http://www.zerohedge.com/fullrss2.xml/news/italy-miss-gdp-forecast-sees-sub-1-gdp-growth en Does Anyone Else Think The Stock Market Is Living On Reds, Vitamin C And Cocaine? http://www.zerohedge.com/news/2014-10-24/does-anyone-else-think-stock-market-living-reds-vitamin-c-and-cocaine <p><em>Submitted by <a href="http://charleshughsmith.blogspot.com/2014/10/does-anyone-else-think-stock-market-is.html">Charles Hugh-Smith of OfTwoMinds blog</a>,</em></p> <p><span><b>The stock market&#39;s wild swings of sentiment have got me thinking it&#39;s living on reds, vitamin C and cocaine.</b>&nbsp;This is a famous line from the Grateful Dead song<a href="https://www.youtube.com/watch?v=RPQAbBI7E38" target="resource"> Truckin&#39;</a>.</span><br />&nbsp;</p> <div><b><span>I&#39;ve marked up a one-month chart of the S&amp;P 500 (SPX) to illustrate what I mean:</span></b><br />&nbsp;</div> <div><span><img align="middle" src="http://www.oftwominds.com/photos2014/SPX10-23-14.gif" style="height: 296px; width: 601px;" /></span></div> <div>&nbsp;</div> <div><span>Reds are slang for&nbsp;<a href="http://en.wikipedia.org/wiki/Barbiturate" target="resource">barbiturates</a>, a class of depressants/sedatives (<i>downers</i>). Cocaine induces euphoric highs in which the cokehead feels he possesses god-like powers--for example, he might imagine he is a Federal Reserve member, or even its chairperson.</span> <div><span>There are multiple interpretations of the role of vitamin C in the lyric, but for the purposes of the chart it serves as a modest dose of something healthy to keep the drug-ravaged market from crashing.</span><br />&nbsp;</div> <div><span><b>After multiple swings between cocaine highs brought to earth by downers, the market seems to be tripping on acid again.</b>&nbsp;Though no one can know precisely what hallucinations are spinning through the manic-depressive sentiment of the market, it seems the market has responded to the withdrawal of its free-money cocaine--supplied of course by the Federal Reserve--by entering a drug-induced fantasy that everything&#39;s been fixed in the global economy: Europe is growing again, China&#39;s housing crisis has passed, U.S. corporate profits will feed corporate buybacks forever, and so stocks can loft higher again--a Bull Market without end.</span><br />&nbsp;</div> <p><span><b>This state of delusion would be amusing if it wasn&#39;t so tragic.</b>&nbsp;The acid will wear off soon enough, and a mega-dose of vitamin C will not be enough to restore the shattered health of a manic, drugged-out market careening between euphoria and fear.</span></p></div> <div>&nbsp;</div> <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="378" height="303" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20141024_chs.jpg?1414155887" /> </div> </div> </div> http://www.zerohedge.com/news/2014-10-24/does-anyone-else-think-stock-market-living-reds-vitamin-c-and-cocaine#comments China Federal Reserve fixed Global Economy Fri, 24 Oct 2014 16:59:17 +0000 Tyler Durden 496155 at http://www.zerohedge.com Fastest Pace Of Withdrawals From JPM's Gold Vault In Over A Year http://www.zerohedge.com/news/2014-10-24/fastest-pace-withdrawals-jpms-gold-vault-over-year <p>While JPM's eligible gold holdings are nowhere near the record lows hit in the summer of 2013, when they dropped to a tiny 46K ounces, sparking concerns of a potential deliverable default, yesterday according to the daily CME gold depository report, JPM saw a whopping 321,500 ounces, or about 10 tons of gold, withdrawn. This was the biggest outflow since the August 5 rebalance when nearly 1.5 million ounces were withdrawn and added, and was the biggest, and is tied with two identical 321,500 oz outflows recorded in early January. As of yesterday, JPM's eligible gold tumbled by 40% in one day, declining to 485.K ounces from over 800K the day before: the lowest eligible gold inventory since almost exactly a year ago.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/10/Eligible%20Gold%20JPM%20Oct%202014.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/10/Eligible%20Gold%20JPM%20Oct%202014_0.jpg" width="600" height="416" /></a></p> <p>What is perhaps more notable, is that the recent outflows of eligible golds are taking place at the same time as there has been a significant reduction in the NAV/gold holdings of the GLD ETF. A question thus arises once again: where is the gold being withdrawn to and who is doing these not insubstantial withdrawals. </p> <p>Finally, it bears pointing out that since September 1, eligible gold at JPM's vault has declined from 1.5 million ounces to under 500K: a decline of over 1 million ounces in just over a month, and matching the fastest decline on record for the JPM vault recorded in early 2013. </p> <p>It would appear that someone is certainly in a rush to "withdraw" as much eligible gold as possible at a time when gold has been stubbornly trading in the $1200/ounce range, and when significant moves of either physical or paper gold, appear to not have much of an impact on gold price.