http://www.zerohedge.com/fullrss2.xml/%20http%3A/%E2%80%9Dhttps%3A/www.http%3A/howladerandco.com/%E2%80%9D en Alwaleed Bin Talal Hung Upside Down And Beaten By US Mercenaries http://www.zerohedge.com/news/2017-11-23/alwaleed-bin-talal-hung-upside-down-and-beaten-us-mercenaries <p>Crown Prince Mohammed bin Salman must be worried that some of the royals rounded up during his <strike>&ldquo;corruption crackdown&rdquo;</strike> cash grab are holding out on him. <strong>Because the Saudi prince has reportedly hired a crew of American mercenaries who haven&rsquo;t hesitated to employ an array of &ldquo;enhanced interrogation&rdquo; techniques.</strong></p> <p>As the <a href="http://www.dailymail.co.uk/news/article-5108651/American-mercenaries-torturing-Saudi-princes.html">Daily Mail</a> reports, mercenaries purportedly employed by Academi, a successor to infamous US security contractor Blackwater, have been stringing up some of MBS&rsquo;s &ldquo;guests&rdquo; at the Riyadh Ritz Carlton by their feet and savagely beating them during interrogations. The claims have spread rapidly on Arabic-language social media, and even Lebanon&rsquo;s president Michel Aoun has accused MbS of using mercenaries. <strong>Still, the Daily Mail isn&#39;t the most reputable news organization, so these reports should be taken with a grain of salt. </strong></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><u><strong>&#39;They are beating them, torturing them, slapping them, insulting them. They want to break them down,&#39; </strong></u>the source told DailyMail.com.<strong> </strong></p> <p>&nbsp;</p> <p>&#39;Blackwater&#39; has been named by DailyMail.com&#39;s source as the firm involved, and the claim of its presence in Saudi Arabia has also been made on Arabic social media, and by Lebanon&#39;s president.</p> <p>&nbsp;</p> <p>The firm&#39;s successor, Academi, strongly denies even being in Saudi Arabia and says it does not engage in torture, which it is illegal for any U.S. citizen to commit anywhere in the world.</p> </blockquote> <p>The Saudi crown prince, according to the source, <strong>has also confiscated more than $194 billion from the bank accounts and seized assets of those arrested, and could eventually end up with $800 billion in cash and assets to replenish Saudi&rsquo;s rapidly diminishing reserves. Given the febrile atmosphere in the kingdom, and the tacit support for the crackdown among Saudi citizens, who have seen their jobs and generous government subsidies cut, MbS has been able to circumvent the country&rsquo;s legal system. </strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/11/20/2017.11.23bintalal.JPG"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/11/20/2017.11.23bintalal_0.JPG" style="width: 500px; height: 194px;" /></a></p> <p><em>Alwaleed bin Talal</em></p> <p>He&rsquo;s using mercenaries because, according to the Mail, Saudi soldiers might balk at torturing powerful men like Prince Alwaleed bin Talal, whom they&rsquo;ve been saluting their entire lives. According to the Mail, <strong>Talal, who is (or was, until recently) one of the richest men in the world, has also been hung upside down and beaten. </strong></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&#39;All the guards in charge are private security because MBS (Mohammed Bin Salman) doesn&#39;t want Saudi officers there who have been saluting those detainees all their lives,&#39; said the source, who asked to remain anonymous. </strong></p> <p>&nbsp;</p> <p>&#39;Outside the hotels where they are being detained you see the armored vehicles of the Saudi special forces. But inside, it&#39;s a private security company.</p> <p>&nbsp;</p> <p>&#39;They&#39;ve transferred all the guys from Abu Dhabi. Now they are in charge of everything,&#39; said the source.</p> <p>&nbsp;</p> <p>The source said that Salman, often referred to by his initials MBS, is conducting some of the interrogations himself.</p> <p>&nbsp;</p> <p>&#39;When it&#39;s something big he asks them questions,&#39; the source said.</p> <p>&nbsp;</p> <p><strong>&#39;He speaks to them very nicely in the interrogation, and then he leaves the room, and the mercenaries go in. The prisoners are slapped, insulted, hung up, tortured.&#39;</strong></p> <p>&nbsp;</p> <p><strong>The source says the crown prince is desperate to assert his authority through fear and wants to uncover an alleged network of foreign officials who have taken bribes from Saudi princes. </strong></p> </blockquote> <p>The Daily Mail&rsquo;s account of the treatment of the Saudi royals arrested in the crackdown is much more harrowing than anything the mainstream media has published. The Mail published photos of what appear to be some of the detainees sleeping on thin mattresses in the ballroom of the Ritz-Carlton.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>Among those arrested on allegations of corruption is Prince Alwaleed Bin Talal, the Saudi King&#39;s nephew who is worth more than $17bn according to Forbes, and owns stakes in Twitter, Lyft and Citigroup.</p> <p>&nbsp;</p> <p>DailyMail.com&#39;s source claims the crown prince lulled Alwaleed into a false sense of security, inviting him to a meeting at his Al Yamamah palace, then sent officers to arrest him the night before the meeting.</p> <p>&nbsp;</p> <p>&#39;Suddenly at 2.45am all his guards were disarmed, the royal guards of MBS storm in,&#39; said the source.</p> <p>&nbsp;</p> <p><strong>&#39;He&#39;s dragged from his own bedroom in his pajamas, handcuffed, put in the back of an SUV, and interrogated like a criminal. </strong></p> <p>&nbsp;</p> <p><u><strong>&#39;They hung them upside down, just to send a message.</strong></u></p> <p>&nbsp;</p> <p>&#39;They told them that &quot;we&#39;ve made your charges public, the world knows that you&#39;ve been arrested on these charges.&#39;&quot;</p> </blockquote> <p>Of course, it&rsquo;s unlikely MbS, or the American mercenaries, will ever be prosecuted for their actions, either in Saudi Arabia or the US. It&rsquo;s rumored that MbS&rsquo;s aging father, King Salman, might soon abdicate, granting his son untrammeled power to run KSA as he sees fit.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/11/20/2017.11.23rug.JPG"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/11/20/2017.11.23rug_0.JPG" style="width: 500px; height: 234px;" /></a></p> <p>In 2008 the Boston-born son of former Liberian President Charles Taylor was found guilty by a US court of horrific torture. The jury in Miami found Charles &#39;Chuckie&#39; Taylor Jr. guilty on all eight counts brought against him, including allegations he and his cohorts tortured victims in Liberia by applying electric shocks to their genitals, burning them with hot irons and melting plastic and rubbing salt in their open wounds.<br />&nbsp;</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="805" height="312" alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017.11.23bintalal.JPG?1511446898" /> </div> </div> </div> http://www.zerohedge.com/news/2017-11-23/alwaleed-bin-talal-hung-upside-down-and-beaten-us-mercenaries#comments Abu Dhabi Al-Waleed bin Talal Chivalry Citigroup Corruption Custodian of the Two Holy Mosques House of Saud Kings of Saudi Arabia MBS Middle East Mohammad bin Salman Monarchy Salman of Saudi Arabia Saudi Arabia Saudi Arabia Twitter Twitter U.S. court Thu, 23 Nov 2017 14:41:51 +0000 Tyler Durden 607800 at http://www.zerohedge.com Don't Just Give Thanks. Pay It Forward One Act Of Kindness At A Time http://www.zerohedge.com/news/2017-11-23/dont-just-give-thanks-pay-it-forward-one-act-kindness-time <p><a href="https://rutherford.org/publications_resources/john_whiteheads_commentary/dont_just_give_thanks._pay_it_forward_one_act_of_kindness_at_a_time_short"><em>Authored by John Whitehead via The Rutherford Institute,</em></a></p> <p><em>It&rsquo;s been a hard, heart-wrenching, stomach-churning kind of year filled with violence and ill will.</em></p> <p><em>It&rsquo;s been a year of hotheads and blowhards and killing sprees and bloodshed and takedowns.</em></p> <p><em>It&rsquo;s been a year in which tyranny took a step forward and freedom got knocked down a few notches.</em></p> <p><em>It&rsquo;s been a year with an abundance of bad news and a shortage of good news.</em></p> <p><em>It&rsquo;s been a year of too much hate and too little kindness.</em></p> <p><strong>Now we find ourselves approaching that time of year when, as <a href="http://www.mountvernon.org/digital-encyclopedia/article/thanksgiving/">George Washington</a> and <a href="http://www.abrahamlincolnonline.org/lincoln/speeches/thanks.htm">Abraham Lincoln</a> proclaimed, we&rsquo;re supposed to give thanks as a nation and as individuals for our safety and our freedoms.</strong></p> <p>It&rsquo;s not an easy undertaking.</p> <p><strong><em>How do you give thanks for freedoms that are constantly being eroded? How do you express gratitude for one&rsquo;s safety when the perils posed by the American police state grow more treacherous by the day? How do you come together as a nation in thanksgiving when the powers-that-be continue to polarize and divide us into warring factions?</em></strong></p> <p>It&rsquo;s not going to happen overnight. Or with one turkey dinner. Or with one day of thanksgiving.</p> <p>Thinking good thoughts, being grateful, counting your blessings and adopting a glass-half-full mindset are fine and good, but don&rsquo;t stop there.</p> <p><strong>This world requires doers, men and women (and children) who will put those good thoughts into action.</strong></p> <p>It says a lot (and nothing good) about the state of our world and the meanness that seems to have taken center stage that we now have a day (<a href="https://www.washingtonpost.com/news/inspired-life/wp/2017/11/03/world-kindness-day-encourages-random-acts-of-kindness-tell-us-about-your-experience/">World Kindness Day</a>) devoted to making the world more collectively human in thoughts and actions. The idea for the day started after a <a href="https://www.washingtonpost.com/news/inspired-life/wp/2017/11/03/world-kindness-day-encourages-random-acts-of-kindness-tell-us-about-your-experience/">college president in Japan was mugged in a public place and nobody helped him</a>.</p> <p>Unfortunately, you hear about these kinds of incidents too often.</p> <p><strong>This is how evil prevails: when good men and women do nothing.</strong></p> <p>By doing nothing, the onlookers become as guilty as the perpetrator.</p> <p>It works the same whether you&rsquo;re talking about kids watching bullies torment a fellow student on a playground, bystanders watching someone dying on a sidewalk, or citizens remaining silent in the face of government atrocities.