- European Bond Yields Go Negative (WSJ)
- Traveler from Liberia is first Ebola patient diagnosed in U.S. (Reuters)
- Hong Kong Protesters Step up Pressure on Leung to Quit (BBG)
- JPMorgan to face U.S. class action in $10 billion MBS case (Reuters)
- Turkey mulls military action against Islamic State (Reuters)
- Singapore Home Prices Fall for Fourth Straight Quarter on Curbs (BBG)
- Italy's Economic Woes Highlight Dilemma for European Central Bank (WSJ)
- Advanced iOS virus targeting Hong Kong protestors (Reuters)
- Fed Scrutiny of Leveraged Loans Grows Along With Bubble Concern (BBG)
- Mosquito Virus That Walloped Caribbean Spreads in U.S. (BBG)
While Greek government yields (and political leaders) proclaim the troubled peripheral European nation is 'recovering', the risk of major political upheaval in Greece has not gone away ahead of next year's presidential vote next year. As Reuters notes, under growing pressure from anti-bailout leftists, Greek Prime Minister Antonis Samaras desperately needs a new narrative to get the backing of lawmakers and rally Greeks fed up with four years of austerity. We wish him luck as Keep Talking Greece notes, it is high time that the real data of the economic situation of the Greek society come to the surface and so it did this week. A report from Greece's State Budget Office found that three in every five Greeks, or some 6.3 million people, were living in poverty or under the threat of poverty in 2013 due to material deprivation and unemployment.
De-dollarization has been an ongoing theme hidden just below the surface of the mainstream media for more than a year as Russia and China slowly but surely attempt to "isolate" the US Dollar. Until very recently, direct trade agreements with China (in other words, bypassing the US Dollar exchange in bilateral trade) had been with smaller trade partners. On the heels of Western pressure, Russia and China were forced closer together and de-dollarization accelerated from Turkey to Argentina as an increasing number of countries around the world realize the importance of this chart. However, things are about to get even more dramatic. As Bloomberg reports, China will start direct trading between the yuan and the euro tomorrow as the world’s second-largest economy seeks to spur global use of its currency in a "fresh step forward in China’s yuan internationalization." With civil unrest growing on every continent and wars (proxy or other) at tipping points, perhaps, just perhaps, the US really does want rid of the weight of the USD as a reserve currency after all (as championed here by Obama's former right hand economist)... now that would be an intriguing 'strategy'.
- Mystery Man Who Moves Japanese Markets Made More Than 1 Million Trades (BBG)
- Draghi’s Trillion-Euro Pump Finds Blockage in Spain: Euro Credit (BBG)
- Apple plays defense on iPhone 6 bending, software concerns (Reuters)
- U.S. to Shield Military From High-Interest Debt (WSJ)
- U.S. Outgunned by Extremists on Social Media Battlefield (BBG)
- Yen Weakens on Pension Fund Reform; Aussie Drops to 7-Month Low (BBG)
- Secretive Russian oil giant has no fear of sanctions (Reuters)
- Ride-Sharing Services Face Legal Threat From San Francisco, Los Angeles (WSJ)
- Putin’s Sell-Treasuries-for-BRICS Bonds Plan Has Limits (BBG)
- A Month of Bombs Dropped in One Night of Strikes on Syria (BBG)
- Air strikes in Syria hit Islamic State-held areas near Turkey (Reuters)
- Pimco ETF Draws Probe by SEC (WSJ)
- Shadowy al Qaeda cell, hit by U.S. in Syria, seen as 'imminent' threat (Reuters)
- Yellen Warns on Market Calm Before ‘Considerable Time’ Up (BBG)
- Dudley Says Fed Needs U.S. Economy to Run ‘A Little Hot' (BBG)
- Websites Are Wary of Facebook Tracking Software (WSJ)
- Just a joke now: Barclays Fined Twice in One Day for Compliance Failures (BBG)
- Fired UPS worker kills two supervisors, self, in Alabama shooting (Reuters)
- U.S., backed by Arabs, launches first strikes on fighters in Syria (Reuters, BBG)
- But not all all back: Turkey Bars Kurds From Entering Syria to Fight Islamic State (BBG)
- Dollar Weakens on Airstrikes; Europe Stocks Drop (BBG)
- Ready for Rate Riot? Emerging Markets Set to Follow Fed (BBG)
- White House fence jumper had ammunition, machete in car, prosecutors say (WaPo)
- El-Erian "would have done things differently" (Reuters)
- Eurozone business growth slows in September, PMI survey finds (BBC)
- Shrinking Bond Desks Taken by Journeymen as Masters Fade (BBG)
- Manufacturing Rebound Relieves Growth Concerns in China (BBG)
- Former Trader Quits Playboy Club to Open Own Restaurant (BBG)
Oil and other commodity prices have recently been dropping. Is this good news, or bad? Many people have the impression that falling oil prices mean that the cost of production is falling, and thus that the feared "peak oil" is far in the distance. This is not the correct interpretation, especially when many types of commodities are decreasing in price at the same time. We would argue that falling commodity prices are bad news. It likely means that the debt bubble which has been holding up the world economy for a very long time – since World War II, at least – is failing to expand sufficiently. If the debt bubble collapses, we will be in huge difficulty.
