It didn't take much to fizzle Friday's Japan NIRP-driven euphoria, when first ugly Chinese manufacturing (and service) PMI data reminded the world just what the bull in the China shop is leading to a 1.8% Shanghai drop on the first day of February. Then it was about oil once more when Goldman itself said not to expect any crude production cuts in the near future. Finally throw in some very cautious words by the sellside what Japan's act of NIRP desperation means, and it becomes clear why stocks on both sides of the pond are down, why crude is not far behind, and why gold continues to rise.
In the wake of Bill Ackman's verbal jousting with Charile Munger, WSJ has taken a look at what many consider to be the myth behind Warren Buffett's "folksy" demeanor. As it turns out, it's best to do as Buffett does, not as he says.
"I have a problem with Berkshire’s ownership of Coke,” Ackman told an audience of about 200 people. “Coca-Cola has probably done more to create obesity, diabetes on a global basis than any other company in the world. "You have some of the best marketing in the world and a lot of happy skinny people drinking it in the advertising."
- BOE Stays Cautious on Rate-Hike Timing as Inflation Outlook Cut (BBG)
- China Enters Bull Market (WSJ)
- Britain says Islamic State likely brought down Russian plane (Reuters)
- Dollar jumps as markets fix on December rate expectations (Reuters)
- Activist Investor Bill Ackman Plays Defense (WSJ)
- BOJ Survey Data Reveals Signs of Growing Inequality in Japan (BBG)
- UAW Warns of General Motors Strike If Workers Fail to Approve Contract (WSJ)
For those eager to cut to the chase and curious if overnight we have had another standard USDJPY ramp levitating US equity futures on low volume, the answer is yes. And since the USDJPY carry was patient enough, it managed to trigger the 2100 ES stops and as of this moment the futures were comfortably on the politically-correct side of 2100.
In a "difficult but necessary" decision, Kraft-Heinz will cut 2,600 jobs in the latest post-mega-merger "synergy" bloodbath. Thanks Warren.
"Three topics dominated our client discussions this week: (1) Hedge fund performance in the wake of the collapse in Valeant Pharmaceuticals (VRX) during the past five days; (2) cash return to shareholders, especially buyback activity; and (3) 3Q results."
Thanks, Uncle Warren. The Kraft-Heinz merger engineered earlier this year by everyone’s favorite folksy octogenarian billionaire along with 3G will cost some 2,500 people their jobs, as the combined entity looks to cut costs.
If yesterday it was the turn of the upside stop hunting algos to crush anyone who was even modestly bearishly positioned in what ended up being the biggest short squeeze of 2015, then today it is the downside trailing stops that are about to be taken out in what remains the most vicious rangebound market in years, in the aftermath of the Chinese currency devaluation which weakened the CNY reference rate against the USD by the most on record, in what some have said was an attempt by China to spark its flailing SDR inclusion chances, but what was really a long overdue reaction by an exporter country having pegged to the strongest currency in the world in the past year.
- July job gains may favor September interest rate rise (Reuters)
- It's all about Trump at raucous Republican debate (Reuters)
- The 5 Most Important Takeaways From the First Debate of 2016 (BBG)
- Republican presidential candidate Carly Fiorina wins the Web (Reuters)
- Hedge Fund Losses From Commodity Slump Sparking Investor Exodus (BBG)
- Winners and losers from the first Republican presidential debate (WaPo)
- Bush turns in workmanlike debate performance, but will it be enough? (Reuters)
Bill Ackman had a $1Bn shortfall to cover (allegedly) in his Pershing Square Fund.
- Trump at center stage as Republicans square off in first debate (Reuters)
- Cleveland Debate Offers GOP Hopefuls a Chance to Break Away from the Pack (WSJ)
- Bank of England Keeps Key Interest Rate at 0.5% in 8-1 Vote (BBG)
- Emerging stocks submerged, UK gears up for 'Super Thursday' (Reuters)
- No IMF decision on Greek bailout until autumn, Swedish rep tells paper (Reuters)
- Japan Heads Toward Nuclear Unknown With Post-Fukushima Restarts (BBG)
- Activist Ackman Takes $5.5 Billion Stake in Snacks Giant Mondelez (WSJ)
The lessons of ignoring history are likely to be learned once again... the hard way.
All of this babying creates incompetent, fearful adults. Our children have been enveloped in this softly padded culture of fear, and it’s creating a society of people who are fearful, out of shape, overly cautious, and painfully politically correct. They are incredibly incompetent when they go out on their own because they’ve never actually done anything on their own. Raise your hand if you survived a childhood in the 60s, 70s, and 80s that included one or more of the following, frowned-upon activities...
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 06:00 -0500
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.