• Pivotfarm
    04/20/2014 - 17:08
    As the audience went from laughter to applause, Vladimir Putin responded to the question that he had just read out on a televised debate in Russia. What was the question?

United Kingdom

Tyler Durden's picture

Frontrunning: April 21





  • Putin playing the long game over Russian kin in Ukraine (Reuters)
  • U.S.-Russia Relations Come Full Circle After Ukraine (WSJ)
  • Japan PM makes offering to Yasukuni Shrine, angers China, South Korea (Reuters)
  • In Gold Miners' Talks, Scale Is Crucial: Combined Barrick-Newmont Would Be Able to Trim Costs (WSJ)
  • SEC Said to Weigh Shining Light on Brokers’ Stock Routing (BBG)... and protmply unweigh it
  • Exelon Beating Facebook in S&P 500 After Valuation Scare (BBG)
  • Court Case May Help Define 'Insider Trading' (WSJ)
  • Spanish banks face tough rivalry in small companies bet (Reuters)
 


Tyler Durden's picture

Sleepy Holiday Market Prepares For Scripted, Daily Low-Volume Levitation





It has been a largely event-free weekend except, of course, for the previously reported re-escalation in Ukraine following what was a lethal shooting in the east Ukraine city of Slavyansk blamed on Ukraine's Right Front, which has made a mockery, as expected, of the Geneva Ukraine de-escalation announcement from last Thursday. Overnight in Asia, Japan reported its largest ever trade deficit, providing yet more evidence that Abenomics has been an abysmal failure: all we are waiting for now is confirmation that basic Japanese wages have fallen yet again, which would make nearly 2 years in a row of declines. Still, the USDJPY, gamed as usual by HFT algos for which FX is now the last respite as the equity market crackdown gets louder, is doing its best to ramp from the overnight lows and ahead of the traditional US market open surge, as a result equity futures are modestly higher.

 


Marc To Market's picture

The Week Ahead





Prak central bank balance sheets are still ahead.  Interest rate increases are still several quarters out.  Austerity has peaked.  The output gap has peaked.    What does this mean in the week ahead ?  

 


Tyler Durden's picture

An Obituary For High Frequency Trading: The Adaptive Genius Of Rigged Markets





Ultimately, I think the problem for HFT liquidity providers is not that they are skinning investors, but that they are outsiders. They're doing what the keepers of the market infrastructure keys have always done - skin investors, retail and institutional alike, to the outer limits of what technology and the law allows. But while their outward behavior and appearance may be familiar, they are clearly an alien species on the inside, without so much as a microgram of Wall Street DNA. They are Rakshasa's. HFT liquidity providers are technology companies disguised as financial intermediaries. They hijacked the market infrastructure in the aftermath of the Great Recession, stealing it away from under the noses of the big financial firms who had come to see control over market structure as their birthright, and they had a good run. But now the big boys want their market infrastructure back, and they're going to get it.

 


Tyler Durden's picture

This Is Madness!





Keep interest rates at zero, whilst printing trillions of dollars, pounds and yen out of thin air, and you can make investors do some pretty extraordinary things. "Central bankers control the price of money and therefore indirectly influence every market in the world. Given this immense power, the ideal central banker would be humble, cautious and deferential to market signals. Instead, modern central bankers are both bold and arrogant in their efforts to bend markets to their will. Top-down central planning, dictating resource allocation and industrial output based on supposedly superior knowledge of needs and wants, is an impulse that has infected political players throughout history." The result was always a conspicuous and dismal failure. Today’s central planners, especially the Federal Reserve, will encounter the same failure in time. The open issues are, when and at what cost to society?

 


Tyler Durden's picture

Five Reported Killed In East Ukraine Following Ultra-nationalist Attack





And to think it was just two days ago when all the USDJPY momentum ignition algos roared to life on flashing headline news of yet another diplomatic "de-escalation" of tensions in Ukraine. What was clearly ignored is that since John Kerry was involved, it was nothing but the latest sham. And the proof came moments ago when Reuters reported, citing Russian state television on Sunday, that five people were killed when Ukraine gunmen attacked a checkpoint manned by pro-Russian separatists near the eastern Ukrainian city of Slaviansk.