</p> <p>There&rsquo;s a term for this phenomenon where people stand by, watch and do nothing&mdash;even when there is no risk to their safety&mdash;while some horrific act takes place (someone is mugged or raped or bullied or left to die): it&rsquo;s called the bystander effect.</p> <p><strong>Historically, this bystander syndrome in which people remain silent and disengaged&mdash;mere onlookers&mdash;in the face of abject horrors and injustice has resulted in whole populations being conditioned to tolerate unspoken cruelty toward their fellow human beings.</strong></p> <p>So what can you do about this bystander effect?</p> <p><a href="https://www.psychologytoday.com/blog/the-time-cure/201502/the-bystander-effect">Be a hero</a>, suggests psychologist Philip Zimbardo.</p> <p>Be an individual. Listen to your inner voice. Take responsibility.</p> <p>Recognize injustice. Don&rsquo;t turn away from suffering.</p> <p>Refuse to remain silent. Take a stand. Speak up. Speak out.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&ldquo;I swore never to be silent whenever and wherever human beings endure suffering and humiliation,&rdquo; </strong><a href="https://www.nobelprize.org/nobel_prizes/peace/laureates/1986/wiesel-acceptance_en.html">stated Holocaust Elie Wiesel in his Nobel Peace Prize acceptance speech in 1986</a>.</p> <p>&nbsp;</p> <p><strong>&ldquo;We must always take sides. Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented. Sometimes we must interfere.&rdquo;</strong></p> </blockquote> <p>Unfortunately, as I make clear in my book <a href="https://www.amazon.com/Battlefield-America-War-American-People/dp/1590793099"><em>Battlefield America: The War on the American People</em></a>, too many Americans have opted to remain silent when it really matters while instead taking a stand over politics rather than human suffering.</p> <p>That needs to change.</p> <p><strong>I don&rsquo;t believe people are inherently monsters. We just need to be more conscientious and engaged and helpful.</strong></p> <p>The Good Samaritans of this world don&rsquo;t always get recognized, but they&rsquo;re out there, doing their part to push back against the darkness.</p> <p>For instance, earlier this year in Florida, a group of 80 people formed a human chain in order to rescue <a href="https://www.washingtonpost.com/news/morning-mix/wp/2017/07/11/a-riptide-swept-away-a-florida-family-then-beachgoers-formed-a-human-chain/">a family of six&mdash;four adults and two young boys&mdash;who were swept out to sea by a powerful rip current</a> in Panama City Beach. <a href="https://www.washingtonpost.com/news/morning-mix/wp/2017/07/11/a-riptide-swept-away-a-florida-family-then-beachgoers-formed-a-human-chain/">One by one, they linked hands and stretched as far as their chain would go.</a> One by one, they rescued those in trouble and pulled each other in.</p> <p>There&rsquo;s a moral here for what needs to happen in this country if we only can band together and prevail against the riptides that threaten to overwhelm us.</p> <p>Here&rsquo;s what I suggest.</p> <p>Instead of just giving thanks this holiday season with words that are too soon forgotten,<strong> why not put your gratitude into action with deeds that spread a little kindness, lighten someone&rsquo;s burden, and brighten some dark corner?</strong></p> <p>I&rsquo;m not just talking about volunteering at a soup kitchen or <a href="https://rutherford.org/donate">making a donation to a charity that does good work</a>, although those are fine things, too.</p> <p>What I&rsquo;m suggesting is something that everyone can do no matter how tight our budgets or how crowded our schedules.</p> <p><strong>Pay your blessings forward.</strong></p> <p><strong>Engage in acts of kindness. Smile more. Fight less.</strong></p> <p>Focus on the things that unite instead of that which divides. Be a hero, whether or not anyone ever notices.</p> <p><strong>Do your part to push back against the meanness of our culture with conscious compassion and humanity. <a href="http://www.nytimes.com/1991/10/15/science/happy-or-sad-a-mood-can-prove-contagious.html">Moods are contagious, the good and the bad.</a> They can be passed from person to person. So can the actions associated with those moods, the good and the bad.</strong></p> <p>Even holding the door for someone or giving up your seat on a crowded train are acts of benevolence that, magnified by other such acts, can spark a movement.</p> <p>Imagine a world in which we all lived in peace.</p> <p><strong>John Lennon tried to <a href="https://youtu.be/YkgkThdzX-8">imagine</a> such a world in which there was nothing to kill or die for, no greed or hunger. He was a beautiful dreamer whose life <a href="http://www.newsweek.com/35-years-later-john-lennon-cultural-legacy-376153">ended with an assassin&rsquo;s bullet on December 8, 1980</a>.</strong></p> <p>Still, that doesn&rsquo;t mean the dream has to die, too.</p> <p>There&rsquo;s something to be said for working to make that dream a reality. As Lennon reminded his listeners, &ldquo;War is over, if you want it.&rdquo;</p> <p><strong>The choice is ours, if we want it.</strong></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="263" height="132" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20171123_thanks.png?1511445491" /> </div> </div> </div> http://www.zerohedge.com/news/2017-11-23/dont-just-give-thanks-pay-it-forward-one-act-kindness-time#comments American police Behavior Bystander effect Crowd psychology Ethics Florida Good Samaritans Japan Kindness Meanness Psychology Reality Rutherford Institute Social phenomena Turkey Thu, 23 Nov 2017 14:15:27 +0000 Tyler Durden 607799 at http://www.zerohedge.com Michigan Township Blocks Nestle From Bottling, Reselling Its Groundwater http://www.zerohedge.com/news/2017-11-23/small-michigan-township-blocks-nestle-bottling-and-selling-its-groundwater <p>A&nbsp;small&nbsp;Michigan township is making a stand&nbsp;<a href="https://globalnews.ca/news/3866552/nestle-bid-to-pump-2-1m-litres-of-michigan-groundwater-a-day-blocked-by-municipality/">against</a>&nbsp;Nestle, temporarily blocking the company from pumping millions of gallons of groundwater for bottled water. Citizens near Evart, Michigan became outraged when&nbsp;Nestlé proposed to build even larger pipelines to increase the flow of water to its plant in Standwood. <a href="https://globalnews.ca/news/3866552/nestle-bid-to-pump-2-1m-litres-of-michigan-groundwater-a-day-blocked-by-municipality/">Global News CA </a>details the local resistance to Nestlé&rsquo;s proposed expansion to collect even more ground water:</p> <div> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div> <p>The added capacity provided by the proposed booster pump would make it possible for Nestlé to extract an estimated 1,500 litres of groundwater per minute, representing more than 4.2 million bottles of water in a 24-hour period. That&rsquo;s equal to 794 million litres of water annually. &nbsp;</p> </blockquote> </div> <p>As <a href="https://globalnews.ca/news/3866552/nestle-bid-to-pump-2-1m-litres-of-michigan-groundwater-a-day-blocked-by-municipality/">explained by Global News CA</a>, &ldquo;the company is currently limited to pumping 945 litres per minute, up significantly from its pre-2015 cap of 565 litres per minute.&rdquo;</p> <p>Nelson Switzer, Nestlé Waters&rsquo; chief sustainability officer told the Stamford Advocate,&nbsp;&ldquo;just because we&rsquo;re putting in the application for 400 [gallons] doesn&rsquo;t mean it&rsquo;s going to run at 400 gallons per minute most of the time.&nbsp; Switzer added, &ldquo;the fact is we want to make sure that we don&rsquo;t spike Evart beyond our permitted capacity.&nbsp;So having that capacity permitted is important.&rdquo;</p> <p>In the video below,&nbsp;Michigan Citizens for Water Conservation protested last Wednesday outside the Reed City courthouse against&nbsp;Nestlé. Residents of the area have had enough of the multinational corporation extracting the towns resources for less than pennies on the dollar. One of the protestors had a sign that read, &ldquo;Nestlé destroys our planet one bottle at a time.&rdquo; One report claims that waters near the Nestlé-owned pump can no longer support fish species.</p> <p><strong>A much larger issue that no-one seems to be addressing: how does a multinational corporation have virtually free access to the state&rsquo;s water supply, while citizens in Flint, Michigan face undrinkable lead water?&nbsp;</strong>The state&rsquo;s prioritization seems to be misaligned when it comes to its own taxpayers (especially when the adversary is one of the world&#39;s wealthiest multinationals).</p> <p><iframe allowfullscreen="" frameborder="0" height="281" scrolling="no" src="https://globalnews.ca/video/embed/3870219/" width="500"></iframe></p> <p>In September, <a href="http://www.zerohedge.com/news/2017-09-21/look-how-nestle-makes-billions-selling-you-groundwater-bottle">Bloomberg estimated </a>Nestlé&rsquo;s 20-year supply agreement with California&rsquo;s U.S. Forest Service pays roughly $0.000001 for the water in each bottle: a sweetheart deal considering bottled water has become the most consumed bottled beverage in North America in 2017. Last year alone, Nestlé sales of bottled water reached $7.4 billion, meanwhile the company paid very little to municipalities.</p> <p>Surprisingly, Nestlé isn&rsquo;t the only bottled water company to &quot;suck&quot; America dry. As we <a href="http://www.zerohedge.com/news/2017-09-21/look-how-nestle-makes-billions-selling-you-groundwater-bottle">noted</a>, Pepsi and Coca-Cola bottle municipal water from Detroit for their Aquafina and Dasani brands, respectively; they pay city rates, then sell the product back for a massive profit. Across the United States, fresh water aquifers are plentiful and it could explain why multinational companies are eager to start bottling.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/11/18/A004_us%20%281%29.gif"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/11/18/A004_us%20%281%29_0.gif" style="width: 500px; height: 374px;" /></a></p> <p>Meanwhile, the <a href="https://economictimes.indiatimes.com/news/politics-and-nation/only-12-chinese-have-freshwater-access-diversion-of-tibet-rivers-imminent-lobsang-sangay/articleshow/61492734.cms">Economic Times </a>reports that only 12% of 1.35 billion citizens in China have access to freshwater. Similar problems around the world exist, making access to clean water difficult to come by, and prompting Goldman to publish a report several years ago declaring fresh water as the best long-term investment over the next decade.