Economic principles explain why the Saudis began, in late 2014, to pump crude as fast as they could – or close to as fast as possible. In fact, there is a good reason why the Saudi princes are panicked and pumping.
It is somewhat ironic, actually make that criminal, that two days after new SEC head Mary Jo White (whose conflict of interest list is so vast courtesy of her prior position as defending every Wall Street from their criminal acts she now has to recuse herself from virtually every enforcement action) solemnly promised Congress under oath that the "markets are not rigged", the SEC comes out swinging and slaps the wrist of the NYSE with an intolerable $4.5 million fine for allowing market rigging "for a period of time from 2008 to 2012."
While the news that Pfizer has been sniffing around AstraZeneca has been around for a while, it is the confirmation this morning from Pfizer that it is considering a cash and stock offer for AZN that has been the catalyst to push futures off their early trading levels, on yet another instance of the Pharma M&A bubble which we have been chronicling here in recent weeks. Needless to say, a Pfizer-AstraZeneca combination valued at roughly $100 billion would create the largest healthcare company by revenue and likely serve as the pharma bubble "peak "indicator very much like the Blackstone IPO marked the financial top in 2007.
Ever since Goldman's anti-HFT Op-Ed less than a month ago, and since the even more recent full-hearted support by Goldman of Michael Lewis' most recent entry into the anti-HFT crusade (one promoting the Goldman-supported IEX exchange), one thing has been clear: the days of market structure in its current format are numbered. This was further confirmed after Goldman exited both its legacy Spear Leeds & Kellogg designated market making post at the NYSE, and is said to be winding down its market-dominating dark pool, Sigma X. Sure enough, Post reports that just three weeks after the Gary Cohn Op-Ed, the SEC is "preparing to remove some high-frequency trading firms."
We are happy to report that this time the mainstream media is following our reports much more closely then five years ago, because overnight none other than Bloomberg came out with "High-Frequency Traders Chase Currencies as Stock Volume Recedes" in which we read, guess what, "Forget the equity market. For high-frequency traders, the place to be is foreign exchange." But our readers already knew this of course...
The stock market really was rigged... “It’s 2009,” Katsuyama says. “This had been happening to me for almost two years. There’s no way I’m the first guy to have figured this out. So what happened to everyone else?” The question seemed to answer itself: Anyone who understood the problem was making money off it...
Palladium is like the Rodney Dangerfield of precious metals. It never gets any respect. If you ask someone about precious metals, in fact, just about everyone has heard of gold and silver. And occasionally platinum. But palladium is one of those obscure precious metals that few people think about, or even know about. Palladium is widely used in a variety of industrial applications, from spark plugs to catalytic converters to hydrocarbon ‘cracking’ to electronic components. And here’s something most people don’t know: most of the world’s palladium is mined in Russia.
What would you do if the Internet or the power grid went down for over a year? Our key infrastructure, including the Internet and the power grid, is far more vulnerable than most people would dare to imagine. These days, most people simply take for granted that the lights will always be on and that the Internet will always function properly. But what if all that changed someday in the blink of an eye? According to the Federal Energy Regulatory Commission's latest report, all it would take to plunge the entire nation into darkness for more than a year would be to knock out a transformer manufacturer and just 9 of our 55,000 electrical substations on a really hot summer day. The reality of the matter is that our power grid is in desperate need of updating, and there is very little or no physical security at most of these substations.
It seems the blatant unveiling of the HFT market's Holy Grail trading - Virtu (1 loss in 1238 days) - has raised some attention as Bloomberg reports, NY AG Eric Schneiderman has opened a broad investigation into whether U.S. stock exchanges and alternative venues provide high-frequency traders with improper advantages. As one European lawmaker noted, "the area of high-frequency trading is lacking suitable regulation," and Schneiderman warned "this new breed of predatory behavior gives a small segment of the industry an enormous advantage over all other competitors."We wonder how this will affect Virtu's IPO given regulation is risk factor #1!