 


Tyler Durden's picture

It's Time To Retire Gross Domestic Product As A Measure of Prosperity





Distilling an economy's success in delivering "prosperity" to a single number has outlived its purpose. Political authorities knew exactly what was happening: they realized that their own credibility could be boosted by a rigged GDP number. Thus we have the central government of China issuing blatantly bogus claims of 7+% annual GDP, as anything less will severely erode their claim of managerial brilliance. In our own propaganda-dependent state, GDP is almost always positive, much like corporate earnings always beat expectations by a penny. But we should be paying attention to an even deeper critique of GDP: that prosperity no longer depends of the "growth" of consumption, financialization, etc. but on the Degrowth of narcissistic consumerism and more efficient use of resources and capital.

 


Tyler Durden's picture

Everything We Are Told About Deflation Is A Lie





The conventional view of deflation is that if it sets in, “the banking industry, the financial markets, and much of the rest of the economy will be wiped out in a bottomless deflationary spiral.” But, such a spiral would not prove fatal to the lives and welfare of the general population. Rather, it would destroy “essentially those companies and industries that live a parasitical existence at the expense of the rest of the economy, and which owe their existence to our present money system.” Let us be more explicit. Severe deflation threatens at an existential level bankrupt banks and the bankrupt governments that perpetuate their existence. Deflation is a mortal enemy to the heavily indebted state and its embedded parasites, but it is a friend to the saver and to anyone with a positive net worth.

 


Pivotfarm's picture

China Wanted Capitalism But it Also Got Strikes





Peering in from the outside or through the looking glass at what’s going down on the other side is always a distortion of reality. We sit here in the west looking at the development, the changes and the progress of China and then the stark reality kicks in.

 


Tyler Durden's picture

It's Op-Ex Day, And The Buying Panic Is Late





After a solid day for risk yesterday, surging higher on a continuation of the rumor that Japan's economy will deteriorate so much the BOJ will have to print more money (even though overnight ex BOJ governor Sekido said Kuroda won't print more) we have a more cautious tone this morning heading into the Easter long weekend. A double earnings miss from Google and IBM following the US market close, comments from the Chinese Premier suggesting that the government will keep its policy settings unchanged, and a press conference from Russia’s President Putin in which the Russian president as expected, has refused to back down, has put a small dampener on sentiment today. Add the fact that due to Good Friday April equities Op-Ex will take place today and trading in the next 9 hours promises to be more unrigged than ever, especially if the NY Fed trading desk manages to slam the VIX into single-digit territory

 


GoldCore's picture

Bail-Ins Approved By EU Yesterday - Coming In UK, U.S. And Globally





“Bail-in” means that the bank’s owners - the shareholders, and creditors -  the bondholders and now even depositors, will be line to absorb losses banks will incur, before outside sources of finance may be called upon. Deposit confiscation cometh ...

 


Tyler Durden's picture

Ex-Chairman Of Insolvent UK Bank Busted For Possession Of Cocaine, Ketamine And Crystal Meth





About a month ago, English bank Co-Operative Bank plc, which in October was handed over to bondholders in order to plug a 1.5 billion pound capital shortfall and which added last month it will need to raise an additional 400 million pounds to plug another funding shortfall related to legal and restructuring costs, surprised its brand new owners with news that its full year loss would be a massive $2.2 billion. However the bank's insolvency was just the beginning, and the biggest surprise was not to be unveiled until today when UK prosecution charged Paul Flowers, the banks' former chairman from March 2010 until June 2013, and a Methodist minister, with possession of cocaine and ketamine. Oh and crystal meth.

 


Phoenix Capital Research's picture

The End Result of the Fed’s Cancerous Policies and When It Will Hit





We believe Fed’s actions would be more appropriately described as permitted cancerous beliefs to spread throughout the financial system, thereby killing Democratic Capitalism which is the basis of the capital markets.

 
 


Tyler Durden's picture

Frontrunning: April 16





  • Ukraine Says Russia Exporting ‘Terror’ Amid Eastern Push (BBG)
  • Civil War Threat in Ukraine (Reuters)
  • China Shoe Plant Strike Disrupts Output at Nike, Adidas Supplier (BBG)
  • Mt Gox to liquidate (WSJ)
  • Ex-Co-Op Bank Chairman Charged With Cocaine Possession (BBG)
  • Goldman Sachs plans to jump-start stock-trading business (WSJ)
  • Credit Suisse first-quarter profit falls as trading tumbles (Reuters)
  • U.K. Unemployment Rate Falls to Five-Year Low (BBG)
  • Lawmakers Back High-Frequency Trade Curbs in EU Markets Law (BBG)
  • Yahoo's growth anemic as turnaround chugs along (Reuters)
  • Spain ETF Grows as Rajoy Attracts Record U.S. Investments (BBG)
 


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