</p> <p>But back to Nestle, <a href="https://globalnews.ca/news/3866552/nestle-bid-to-pump-2-1m-litres-of-michigan-groundwater-a-day-blocked-by-municipality/">Global News </a>provides a summary of the latest development in legal municipal battles against the Swiss good giant:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>Guelph, Ont., has been in a legal battle with Nestlé for years over the amount of groundwater the company is legally allowed to pull from the local aquifer.</p> <p>&nbsp;</p> <p>The city and local activist groups have claimed the 3.6 million litres of water Nestlé Canada is allowed to pump per day from its well in Aberfoyle, Ont., under its provincial licence is unsustainable. <strong>Activists had claimed the company had increased pumping in recent years, including during a recent summer drought. The company pays just $3.71 per million litres pumped under provincial regulations. </strong></p> <p>&nbsp;</p> <p>The Ontario government formally imposed a two-year moratorium on new or expanded bottled water companies as of Jan. 1, 2017 after thousands of people expressed support for the ban. The B.C. government instituted new bottling administration fees in 2015 after public criticism over Nestlé&rsquo;s ability to draw water from the province&rsquo;s waterways at no cost.&nbsp;</p> <p>&nbsp;</p> <p>The company can now take approximately 230 million litres of fresh water every year from an aquifer in the Fraser Valley. They pay $2.25 for every million litres. Oregon&rsquo;s governor attempted to block a water transfer deal last month that would jeopardize Nestlé&rsquo;s plan to build a $50-million bottling plant in Cascade Locks, east of Portland.</p> <p>&nbsp;</p> <p>The deal would allow Nestlé to receive 850 litres of water per minute from a local spring.</p> </blockquote> <p>The latest bottled water <a href="http://www.zerohedge.com/news/2017-08-19/colossal-fraud-against-consumers-lawsuit-accuses-poland-spring-selling-groundwater">scandal comes just a few months </a>after Poland Spring was accused of &quot;collosale fraud&quot; in Maine, after plaintiffs sued the Swiss megacorp for selling groundwater pretending it was &quot;pure spring water.&quot;</p> <p>Poland Spring is owned by Nestle.</p> <p>If this latest news is any indication, a trend is forming whereby US and Canadian municipalities are starting to fight back against large multinational companies who are attempting to suck America dry of fresh (ground)water. Whether this will send the price of bottled water even higher remains to be seen.</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="302" height="167" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/nestle%20pure%20life.jpg?1511444307" /> </div> </div> </div> http://www.zerohedge.com/news/2017-11-23/small-michigan-township-blocks-nestle-bottling-and-selling-its-groundwater#comments B+ B.C. government Bottled water California’s U.S. Forest Service China Detroit Food and drink Groundwater Ice Mountain Medical food Michigan Michigan Citizens for Water Conservation Natural resources Nestlé Ontario government Pepsi Poland Vevey Water Thu, 23 Nov 2017 13:42:23 +0000 Tyler Durden 607798 at http://www.zerohedge.com Blain: "The High-Yield Market Is Where The Bond Supernova Will Erupt" http://www.zerohedge.com/news/2017-11-23/blain-high-yield-market-where-bond-supernova-going-erupt <p><em>Blain's Morning Porridge, submitted by Bill Blain of Mint Partners</em></p> <p>It’s a US holiday and markets will be thin through today. To show my solidarity with our American cousins, I’m off for a proper lunch with clients in the West End and Malbec rules* will probably apply. </p> <p><strong>What happened in China this morning</strong>? Stocks down sharply (the steepest decline this year), on the back of rising inflation worries. Dong! – that strikes a chord. It seems yesterday’s Porridge – <a href="http://www.zerohedge.com/news/2017-11-22/blain-stop-worrying-about-yield-curve-something-much-worse-around-corner">dealing with the threat of an inflation shock </a>– was perfectly timed. <strong>Suddenly everyone is waking up to the I-threat.&nbsp; </strong></p> <p><strong>China is in sharp focus – bond yields keep climbing despite the PBOC injecting liquidity</strong>. My colleague Ara Levonian downstairs on the BGC floor points out <strong>we’ve got over $1 trillion of Chinese corporate debt coming up for refinancing next year. </strong>Put all the clues together: an inflationary environment, supply-side policies driving up wages and inflation, rising rates, and a large number of highly geared companies facing rate risk? </p> <p>Do you think it might end up messy? (Messy? Yes, but terminal probably not.. the Chinese can press the money spigot again and again.)</p> <p>And how different is the US? <strong>That’s why I’m watching the high-yield market – that’s where the bond supernova is going to erupt. Just like the next Icelandic volcano we can feel the high-yield market spluttering beneath our feet as an ominous cloud of steam rises above the glacier</strong>…. </p> <p><strong>I wonder if I should send the Fed a “No-S*it Sherlock” award for pointing out in the FOMC minutes that signals confirmed a “potential build-up of financial imbalances”</strong>. A December hike is pretty much nailed on. </p> <p>On the inflation theme, I got an absolutely classic email y’day from a reader whom I don’t actually know, but had picked up my comments on some financial wire. Thank’s Geoff! His thesis is the global authorities have been spinning us a line when it comes to inflation – pointing out in 1971 it would have taken a low wage worker 2 hours and 10 mins to afford a ticket to the then new Disneyland. Disney prices have experienced 8% y-o-y inflation since the park opened. The same ticket will now require 7 hours and 20 mins work – and they are still playing that damn tune. (The lyrics would almost be profound if the tune wasn’t so inane!) </p> <p>Geoff went on to point out: “<strong>The Indians shamefacedly admit their inflation is 9-13% - they are the only honest country on the planet!”</strong></p> <p><em>Meanwhile, in a galaxy far far away…</em></p> <p>The big talking point on the UK budget was housing – and the laudable efforts of the government to try to solve the housing problem. There are actually a whole series of problems including supply and affordability. </p> <p>I suspect cutting stamp duty to help first time buyers will simply drive up prices in the starter home sector. And £300k is still a hell-of-an-ask for millennials looking to get on the housing ladder. Unless Daddy is very successful banker or you just inherited some dosh – where is average millennial going to find a £60k deposit? </p> <p>Alongside the “Help to Buy” schemes, is it time to tweak property lending rules at the banks perhaps? Some of the decision making in property lending defies belief. I have a chum who has been paying her mortgage off without any stress after she and her partner split a few years back. After completing all the legals and getting everything signed, she’s gone to her bank to put the mortgage in her sole name. The bank told her she had to remortgage –so she applied and guess what – despite having no arrears and a good credit score, the bank have turned her down. What is she now supposed to do? It’s just stoopid. </p> <p>We speak to a large number of property professionals. Knight Frank is part of our parent company group. Developers, specialised commercial and resi lenders, real money property teams, housing associations and builders are all on our regular call list. The real issue most of them reference when discussing the UK housing market and the dearth of new builds are the blockages in the system – especially the planning process. </p> <p><strong>Every single professional I’ve spoken to in the UK housing sector complains about the planning process – not necessarily that it’s too restrictive, but that it’s just too damn slow and not-fit-for-purpose. </strong></p> <p>I’ve some experience in this – we submitted plans to our council for pre-planning advice three months ago, and our architect got told this week the team still hadn’t had time to consider them. We’re hoping to develop our home because the stamp duty we’d have to pay to buy a step-up property is just stupid money! </p> <p>No comment tomorrow – I’m speaking at a breakfast organised by Heriot-Watt University – which spent the early 80’s attempting to educate me. I’m looking forward to it immensely. I shall be reminding the audience of the very first thing Professor Keith Lumsden said at my very first economics lecture in 1980<strong>: “Economics is the study of horror comics, switchblade knives and pornographic literature.”&nbsp; </strong>Dang, but he was right! </p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="1920" height="1080" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/supernovca.jpg?1511442440" /> </div> </div> </div> http://www.zerohedge.com/news/2017-11-23/blain-high-yield-market-where-bond-supernova-going-erupt#comments Affordability of housing in the United Kingdom Asset price inflation Bond China Economy fed Heriot-Watt University Housing Market Inflation Loans Macroeconomics Money Mortgage loan People's Bank of China US Federal Reserve Thu, 23 Nov 2017 13:07:43 +0000 Tyler Durden 607796 at http://www.zerohedge.com Brexit Budget – Grim Outlook As UK Economy Downgraded http://www.zerohedge.com/news/2017-11-23/brexit-budget-%E2%80%93-grim-outlook-uk-economy-downgraded <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.goldcore.com/us/gold-blog/brexit-budget-grim-outlook-uk-economy-downgraded/">Brexit budget - Grim outlook as UK economic forecasts downgrade</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>- UK Chancellor uses housing market policy as smoke-screen for deteriorating economy<br />- UK budget matters more than ever&nbsp;due to BREXIT risks</strong><br /><strong>- Policy on stamp duty will fail to aid worsening housing market</strong><br /><strong>- Real GDP expected to grow by just 1.5%, 40% less than projections 2 years ago</strong><br /><strong>- Households now face an unprecedented 17 years of stagnation in earnings</strong><br /><strong>- Critics&nbsp;claim Budget failed to calm Brexit uncertainty<br />- UK and especially London property market at "breaking point"</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Editor: Mark O'Byrne</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><img src="https://www.ft.com/__origami/service/image/v2/images/raw/http%3A%2F%2Fcom.ft.imagepublish.prod.s3.amazonaws.com%2F94a5f948-cfc0-11e7-9dbb-291a884dd8c6?source=next&amp;quality=highest&amp;width=700" alt="Martin Wolf Budget chart" width="700" height="512" style="height: auto; max-width: 100%; display: block; margin-left: auto; margin-right: auto;" class="aligncenter" /></p> <div class="n-layout" style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"> <div class="n-layout__row n-layout__row--content"> <div class="article__content n-content-body p402_premium"> <div class="n-content-layout" style="text-align: center;"><strong>Source:&nbsp;<a href="https://www.ft.com/content/909148a8-cdf9-11e7-b781-794ce08b24dc" target="_blank">FT</a></strong> <p>&nbsp;</p> <p style="text-align: left;">Yesterday UK Chancellor Philip Hammond's long-awaited Autumn Budget was delivered to the Houses of Parliament. He was praised for a 'good budget in political terms' and for talking up the&nbsp;UK economy, telling his contemporaries that that it is “confounding those who talk it down” and that “those who underestimated the UK, do so at their peril”.