The main risk over the weekend was that markets, which have now dropped for three consecutive weeks the longest negative streak since January, would focus their attention on the latest batch of negative Chinese economic news released over the weekend, which missed expectations across the board, most prominently in Retail Sales and Industrial Production, and following Friday's disappointing new credit loan data, would sell off as the Chinese slowdown once again becomes a dominant concern. However, after some initial weakness, the risks were all but gone when first the USDJPY jumped on another round of deflationary Japanese economic data which led to renewed hopes of more BOJ easing and a jump in the USDJPY and thus US futures.
Never before have central bankers done so much to achieve so little... and yet they continue to propagandize more of the same...
"I think the time is right for a technology literate entrepreneur to run for president," he said. "Someone who has had to grind to achieve success and can relate as well to those that follow Bernie as those that think the system is broken and follow Trump. The issue for any such candidate is that the process is broken. It's a circus rather than a learning process for all involved."
Veritaseum Blockchain-based Bank Research Hits Another Home Run - Banco Popular Shown to be Bear Stearns Redux!Submitted by Reggie Middleton on 05/11/2016 10:16 -0400
Witness true research that reveals true facts, that unlocks true alpha, aka VALUE! Banco Popular is walking down the same path as Bear Stearns. We should know, we called out Bear in January 2008, and we called out BP months ago.
It's not just "angry blue collar white men," that are supporting Donald Trump. Having received a record number of votes in a Republican nomination campaign and winning in some of the richest and best-educated counties in the country adding to victories in his more traditional strongholds of white working-class neighborhoods, statistician Nate Silver found - after reviewing exit poll data in 23 states - that Trump voters' median household income was higher than the median in every state, sometimes by a wide margin; and that 44% of Trump voters have college undergraduate degrees, compared to 29% of US adults.
China is the latest in a growing line of “command and control” economies that have risen to prominence, captured the imagination of people who find free markets too messy for comfort, and then blown up when it turns out that dictators have no idea how to allocate capital.
- China stocks plunge again as hopes for economic recovery fade (Reuters)
- European Stock Gains Defy China Data That Hurt Metals; Oil Rises (BBG)
- Yen falls after Tokyo warning (Reuters)
- Soros Chart Signals BOJ Bond Buying Already Enough to Weaken Yen (BBG)
- Dollar Jump Catches Traders Short in One More Currency Calamity (BBG)
- Even China's Party Mouthpiece Is Warning About Debt (BBG)
On May 7th, Deutsche Wirtschafts Nachrichten, or German Economic News, headlined, "USA planen mit TTIP Frontal-Angriff auf Gerichte in Europa” or “U.S. Plans Frontal Attack on Europe’s Courts via TTIP,” and reported that, “America’s urgency to sign TTIP with Europe has solid reason: Megabanks must protect themselves from claims by European investors who allege that they were cheated during the debt crisis. … The U.S. Ambassador to Italy has now let the cat out of the bag on this — probably unintentionally.”
Zimbabwe is set to print its own version of the US dollar, as an ailing economy fuels a severe cash shortage in the southern African nation. John Mangudya, Zimbabwe’s central bank governor, said Thursday the so-called bond notes will be backed by $200 million in support from the Africa Export-Import Bank. The specially designed dollar notes will come in denominations of two, five, 10 and 20. They will also have the same value as their U.S. dollar equivalents. The bond notes are an extension of so-called bond coins of one, five, 10 and 25 cents which the central bank introduced in 2014 and are pegged to the value of the U.S. dollar.
Central bankers have the unchaperoned power to create the greatest fortunes ever known to mankind at will and to invest that money wherever they want. With trillions of dollars at their disposal and trillions more whenever they want to conjure it into existence, what is to stop them from controlling the oil market just as they have stocks and bonds?
Following this weekend's bankruptcies of Ultra Petroleum and Midstate Petroleum which added $3.1 billion to the mushrooming high-yield energy bond default volume tally, in addition to the $1.5 billion of credit facility defaults, the energy high-yield default has soared to a record 13% rate, surpassing the 9.7% mark set in 1999, according to Fitch Ratings.
After Failed Halliburton Deal, Baker Hughes Unveils "Path For The Future" Including $2.5BN Stock, Bond BuybackSubmitted by Tyler Durden on 05/02/2016 07:21 -0400
While it wasn't exactly breaking news, with consensus having long ago decided that Halliburton and Baker Hughes would ultimately call off their ill-timed $28 billion merger announced in late 2014 following recurring media leaks, overnight the two companies officially ended speculation when they announced that the contested merger would be called off, resulting in a $3.5 billion termination fee payable to Baker Hughes. And with its immediate future somewhat in limbo, moments ago Baker Hughes outlined its "path for the future."
Update: PR Governor Padilla has spoken...*PUERTO RICO GOVERNOR SAYS WON'T PAY DEBT TOMORROW, CALLS ON U.S. CONGRESS, PAUL RYAN FOR HELP, CRISIS WILL GET WORSE IF U.S. CONGRESS DOESN'T HELP
Futures are currently unchanged, but the E-mini was down as much as 12 points less than two hours earlier after the European open when this time it was up to the PBOC to intervene in global markets by pushing the Yuan higher (selling USDCNY via intermediary banks) sending global stocks sharply higher off session lows and leaving the S&P futures virtually unchanged. As Bloomberg reported, there has been increasing USD/CNY selling in afternoon session as Dollar Index edged lower. This is the PBOC entering the building and levitating stocks.