New York Stock Exchange
"I think we're at the cusp of a bear market in both stocks and bonds that will last up to thirty years. This is on a real basis, not on a nominal basis, inflation adjusted basis."
Massive capital outflows from China in an effort to preserve capital is something that we've covered extensively in the past (here and here for example). Last month, China's Ministry of Commerce (MOC) came out to do some damage control, and downplayed the extent of the activity. It also hinted that the government would "help" Chinese companies with overseas M&A in the future...
Somehow, without the American public’s awareness, the U.S. government is on the hook to two failed companies for $445.6 billion dollars. And that may be just the tip of the iceberg of this story.
There’s no respite in sight.
While the Pfizer-Allergan $160 billion merger may be the most notable casualty of the Treasury's decree, there are various other deals working on corporate inversion deals or who have carried out inversions in the past. They are shown in the list below,
As of this moment, the three main government bodies - including the People's Bank of China - that run China's economy, the financial system or regulate the market all have a direct stake in the market, literally.
- Trump knocks Rubio out of race, Republicans in turmoil (Reuters)
- Fed to Signal Worst Is Over, Hikes Coming: Decision-Day Guide (BBG)
- Four Economists See a Surprise from the Fed This Week (BBG)
- Global Stocks Muted Ahead of Fed Announcement (WSJ)
- Stop-Trump Groups Make One Last Bet on Rubio, and Lose (BBG)
- China's Li Seeks 'Win-Win' for Growth-Reform Plan Analysts Doubt (BBG)
And the CapEx hits just keep on coming. Moments ago Rex Tillerson, the CEO of world's formerly biggest by market cap company, Exxon, confirmed that the great CapEx drought of 2016 will be a definite reality, one which will subtract billions from U.S. 2016 GDP in the form of fixed investment, also known as Capital Expenditures, when it announced that it now expected full year 2016 capex to decline by 25% from 2015 to just $23 billion.
- Trump, Clinton capture key wins on Super Tuesday (Reuters)
- Hillary Clinton Triumphs in Delegate-Rich Super Tuesday States (WSJ)
- S&P 500 Futures Follow Oil Lower, Erase Gain After Super Tuesday (BBG)
- Oil below $37 as U.S. inventory rise counters output freeze plan (Reuters)
- Wall Street's big short: President Donald J. Trump (Reuters)
- Ex-Chesapeake CEO McClendon Indicted Over Lease Bid Rigging (BBG)
Congratulations To Prominent Anti-HFT Crusader Eric Hunsader For Winning $750,000 Whistleblower AwardSubmitted by Tyler Durden on 03/01/2016 09:58 -0400
We are delighted to report that after many years, Nanex has finally been vindicated, and is the first whistleblower paid under the Dodd-Drank Wall Street Reform and Consumer Protection Act of 2010 meant "to reward an independent third party for analysis of a potential securities law violation." His reward: $750,000.
"Central banks around the world, reacting to the same recessionary fears, are likely to cause long rates to sink materially lower than where we are today. I see the 10-year Treasury note falling to 1 percent, perhaps even lower, before year-end. According to technical analysis, the current target bottom for the 10-year Treasury note is 28 basis points!"
The head of one of the biggest high-frequency trading companies has warned that there are several faultlines in the structure of increasingly electronic, automated financial markets that could lead to a “catastrophe” in the long run. "We’re creeping in the right direction, but unless we proactively address these issues, sometime in the next several decades we are going to experience a catastrophe due to runaway computerised trading,” Tower Research's Mark Gorton said.
Since granting IEX exchange status would lead to an immediate market structure disruption, one which would impair such embedded HFT players as Citadel which, as we have explained previously is the NY Fed's preferred "arms length" intermediator in the market to ingite momentum at critical downward junctions, we are very skeptical that when all is said and done, the SEC will grant IEX what it wants: after all there are too many status quo revenue models at stake, not to mention a potential threat to the Fed's preferred market "intervention" pipeline.
As we said two days ago when looking at the paltry recoveries on their total debt that bankrupt energy debtors are generating in liquidation and bankruptcy asset sales, "the energy bankruptcy party is only just starting." And sure enough, overnight we learned that another company is preparing to throw in the towel following a Reuters report that SandRidge Energy - a shale oil and gas producer in the Mid-Continent region of the U.S. - is exploring debt restructuring options, "as the heavily indebted U.S. oil and gas exploration and production company struggles with the fallout from plunging energy prices."