</p> <p>Will JPM's gold vault be further emptied today? We will know the answer in just about 3 hours.</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="960" height="666" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/Eligible%20Gold%20JPM%20Oct%202014.jpg?1414168519" /> </div> </div> </div> http://www.zerohedge.com/news/2014-10-24/fastest-pace-withdrawals-jpms-gold-vault-over-year#comments default Fri, 24 Oct 2014 16:37:29 +0000 Tyler Durden 496154 at http://www.zerohedge.com Neither the US Nor China Will be an Engine For Global Growth Next Year http://www.zerohedge.com/news/2014-10-24/neither-us-nor-china-will-be-engine-global-growth-next-year <p>The investment world is banking on real growth being <em>just around the corner.</em></p> <p>However, the data does not confirm this view.</p> <p>Let&rsquo;s talk about China first. Half of all global growth is expected to come from China, which is forecast to grow by 6.5%-7% next year.</p> <p>Now, China&rsquo;s economic numbers are for the most part fictitious. However, there is one metric that cannot be fudged and that is electricity consumption. Either electricity is being used or it is not.</p> <p>With that in mind, we must consider that China&rsquo;s electricity demand is collapsing, having fallen to a year over year rate of 3.5% in August 2014.</p> <p>&nbsp;</p> <p><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2014/10/china%20electric.jpg" style="width: 490px; height: 254px;" /></p> <p>Source: Zerohedge</p> <p>Indeed, given that Chinese electricity consumption <em>cannot</em> be faked and is growing at just 3.5% year over year, we can safely assume that China&rsquo;s economy is likely growing at a pace more like HALF of the official forecast of 6.5%-7%.</p> <p>So China will not be driving global growth.</p> <p>What about the US?</p> <p>As is the case in China, official GDP growth numbers in the US are massaged to the point of being fictitious. &nbsp;The reason for this is that all &ldquo;adjusted&rdquo; GDP data involves a &ldquo;deflator&rdquo; metric that is meant to adjust for inflation.</p> <p>The Feds often use an inflation adjustment that is even <em>lower</em> than their official Consumer Price Index metric (which is already massaged to downplay inflation) in order to make GDP growth look greater.</p> <p>Consider this simple example. Let&rsquo;s say that the US GDP grew by 10% last year. Now let&rsquo;s say that inflation also grew by 10%. In this scenario, <em>real</em> inflation adjusted GDP growth was ZERO. However, announcing ZERO GDP growth is a major problem politically. So what do the Feds do? They claim that inflation was just 8%, and BOOM you&rsquo;ve got 2% GDP growth announced for a year in which real GDP growth was actually zero.</p> <p>By using nominal GDP measures, you remove the Feds&rsquo; phony deflator metric. With that in mind, consider the year over year change in nominal GDP that has occurred.</p> <p><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2014/10/nominal.jpg" style="width: 500px;" /></p> <p>As you can see, we&rsquo;ve broken below four, the reading that has been triggered at every recession in the last 30 years. At best, we&rsquo;re flat-lining. At worst we&rsquo;re already in recession again.</p> <p>Don&rsquo;t believe the hype both China and the US are making up their GDP growth numbers for political reasons. Neither will be a major engine for growth next year&hellip;</p> <p>Which means that the markets are completely mispricing what&rsquo;s coming&hellip; and the stage is set for another Crash.</p> <p>If you&rsquo;ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report <strong><em>Financial Crisis &quot;Round Two&quot; Survival Guide </em></strong>that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.</p> <p>You can pick up a FREE copy at:</p> <p><a href="http://www.phoenixcapitalmarketing.com/roundtwo.html">http://www.phoenixcapitalmarketing.com/roundtwo.html</a></p> <p>Best Regards</p> <p>Phoenix Capital Research</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> http://www.zerohedge.com/news/2014-10-24/neither-us-nor-china-will-be-engine-global-growth-next-year#comments China Nominal GDP Recession Fri, 24 Oct 2014 16:33:40 +0000 Phoenix Capital Research 496153 at http://www.zerohedge.com French Unemployed Hits Record High, Hollande Demands EU Budget "Must Be Adapted" http://www.zerohedge.com/news/2014-10-24/french-unemployed-hits-record-high-hollande-demands-eu-budget-must-be-adapted <p>France's President Francois Hollande states confidently that "everyone should respeoct treaties," then 'Junckers' it with this stunningly hypocritical bullshit, "budget rules must be adapted" to support growth and France "has done what it has to do" on its deficit... one glance at the following chart suggests that Hollande has done <strong>nothing</strong> and has been enabled by Draghi... What a farce!!