The Bank of Japan's near doubling of its purchases of Tokyo shares is causing investors to worry the central bank will dominate financial markets, which could lead to price distortions as it continues to grease the economy. It also prompted a CLSA analyst to tell the truth: "The BOJ is nationalizing the stock market."
We can pretend fundamentals don’t matter and sure in the day to day profit taking of Citadel and the like they really don’t matter. But, while the PhDs may talk big about this new world economy where a move to universal welfare means jobs and wages don’t matter - well that is nonsense. Jobs and wages matter and they will always matter.
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.
Despite Bernanke's insistence to keep his mouth shut about what transpired during his historic meeting, the answer leaked out anyway: Koichi Hamada, a close adviser of the prime minister, said Mr. Bernanke may have discussed helicopter money with Japanese officials he met with during his visit, including BOJ Gov. Haruhiko Kuroda and Ministry of Finance policy makers.
When we first heard this past Thursday that private blogger and Citadel employee Ben Bernanke was going to "secretly" meet with both the BOJ's Haruhiko Kuroda and Japan PM Abe, we warned readers that "something big was coming." Two trading days later, with the USDJPY higher by 200 pips and soaring after something big indeed came overnight from Japan: nothing less than the first "lite" instance of helicopter money .
The country’s local retirement savings managers, which manage about $300 billion, are handing over some of their cash to the National Council for Social Security Fund, which will oversee their investments in securities including equities. Why the shift? Simple: to help stabilize markets during the next rout. During last year’s tumble, policy makers armed state-run investing company China Securities Finance Corp. with more than $480 billion to try and limit declines. Now it's the pensions' turn.
Hillary Clinton's emails and server misconduct are the least of our worries. The fact that her server was receiving files that passed through or originated on the State Department servers is enough to know she exposed her private system to hackers. Michael McCaul, a Texas Congressman and Chairman of The House Committee On Homeland Security called Clinton "careless" and said she "potentially did harm" to national security, but the truth is the US system is/was/has been compromised, for years, since before Hillary tapped in her new network.
Citing a government official speaking on condition of anonymity, Reuters reports that Bernanke will be in Japan next week. It has been arranged for him to meet officials including Abe and Bank of Japan Governor Haruhiko Kuroda. "Some market players speculate Kuroda might decide, in a surprise, to provide "helicopter money."
Brazil’s troubled telephone company Oi SA on Monday filed the largest bankruptcy protection request in the country’s history just days after debt restructuring talks with creditors collapsed. The filing of Oi and six subsidiaries lists 65.4 billion reais ($19.26 billion) in debt.
Global equities rallied and the pound strengthened the most since 2008, soaring by 300 pips since the Friday close as polls signaled the campaign for the U.K to stay in the European Union was gaining momentum. Haven assets including the yen, U.S. Treasuries and gold slumped. The Stoxx Europe 600 Index surged by the most since February as the MSCI Asia Pacific Index advanced with S&P 500 futures. Haven assets including the yen, U.S. Treasuries and gold slumped.
"The Staff acknowledges that market participants using the most sophisticated technology may today encounter access delays of substantially less than one millisecond when accessing the quotes of a single exchange whose data center is co-located with their own or located nearby. However, even the most technologically advanced market participants today encounter delays in accessing protected quotations of other “away” automated trading centers that can substantially exceed one millisecond, that either are transitory or permanent."