</p> </div> </div> </div> </div> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Hammond's comments suggest the economy is doing better than its critics said it&nbsp;is. This isn't the case. The Office of Budget Responsibility (OBR) delivered some depressing statistics yesterday which suggest the recovery post-crisis and post-referendum is still a long way off.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Hammond was praised for his 'cheery' budget. His head had been very close to the block ahead of yesterday with many criticising his negative views on Brexit negotiations and general lack of optimism.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">In reality this really was a political budget. One designed for some quick-wins and support from the House and the media. It was hardly economic. Brexit was barely addressed, economic growth was referred to as 'stubborn' and the housing market was treated with a patronising cut in stamp duty. A band-aid on a haemorrhaging artery.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Is the UK economy proving its critics wrong?</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">The government statistics agency cut the UK's projected growth forecast for 2017 from 2% to 1.5%. The OBR&nbsp;believes&nbsp;the economy can&nbsp;only now grow sustainably at a rate of 1.5 per cent, 40 per cent lower than it estimated as recently as two years ago.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><a href="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/11/Snip20171123_3.png"><img src="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/11/Snip20171123_3-1024x663.png" width="1024" height="663" style="height: auto; max-width: 100%; display: block; margin-left: auto; margin-right: auto;" class="aligncenter size-large wp-image-12482" /></a></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">On an international level we are expected to fall down the leaderboard of G7 countries in 2017 and into 2018. Just last year we were second only to Germany in terms of growth. Data from both the OBR and the IMF suggest lower forecasts for the UK's GDP and output.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">This does not bode well for workers who have not only failed to see their wage levels increase for nearly a decade but are also worried about the impact of Brexit.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">&nbsp;</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><a href="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/11/Snip20171123_5.png"><img src="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/11/Snip20171123_5-1024x741.png" width="1024" height="741" style="height: auto; max-width: 100%; display: block; margin-left: auto; margin-right: auto;" class="aligncenter size-large wp-image-12486" /></a></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">&nbsp;</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Brexit boost?</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Hammond was praised for drawing attention away from the ongoing Brexit-saga. He mentioned the allocation of a further £3bn to help any outcome of the talks. For London May Sadiq Khan this was not enough:</p> <blockquote style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><p><em>"At a time when there’s uncertainty, at a time where we are being told by the EU we’re going down the road of an extreme, hard Brexit because of the response of this Government, businesses will think ‘you know what? We’re far better going off to Frankfurt, or going to Berlin, or going to Paris.</em></p> <p><em>"This is not me talking down London, it’s me being frustrated by this budget today. This, I think, is the most anti-London budget for a generation.</em></p> <p><em>"...At a time when businesses are frustrated by the lack of Londoners with the skills for the jobs of tomorrow, no rule news in relation to investing in young Londoners.</em></p> <p><em>"This was a chance for the Chancellor to have a big, bolder budget. He’s blown it."</em></p> </blockquote> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Khan's right. Businesses will be looking at yesterday's budget feeling as much in the dark as they were beforehand. There has been little guidance as to how the UK will work to make the capital city attractive post-Brexit and the incentives there will be to keep people employed here.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">It isn't just infuriating from a business perspective, but also for the London housing market which is nearly impossible for new entrants to join.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><em>"At a time when Londoners can’t afford to rent in London, let alone buy, no new rule news in relation to building affordable homes in London."</em></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Hammond couldn't even figure out that this wasn't an area that could be a quick policy announcement.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>The smoke-screen of stamp duty&nbsp;</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">The media jumped on&nbsp;Hammond's pièce de résistance - removal of stamp duty for first time buyers. Which in reality is just a massive smokescreen designed to make us believe there is hope for the UK economy and housing market.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">The main headline-grabbing announcement from Hammond in his Brexit budget was the removal of stamp-duty for first-time buyers purchasing houses under £300k.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">This is unlikely to make any difference to either first-time buyers or the overall property market.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">As the OBR concluded from the Chancellor's announcement,&nbsp;the tax break was likely to push property prices up by about 0.3%, with most of the increase coming in 2018.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">“The main gainers from the policy,” said the forecasting group, “are people who already own property, not the FTBs [first-time buyers] themselves.”</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">It explained that whilst some potential FTBs, with smaller deposits, would now be able to borrow a little more “allowing them to buy properties that they otherwise could not afford" this would now be "more expensive”.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">So who is helping who out here, Chancellor? Is the government yet again encouraging citizens to go up and buy things they can't afford, thus pushing themselves further into debt?</p> <blockquote style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><p><em>“I welcome the chancellor’s announcement of £15bn of new support for housing but it doesn’t reflect the government’s ambition to solve the housing crisis and, crucially, it’s unclear about how it will help ordinary people to find a truly affordable home,” Lord Kerslake.</em></p> </blockquote> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">The fact is people cannot afford to buy houses right how, not because of stamp duty but because house prices are far beyond the reach of those who have not seen wages and therefore their savings increase in nearly ten years. This is not set to change.&nbsp;Households now face an unprecedented 17 years of stagnation in earnings.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><a href="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/11/Snip20171123_6.png"><img src="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/11/Snip20171123_6-1024x710.png" width="1024" height="710" style="height: auto; max-width: 100%; display: block; margin-left: auto; margin-right: auto;" class="aligncenter size-large wp-image-12485" /></a></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>A misunderstood market used as a political puppet</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">The barrier to entry for first-time buyers is not the prospect of a few thousand pounds extra in tax. It is the near impossibleness of being able to save enough for the initial deposit. This is the main barrier as found in a recent Halifax bank survey. For those who can manage a deposit, that small amount of tax wasn't particularly prohibitive to them in the first place.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">The government seems to be on yet another false-path to trying to&nbsp;prop up the ailing&nbsp;housing market, strong in the belief that it is the elixir of life for the UK economy. Why the constant encouragement to get on a housing ladder that is neither affordable, nor stable?</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">How can a housing market solve all of the problems when the demand side just cannot afford to get involved? The new figures from the OBR suggest that&nbsp;the downward revisions mean pay will not reach its 2008 level until the mid 2020s.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">So with rising inflation, plus expected rising interest rates and now further stagnation in wages it's not looking as though Hammond's solution is going to do much at all.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">The housing market is long past a quick fix in the Autumn budget. A recent Halifax bank survey&nbsp;recorded the weakest reading for consumer expectations since October 2012. The bank told the Guardian:</p> <blockquote style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><p><em>"Housing market optimism has declined significantly over the past year, with almost half of people expecting a general slowdown in the market.”</em></p> </blockquote> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">This is what terrifies Hammond and the UK government. &nbsp;A housing market is seen as a measure for the health of an economy. With growth and productivity 'stubbornly' refusing to budge, the Chancellor has had to turn his attention to an area he can have a slightly more direct impact on - the housing market.