</p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/10-overflow/20141024_FRA.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/10-overflow/20141024_FRA_0.jpg" width="600" height="315" /></a></p> <p>&nbsp;</p> <p>So:</p> <ul> <li><strong>*HOLLANDE SAYS `EVERYONE' SHOULD RESPECT TREATIES</strong></li> <li><strong>*HOLLANDE SAYS FRANCE RESPECTS DEFICIT TREATY WITH FLEXIBILITY</strong></li> </ul> <p>But:</p> <ul> <li><strong>*HOLLANDE SAYS FRANCE `HAS WORK TO DO ON REFORMS'</strong></li> <li><strong>*HOLLANDE SAYS COUNTRIES WITH SURPLUSES SHOULD SUPPORT DEMAND</strong></li> <li><strong>*HOLLANDE SAYS BUDGET RULES `MUST BE ADAPTED' TO SUPPORT GROWTH</strong></li> <li><strong>*HOLLANDE SAYS FRANCE HAS `DONE WHAT IT HAS TO DO' ON DEFICIT</strong></li> </ul> <p>How long before Schaeuble explodes?</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="961" height="504" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20141024_FRA.jpg?1414167121" /> </div> </div> </div> http://www.zerohedge.com/news/2014-10-24/french-unemployed-hits-record-high-hollande-demands-eu-budget-must-be-adapted#comments France Fri, 24 Oct 2014 16:12:59 +0000 Tyler Durden 496152 at http://www.zerohedge.com The End Of QE3, Trouble Ahead For The Bulls? http://www.zerohedge.com/news/2014-10-24/end-qe3-trouble-ahead-bulls <p><em>Submitted by <a href="http://www.acting-man.com/?p=33720">Michael Pollaro via Acting-Man blog</a>,</em></p> <h3><u><strong>QE3 Is Coming to an End</strong></u></h3> <p>The Federal Reserve&rsquo;s latest asset purchase program, QE3, is coming to an end.&nbsp; What was once an $85 billion a month program, one in which at its peak had been goosing the financial&nbsp;<a href="http://www.forbes.com/markets/">markets</a>&nbsp;and economy at an annual rate of $1.0 trillion &ndash; and over its 27 month life will have pumped $1.7 trillion of money into the economy &ndash; is going to zero.&nbsp;Given the outsized impact QE has had on the growth of U.S. money supply and thus the U.S. economy, we say investors take note, especially those furthest out on the <a href="http://www.forbes.com/risk/">risk</a>&nbsp;curve, because what was once your primary tailwind&nbsp;could soon become your greatest headwind.</p> <p><strong>Here&rsquo;s why&hellip;</strong></p> <p>Recapping the tenets we presented&nbsp;<a href="http://www.forbes.com/sites/michaelpollaro/2014/09/23/deceleration-in-the-money-supply-is-increasing-the-risk-of-an-economic-bust/">here</a>,&nbsp;<a href="http://www.forbes.com/sites/michaelpollaro/2014/09/25/the-bigger-the-boom-the-bigger-the-bust/">here</a>, and&nbsp;<a href="http://www.forbes.com/sites/michaelpollaro/2014/09/29/there-is-no-graceful-exit-for-the-fed-mark-zandi/">here</a>, once an economy is subjected to a bout of monetary inflation, whether that be via direct central bank money creation or via money (and credit) creation by the fractional reserve banking system, an unsustainable, artificial economic boom is born, whereby malinvestments (bubbles if you like) are created that sooner or later must be liquidated. And whether that bust takes the form of a hyperinflationary bust or a deflationary bust, bust we will get.</p> <p>The form the bust takes will depend on the course of the inflation. If the central bank/banking system pursues an inflationary course, by throwing continual and importantly ever larger doses of money (and credit) into the economy, the bust will take the form of a hyperinflationary bust &ndash; a collapse in the value of the currency and with that a breakdown of the entire economy. If instead the central bank/banking system ends its money creation activities or even moderates that increase in a material way, the bust will take the form of a deflationary bust &ndash; a healthy liquidation of the malinvestments made during the boom and with that a commensurate fall in the prices of those same malinvestments.</p> <p><u><strong>Austrian&nbsp;</strong><a href="http://www.forbes.com/business/">Business</a><strong>&nbsp;Cycle Theory (ABCT) in a nutshell.</strong></u></p> <p>Thus, when an economy is subjected to a bout of monetary inflation, investors can enhance their performance by correctly positioning their portfolios on the right side of the boom-bust cycle.