Reuters

Stunning Photos Of Record Snow Covering Upstate New York: 100 Total Inches Of Snow Expected

As previously reported, the anticipated Polar Vortex 2.0 has struck, pushing temperatures in all 50 states to below freezing, while heavy snow prompted a state of emergency in western New York and contributed to the deaths of four people. According to Reuters, it was the coldest November morning across the country since 1976, according to Weather Bell Analytics, a meteorologist consulting firm. It remains to be seen how many GDP percentage points were wiped out as a result, unless of course, this time it will be different from last winter. But it was the situation in upstate New York, especially around Bufallo and parts of Erie County, where things got most dire and where 60 inches (1.5 m) of snow accumulated, with more falling, said Steven Welch of the National Weather Service near Buffalo. It gets worse: forecasters are calling for more snow on Thursday, as much as three feet more, for a total of up to 100 inches over four days - a year's worth for the region!

Frontrunning: November 19

  • Yellen Inherits Greenspan’s Conundrum as Long Rates Sink (BBG)
  • West African Mining Projects Take Hit From Ebola Crisis (WSJ)
  • Saudi oil policy uncertainty unleashes the conspiracy theorists (Reuters)
  • Senate Rejection of Keystone XL Measure Sets Up 2015 Showdown (BBG)
  • Ferguson, Missouri, remains on edge ahead of grand jury report (Reuters)
  • Putin Said to Stun Advisers by Backing Corruption Crackdown (BBG)
  • Italian ‘Invasion’ Has Swiss Fuming as Immigration Vote Looms (BBG)
  • Apple and Others Encrypt Phones, Fueling Government Standoff (WSJ)

Keystone Pipeline Bill Fails To Pass Senate

Update: Sorry Mary, the No's just hit 41 meaning the bill failed to procure the required 60 Yes votes. Which is good news for Obama who is spared from enforcing the Veto and ruining his "compromiser" image.

Today's primetime Congressional spectacle has begun, with the Senate now voting to pass a bill to approve the Keystone Pipeline. In largely a moot vote, in which 60 Ayes are needed to pass the bill, there will certainly not be enough support for the bill to prevent an Obama veto, which he is certain to impose and reignite the animosity between the GOP and Democrats once again. Ultimately, the only outcome will be whether Mary Landrieu's political career will be terminated as a result of a failure to pass the legislation: with one vote said to make all the difference, it will be a nailbiter, if for nobody else, then for the Louisiana senator.

Goldman FX Trader Fired For Participating In Currency-Rigging Cartel Even As Goldman Avoids Any Charges

Moments ago the WSJ reported that Goldman Sachs - which managed to go unscathed in the recent currency market rigging settlement - just fired a currencies trader who "allegedly was involved with the misconduct before he joined the firm." So how is it possible that Goldman, which housed one of "The Cartel's" (or was it Bandits?) riggers, was never busted in the first place? Because apparently Goldman had no clue of his impeccable FX-rigging chat room credentials when it hired him from HSBC back in 2012, credentials which he allegedly never again used while employed by Goldman because the moment he walked through the door at 200 West, he was a changed man, doing merely god's work and nobody else's.

GoldCore's picture

“Unconventional measures might entail the purchase of a variety of assets, one of which is sovereign bonds,” the ECB president said in Brussels yesterday in answer to a question during his quarterly testimony to lawmakers at the European Parliament. Draghi and the uber doves appear determined to ignore the failure of QE in both the U.S. and Japan.

Frontrunning: November 18

  • Japan Prime Minister Shinzo Abe Calls Snap Election (WSJ) - as repeatedly priced in...
  • Flash Boys Raising Volatility in Wild New Treasury Market (BBG)
  • Not Greece again: Greek Bailout Review Stalls as Troika Demands Final Steps (BBG)
  • Iran uses China bank to transfer funds to Quds-linked companies (Reuters)
  • Porn Mags With Free Madrid Theater Tickets in Tax Protest (BBG)
  • Hong Kong, China stocks ease on profit-taking after stock connect launch (Reuters) - Hang Seng down 500 points in past 2 days
  • Halliburton Mega-Deal Sealed by CEOs Over Coke and Coffee (BBG)
  • Wall Street to Reap $316 Million From Day of Mega Deals (BBG)
  • Mass murderer Charles Manson gets marriage license, state says (Reuters)

Small Caps Slump For 3rd Day - Worst Streak Since "Bullard Lows"

Overnight weakness from Japan (NKY -3%) and USDJPY slowly leaked away as Europe was bid - bouncing higher on Draghi's SovQE "whatever it takes" comments (and multiple broken markets), but once he stopped speaking stocks faded to the lows of the day at the European Close. Once it was just the American algos playing, the S&P and Dow ripped back to green. However, Small Caps, Nasdaq and Trannies were not playing along, nor was VIX or HY Credit. The USD surged 0.45% (on EUR weakness) which stalled the bounce in commodities. Gold flatlined through the US session (-0.25%) with Silver -1% (bouncing this afternoon). Oil prices slipped 0.5% again (but above Friday's lows) at $75.50. Treasury yields rose 1-2bps on the day (but 5-6bps off the overnight lows as Europe opened) but flatlined during US session. Most notably, it seems many feel like Carl Icahn that a major correction is coming and hedging via VIX and HY credit was significant.

Frontrunning: November 17

  • Scuttled deals worth $580 billion put hedge funds on back foot (Reuters)
  • Mounting Pressure on OPEC Spurs More Wagers on Oil Rally (BBG)
  • It's not just US real estate: Chinese Students at U.S. Universities Jump 75% in Three Years (BBG)
  • Frankfurt Open for Yuan Clearing as Liquidity Rises (BBG)
  • Obama defends healthcare law after adviser criticism (Reuters)
  • Michael Hasenstab Bets Big in Controversial Places (WSJ)
  • Facebook seeks foothold in your office (FT)
  • Russia Seen as Greatest Threat in Poll as Oil Erodes Putin Power (BBG)
  • Falling Oil Prices Test OPEC Unity (WSJ)

BTFTripleD Algos Engage: Futures Rebound Following Third Japnese Recession

Perhaps the biggest shock following last night's completely expected and very predictable (previewed here over a month ago) Japanese slide into triple- (actually make that quadruple) dip recession, is that it took the BTFTripleDip recession algos as long as they did to recover most of the overnight futures losses. Because after surging to 107 on a confused short squeeze kneejerk reaction, the USDJPY subsequently tumbled 150 pips to 105.50 as rationality briefly emerged, and the market wondered for a few brief hours if rewaring the destruction of one's economy is actually a prudent thing. Then, however, when European traders started walking into work, the now default USDJPY levitation on no volume came right back, and with that the correlation algo buying of E-mini futures, no doubt helped by the Bank of Japan itself taking advantage of the CME's ES liquidity rebate program. Because without confidence as expressed by the lowest and only common denominator left - global equities - there is nothing else.

5 Things To Ponder: Market Stew

The markets have been pushing new all-time highs this past week as earnings season begins to wind down. Starting next week, much of the focus will shift back to the economy and holiday retail sales. Expectations are for a robust season but the early arrival of winter could have a more negative effect on the economy than anticipated should current weather patterns persist.