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">However there is little evidence that such policies play out well in the long-term. For decades the UK government has worked to try bubble up the UK housing market. It has arguably worked very well. But a financial crisis, wage stagflation and stealth inflation means that it is at breaking point.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">This was being seen even before the UK voted for the biggest economic upset (Brexit) seen in modern history.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>A depressing yet timely reminder</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Yesterday's Brexit budget was a depressing yet timely reminder of the way politicians can manipulate economies and policies to suit their targets and save their jobs.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">It was a reminder for savers &nbsp;and investors everywhere, not just in the UK.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Hammond's distraction technique using the stamp-duty announcement, as well as the allocation of funds to Brexit, may have worked for the mainstream media but anyone hoping to protect the value of their portfolios should stay alert.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">As we explained recently:</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><em>The government needs to stop being so irresponsible and no longer constantly peddle arguments for home ownership. However it is&nbsp;difficult politically to sell that story. Especially when all parties have realised the youth vote has major housing concerns and believes they have the right to own property.</em></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">For those who are not susceptible to the war-cry to the youth vote they would be wise to remember that there are other real assets out there, ones that cannot be manipulated by policy announcements and are less vulnerable to the machinations of career politicians.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Physical gold coins and bars are like housing. If owned as a diversification, in the safest ways, precious metals are tangible, safe stores of&nbsp;value.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">However, they do not come with&nbsp;a massive debt burden, owners do not have to live in fear of rising interest rates and unprecedented uncertainties in both political and economic spheres as we alluded to yesterday.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Related reading</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.goldcore.com/uk/gold-blog/political-uncertainty-hit-housing-market/" rel="bookmark">Political uncertainty to hit housing market</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.goldcore.com/uk/gold-blog/london-house-prices-falling-time-buckle/" rel="bookmark">London House Prices Are Falling – Time to Buckle Up</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.goldcore.com/uk/gold-blog/surging-uk-household-debt-will-cause-next-crisis/" rel="bookmark">Why Surging UK Household Debt Will Cause The Next Crisis</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>News and&nbsp;Commentary</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="https://www.cnbc.com/2017/11/22/gold-markets-weigh-fed-inflation-concerns.html">Gold prices dip on profit-taking amid Fed inflation concerns (CNBC.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="https://www.marketwatch.com/story/gold-finds-small-boost-on-weaker-dollar-ahead-of-fed-minutes-2017-11-22">Gold gets a boost from weaker dollar, holds gains after Fed minutes (MarketWatch.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="https://www.bloomberg.com/news/articles/2017-11-22/fed-signals-december-hike-even-as-debate-on-inflation-persists">Fed Signals December Hike Even as Debate on Prices Persists (Bloomberg.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="https://www.reuters.com/article/us-usa-economy-durable-goods/u-s-core-capital-goods-orders-drop-business-spending-strong-idUSKBN1DM1NX">U.S. core capital goods orders drop; business spending strong (Reuters.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="https://www.bloomberg.com/news/articles/2017-11-22/gold-fund-joins-bitcoin-frenzy-as-bulls-see-prices-at-10-000">This Gold Fund Is Joining the Bitcoin Frenzy (Bloomberg.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><a href="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/11/gold-whipsawed-trading-volume-spiked.png"><img src="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2017/11/gold-whipsawed-trading-volume-spiked.png" style="height: auto; max-width: 100%;" /><br /></a>Source: GoldSeek</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://news.goldseek.com/GoldSeek/1511188994.php">SWOT Analysis: Gold Bounced Back After Attempts to Knock Down Price (GoldSeek.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://davidstockmanscontracorner.com/fiscal-sundown-in-america-part-1/">Fiscal Sundown In America, Part 1 (DavidStockMansContraCorner.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://stansberrychurchouse.com/education/investment-education/off-radar-technology-will-change-everything/?utm_medium=push_notification&amp;utm_source=rss&amp;utm_campaign=rss_pushcrew">This off-your-radar technology will change everything (StansBerryChurcHouse.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.scmp.com/business/article/2120938/how-are-asset-prices-so-high-amid-spiralling-us-debt-fed-recession-warnings">How are asset prices so high amid spiralling US debt, Fed recession warnings? (SCMP.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://money.cnn.com/2017/11/21/investing/banks-too-big-to-fail-jpmorgan-bank-of-america/index.html">Too-big-to-fail banks keep getting bigger (CNN.com)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Gold Prices (LBMA AM)</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">23 Nov: USD 1,290.15, GBP 969.93 &amp; EUR 1,089.40 per ounce<br />22 Nov: USD 1,283.95, GBP 969.25 &amp; EUR 1,092.51 per ounce<br />21 Nov: USD 1,280.00, GBP 967.04 &amp; EUR 1,090.69 per ounce<br />20 Nov: USD 1,292.35, GBP 974.82 &amp; EUR 1,096.43 per ounce<br />17 Nov: USD 1,283.85, GBP 969.31 &amp; EUR 1,088.19 per ounce<br />16 Nov: USD 1,277.70, GBP 969.01 &amp; EUR 1,085.53 per ounce<br />15 Nov: USD 1,285.70, GBP 976.62 &amp; EUR 1,086.29 per ounce</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Silver Prices (LBMA)</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">23 Nov: USD 17.10, GBP 12.84 &amp; EUR 14.43 per ounce<br />22 Nov: USD 16.97, GBP 12.81 &amp; EUR 14.44 per ounce<br />21 Nov: USD 17.00, GBP 12.85 &amp; EUR 14.50 per ounce<br />20 Nov: USD 17.15, GBP 12.94 &amp; EUR 14.56 per ounce<br />17 Nov: USD 17.09, GBP 12.95 &amp; EUR 14.49 per ounce<br />16 Nov: USD 17.04, GBP 12.92 &amp; EUR 14.48 per ounce<br />15 Nov: USD 17.12, GBP 13.00 &amp; EUR 14.45 per ounce</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><br />Recent Market Updates</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://www.goldcore.com/us/gold-blog/geopolitical-risk-highest-four-decades-gold-demand-germany-globally-remain-robust/">-&nbsp;Geopolitical Risk Highest “In Four Decades” – Gold Demand in Germany and Globally to Remain Robust</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/gold-versus-bitcoin-pro-gold-argument-takes-shape/">-&nbsp;Gold Versus Bitcoin: The Pro-Gold Argument Takes Shape</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/money-markets-infographic-shows-silver-undervalued-asset/">-&nbsp;Money and Markets Infographic Shows Silver Most Undervalued Asset</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/new-fed-chief-swamp-critter-extraordinaire/">-&nbsp;Is New Fed Chief A “Swamp Critter Extraordinaire”?</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/deepening-crisis-hyper-inflationary-venezuela-zimbabwe/">-&nbsp;Deepening Crisis In Hyper-inflationary Venezuela and Zimbabwe</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/uk-debt-crisis-consumer-spending-employment-sterling-fall-inflation-takes-off/">-&nbsp;UK Debt Crisis Is Here – Consumer Spending, Employment and Sterling Fall While Inflation Takes Off</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/protect-savings-gold-ecb-propose-end-deposit-protection/">-&nbsp;Protect Your Savings With Gold: ECB Propose End To Deposit Protection</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/internet-shutdowns-show-physical-gold-ultimate-protection/">-&nbsp;Internet Shutdowns Show Physical Gold Is Ultimate Protection</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/gold-coins-and-bars-saw-demand-rise-17-to-222t-in-q3/">-&nbsp;Gold Coins and Bars Saw Demand Rise 17% to 222T in Q3</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/prepare-interest-rate-rises-global-debt-bubble-collapse/">-&nbsp;Prepare For Interest Rate Rises And Global Debt Bubble Collapse</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/platinum-bullion-may-one-cheap-assets/">-&nbsp;Platinum Bullion ‘May Be One Of The Only Cheap Assets Out There’</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/worlds-largest-gold-producer-china-sees-production-fall-10/">-&nbsp;World’s Largest Gold Producer China Sees Production Fall 10%</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/german-investors-now-worlds-largest-gold-buyers/">-&nbsp;German Investors Now World’s Largest Gold Buyers</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong>Important&nbsp;<span class="m_-928942620346942956il">Guides</span></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">For your perusal, below are our&nbsp;<span class="m_-928942620346942956m_5033479916755799273m_2111833215933341997il">most</span>&nbsp;<span class="m_-928942620346942956m_5033479916755799273m_2111833215933341997il">popular</span>&nbsp;<span class="m_-928942620346942956m_5033479916755799273m_2111833215933341997il">guides</span>&nbsp;in 2017:</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://t.hsms10.com/e1t/c/*W1sFhNs6QLBySW4Rr0Hl90CHT-0/*N5MhbFRBkTqXW95dlRy194d-P0/5/f18dQhb0S5ft8X-f1rW8cCGTT51FcdHN5s9DSvWrM1ZW3MpzC43frry_W8r4Kht63lH28W1lQSSc8y_DL1W8z_p0c67hcl-W1qMTKP5xLd3bN8zTG51RBdNtW3L39B54P7Fz2W8rCHmp3PnStQVS9p0b63dhWbW8mp0Tc5x5KNkW7-XB_567h1CPW8r5PXz49z-4PN2MV0Xm5w8jDW1mw3yc59SFsZN4H-tjrQC5z2VPC2cV7gvpc4W4XYhBl2y9PQJW4sxqtN7h5hQFW28TbSB2Cg_LLW96LzRy5DkRJDW5BRXXj2y4Lc7N3Kd2SV_-Nf6W3brNsz66rKFTW2xH0xz1lcG1VVQBGcH5DQdGhN22JjmzdPgQwW9464-Y5GFs9DW4Rj6Nh6BzJrnN45Ly2MkwRN4W8qYMH51FnsVDW2X9_p02MVHnbN2GZdYq215_BW1J7MZd3mgJK7W4F32xR1JjtM5W4Bn5JG3ZzLH2W5jL56q7dkHC7W3VtW1b1MWhN-W1MKd944yqBfl111" target="_blank">Essential&nbsp;<span