&nbsp; Though easier said than done, one should buy claims to the malinvestments of the boom; i.e., when the money supply is surging; then sell those same claims after the growth in the money supply peaks and begins to head down. &nbsp;Importantly, the bigger the bout of monetary inflation, the more important it is to be positioned on the correct side of the boom-bust cycle.&nbsp; The reason is simple &ndash; lots of monetary inflation means lots of malinvestments in the economy and financial markets.&nbsp; Indeed, correct positioning is even more important on the downside of the boom-bust cycle.&nbsp; You see, booms tend to develop slowly.&nbsp; Busts, complicated by the distortions created during the boom, more often than not do anything but.</p> <p>Now, as we first presented&nbsp;<a href="http://www.forbes.com/sites/michaelpollaro/2014/09/25/the-bigger-the-boom-the-bigger-the-bust/">here</a>&nbsp;and update for you below, we have one heck of a boom-bust cycle in train. Indeed, what we have termed the&nbsp;<em>Bernanke Risk-On Boom &ndash; Bust-to-Be</em>&nbsp;is even more grand than the boom-bust cycles that gave us the&nbsp;<a href="http://www.forbes.com/technology/">Tech</a>&nbsp;Boom-Bust and the Housing Boom-Bust turn Credit Bust turn Great Recession.&nbsp; Defined by how we measure inflation cycles &ndash; by the year-over-year rate of change in our broad money supply metric TMS2, cycle trough to trough &ndash; here is how the&nbsp;<em>Bernanke Risk-On Boom &ndash; Bust-to-Be</em>&nbsp;stacks up through September 2014 &hellip;</p> <p>&nbsp;</p> <p style="text-align: center;">&nbsp; <img alt="mp" class="aligncenter wp-image-33723 size-full" src="http://www.acting-man.com/blog/media/2014/10/mp.jpg" style="width: 600px; height: 714px;" /></p> <p style="text-align: center;">Chart by Michael Pollaro/Forbes</p> <p><a href="http://www.forbes.com/sites/michaelpollaro/2014/10/22/the-end-of-qe3-trouble-ahead-for-the-bulls/"><em>The remainder of the article can be read at Forbes here:</em></a></p> <p>&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="738" height="474" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20141024_qe.jpg?1414160174" /> </div> </div> </div> http://www.zerohedge.com/news/2014-10-24/end-qe3-trouble-ahead-bulls#comments Federal Reserve Fractional Reserve Banking Money Supply Rate of Change Recession Fri, 24 Oct 2014 15:50:23 +0000 Tyler Durden 496151 at http://www.zerohedge.com NYC Mayor De Blasio Ebola Update "Under Control - No Cause For Alarm" - Live Webcast http://www.zerohedge.com/news/2014-10-24/nyc-mayor-de-blasio-ebola-update-live-webcast <p>Having worked extremely hard on their coordinated talking points last night - "Ebola is hard to catch", "Doctor self-isolated", "been preparing for months" - we await <strong>NYC Mayor Bill De Blasio's public update on the state of Ebola in New York </strong>this morning... Keep Calm and Go Ebowla-ing?</p> <ul> <li><strong>*NYC MAYOR DE BLASIO SAYS 'THERE'S NO CAUSE FOR ALARM'</strong></li> <li><strong>*DE BLASIO SAYS SITUATION IS 'UNDER CONTROL' DUE TO PREPARATION</strong></li> <li><strong>*DE BLASIO SAYS EMS DRILLED 'QUITE A WHILE' ON EBOLA PROTOCOL</strong></li> <li><strong>*DE BLASIO SAYS NYC IS 'FULLY PREPARED' TO HANDLE EBOLA</strong></li> </ul> <p>As NBC reports, experts stress that since the 33-year-old physician was not symptomatic at the time, it's unlikely he transmitted the virus — which can only be passed through bodily fluids while a person is sick.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/10-overflow/20141024_deblasio1.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/10-overflow/20141024_deblasio1.jpg" width="600" height="464" /></a></p> <p>&nbsp;</p> <p>De Blasio is due to speak at 1130ET...</p> <p><iframe src="http://player.theplatform.com/p/2E2eJC/nbcNewsOffsite?guid=nbcnewslive_nyc1" width="635" height="500" frameborder="0" scrolling="no"></iframe></p> <p>Having calmed the public, sadly, the sign-language guy stole the show!</p> <blockquote class="twitter-tweet" lang="en"><p>Could not love this guy more. <a href="http://t.co/E1u7JHPZQY">pic.twitter.com/E1u7JHPZQY</a></p> <p>— Jody Avirgan (@jodyavirgan) <a href="https://twitter.com/jodyavirgan/status/525687596442460160">October 24, 2014</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script> <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="286" height="260" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20141024_deblasio.jpg?1414163901" /> </div> </div> </div> http://www.zerohedge.com/news/2014-10-24/nyc-mayor-de-blasio-ebola-update-live-webcast#comments NBC Twitter Twitter Fri, 24 Oct 2014 15:24:30 +0000 Tyler Durden 496150 at http://www.zerohedge.com What Unilever just Said About Consumers Around the World: “It’s Really Tough out There” http://www.zerohedge.com/news/2014-10-24/what-unilever-just-said-about-consumers-around-world-%E2%80%9Cit%E2%80%99s-really-tough-out-there%E2%80%9D <p>Wolf Richter&nbsp;&nbsp; <a href="http://www.wolfstreet.com">www.wolfstreet.com</a>&nbsp;&nbsp; <a href="http://www.amazon.com/author/wolfrichter">www.amazon.com/author/wolfrichter</a></p> <p>What is it with these consumer-products companies that need to sell a lot of cheap stuff to a lot of consumers in a lot of countries? Over the last few days, one after the other reported what are more or less unvarnished quarterly revenue and earnings debacles.