- ECB Tells Greek Banks Not to Boost Exposure to Athens Government’s Debt (WSJ)
- Search teams probe wreckage of jet in French Alps (Reuters)
- Flight Recorders Offer Best Hope of Explaining Jet’s Fatal Drop (BBG)
- Yemen Houthi militia sweeps toward Aden in threat to president (Reuters)
- In Nigeria, Oil Price’s Slide Deters Theft (WSJ)
- Saudi Arabia building up military near Yemen border (Reuters)
- Quant Who Shook the Financial World Tries More Humble Approach (BBG)
- Executive Pensions Are Swelling at Top Companies (WSJ)
Did De-Dollarization Just Reach Escape Velocity? China's New Silk Road & Putin's Eurasian Trade NetworkSubmitted by Tyler Durden on 03/24/2015 23:00 -0400
The New Silk Road, actually roads - boosted by a special, multi-billion-dollar Silk Road Fund and the new Asian Infrastructure Investment Bank (AIIB), which, not by accident, has attracted the attention of European investors - symbolizes China’s pivot to an old heartland: Eurasia. Beijing has been quick to dismiss any notions of hegemony. It maintains this is no Marshall Plan. China, on the other hand, is focused on integrating “emerging economies” into a vast, pan-Eurasian trade/commerce network. And that, crucially, would have to include Russia, which is a vital part of the New Silk Road through an upcoming, Russia-China financed $280 billion high-speed rail upgrade of the Trans-Siberian railway. This is where the New Silk Road project and President Putin’s initial idea of a huge trade emporium from Lisbon to Vladivostok actually merge.
"I'm not sure [European QE] is going to do anything - certainly, nothing that's good. The fundamental problem here, as I see it anyway, is that the European banking system is still broken... I think, increasingly, bankers are discomforted more than anything else (it's not just the ex central bankers but increasingly the people that are still holding the levers)... they are starting to ask whether they have somehow been backed into a place where they don't really want to be.... Unfortunately, [it] is getting bigger and bigger. There is a possibility at least that this whole exercise could end very badly."
- Saudis keep on pumping, oil prices keep on slumping (Reuters)
- Tenet Healthcare Nearing Deal to Buy United Surgical Partners (WSJ)
- Dizzying Pre-IPO Tech Values Spurred by Rush of Hedge-Fund Money (BBG)
- Russia threatens to aim nuclear missiles at Denmark ships if it joins NATO shield (Reuters)
- Torrent of Cash Exits Eurozone (WSJ)
- Draghi Cheerleads for Euro-Area Economy as Greek Risk Looms (BBG)
- Fortescue Mines for More Financing Options (WSJ)
- Topix Charts Evoke Calm Before ’13 Rout as Momentum Gains (BBG)
Debt, Distraction, Currency Wars, Itchy Fingers
Investors are wary of debt from fourth largest iron ore miner as slumping demand and a supply glut crush prices.
Less than three weeks ago, when the PBOC proceeded with its latest "surprise" rate cut, we showed a chart that should scare everyone who is hoping that China will avoid a hard-landing would prefer would never have been revealed: the annual collapse in Chinese home prices is now so sharp and so widespread, that it has surpassed the housing collapse in the aftermath of the Lehman collapse." Overnight things went from bad to worse, when China's National Bureau of Statistics reported that contrary to hopes for a modest rebound, China's average new home prices fell at the fastest pace on record in February from a year earlier.
- Hilsenrath: Fed to Markets: No More Promises (WSJ)
- Fed set to ditch 'patient' rate vow as it eyes U.S., world growth (Reuters)
- Fannie, Freddie could need another bailout (Reuters)
- Alibaba Stock-Sale Lockup Is Ending (WSJ)
- Netanyahu Sweeps Aside Herzog’s Challenge to Win Israel Vote (BBG)
- Oil Bonds Lose Investors $7 Billion in 10 Days (BBG)
- There’s a mysterious $1.1 trillion in spending cuts in the House GOP’s budget (WaPo)
- ECB's Celebration of Its New $1.4 Billion Tower Is Spoiled by Protesters (BBG)
Money is getting tight in China where the PBoC finds itself stuck between easing to counter economic deceleration and exacerbating capital outflows.
unlike the late summer and early fall of 2014, when the rise in the Chinese stock market could be attributed to the PBOC's PSL "QE Lite", the relentless buying leg that started in mid-November has stunned most people, as nobody has been able to figure out just who is responsible for all this buying. Until now. According to Reuters, it is precisely China's trust firms, with total assets of $2.2 trillion, and who together with Banker Acceptances comrpise the bulk of China's shadow banking pipeline, are shifting more cash into frothy capital markets and over-the-counter (OTC) instruments instead of loans. In other words, instead of using their vast cash hoard of over $2 trillion to re-lend and stimulate China's economy, China's unregulated, shadow banking conduits are now directly buying stocks!
Why understanding of market cycles is crucial for investment success
Having recently explained why the stock market is extremely overvalued (in his own words by Fed-driven multiple expansion alone), Alan Greenspan - seemingly brimming over with the need to remedy his years of lies/mistruths with some uncomfortable truthiness - is now taking on the US Dollar ("it is not from a strong US economy but a weak rest of the world") and oil prices (America has a massive surplus of oil and there may soon be nowhere to store all of it, "we'll be lucky if we can get $40 for it.")
- Again as first reported here: Record U.S. Oil Glut May Fill Storage, Cut Prices (BBG)
- IEA sees renewed pressure on oil prices as glut worsens (Reuters)
- No EU unanimity on renewing Russia economic sanctions (Reuters)
- Tsipras says Greece doing its part in euro zone deal (Reuters)
- ECB Set to Buy Fewer Bonds as Price Gains Ease Crunch (BBG)
- These Americans Are Getting Rich Trading Derivatives Banned in the U.S. (BBG)
- U.S. 2015 profits forecast to grow 1.7 percent; oil, dollar are concerns (Reuters) - in a month this will say "decline"
- Manhunt for shooting suspects grinds on in Ferguson, Missouri (Reuters)
"Shanghai remained the top Chinese city for average monthly salary, but major cities saw their salary decline, recruitment portal Zhaopin.com said in a survey. But the average salary in Shanghai fell from last year’s 7,214 yuan in line with the 6 percent decline from a year ago to 6,518 yuan in the four largest Chinese cities, the survey showed."
Yellen has created a narrative about the US economy, especially the (un)employment rate, and with the narrative is now firmly in place, Yellen and her stooges can claim they have no choice but to hike In short, Janet Yellen will go down into history as the person responsible for what may be the biggest economic crash ever, or at least delivering the final punch of the way into it, a crash that will make the rich banks even much richer. And there is not one iota of coincidence in there. Yellen works for those banks. The Fed only ever held investors’ hands because that worked out well for Wall Street. And now that’s over. Y’all are on the same side of the same trade, and there’s no profit for Wall Street that way.