today has been a replica of yesterday, with the crude rout continuing and pushing WTI under $45, but largely ignored by the FX carry pairs, and thus equity futures, which have seen some positive momentum from overnight trade data out of China where exports jumped 9.7% beating the 6% expectation, while imports fell 2.4% compared to a projected 6.2% decline as the trade surplus narrowed from November’s record $54.4 billion. For the full year, however, Chinese trade grew at just 3.4%, missing the government’s target of 7.5% growth for the third year in a row as the government quick to blame the slowing global economy. In any event, the USDJPY is well off the overnight lows which means the EuroStoxx is up some 0.8% which, just like yesterday, the E-mini is up some 9 points and rising. It remains to be seen if, just like yesterday, US equities will crash at a precipitous pace after the open, once algos realize that nothing at all has changed.

 
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