</p> <p>At McDonald’s, global revenues fell 5% and net income plunged 30%. At Coca-Cola, international volume was up a measly 1%, but in the US, volume declined 1%. Revenues were down fractionally for the quarter and 2% year-to-date. Net income in the quarter dropped 14%. Revenues at third largest beer-giant Heineken, which brews its stuff in 70 countries, dropped 1.7%. People are scratching their heads: are consumers actually cutting back on beer? Other companies too have reported disappointing results.</p> <p>On Thursday it was Unilever, the Anglo-Dutch giant maker of shampoos, deodorants, laundry detergents, ice cream… that warned in its quarterly report about what it looks like “out there,” not in the stock market, but in the real economy around the world.</p> <p>“It is really tough out there,” said CFO Jean-Marc Huët. “We have been at pains to say that for a long period of time.” Consumers are in trouble and are cutting back across key markets, leaving the company with price pressures and crummy sales.</p> <p>Revenues fell 2%. “Underlying sales,” which are adjusted for a variety of things, rose 2.1%, but it was the worst growth since Q4 of crisis-year 2009, and down from 3.8% in the prior quarter.</p> <p>Unilever warned of a slowdown in all the right places, in the emerging markets, in Europe, and of stagnation in the US. Like other consumer-products companies, it complained about currency issues, political unrest, bleak economies, the wrong kind of weather, and other uncertainties that perplex consumers to no end&nbsp;and cause them to get stingy.</p> <p>“We expect markets to remain tough…,” CEO Paul Polman said.</p> <p>In the emerging markets overall, where nearly 60% of its revenues come from, underlying sales managed to increase 5.6%, down from 6.6% in the prior quarter, with Turkey, Indonesia, and the Philippines being particular bright spots. But Brazil is sliding into recession, Russia is slowing down as well, and China, oh my!</p> <p>As China is entering its worst slowdown in many years, consumers are reacting by closing their wallets. Retailers and wholesalers are reacting to the newly prudent consumers by “de-stocking,” the company <a href="http://seekingalpha.com/pr/11409985-unilever-trading-statement-third-quarter-2014"><span style="text-decoration: underline;"><span style="color: #0009c4;">reported</span></span></a>. The result was a “sharp slowdown.” Underlying sales plunged 20%!</p> <p>Then there’s the problem in the developed markets: sales dropped 2.5%, while they were still growing fractionally in the prior quarter. In North America, sales inched up a barely visible 0.6%. And Europe – which had been fixed not long ago, based on the hype being propagated ceaselessly – has become unfixed again. Unilever bravely blamed “poor summer weather” across Europe for the lousy performance of its ice cream category. Whatever the reasons, sales dropped 4.3%.</p> <p>“Europe is not around the corner by any means,” Huët admitted.</p> <p>And after complaining about price pressures and outright “price deflation” in Europe – though overall prices went up, just not fast enough to doll up Unilever’s revenues – it then <em>ironically</em> reported the following about its entanglements in, well yes, price fixing allegations:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Unilever is involved in a number of ongoing investigations by national competition authorities. These proceedings and investigations are at various stages and concern a variety of product markets. Where appropriate, provisions are made and contingent liabilities disclosed in relation to such matters.</p> </blockquote> <p>So how is Unilever grappling with these economic and weather-related issues? It’s introducing cheaper products, on the basis of shrinkflation. For example, it developed smaller ice cream cones that sell for €1 ($1.27) in Spain so that even newly impoverished, jobless, or underpaid Spaniards can buy one every now and then. CFO Huet <a href="http://uk.reuters.com/article/2014/10/23/uk-unilever-nv-results-idUKKCN0IC0G920141023"><span style="text-decoration: underline;"><span style="color: #0009c4;">explained</span></span></a> it this way:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>We’ve learned from the previous economic crises the importance of having such value brands in the portfolio that can capture some of the down-trading that inevitably happens when disposable income levels fall.