What a wonderful and perfectly representative dichotomy of where monetarism stands. We have Bernanke - the former, massive practitioner of QE - telling the world how it does nothing much; while at the exact same time Draghi - the latest - tells the world its super-healing and supporting properties. What’s reconcilable about those two positions is simply asset bubbles, as they are what stand against the former and remain the only, dim hope of the latter.
OPEC has been in the line of fire from the western world in light of its stance of not reducing the production levels of its member nations (excluding Iran). Most view this as a strategy to squeeze the American shale production and other non OPEC nations. How much longer can it hold out?
- Nikkei tops 20,000, Europe hits 15-year high (Reuters)
- GE to sell real estate holdings, sets $50 billion share buyback (Reuters)
- Iran’s Middle Class Plans for Life After a Deal (BBG)
- Walgreens to Close 200 Stores as It Expands Cost Cuts (WSJ)
- Hillary Clinton expected to announce presidential run as soon as this weekend (Reuters)
- It will cost $1.5 billion to keep Deutsche Bank Libor Manipulators out of prison (USA Today)
- Police Cameras Bring Problems of Their Own (WSJ)
- Obama says concerned China bullying others in South China Sea (Reuters)
- Investors Revive Appetite for Asian Junk Bonds (WSJ)
Asia Superbubble Unstoppable: Hong Kong Up 10% In Past Week; Soaring Dollar Pushes Euro Back Under 1.06Submitted by Tyler Durden on 04/10/2015 06:53 -0400
Overnight market news was once again driven by the Asian superbubble, where as expected, the Hang Seng (+1.22%) soared once more and is now up 9.5% for the week, following news the Hong Kong Exchanges and Clearing Ltd (HKEx) expects it will "substantially increase" quotas for the stock connect program between Hong Kong and Shanghai, HKEx Chief Executive Charles Li said on Friday. The exchange could boost the current quotas, which cap how much mainland investors can buy Hong Kong stocks and vice versa under the trading link, by more than 20 or 30 percent, Li said at a media briefing in Hong Kong. Li did not give a precise date for when the quotas would be raised, but one thing is clear: everyone in China, and Hong Kong, must be all in stocks if the Chinese housing bubble can not be reflated. The Shanghai Comp closed higher by almost 2.0% following better than expected Chinese inflation data, while HK stocks continued their recent rally to closer higher by 9.5% for the week.
Spain is not the good example to contrast Greece's bad example.
The US had snow in the winter to "explain" why for the second year in a row Q1 GDP tumbled from 3% to around 0%; Europe, whose GDP unlike its market (the Stoxx 600 just hit a record high) will also miss lofty expectations for an economic recovery thanks to ECB money printing, may have a French air traffic controllers strike to blame the Q2 GDP miss for. Yesterday, the SNCTA union - France's largest - called the two-day strike in a dispute over working conditions. As BBC reports, later on Wednesday, the DGAC civil aviation authority asked airlines to halve scheduled flights on Thursday. The immediate result: hundreds of flights and thousands of passengers have been grounded.
As noted several hours ago, the main story overnight is not that Greece once again narrowly averted a Grexit when it was reported it would make its scheduled payment to the IMF today (adding that next month is a "different story") a development that was met with yet another ultimatum by its "partner", the Eurozone, but the dot com bubble deja vu-esque move in Hong Kong stocks, where the Chinese, seemingly tired of pushing up their local market into the stratosphere have turned their attention southward and are desperate to buy up every single Hong Kong stock.
A simple discussion of what the ECB is buying and some of the potential implications.
The era of infrastructure investment and multilateral banks and financial institutions controlled, in large part, by Washington - often as an aggressive strategic policy tool - has come to an end.
- Shell Will Buy BG Group for $70 Billion in Cash and Shares (BBG)
- IMF warns of long period of lower growth (FT)
- Wall Street sanguine as it heads into worst earnings season in six years (Reuters)
- Switzerland First With 10-Year Bond at Negative Yield (WSJ)
- U.S. Dot-Com Bubble Was Nothing Compared to Today’s China Prices (BBG)
- Rahm Emanuel Re-Elected as Mayor of Fiscally Ravaged Chicago (BBG)
- Oil falls on U.S. stock build, record Saudi output (Reuters)
- White South Carolina policeman charged with murdering black man (Reuters)
- German Factory Orders Drop for Second Month (BBG)
- A third of Republicans support Iran nuclear deal (Reuters)
Futures Flat On Minutes Day; Chinese Bubble Spills Into Hong Kong; Biggest Energy M&A Deal In Over A DecadeSubmitted by Tyler Durden on 04/08/2015 07:00 -0400
While US equity futures are largely unchanged, if only ahead of the now daily pre-open market-wide ramp, things in Asia have continued on their bubbly flurry, where China's Shanghai Composite briefly rose above 4000 for the first time since 2008, but it was the surge in the Hong Kong stock market that showed the Chinese bubble is finally spilling over, in the form of a blistering rally on the Hang Seng which rose nearly 4% on immense volume which at 250 billion Hong Kong dollars ($32 billion) was three times the average daily volume over the past year and nearly 20% more than the previous record volume day in October 2007, at the height of the pre-financial crisis bubble.
The only one tilting at windmills now is Washington, which is stuck between persisting on the idea that this institution is somehow lacking when it comes to Western underwriting “standards” and executing a completely humiliating mea culpa which isn’t really an option given The White House’s steadfast refusal to support the Chinese venture.
Yesterday it was only the US that got the full benefit of the market-wide stop hunt that sent the US market soaring on its biggest opening ramp in 2015 following the worst payroll data since 2013, because Europe was closed for Easter Monday. Which means today it was Europe's turn to celebrate atrocious US data (yes, yes, snow - because somehow tremendous January and February jobs data was not impacted by snow), and in the first European trading session of the week, equities have started off on the front-foot.
Presidents, Prime Ministers, Congressmen, Generals, Spooks, Soldiers and Police ADMIT to False Flag Terror
Stock-market crashes saw the light of day more and more as the world became industrialized. The 19th century saw a rapid increase in their numbers.