class="m_6690301754972839650m_5033479916755799273m_2111833215933341997il"><span class="m_6690301754972839650il">Guide</span></span>&nbsp;To Storing Gold In Switzerland</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://t.hsms10.com/e1t/c/*W1sFhNs6QLBySW4Rr0Hl90CHT-0/*W5Hh19S2J1j6jW1gxPj45yTRLt0/5/f18dQhb0S5fw8X-fbXW8cCGTT51FcdHN5s9DSvWrM1YW3MpzC43frry_W8r4Kht63lH28W1lQSSc8y_DL1W8z_p0c67hcl-W1qMTKP5xLd3bN8zTG51RBdNtW3L39B54P7Fz2W8rCHjG25x99KVwyMQc6PVJWyW625bx16Gj8TSW6bVy-525hjVhW83KHrF7J39qHN2m8DqKmmF0wW1jsTjn5VDnrHVbq5fx4TKc2lW6Rjg6t5Pk17jW2xZzRk8LpcPpW36k5sF4FnHNZW1mvfQB2BpzSjN1mT8mr2g4dYW5VZ-P_37vq3BW2--Tfh1w3GzfW5CkFpW6ZccdyW5vvKY_3N2S6fW3KRSNH8yxr7CW7YJp821cQlwRW63x06S1bBvW3W408wWR11rnNbV4Vjkz6NjfdLW55Fr2P5nn1d6W301cwV4GX00sW5hfR428jJDdkW4Cy2w54wj2JxVMFy4w4hyJQMV6N2-D1mPRd4N6YRN0Y4ZDMLD2LMBk7BT1f5Fq5PC03" target="_blank">Essential&nbsp;<span class="m_6690301754972839650m_5033479916755799273m_2111833215933341997il"><span class="m_6690301754972839650il">Guide</span></span>&nbsp;To Storing Gold In Singapore</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;"><strong><a href="http://t.hsms10.com/e1t/c/*W1sFhNs6QLBySW4Rr0Hl90CHT-0/*W7dc5x_8dXcz0W57pb-W8yRfPY0/5/f18dQhb0Sjv98X-fhGW8cCGTT51FcdHN5s9DSvWrBCVW3MpzC43frry_W8r4Kht63lH28W1lQSSc8y_DL1W8z0sTg7mCbb0W57V1HT7tVHF9W8Z32tg35s628W859LV685kgn-W5mG2963qCNtmW8hTG4j5Zh496W2d551v3pNnKLVLrb9R83_Pn-W7JCxGl81bhDKW7N_KqM11GBXTW41TlcR3TwTqzW19BjML1ks0KjW7RPZVs5-2sjBW7ZzDyK7GLjPjW2KH_vB6SdpRZW1hx1p11Gg3W9W6rwy5K1YZKs5W2gFslL6NqPjwW1tbMwf7n90PHW67SS1j224DVBW6SdFBY1S1FW8W1Th1-Q1X2dwGW1swLvy81myPRW1B9M4Q6SdHPtW7C3gqS89xKZ9W1Ms6WG19gjwJN42ktpLPs031VgkKmy5qqk_FW41Q13s3srYmmW2-yGlm4v9PYhVmLW2J4r5l5jW7fnqv3187HWVW794lJw3T7yBDW1Zq0mT90vVQHW7SNfQy7BfhjRN3QzSrFQN_TjVcGblm3cFvNY0" target="_blank">Essential&nbsp;<span class="m_6690301754972839650m_5033479916755799273m_2111833215933341997il"><span class="m_6690301754972839650il">Guide</span></span>&nbsp;to Tax Free Gold Sovereigns (UK)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px;">Please share our research with family, friends and colleagues who you think would benefit from being informed by it.</p> http://www.zerohedge.com/news/2017-11-23/brexit-budget-%E2%80%93-grim-outlook-uk-economy-downgraded#comments Aftermath of the United Kingdom European Union membership referendum Bitcoin Brexit Business China Currency Economics Economy Economy of the United Kingdom European Central Bank European Union Fail First-time buyer G7 Germany Housing in the United Kingdom Housing Market Inflation International Monetary Fund off-your-radar technology Office for Budget Responsibility office of Budget Responsibility Philip Hammond Precious Metals Reality Recession recovery Reuters Sovereigns Stagflation Stock market crashes Switzerland UK Government US Federal Reserve Thu, 23 Nov 2017 12:31:56 +0000 GoldCore 607795 at http://www.zerohedge.com Europe Rebounds From Chinese Rout After Stellar PMIs; US Closed For Holiday http://www.zerohedge.com/news/2017-11-23/europe-rebounds-chinese-rout-after-stellar-pmis-us-closed-holiday <p>Nothing can keep the BTFD spirit at bay in Europe this Thanksgiving morning. </p> <p>Having started the session on the back-foot after the biggest <a href="http://www.zerohedge.com/news/2017-11-23/chinese-stocks-plummet-shanghai-tumbles-most-17-months-bond-rout-spreads">Chinese stock market tumble </a>in 17 months (the SHCOMP dropped -2.3%, most since June 2016) amid tighter liquidity conditions as a result of today's Thanksgiving holiday in the US and attempts by regulators to rein in asset management firms and the micro-loan market, the negative sentiment was short-lived however, a slew of blockbuster November Eurozone PMIs, among which the highest output print in 79 months, with the highest employment number in 17 years, helped revive sentiment in Europe - and brought the Eurostoxx back to green on the session. Among the notable composite PMI prints: </p> <ul> <li>France 60.1 vs est. 57.2 </li> <li>Germany 57.6 vs ext. 56.7 </li> <li>Euro zone 57.5 vs est. 56.0</li> </ul> <p>Markit noted this was a multi-year highs seen for all main indicators of output, demand, employment and inflation </p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en"><a href="https://twitter.com/hashtag/Eurozone?src=hash&amp;ref_src=twsrc%5Etfw">#Eurozone</a> output <a href="https://twitter.com/hashtag/PMI?src=hash&amp;ref_src=twsrc%5Etfw">#PMI</a> hits 79-month high (57.5) in November. Employment rises to greatest extent in 17 years. <a href="https://t.co/lY3ICXieSp">https://t.co/lY3ICXieSp</a> <a href="https://t.co/hCY1Dx9uzh">pic.twitter.com/hCY1Dx9uzh</a></p> <p>— Markit Economics (@MarkitEconomics) <a href="https://twitter.com/MarkitEconomics/status/933631288715677696?ref_src=twsrc%5Etfw">November 23, 2017</a></p></blockquote> <script src="https://platform.twitter.com/widgets.js"></script><p>Commenting&nbsp;&nbsp;&nbsp; on&nbsp;&nbsp;&nbsp; the&nbsp;&nbsp;&nbsp; flash&nbsp;&nbsp;&nbsp; PMI&nbsp;&nbsp;&nbsp; data,&nbsp; Chris&nbsp; Williamson,&nbsp;&nbsp; Chief&nbsp;&nbsp; Business&nbsp; Economist&nbsp;&nbsp; at&nbsp; IHS Markit said: “The&nbsp; message&nbsp; from&nbsp; the&nbsp; latest&nbsp; Eurozone&nbsp; PMI&nbsp; is clear: business is booming. Growth kicked higher in November to put the region on course for its best quarter since the start of 2011. The PMI is so far running&nbsp; at a&nbsp; level&nbsp; signalling&nbsp; a&nbsp; 0.8%&nbsp; increase&nbsp; in GDP&nbsp; in&nbsp; the&nbsp; final&nbsp; quarter&nbsp; of&nbsp; 2017, which would round - off the best year for a decade."</p> <p>Helping sentiment was an overnight report from Bloomberg that Germany's SPD is "open to talks" with Merkel on forming a government, while a subsequent unconfirmed tweet by an Economist journalist suggested that SPD leader Martin Schultz may resign today, opening the way for another grand coalition. </p> <p>In terms of sector specific performance, utilities are the notable underperformers with Centrica (-15%) issuing a profit warning this morning after losing 823k customers in the last 4 months.</p> <p>And so, with European optimism and upward momentum undented by China's mini crash, FX markets predictably saw the EUR/USD back firmly above the 1.1800 handle vs the Dollar and eyeing recent highs at 1.1861, which forms the base of chart resistance up to 1.1880. </p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/11/18/EURUSD%2011.23.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/11/18/EURUSD%2011.23_0.jpg" width="500" height="256" /></a></p> <p>As RanSquawk points out, the GBP/USD edged back above 1.3300 despite UK GDP printing in-line with expectations and soft business investment data with some highlighting selling already seen heading into the release and firmer personal consumption numbers. Elsewhere, the USD-index has slumped further, through recent lows and now only just holding above 93.000. USD softer as some FOMC members appeared less convinced about a December rate hike on inflation grounds, and more importantly share Fed Chair Yellen’s concerns about whether downside price pressures are likely to persist.</p> <p>As the EURUSD rose, bund futures dipped, and peripheral spreads widened marginally though volumes are poor. The latest foray above the big figure in Bunds looked half-hearted from the outset, and with no follow-through from 163.11 to really challenge recent peaks the path of least resistance has proved to be down again. Sellers could have been encouraged by better than forecast Eurozone flash PMIs, but in truth there was little conviction off the Eurex open to tackle the closest upside chart target at 163.14. On the flip-side, support is seen at 162.85 and the 162.89 low so far suggests that level is protecting revisits of yesterday’s deeper troughs. Conversely, Gilts remain elevated having edged a marginal new Liffe high at 125.20 (+20 ticks) just before the UK data showing unchanged growth rates from the 1st readings, but some weak internal metrics. At the short end, some Euribor buying noted in small clips and turnover light across the board for obvious reasons.</p> <p>Commodities trading has been relatively uneventful thus far with prices taking a breather from the prior day’s advances. This saw mild profit taking in gold with WTI giving back the recently reclaimed USD 58/bbl level, although oil prices remain near their best levels in over 2 years as several OPEC members including Saudi are jawboning about a 9-month output deal extension. Spot gold moved inside the range of yesterday’s session highs. </p> <p>US stocks are, of course, closed today for the Thanksgiving holiday. </p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="529" height="271" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/EURUSD%2011.23.jpg?1511439707" /> </div> </div> </div> http://www.zerohedge.com/news/2017-11-23/europe-rebounds-chinese-rout-after-stellar-pmis-us-closed-holiday#comments Business Currency Economy Economy of the European Union Euro European Union Eurostoxx Eurozone Eurozone flash FOMC Foreign exchange market France Germany Gilts Gross domestic product Index Markit OPEC Organization of Petroleum-Exporting Countries Personal Consumption RANSquawk Twitter Twitter US Federal Reserve Thu, 23 Nov 2017 12:24:57 +0000 Tyler Durden 607794 at http://www.zerohedge.com Jamie Dimon Bets Trump Will Last Only One Term As President http://www.zerohedge.com/news/2017-11-23/jamie-dimon-bets-trump-will-only-last-one-term-president <p>In an October 2017 interview, Jamie Dimon famously lambasted Bitcoin as a “fraud” and the people who bought it as “stupid” which, temporarily, halted the ascent in the Bitcoin price. It also led to much heated debate in the mainstream media and much anger across the crypto community. In a just as incendiary follow up, Dimon sat down for another interview, this time as “The Economic Club of Chicago”. </p> <p>We wondered whether he would confirm recent reports that JPMorgan Chase would buy and sell Bitcoin futures for clients after the upcoming launch on the CME. Sadly, he wasn’t pressed on this question. Instead, he had some striking comments about the longevity of Trump’s Presidency, as <a href="https://www.reuters.com/article/us-jpmorgan-dimon/jpmorgans-dimon-says-trump-likely-to-be-a-one-term-president-idUSKBN1DM2LW?il=0">Reuters</a> reports. </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Jamie Dimon, chief executive officer of JPMorgan Chase &amp; Co, on Wednesday said he expects to see a new U.S. president in 2021 and advised the Democratic party to come up with a “pro-free enterprise” agenda for jobs and economic growth instead. Asked at a luncheon hosted by The Economic Club of Chicago how many years Republican President Donald Trump will be in office, Dimon said, <strong>“If I had to bet, I’d bet three and half. But the Democrats have to come up with a reasonable candidate ... or Trump will win again.”