</p> </blockquote> <p>And that sums up the economic problems facing Unilever, Coca-Cola, McDonald’s, Heineken, and all the others: it’s an economic crisis for consumers who’re struggling with falling disposable incomes. </p> <p>And then there’s the corporate response to all this: the requisite “savings program,” as Huët called it, “to apply all the levers to translate top line growth … into earnings per share.” Because that’s the only thing that matters.</p> <p>So Unilever would cut expenses here and there, axe 1,400 people, and whittle down its exposure to pension costs, all of which will do wonders for the disposable incomes of those folks…. And that’s the vicious cycle of corporate cost cutting in response to strung-out consumers who’re cutting back because they’ve been hit with the consequences of corporate cost cutting.</p> <p><span style="font-family: Times New Roman;"></span></p> <p>In the US more than in most countries, it all boils down to consumers because the economy is so dependent on them. But they're too strung out, and now there's a problem. Read… <a href="http://wolfstreet.com/2014/10/23/the-dreadful-price-of-free-money-us-bankers-fear-financial-social-or-political-instability/" target="_blank"><span style="color: #0009c4;">The High Price of Free Money: Now US Bankers Fear Financial, Social, or Political ‘Instability’</span></a></p> http://www.zerohedge.com/news/2014-10-24/what-unilever-just-said-about-consumers-around-world-%E2%80%9Cit%E2%80%99s-really-tough-out-there%E2%80%9D#comments Brazil China fixed Free Money Recession Turkey Fri, 24 Oct 2014 15:04:53 +0000 testosteronepit 496149 at http://www.zerohedge.com Market Jumps On Today's Central Bank Verbal Plunge Protection, Courtesy Of Mario Draghi http://www.zerohedge.com/news/2014-10-24/market-jumps-todays-central-bank-verbal-plunge-protection-courtesy-mario-draghi <p>One has to laugh: if stocks are selling off, then trot out the daily central banker headline urging to BTFD. </p> <p>Sure enough, just as the market was about to roll over moments after today's abysmal housing data revisions were released, what happens? The usual central banker "verbal plunge protection", this time courtesy of ECB's Mario Draghi and the following Bloomberg headlines:</p> <ul> <li><strong>DRAGHI CALLS FOR STIMULUS: </strong>CNBC</li> <li>DRAGHI SAYS JOINT EFFORT NEEDED TO AVOID RECESSION: CNBC</li> <li>DRAGHI SAYS INFLATION TO REMAIN LOW IN THE NEAR TERM</li> </ul> <p>Next: algos headline scan "Draghi" and "Stimulus" and the rest is levitation history.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/10/20141024_draghi1.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/10/20141024_draghi1_0.jpg" width="600" height="673" /></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="794" height="891" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/20141024_draghi1.jpg?1414162851" /> </div> </div> </div> http://www.zerohedge.com/news/2014-10-24/market-jumps-todays-central-bank-verbal-plunge-protection-courtesy-mario-draghi#comments headlines Recession Fri, 24 Oct 2014 15:02:06 +0000 Tyler Durden 496148 at http://www.zerohedge.com Banker Suicides Return: DSK's Hedge Fund Partner Jumps From 23rd Floor Apartment http://www.zerohedge.com/news/2014-10-24/banker-suicides-return-dsks-hedge-fund-partner-jumps-23rd-floor-apartment <p>The summer, thankfully, has been largely bereft of the dismal trend of bankers committing suicide, but <a href="http://www.bloomberg.com/news/2014-10-24/thierry-leyne-hedge-fund-partner-of-strauss-kahn-dies-at-49.html">as Bloomberg reports</a>, <strong>Thierry Leyne, a French-Israeli banker and partner of Dominique Strauss-Kahn</strong>, the disgraced former chief of the IMF, was found dead Thursday after apparently taking his own life by <strong>jumping off the 23rd floor of one of the Yoo towers, a prestigious residential complex in Tel Aviv</strong>. This is the 16th financial services executive death this year.</p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/10-overflow/20141024_leyne.jpg"><img height="384" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/10-overflow/20141024_leyne.jpg" width="304" /></a></p> <p>&nbsp;</p> <p><a href="http://www.bloomberg.com/news/2014-10-24/thierry-leyne-hedge-fund-partner-of-strauss-kahn-dies-at-49.html">Bloomberg reports</a> that Thierry Leyne, the French-Israeli entrepreneur who last year <strong>started an investment firm with former International Monetary Fund Managing Director Dominique Strauss-Kahn</strong>, has died. He was 48.