"The dissenters were the ministers representing the Czech Republic, Hungary, Romania and Slovakia. Under European law, three of the countries — the Czech Republic, Romania and Slovakia — would be required to accept migrants against their will, said one European Union diplomat, who spoke on condition of anonymity shortly after the vote."
"There is a chance that the Fed, like a number of central banks in recent years, may find it impossible to escape the effective lower bound to which policy rates were cut during the dark days of the crisis some seven years ago."
- Pressure builds on Volkswagen CEO as emissions-cheating probe spreads (Reuters)
- Volkswagen Emissions Scandal Relates to 11 Million Cars (WSJ)
- Volkswagen Emissions Investigations Should Widen to Entire Auto Industry, Officials Say (WSJ)
- Germany's Bosch makes VW's U.S. diesel components (Reuters)
- Volkswagen scandal will have personnel consequences - state economy minister (Reuters)
- Glencore Falls to Record as Mining Shares Lead Stock Losses (BBG)
- Despite Slump, China’s Xi Jinping Pledges Economic Reforms (WSJ)
"Unlike his acolytes, Keynes understood the value of gold and the dangers of currency debasement ... World where currencies are backed by nothing more than a governmental promise to pay while the printing presses whirled unchecked ..."
As Benjamin Netanyahu visits Moscow to discuss the possibility that Russian arms delivered to Syria could end up being funneled to Hezbollah, the action on the ground heats up with the Russian embassy in Damscus coming under mortar fire. The Kremlin has condemned the attack as "criminal" and is now calling for "action."
- Fed is out so...BOJ brainstorms stimulus overhaul as options dwindle (Reuters)
- And... Yellen Pause Ups Pressure on Draghi as Global Pessimism Mounts (BBG)
- But... Eurozone Nears Limits of What Monetary Policy Can Do (WSJ)
- Global shares struggle on global growth concerns (Reuters)
- VW's Emissions Cheating Found by Curious Clean-Air Group (BBG)
- David Cameron allegedly fucked a dead pig's head (Mirror)
After sliding early in Sunday pre-market trade, overnight US equity futures managed to rebound on the now traditional low-volume levitation from a low of 1938 to just over 1950 at last check, ignoring the biggest single-name blowup story this morning which is the 23% collapse in Volkswagen shares, and instead have piggybacked on what we said was the last Hail Mary for the market: the hope of more QE from either the ECB or the BOJ. Tonight, it was the latter and while Japan's market are closed until Thursday for public holidays, its currency which is the world's preferred carry trade and the primary driver alongside VIX manipulation of the S&P500, has jumped from a low of just over 119 on Friday morning to a high of 120.4, pushing the entire US stock market with it.
Gold had a 3 percent weekly gain and silver had a 3.5% weekly gain. Gold ended with a gain of 0.73% on Friday while silver rose to as high as $15.43 before ending with a gain of 0.26%.
"I would not advocate that we put a Muslim in charge of this nation. I absolutely would not agree with that."
With both Russia and Iran seemingly prepared to do what's necessary to ensure Bashar al-Assad isn't toppled in Syria, John Kerry admits that the US strategy of brining about regime change in Damascus is now in serious jeopardy. Speaking from London on Saturday, Kerry attempted to hang on to the “Assad must go” narrative, but in what might fairly be described as the most conciliatory language yet, Washington’s top diplomat essentially admitted that the timetable for Assad’s exit is now completely indeterminate. Meanwhile, Moscow and Tehran are set to hash out Syria's future seemingly without any input from the Americans.
"At the start, China wasn't very confident. The worry was that there was no money for this."
Every dictator knows that a continuous state of emergency is the best means to justify tyrannical policies. The trick is to keep the fictitious emergency from breeding so much paranoia that routine activities come to a halt. Many have discovered that its best to make the threat external, intangible and ultimately, unverifiable. In Orwell's 1984 the preferred mantra was "We've always been at war with Eurasia," even though everyone knew it wasn't true. In its rate decision this week the Federal Reserve, adopted a similar approach and conjured up an external threat to maintain a policy that is becoming increasingly absurd.
For the second consecutive day, Bashar al-Assad pounded ISIS targets across Syria on Friday, serving notice that Russia's stepped up "technical" and "logistical" support may have turned the tide in the country's four-year civil war. With Moscow having called Washington's bluff, Obama instructs Defense Secretary Ashton Carter to liaise with the Russian military while in Tehran, Major General Qassem Soleimani lays bare America's ISIS strategy.
Foreign Minister Walid al-Moualem says Syria may officially request the support of Russian combat troops in the fight to take back the country, a move that would pave the way for the Kremlin to overtly declare that Russia has joined the war in support of Bashar al-Assad. Meanwhile, Israeli Prime Minister Benjamin Netanyahu will meet with Putin on Monday to discuss concerns that Russia's involvement could end up strengthening the military capabilities of Hezbollah. Lurking in the background: the man one CIA officer once called "the most powerful operative in the Middle East today"...
Well, the "most anticipated" September FOMC meeting has come and gone, and no hike yet again. After the release of the FOMC statement, SPX rallied to a high of 2020, then sold down 30 handles into the close, and another -28 handles at today's open. Why? Well maybe people have finally realized the Fed is absolutely clueless, and that they have been completely misleading.