Standard Chartered

UK Banks Told To Model Capital Controls, Bank Runs, 20% Devaluation

"With the encouragement of regulators, some lenders, including HSBC, have even run modelling for the imposition of capital controls, according to people briefed on the exercise. Banks said regulators had demanded a stress test that modelled for a 20 per cent fall in sterling."

Nigeria Takes First Bold Step Toward Hyperinflation As Currency Plunges 30%

As we warned last week was likely, Nigeria's decision to throw in the towel on maintaining its currency peg has resulted in a collapse in the Naira. Ending a 16-month-long effort to 'fix' its currency, Nigeria's shift to a free float has resulted in a 30% crash in the currency as the central bank began auctioning dollars to try and clear backlogs of orders for hard currency. However, as the forward market suggests, the pain is far from over as the hyperinflationary endgame remains more than likely.

Daiwa: "Round Two Of China Capital Outflows Is About To Begin"

Now that all eyes have turned on China eager to find how it will react to a potential Fed rate hike in June or July, the question is whether the sharp Chinese devaluation unveiled overnight, which sent the Yuan to fresh 5 year lows, will be a one-off event, and whether the PBOC will intervene far more aggressively in the offshore CNY market to keep FX market turmoil to a minimum. According to at least one person, the answer is no.

China Hard Landing Spreads: Hong Kong GDP Tumbles At Fastest Pace Since Financial Crisis

In the latest indication of contracting global growth, overnight Hong Kong reported that its Q1 GDP fell off a cliff 0.4% qoq, widly missing estimates of 0.1% growth as retail sales plummeted and the property market continued its collapse. On a y/y basis, the economy grew only 0.8% when compared to the same period last year, less than half the 1.9% y/y growth reflected in Q4.

Regulators Want To Know What Goldman Was Doing In The Panama Papers Database

What investigators found from the recently published Panama Papers database and other leaked documents is that none other than Goldman Sachs and three other banks that are licensed by the state of New York had set up Panamanian shell companies. The other banks are BNP Paribas SA, Canadian Imperial Bank of Commerce and Standard Chartered Plc.

Futures Rebound As Crude Regains $45 On Canada Fears; Turkey Hammered

While markets remain relatively subdued ahead of tomorrow's nonfarm payrolls report, after several days of losses in US stocks which pushed the S&P500 to three week lows, overnight markets ignored the latest weak data out of China where the Caixin Services PMI was the latest indicator to disappoint (dropping from 52.2 to 51.8), and instead focused on crude, which rebounded from yesterday's post inventory-build lows and briefly printed above $45/bbl over uncertainty related to the impact of Canada wildfires on production and how long will last. The bounce in WTI has meant Brent briefly traded at parity with West Texas for the first time in 6 weeks. 

As Fed Meeting Begins Futures Are Flat In Sleepy Session; Apple Earnings On Deck

With the Fed decision just one day away, followed the very next day by the increasingly more irrational BOJ, stocks had no desire to make significant moves and overnight's boring session was the result, as European stocks and U.S. index futures rose modestly but mostly hugged the flatline while Asian declined 0.2% for a third day as raw-material shares declined and Tokyo equities slumped before central bank meetings in the U.S. and Japan this week. China’s stocks rose the most in almost two weeks, up 0.6% but failed to rise above 3000 on the Shanghai Composite, in thin trading.

China Launches Yuan Gold Fix To "Exert More Control Over Price Of Gold"

Overnight a historic event took place when China, the world's top gold consumer, launched a yuan-denominated gold benchmark on Tuesday as had been previewed here previously in what Reuters dubbed "an ambitious step to exert more control over the pricing of the metal and boost its influence in the global bullion market."

Frontrunning: April 19

  • Early Warning Signs of Recession Flash Faintly in U.S. Jobs Data (BBG)
  • Who Needs Buybacks? One S&P 500 Variant Just Rallied to a Record (BBG)
  • The unpredictable new voice of Saudi oil (FT)
  • Saudi's Other Warning Makes Oil Traders Sweat After Doha Failure (BBG)
  • U.S. oil investors rush for protection at $35 as Doha talks collapse (Reuters)
  • Trump candidacy: Where some fear to tread others see a path to victory (Reuters)