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>Leyne died yesterday in Tel Aviv, according to his assistant at the firm, who asked not to be identified. Le Figaro newspaper reported that he committed suicide.</strong></p> <p>&nbsp;</p> <p>Last year, Leyne joined Strauss-Kahn in establishing the Paris-traded firm Leyne, Strauss-Kahn &amp; Partners after the former IMF head bought a 20 percent stake to help develop the investment-banking franchise of Leyne&rsquo;s company, Luxembourg-based Anatevka SA. Leyne had taken Anatevka public in March 2013 before joining forces with Strauss-Kahn, commonly referred to in France as DSK.</p> <p>&nbsp;</p> <p>The new partnership -- usually called LSK &amp; Partners by using both men&rsquo;s initials -- was <strong>part of Strauss-Kahn&rsquo;s efforts to rebuild his post-IMF life after he was charged in 2011 of criminal sex, attempted rape, sexual abuse, unlawful imprisonment and the forcible touching of a chambermaid at the Sofitel hotel in Manhattan</strong>. Strauss-Kahn denied the charges, which were later dropped. He settled the maid&rsquo;s lawsuit in 2012.</p> </blockquote> <p><a href="http://www.nytimes.com/2014/10/25/world/europe/thierry-leyne-dies-in-israel.html?_r=0">And NYTimes adds,</a></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><span style="text-decoration: underline;"><strong>Mr. Leyne, 48, jumped off the 23rd floor of one of the Yoo towers, a prestigious residential complex, according to Israeli officials.</strong></span></p> </blockquote> <p><a href="http://www.bloomberg.com/news/2014-10-24/thierry-leyne-hedge-fund-partner-of-strauss-kahn-dies-at-49.html">Leyne&#39;s Background</a>:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>Leyne, who resided in Tel Aviv, built his career as a financier in France, Israel and Luxembourg. He founded the investment firm Assya Capital in 1994 and listed it on Euronext in Paris in 2001. Leyne merged the business with Global Equities Capital Markets in 2010 to provide financial advice and private banking to clients in eastern Europe, Le Figaro reported.</p> <p>&nbsp;</p> <p>Anatevka, which had a market value of 50 million euros ($63 million) when Strauss-Kahn purchased his stake, controlled the merged entity, known as Assya Compagnie Financiere, offering asset management, brokerage, corporate finance and capital investment. Anatevka had a staff of about 100 people in six countries -- Luxembourg, Belgium, Monaco, Israel, Switzerland and Romania -- in September 2013.</p> <p>&nbsp;</p> <p>In 1996, Leyne founded the company Axfin, one of the first independent investment firms in France, according to the website of Assya Capital. Axfin listed on the Paris stock exchange in 1999 before it was bought by Nuremberg, Germany-based Consors Discount Broker AG. Leyne was the supervisory board chairman of Consors France until the end of 2002.</p> <p>&nbsp;</p> <p>Leyne was born in September 1965, according to French public records. He held French and Israeli citizenship, Figaro said. He had an engineering degree from the Israel Institute of Technology in Haifa, his LinkedIn profile shows.</p> </blockquote> <p>*&nbsp; *&nbsp; *</p> <p>This is the 16th financial services executive death this year...</p> <p><strong>1 - William Broeksmit</strong>, 58-year-old former senior executive at Deutsche Bank AG, was found dead in his home after an apparent suicide in South Kensington in central London, on January 26th.</p> <p><strong>2 - Karl Slym,</strong> 51 year old Tata Motors managing director Karl Slym, was found dead on the fourth floor of the Shangri-La hotel in Bangkok on January 27th.</p> <p><strong>3 - Gabriel Magee</strong>, a 39-year-old JP Morgan employee, died after falling from the roof of the JP Morgan European headquarters in London on January 27th.</p> <p><strong>4 - Mike Dueker</strong>, 50-year-old chief economist of a US investment bank was found dead close to the Tacoma Narrows Bridge in Washington State.</p> <p><strong>5 - Richard Talley,</strong> the 57 year old founder of American Title Services in Centennial, Colorado, was found dead earlier this month after apparently shooting himself with a nail gun.</p> <p><strong>6 - Tim Dickenson</strong>, a U.K.-based communications director at Swiss Re AG, also died last month, however the circumstances surrounding his death are still unknown.</p> <p><strong>7 - Ryan Henry Crane</strong>, a 37 year old executive at JP Morgan died in an alleged suicide just a few weeks ago.&nbsp; No details have been released about his death aside from this small obituary announcement at the Stamford Daily Voice.</p> <p><strong>8 - Li Junjie</strong>, 33-year-old banker in Hong Kong jumped from the JP Morgan HQ in Hong Kong this week.