Yuan

Scandal At China's Grand Silk Road Summit As India Skips, Warns Of "Unsustainable Debt"

It was supposed to be China's day of celebrating massive infrastructure spending for the sake of spending as Xi Jinping pledged $124 billion on Sunday for his new Silk Road plan to forge "a path of peace, inclusiveness and free trade" while calling for the abandonment of old models based on rivalry and diplomatic power games. However, it did not go quite as smoothly as expected.

The Great Shadow Unwind: Chinese Entrusted Loans Post First Decline In 10 Years

What was the most notable revelation in the overnight Chinese loan data was the "entrusted loans" category, (the broadest proxy for ‘shadow financing’) which confirmed China's recent crackdown on shadow banking, and posted the first contraction in a decade, going all the way back to 2007. 

Goldman Spots An Odd Divergence In Energy

"To put things in context, HY Energy credits have returned 2.3% year to date vs. 3.3% for the broader HY index, while Energy equities are down 9.6% vs. a positive price return of 6.8% for the S&P 500."

Frontrunning: May 12

  • World stocks ease off record highs, Fed rate hopes boost dollar (Reuters)
  • Trump Escalates FBI Fight With Comey Attack. The FBI Fights Back (BBG)
  • Trump attacks on fired FBI chief meet resistance (Reuters)
  • China Stocks Are Tumbling Again. This Time, the World Doesn’t Care (BBG)
  • Yuan Becomes Oasis of Calm in China’s Volatile Markets (WSJ)

Is A Chinese Recession Imminent? Yield Curve Inverts For First Time Ever

While China growth has been slowing, and monetary conditions tightening, few (if any) have predicted any prolonged deflation (let alone a recession), yet overnight - for the first time ever - the $1.7 trillion Chinese bond market inverted, flashing a warning signal to the world that something is wrong.

Global Markets Thrown For A Loop After Comey's Shocking Sacking

“There is no doubt that Trump is dominating proceedings this morning after the sacking of Comey. This is a political story rather than a market story, but yet again it creates uncertainty in the market, which leaves everything the president does with a cloud floating over it" said James Hughes of GKFX.

Is North Korea The Excuse China Needs To Launch Monetary Armageddon?

If the politburo decides that there is no other way (and easier timing for a scapegoat) than now as to suddenly devalue the currency and put a world of financial hurt squarely on the West (and the U.S. in-particular) while simultaneously using all the turmoil as to hasten the pace (and possibly secure the position for more SDR influence) the table for such a move has probably never been set so neatly, so perfectly, and so probable as it is today.

China Reserves Jump Most In Three Years; Hedge Fund Asks "Is This The End Of The Yuan Bear Market?"

In all the drama surrounding the French elections, few noticed the PBOC's announcement that China’s FX reserves rose for the third straight month in April, increasing by $20.45 billion to $3.03 trillion, more than the $11 billion expected and the single biggest monthly increase in three years going back to April 2014, on the back of a weaker dollar and increasingly more draconian capital controls on outflows.