- Quid pro quo Clarice: Iran seeks give and take on Islamic State militants, nuclear program (Reuters)
- Alibaba’s Banks Said to Boost IPO Size to Record $25 Billion (BBG)
- European Stocks Fall Amid China Concern as Tesco Slides (BBG)
- Tesco Suspends Executives, Probes Error That Triggers New Profit Warning (WSJ)
- Kurds say they have halted Islamic State advance on Syrian town (Reuters)
- Because luck and managing money is genetic: Financial Elite's Offspring Start Their Own Hedge Funds (WSJ)
- Islamic State Onslaught Spurs Mass Exodus of Syrian Kurds (BBG)
- Rockefellers, Heirs to an Oil Fortune, Will Divest Charity From Fossil Fuels (NYT)
Our degenerate Central Bankers have tossed up yet another asset air-ball into the debt financed Bubblenomics Millennium. The only remaining question is why?
What's up with the Troika?
- -0.07%: Germany Secures Record Low Funding Cost at Bond Auction (WSJ)
- Pentagon Sees Possible Role for U.S. Ground Forces Against Islamic State Militants (WSJ)
- China Joins ECB in Adding Stimulus as Fed Scales Back (BBG)
- Stealthy or Normal? Analysts Diverge on PBOC’s Action (BBG)
- Sony Forecasts Massive $2B Loss as Smartphones Lag (AP)
- Islamic State campaign tests Obama's commitment to Mideast allies (Reuters)
- Brent Crude Rebounds as Libya’s Sharara Oilfield Shut (BBG)
- Market calm over Scottish vote at odds with disaster warnings (Reuters)
In the past month, a group of radical Islamic extremists based in the Middle East beheaded at least 23 people and enforced a ban on Christianity by arresting a group of people for practicing the faith in a private home. No, we're not talking about ISIS. The real culprit is the Kingdom of Saudi Arabia, one of the America’s closest global allies.
We recently explained how ISIS remains so well funded but what was unclear was who exactly what purchasing their 'recently-provisioned' oil reserves? The assumption being some desperate third-world nation or some scheming offshore hedge-fund arbitrageur; however, as Sott.net reports, a senior European Union official has revealed that some EU member states have purchased oil from ISIL Takfiri militants despite their rhetoric against the group. The official declined to disclose any names but Turkey remains a front-runner (having already shunned President Obama) and potentially France (after their recent anti-Petrodollar comments).
Ukrainian President Petro Poroshenko faces rising criticism for his decision to delay implementation of part of a European Union deal to avoid threatened Russian retaliation. And this is why neither side can afford to blink, because the moment one side folds, its domestic support collapses. And blinking is precisely what Ukraine just did and with that it set in motion the events that will likely terminate prematurely the brief, irrelevant presidency of Ukraine's "Chocolate Baron" Poroshenko. It got so bad over the weekend, that former Prime Minister Yulia Tymoshenko, who was the person least actively supported by the CIA and US state department in Ukraine's less than peaceful transition in February, and thus lost a May presidential election to Mr. Poroshenko, said the delay in implementing the EU free-trade part of the pact until 2016 was "a betrayal of national interests."
Friday saw the largest demonstration in the history of Barcelona with 1.8 million people showing up, exceeding all previous records, calling for Catalan independence... and as Deutsche Bank warns "Catalonia matters!" seeing four key scenarios.