</p> <p><strong>9 - James Stuart Jr, </strong>Former National Bank of Commerce CEO, found dead in Scottsdale, Ariz., the morning of Feb. 19. A family spokesman did not say whatcaused the death</p> <p><strong>10 - Edmund (Eddie) Reilly, 47, </strong>a trader at Midtown&rsquo;s Vertical Group, commited suicide by jumping in front of LIRR train</p> <p><strong>11 - Kenneth Bellando, 28</strong>, a trader at Levy Capital, formerly investment banking analyst at JPMorgan, jumped to his death from his 6th floor East Side apartment.</p> <p><strong>12 - Jan Peter Schmittmann, 57,</strong> the former CEO of Dutch bank ABN Amro found dead at home near Amsterdam with wife and daughter.</p> <p><strong>13 - Li Jianhua, 49,</strong> the director of China&#39;s Banking Regulatory Commission died of a sudden heart attack</p> <p><strong>14 - Lydia _____, 52</strong> - jumped to her suicide from the 14th floor of Bred-Banque Populaire in Paris</p> <p><strong>15 - Julian Knott, 45</strong> - killed wife and self with a shotgun in Jefferson Township, New Jersey</p> <p><strong>16 - Thierry Leyne, 48</strong> - jumped from 23rd floor apartment in Tel Aviv.</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="304" height="384" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20141024_leyne.jpg?1414157094" /> </div> </div> </div> http://www.zerohedge.com/news/2014-10-24/banker-suicides-return-dsks-hedge-fund-partner-jumps-23rd-floor-apartment#comments Belgium Capital Markets China Corporate Finance Deutsche Bank Dominique Strauss-Kahn Eastern Europe France Hong Kong International Monetary Fund Israel Newspaper Romania Switzerland Tata Fri, 24 Oct 2014 14:53:54 +0000 Tyler Durden 496147 at http://www.zerohedge.com The Housing Recovery Has Been Canceled Due To Data Revisions http://www.zerohedge.com/news/2014-10-24/housing-recovery-has-been-canceled-due-data-revisions <p>Last month, when, with great amusement, we reported that "<a href="http://www.zerohedge.com/news/2014-09-24/new-home-sales-explode-higher-thanks-record-high-average-new-home-prices">New Home Sales Explode Higher Thanks To... Record High Average New Home Prices</a>?", we mocked the latest batch of bullshit data released by the US department of truth as follows:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>New Home Sales rose a magnificent (seasonally-adjusted annualized rate) 18% in August - the biggest monthly rise since January 1992 albeit with a 16.3 90% confidence interval, meaning the final number may well be +1.7%. At 504k, new home sales are back at May 2008 levels (though obviously massively below the 1.4 million homes sold at the peak in 2005). As a reminder, May's 504K new home sales print was later revised later to 458K. But even more stunning, new home sales in <strong>The West rose a mind-numbing 50% in August (and up 84.4% YoY - nearly double).&nbsp;</strong></p> </blockquote> <p>Well, it is now a month later, and here come the revisions: first, that 50% surge in the West was revised... 30K lower. But to get a sense of just how bad the revision was, here is the old, pre-revision data, and the "data" following the latest revision. </p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/10/New%20Home%20Sales%20Revision.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/10/New%20Home%20Sales%20Revision_0.jpg" width="600" height="384" /></a></p> <p>In short: <strong>the euphoric, consensus-beating data for every single month since May has been revised lower, by on average 6% and as much as 9%. </strong>Perhaps finally people will realize that there is only one number that matters in the Census bureau's monthly new home sales report: the <strong>±15.7</strong> 90% confidence interval. Well, people maybe, but not algos, who only care about one thing: whether the data beat or missed. </p> <p>Now we wonder: will all those market surges over the past 4 months which were based on erroneous headline data, all be revised lower? Sarcasm off.</p> <p>Oh, and as for that record new home price reported last month, which magically also resulted in what the US government wanted everyone to believe was a surge in buying... well, see for yourselves:</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/10/Median%20Home%20Price_0.jpg" width="600" height="393" /></p> <p>So to summarize: the latest "housing recovery" has been indefinitely postponed due to data revisions.</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="970" height="620" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/New%20Home%20Sales%20Revision.jpg?1414160883" /> </div> </div> </div> http://www.zerohedge.com/news/2014-10-24/housing-recovery-has-been-canceled-due-data-revisions#comments New Home Sales recovery Fri, 24 Oct 2014 14:29:29 +0000 Tyler Durden 496146 at http://www.zerohedge.com