Hong Kong

Tyler Durden's picture

This Is The $3.5 Trillion "Neutron Bomb" That Keeps Kyle Bass Up At Night





"... what we are going to see next is a credit cycle, and in a credit cycle you see some losses, but if China's banking system loses 10%, you are going to see them lose $3.5 trillion."

 
Tyler Durden's picture

Gold, Bitcoin Soar After China Liquidates Most Reserves On Record To Defend Currency





As the PBOC revealed overnight, China’s foreign-exchange reserves plunged much more than forecast in December, capping the first-ever annual decline (of $513 billion) as authorities sought to prop up a weakening yuan. More importantly, the $108 billion decline from $3.438 trillion to $3.330 trillion - far greater than the $20 billion estimated - was the largest on record, and shows that while on the surface the Yuan was stable, behind the scenes the PBOC was furiously dumping securities to prevent an all out currency rout as outflows hit a record.

 
Tyler Durden's picture

Global Stocks Crash After Spiraling Chinese Devaluation Unleashes Worldwide Chaos And Selling





Once China set the Yuan fixing some 0.5% lower, the biggest drop since the August devaluation, all hell broke loose and unleashed a global selling panic after China's stock market was promptly shut down less than 30 minutes into trading, then European shares dropped the most in more than 4 months as Asian equities plunges, as did US stock futures, the dollar weakened against the euro and the yen; crude plunged to fresh 12 year lows. Gold rose.

 
Tyler Durden's picture

Options Traders See Yuan Collapse Continuing In "Dangerous Situation For Policy-Makers"





Surely, The PBOC will step in at some point and save the collapsing currency? Nope - not if options traders (and Kyle Bass) are to be believed. The odds of the yuan breaking beyond 7 to the greenback by the end of March more than doubled to 12% (from 5.8% at the start of December). Ironically, Bloomberg reports only 1 of 39 analyst predicts Yuan to trade beyond 7 by the end of 2016. The market's extremely strong conviction, and apparent PBOC loss of control is "a dangerous situation for policy-makers" according to one Asian economist.

 
Tyler Durden's picture

The Carnage Returns: Stocks Tumble After Sharp Chinese Devaluation; Brent At 2004 Lows; Gold Surges





Before we go into details of the overnight carnage, this is where we stand currently: S&P futures now down 33 points or 1.63% while 2Y Treasury rallies pushing its yield back below 1% as EU stocks extend their drop after China weakened its currency, North Korea says it tested a hydrogen bomb; Brent crude falls to lowest level since 2004.

 
Tyler Durden's picture

Hong Kong Publishers Reportedly Being Kidnapped By Chinese Authorities, Taken To Mainland





For several years now, we’ve periodically observed that China’s increasingly aggressive crackdown on dissent serves as a harbinger of far more difficult times ahead. The thinking goes that if anyone is privy to the severe fragility the country’s economic situation, it would be Chinese leadership. As such, desperate moves by Chinese leadership should foretell drastically worse economic and social conditions to come.

 
Tyler Durden's picture

The Drain Continues: U.S. Exports More Gold To Hong Kong Than It Produces





As the Federal Reserve continues to prop up the highly leveraged debt based financial industry, the flow of U.S. gold heading East picked up significantly. According to the USGS most recently released survey, Hong Kong received 56% of total U.S. gold bullion exports in September.

 
Sprott Money's picture

THE DRAIN CONTINUES: U.S. Exports More Gold To Hong Kong Than It Produces





Unfortunately, this is not a sustainable financial or economic business model for the West.

 
Tyler Durden's picture

2015 Year In Review: "Terminal Phase" Excess & Peak Cognitive Dissonance





Important pillars of the bull case evaporated throughout 2015. Global price pressures weakened, the global Credit backdrop deteriorated and the global economy decelerated. The huge bets on central bank policies left markets at high risk for abrupt reversals and trade unwinds – 2015 The Year of the Erratic Crowded Trade. Indeed, a global bear market commenced yet most remain bullish. Serious and objective analysts would view this ominously.

 
Tyler Durden's picture

Obama Folds To Iran (Again), Will Delay New Sanctions After Rouhani Threat





"If the president’s announced sanctions ultimately aren’t executed, it would demonstrate a level of fecklessness that even the president hasn’t shown before."

 
Tyler Durden's picture

What's Ahead In 2016 - Key Events Of The Next 12 Months





Elections, elections, and more elections is the 'regime change' meme for 2016 but, as Bloomberg details, the key events of the year ahead vary from a California marijuana referendum to Brazil's Olympics, and from Davos to SCOTUS. No matter what, 2016 holds a lot of opportunity for volatility, and without The Fed's safety net, who knows what that means for markets...

 
Tyler Durden's picture

Chinese Company Blames Upcoming Default On Gangsters, Mysterious Loss Of "Important Documents"





The latest Chinese company to mysteriously "misplace" its books and as a result be unable to make an upcoming bond payment is China Shanshui Cement"a former director of Shandong Shanshui, together with a group of gangsters, barged into the Headquarters by force on 27 December 2015, destroyed the properties in the offices therein and assaulted the employees of Shandong Shanshui."

 
Tyler Durden's picture

Obama To Hit New "Friend" Iran With Fresh Sanctions Over Contested Ballistic-Missile Program





On the heels of a “close call” in the Strait of Hormuz on Sunday, Washington is preparing new sanctions against a handful of companies and individuals tied to Tehran’s ballistic-missile program. "We've been looking for some time‎ at options for additional actions related to Iran's ballistic missile program based on our continued concerns about its activities,” an unnamed US official says. Iran calls the new actions "illegal."

 
Tyler Durden's picture

Global Stocks, Futures Dragged Lower By Commodities As Oil Slumps Back Under $37





With just two days left in 2015, the main driver of overnight global stocks and US equity futures remains the most familiar one of all of 2015 - crude oil, which, after its latest torrid bounce yesterday has resumed the familiar "yoyo" mode, and again stumbled dropping below $37 on yesterday's surprising API 2.9 million crude inventory build, as well several more long-term "forecasts" by OPEC members, with Kuwait now budgeting for $30 oil, while Venezuela's Maduro said the oil price fell to $28/bbl and is "headed downward." As a result U.S. futures declined and European stocks fell, extending their worst December drop since 2002 in thin volume on the last full trading day of the year.

 
Tyler Durden's picture

Asia's Largest Commodity Trader Was Just Downgraded To Junk: Collateral Calls Next?





"Moody's downgrades Noble Group to Ba1; outlook negative.... "The downgrade of Noble's ratings reflects Moody's concerns over the company's liquidity," says Joe Morrison, a Moody's Vice President and Senior Credit Officer. The Ba1 ratings also reflect low levels of profitability and consistent negative free cash flow from core operating activities, which exclude proceeds from asset sales."

 
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