It may not be as sexy as gold and silver, but sometimes even doctor copper needs a little squeeze and corner love as well, and according to Bloomberg, that is precisely what someone is trying to do. One company whose identity is unknown, is "hoarding as much as half the copper available in warehouses tracked by the London Metal Exchange."
Thus we are treading water for about a year at this 9.2 million barrels per day level, but that just isn`t going to cut it considering the drop in spot prices of crude oil.
Following Noble Group's downgrade to junk and "Enron moment," we thought it worth considering who is next to be junked?
The default of Sherwin Alumina, a US subsidiary of Glencore, refocused the market's attention on the one company which in September was among the hardest hit in the post-China devaluation rout, and the immediate result was that while Glencore stock plunged and is once again approaching all time lows, a more ominous development was that GLEN's CDS spiked to as much as 950 basis points, the highest since April 2009 and suggesting far more pain is in store for the commodity trading giant.
Our balance sheet - the strongest in recent history - represents a significant advantage as we continue to identify high value growth opportunities across the products and geographies we operate in. Maintaining out investment grade rating with the international rating agencies is a vital part of this strategy.
- Noble Group 2014 Annual Report, p. 27
It is not Liquidity that banks are asking but for more Collateral from Noble starting this year because they also understand that this MTM gain on commodity contracts and derivatives of Noble will unlikely be realized at more than 10% and therefore is not valid collateral for the trader’s working capital borrowing base requirements.
There is no cure for low natural gas prices like low natural gas prices.
After Tuesday’s dividend massacre, it’s plain as day that Kinder Morgan wasn’t the greatest thing since slice bread after all. That is, a “growth” business paying rich dividends out of rock solid profit margins and flourishing cash flow. In fact, it was just a momo stock on a borrowing spree.
The cries for going totally crazy are growing louder... the lunatics are running the asylum. One shouldn’t underestimate what they are capable of. The only consolation is that the day will come when the monetary cranks will be discredited again (for the umpteenth time). Thereafter it will presumably take a few decades before these ideas will rear their head again (like an especially sturdy weed, the idea that inflationism can promote prosperity seems nigh ineradicable in the long term – it always rises from the ashes again). The bad news is that many of us will probably still be around when the bill for these idiocies will be presented.
How many banks (and other companies) are doing the Enron thing? Many more than you would be led to believe, for now it's legal. Simple proof that this will end even prettier than Enron.
Moments ago VRX stock flash crashed on news CVS had just terminated Philidor from its Caremark PBM network: CVS CITES 'NONCOMPLIANCE' W/ PROVIDER PACT ON PHILIDOR; CVS MOVE BASED ON RECENT AUDITS OF PHILIDOR, DJ SAYS
If the Valeant fiasco evaporates and the company is found to have done nothing wrong, this chart will be promptly forgotten. If, however, the government decides to crackdown on Valeant, and ends up wiping out the company, the above chart will be known as nothing less than the first draft of Valeant's "Enron" orgchart.
- ECB Haunted by Paradox as Draghi Weighs Risk of QE Signaling (BBG)
- At odds with Republicans, Hillary Clinton to testify on Benghazi (Reuters)
- House tees up conservative plans to raise debt limit (Hill)
- U.S., Russia to Meet at Syria Conference to Discuss Crisis (WSJ)
- Putin Gains Record Support Among Russians Over Syria, Poll Shows (BBG)
- China Plans 2020 Deadline for Dismantling Capital Controls (BBG)
- Nyrstar Drops the Most on Record as Mining Hit by Metal Rout (BBG)
After yesterday's dramatic late day market rout catalyzed by the tumble in the biotech sector in general, and Valeant in particular, and foreseen in its entirety by Gartman who went bullish just hours before, this morning US equity futures and European stocks have recouped some losses on the recursive, and traditional, hope that Mario Draghi will say something to push risk higher when he speaks in 2 hours at the ECB's press conference in Malta. And yet, just like Yellen a month ago, Draghi faces the paradox of reflexivity that after years of being ignored, is the "new thing" in town: how does he intervene and demonstrate he is readier than ever to set up stimulus, without panicking investors over euro area’s health.
Companies used to build things. Not because they were noble, but because they had no other choice. Selling snake oil simply wasn't possible on a large scale, for a long time; in the previous economy. Now, like during the dot com boom, all you need is a phone, a website, and a power point machine. Actual sales, or an actual product, it's so 80's.