</strong></p> <p>&nbsp;</p> <p>Dimon, who in the past has described himself as “barely” a Democrat, has been going to Washington more often since the 2016 elections to lobby lawmakers on issues including changes in corporate taxes, immigration policies and mortgage finance. </p> <p>&nbsp;</p> <p>In December, Dimon became chairman of the Business Roundtable, an association of CEOs who take their views to government policymakers. </p> </blockquote> <p><a href="http://www.zerohedge.com/sites/default/files/images/user235761/imageroot/2017/11/22/Dimon.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user235761/imageroot/2017/11/22/Dimon_0.jpg" width="500" height="333" /></a></p> <p>As <a href="https://www.bloomberg.com/news/articles/2017-11-22/dimon-says-he-d-raise-his-own-taxes-to-get-corporate-rates-cut">Bloomberg</a> adds, Dimon had “several digs” at Trump during the hour-long discussion which covered issues from the current tax reform, lessons from the financial crisis and gender equality in the workplace. </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Regarding the nation to the south, Dimon said that “we should never be rude to a neighbor like Mexico." Dimon conceded that sometimes the president is "partially right,” like on his stance with China, which has unfair advantages in terms of trade. And the CEO offered his opinion that Detroit Mayor Mike Duggan should be president, based on the job he’s done with that city.</p> <p>&nbsp;</p> <p>Dimon, who is chairman of the Business Roundtable in addition to running the largest U.S. bank, also proposed what he’d like to see in the tax overhaul that Trump aims to make the signature achievement of his first year in office. The U.S. needs to cut corporate rates to keep businesses from moving abroad, even if that means raising rates for wealthy individuals and removing the carried interest tax break for investment managers, Dimon said.</p> </blockquote> <p>Pushing negative tax rates for low income individuals and limiting state and local tax deduction, because it benefits the wealthy, Dimon was on fine form in terms of showing his “caring” side. From Bloomberg.</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>“I don’t think the private equity guys should argue for carried interest, I don’t think the hedge fund guys should be arguing for deferrals, I don’t think I should argue for reducing my rate,” he said. “If you want to raise my rate, so be it.”</p> </blockquote> <p>Moving on to gender, race and how he loves his job, Bloomberg reports. </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Dimon spoke for several minutes about discrimination over gender and race which he said is not acknowledged enough in the United States. “If you’re white, paint yourself black and walk down the street one day, and you’ll probably have a little more empathy for how some of these folks get treated,” Dimon said. “We need to make a special effort because this is a special problem.”</p> <p>&nbsp;</p> <p>Dimon gave his own bank a mixed review on diversity. His direct reports include people who identify as lesbian, gay, bisexual or transgender (LGBT), and half are women as are 30 percent of the top 200 JPMorgan executives, he said. </p> <p>&nbsp;</p> <p>Now in his 12th year as JPMorgan’s CEO, Dimon also reflected a bit on his own role. “I basically love my job,” Dimon said. “I mean, it’s tiring; it’s exhausting. I have to go down to Washington all the time and it’s a big pain in the ass, but I basically love my job.” </p> </blockquote> <p>Bloomberg also reports that Dimon is going to write a book about the financial crisis. We presume he means the last one, not the one that’s coming, although if he waits a little longer, he should be able to do both. If it’s the last one, we look forward to hearing why JPM, as Lehman’s main “clearing” bank, deprived Lehman of billions of dollars of collateral just prior to the latter going bankrupt. JPM was subsequently fined $1.42 billion. </p> <p>As for Jamie Dimon, he is worth over a billion dollars. He is also, infamously, "<a href="http://www.zerohedge.com/news/2013-02-27/jamie-dimon-thats-why-i-am-richer-you">richer than you</a>."</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="420" height="221" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/dimon%20trump.jpg?1511438235" /> </div> </div> </div> http://www.zerohedge.com/news/2017-11-23/jamie-dimon-bets-trump-will-only-last-one-term-president#comments Bitcoin Bitcoin Business Chase Bank China Democratic Party Detroit Donald Trump Economic Club of Chicago Economy of New York City Economy of the United States Finance House of Morgan Jamie Dimon Jamie Dimon JPMorgan Chase JPMorgan Chase Lehman Mexico Politics Private Equity Reuters Social Issues Thu, 23 Nov 2017 11:57:34 +0000 Tyler Durden 607793 at http://www.zerohedge.com Chinese Stocks Plummet: Shanghai Tumbles Most In 17 Months As Bond Rout Spreads http://www.zerohedge.com/news/2017-11-23/chinese-stocks-plummet-shanghai-tumbles-most-17-months-bond-rout-spreads <p>The euphoria from the year-end melt up in Europe and the US failed to inspire Chinese traders, and overnight China markets suffered sharp losses, with the Shanghai Composite plunging 2.3%, its biggest one day drop since June 2016, over growing fears that the local bond rout is getting out of control. Both the tech-heavy Chinext and the blue chip CSI 300 Index dropped over 3%, as the sharp selloff accelerated in the last hour, as Beijing's "national team" plunge protection buyers failing to make an appearance. There were sixteen decliners for every one advancing share. </p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/11/21/20171122_chna.png"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/11/21/20171122_chna_0.png" width="600" height="313" /></a></p> <p>In addition to tech, consumer non-cyclical and health-care sectors, the hardest hit names were banks such as ICBC, Ping An Insurance and Kweichow Moutai. Over in Hong Kong, the Hang Seng Index slid 1 percent from a decade-high, one day after closing above 30,000.</p> <p>Confirming our report from last week, that <a href="http://www.zerohedge.com/news/2017-11-17/traders-puzzled-after-chinese-media-warning-triggers-market-selloff">traders were stunned by an official warning from Beijing </a>that some stocks - in this case Kweichow Moutai, one of the most popular stocks among investors&nbsp; - had risen "too far, too fast", Ken Peng, strategist at Citi private bank, told CNBC Thursday that over the weekend he had heard views about particular Chinese stocks having moved too fast. He also said that Thursday's downward move was impacted by "relative tight liquidity conditions in financial markets overall, because of a more stringent liquidity policy by the central bank."</p> <p>"The decline in Moutai has triggered selloffs in some of this year’s best performing stocks," said Zhengyang Shen, Shanghai-based analyst at Northeast Securities. "When those giant stocks fall, retail investors will follow to sell their holdings. The ChiNext stocks do not have much support from the national team, so they fell even more," he said, referring to state-backed funds.</p> <p>As Bloomberg adds, today’s tumble was especially jarring given this year’s relative placidity in the stock market - the world’s second-largest. Volatility on the Shanghai Composite Index fell to the lowest level in decades earlier this month amid signs the government was curbing speculation in the wake of 2015’s $5 trillion rout. For Dickie Wong, executive director of research at Kingston Securities Ltd. in Hong Kong, it’s too soon to talk about panic selling. </p> <p>At the same time, just days after we warned that "<a href="http://www.zerohedge.com/news/2017-11-20/chinas-shadow-banking-clampdown-slams-stocks-which-miraculously-recover-end-green">A "New Era" In Chinese Regulation Means Turmoil For $15 Trillion In China's "Shadows</a>", yields on sovereign debt and top-rated local corporate notes climbed to the highest level in three years as China's deleveraging campaign accelerated (don't worry, it will stop the moment one or more corp or sov issues go bidless). As Bloomberg adds, <strong>with more than $1 trillion of local bonds maturing in 2018-19, it will become increasingly expensive for Chinese companies to roll over financing. </strong></p> <p>"Cash is king now on the mainland," Castor Pang, head of research at Core-Pacific Yamaichi HK told Bloomberg. "Rising bond yields will be negative for corporate profits, since it will increase financing costs. That’s very bad news for the stock market." </p> <p>Meanwhile, the yield on 10-year sovereign bonds rose above 4% on Wednesday, <strong>while yields on five-year top-rated local corporate notes have jumped about 33 basis points this month to a three-year high of 5.3 percent, according to data compiled by clearing house ChinaBond</strong>.<strong></strong> That said, selling eased a little in the nation’s sovereign debt market on Thursday. The 10-year yield fell two basis points to 4.02%, after climbing 39 basis points this month, although the yield on five-year bonds rose three basis points to 4.04%. </p> <p>Not even the PBOC's generous 100Bn yuan net liquidity injection helped ease liquidity and deleveraging nerves. </p> <p>There was some good news, if only in terms of narratives: "You can say this is a correction but I don’t think it’s a market meltdown," Wong said. "Market sentiment is still okay but after recent gains it’s time to pull back." </p> <p>"The plunge in China’s bond market is driving mainland stocks lower, especially financial-related shares," said Steven Leung, executive director at UOB Kay Hian (Hong Kong) Ltd. "Most A-share investors believe there will be further tightening in financial markets. Investor sentiment has been quite cautious in China, even though Hong Kong kept hitting 10-year high. There’s a lack of further momentum to move up."<strong><br /></strong></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="966" height="504" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20171122_chna.png?1511440889" /> </div> </div> </div> http://www.zerohedge.com/news/2017-11-23/chinese-stocks-plummet-shanghai-tumbles-most-17-months-bond-rout-spreads#comments Bond Bond Business China Economy Finance Financial markets Fixed income Hang Seng 40 Hong Kong Investment Investor Sentiment Kweichow Moutai Market liquidity Market Sentiment Meltdown Money People's Bank of China Sovereign Debt SSE 50 Stock market Volatility Yuan Thu, 23 Nov 2017 10:10:40 +0000 Tyler Durden 607792 at http://www.zerohedge.com UK Trader Fined 60,000 Pounds For Outsmarting Algos http://www.zerohedge.com/news/2017-11-22/uk-trader-fined-60000-pounds-outsmarting-algorithms <p><strong>Yet another UK trader is being punished by overzealous regulators</strong> for an accomplishment that should instead have earned him accolades:<strong><em> Outsmarting the machines.</em></strong></p> <p>In a case that echoes some of the circumstances surrounding the scapegoating of former UK-based trader Nav Sarao, former Bank of America Merrill Lynch bond trader Paul Walter <u><strong>has been fined 60,000 pounds by the FCA for a practice that regulators call &lsquo;algo baiting&rsquo;.</strong></u></p> <p>Algorithm baiting is similar to spoofing &ndash; a practice that has been banned by stock-market regulators as those markets have embraced high-frequency trading practices that have broken markets and made them more vulnerable to this type of manipulation. But fixed income markets, like the Dutch loan market Walter is accused of manipulating, have been slower to embrace HFT-type trading. Because of this delay, Walter is a pioneer. Using BrokerTec, a popular fixed-income trading platform, Walter would place a bunch of bids for a given bond, triggering trend-following algos to follow suit. Then he would quickly cancel the bids. Here&rsquo;s a more complete explanation per the <a href="https://www.ft.com/content/1f3ad4e4-7e98-30ce-8ce9-a851281f1aff">Financial Times.&nbsp; </a></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>Mr Walter entered bids for Dutch state loans that pushed up their price. <strong>Then, when other algorithmic trades followed him in response and raised their bids, Mr Walter sold to them and cancelled his quote. This happened 11 times between July and August 2014 while he was working for the bank, the FCA said, while on one occasion he did the opposite. He netted a total of &euro;22,000 profit from this &ldquo;algo baiting&rdquo;.</strong></p> </blockquote> <p>Mark Steward, the head of FCA enforcement, said the FCA would remain &ldquo;vigilant&rdquo; in detecting abusive practices like &ldquo;algo bating&rdquo;. Of course, programmers could also build better algorithms, stamping out the practice without any help from the government.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/11/20/2017.11.22teasefca.JPG"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/11/20/2017.11.22teasefca_0.JPG" style="width: 500px; height: 242px;" /></a></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&ldquo;Market manipulation undermines market integrity and confidence. The FCA will be vigilant in detecting abusive practices and will take robust action to protect issuers and participants from all over the world from the harm caused by such abuse.&rdquo;</strong></p> </blockquote> <p>Tellingly, Walter did not know that what he was doing was market abuse. But the FCA still found him negligent even though the regulations surrounding these aggressive trading tactics in fixed income markets are not well-defined.</p> <p>According to the FCA&rsquo;s register of regulated individuals, Walter became inactive in August 2014 and previously worked at UBS.</p> <p>Of course, the government&rsquo;s motivation in fining Walter sets an important precedent that will help regulators in the future. With the ECB tapering its bond purchases (though that&rsquo;s not the terminology Mario Draghi would use), the centrally-planned markets regime that&rsquo;s persisted since the crisis is about to unravel. <strong>While many Wall Street strategists and PMs remain bullish, regulators see the writing on the wall. They understand the risks that NIRP, market-distorting asset purchases and an increasing reliance on ETFs and high-frequency trading algorithms have created. And when it all comes crashing down &ndash; like it did during the May 2010 flash crash &ndash; regulators will already have their scapegoat ready.</strong></p> <p>Years after the crash, authorities arrested Sarao and blamed him for triggering the largest wipeout in market history by placing large orders for S&amp;P 500 e-mini contracts, then cancelling them, to manipulate prices in a way that would benefit his trading positions. Sarao has insisted he did nothing wrong, but that didn&rsquo;t stop the UK from extraditing him to the US, where he faces serious jail time, as we noted above.</p> <p>The irony, of course, is hard to miss: <strong><em>Sarao, a small-time trader, is facing prison, while the architects of today&rsquo;s broken markets receive accolades and are rewarded with lucrative jobs in private equity once they&rsquo;re done working in government.</em></strong></p> <p>And just so we can <a href="http://www.zerohedge.com/news/2015-05-06/flash-crash-anniversary-scapegoat-sarao-says-i-did-nothing-wrong-apart-being-good-my">relive the flash crash in all its horrifying glory, </a>here is an video courtesy of Nanex showing trading in the e-mini future which Sarao has been accused of spoofing.</p> <p><u><strong>The punchline: Sarao&#39;s orders are shown in red, and they disappear well before the most acute part of the flash crash.</strong></u></p> <p><iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/LHC00Xr3AU0" width="560"></iframe><br />&nbsp;</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="591" height="286" alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017.11.22teasefca.JPG?1511366957" /> </div> </div> </div> http://www.zerohedge.com/news/2017-11-22/uk-trader-fined-60000-pounds-outsmarting-algorithms#comments Algorithmic trading Bank of America Bank of America Bond Business Economy European Central Bank Finance Financial markets fixed flash Flash Crash High-frequency trading high-frequency trading algorithms Market Manipulation Mathematical finance Merrill Merrill Lynch Money Navinder Sarao Private Equity S&P 500 Share trading Spoofing Stock market Thu, 23 Nov 2017 10:09:00 +0000 Tyler Durden 607756 at http://www.zerohedge.com A Swarm Of Earthquakes Beneath The San Andreas Fault Is Making Scientists Nervous http://www.zerohedge.com/news/2017-11-22/swarm-earthquakes-beneath-san-andreas-fault-making-scientists-nervous <p>Warner Bros Pictures might want to rethink the shooting of San Andreas II &ndash; the sequel to the 2015 blockbuster about a massive earthquake striking the San Francisco Bay Area that starred the Rock, Paul Giamatti and a host of other A-list actors.</p> <p>Because if the US Geological Survey&rsquo;s worst fears are confirmed, the seismic devastation depicted in the film might hit a little too close to home. According to the <span id="cke_bm_451S" style="display: none;">&nbsp;</span><span id="cke_bm_450S" style="display: none;">&nbsp;</span><span id="cke_bm_449S" style="display: none;">&nbsp;</span><span id="cke_bm_448S" style="display: none;">&nbsp;</span><span id="cke_bm_447S" style="display: none;">&nbsp;</span><a href="http://www.dailymail.co.uk/sciencetech/article-5106621/134-earthquakes-rattle-San-Andreas-fault-just-one-week.html">Daily Mail,</a> <u><strong>134 earthquakes have hammered a three-mile stretch around Monterey County on the San Andreas fault over the last week &ndash; a pace that&rsquo;s making seismologists nervous.</strong></u></p> <p>The San Andreas fault stretches 750 miles north to south across coastal California, forming the boundary of the Pacific plate and North American plate.</p> <p>Of those earthquakes, <strong>17 were stronger than 2.5 magnitude </strong>and <strong>6 of them were stronger than 3.0.</strong> And experts at the USGS warn that more tremors are expected in the coming weeks.</p> <p>The rumblings are amplifying fears raised last week that the &#39;Big One&#39; &ndash; the mythical quake depicted in the movie &lsquo;San Andreas&rsquo; &ndash; could be about to hit. In another sign of impending disaster, ten &#39;mini quakes&#39; struck the same area last week. <strong>That swarm included one 4.6-magnitude quake that was felt in San Francisco more than 90 miles away.</strong></p> <p>&ldquo;This one has been a quite productive aftershock sequence,&rdquo; said Ole Kaven, a US Geological Survey seismologist.</p> <p><a href="http://www.dailymail.co.uk/sciencetech/article-5106621/134-earthquakes-rattle-San-Andreas-fault-just-one-week.html"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/11/20/2017.11.22sanandreas_0.JPG" style="width: 500px; height: 411px;" /></a></p> <p><strong>&ldquo;We suspect there will be aftershocks in the 2 to 3 [magnitude] range for at least a few more weeks,&rdquo; </strong>he said.</p> <p>Fortunately, nobody was injured in the quake storm.&nbsp; &nbsp;</p> <p>Last week&#39;s swarm hit California&#39;s Monterey County on Monday at 11:31 am ET about 13 miles northeast of Gonzales, near Salinas.</p> <p>It dramatically increases the likelihood of a major quake in California, at least temporarily, experts claimed.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/11/20/2017.11.22quakefault.JPG"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/11/20/2017.11.22quakefault_0.JPG" style="width: 500px; height: 190px;" /></a></p> <p>The initial 4.6-magnitude quake was followed by nine smaller aftershocks.</p> <p>The largest of the tremors measured magnitude 2.8, according to Annemarie Baltay, a seismologist with the US Geological Survey in Menlo Park.</p> <p><strong>The quake happened at a depth of around 4 miles directly on top of the fault, close to a region where the Calaveras Fault branches off.</strong></p> <p>Experts have previously warned that any activity on the fault line is cause for concern.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/11/20/2017.11.22quake.JPG"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/11/20/2017.11.22quake_0.JPG" style="width: 500px; height: 394px;" /></a></p> <p>&ldquo;Any time there is significant seismic activity in the vicinity of the San Andreas fault, we seismologists get nervous,&rdquo; Thomas Jordan, director of the Southern California Earthquake Centre, said, according to the Mail.<br />&nbsp;</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="793" height="301" alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017.11.22quakefault.JPG?1511357936" /> </div> </div> </div> http://www.zerohedge.com/news/2017-11-22/swarm-earthquakes-beneath-san-andreas-fault-making-scientists-nervous#comments Aftershock Baja California earthquake California Disaster Earthquake Environment Geography of California Parkfield earthquake San Andreas Fault Seismic scale Seismology Southern California Southern California Earthquake Centre Thu, 23 Nov 2017 10:07:37 +0000 Tyler Durden 607742 at http://www.zerohedge.com