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Japanese Stocks Tanking After Schizophrenic Tankan

Tyler Durden's picture


Japanese stocks are confused this evening (whether good news is bad news or bad news is good news). The headline Tankan business conditions (soft-survey) beat expectations modestly (a la Europe's in the summer as it rode a wave of short-lived optimism) and pressing to 6 years highs (oh no - less QE?) But, the more forward-looking "manufacturing outlook" missed expectations by the most since March 2012. On the services side, things were worse, as the outlook there missed for the 11th quarter in a row. And the triple-whammy was the Capex spend missing expectations significantly (what no investment? where have we seen that before). The result - mixed news is bad news - Nikkei futures are down 150 from Friday's close and JPY crosses have drifted back lower.

Headlines are "good" but the details are "bad"



And stocks are disappointed...


Charts: Bloomberg


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Sun, 12/15/2013 - 20:54 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Tanking?  Wake me when it is fucking zero.

Sun, 12/15/2013 - 21:17 | Link to Comment ZH Snob
ZH Snob's picture

this is what happens when a government makes it illegal to ask questions.

Sun, 12/15/2013 - 22:59 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Very smart of you not to phrase that as "is this what happens when a government makes it illegal to ask questions?"  But they are working on a bill now for positive declarations.

Sun, 12/15/2013 - 23:54 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Equity markets will vomit up 35% to 50% of their gains since 2009 in 2014.

There's a good chance we see another meltdown with an impotent Federal Reserve unable to do anything stimulative on the monetary policy front (since there are so few arrows left in its quiver), and the BOJ, ECB, BOE & PBOC will all be consumed with domestic crises of their own that they will narrowly focus on, in an attempt to deal with massive shadow financial liabilities that threaten to infect their core economies.

All the smart money rotated out of the asinine equity markets months ago.

Japan is at serious risk of the type & size of economic crisis that will require IMF and/or G8 intervention.

China's economic slowdown in manufacturing and exports will create serious social & political chaos.

France's growing economic cancer will be an issue that forces the EU, and Germany in particular, to consider radically overhauling the EU Charter.

Sun, 12/15/2013 - 21:22 | Link to Comment Nue
Nue's picture

Are we talking Zero as in the number or "Might as well be zero" when the Yen starts being used for wallpaper and Japanese men get mugged for their wallets only to have the cash pulled out and thrown back at them.

Sun, 12/15/2013 - 21:54 | Link to Comment zerozulu
zerozulu's picture


No argue with the fact that Japanese are hardworking people but Fukushima and surrounding 200 miles radius will stay like this for the coming 25,000 years. RUN is the only option. Fighting with radiation is not considered bravery.

Sun, 12/15/2013 - 22:40 | Link to Comment TheHound73
TheHound73's picture

I visit Fukushima frequently.  Life carries on there although at recession levels.  The whole Japanese economy is gonna blow, though.  Tokyo Olympics 2020 is a joke.

Sun, 12/15/2013 - 20:58 | Link to Comment fonzannoon
fonzannoon's picture

the first week or two of the year should be something to see. My guess is the S&P will gain a good 5% in that time. Every single hedge fund and asset manager is going to make sure they are not caught in the same position that they were in this year.

Sun, 12/15/2013 - 21:31 | Link to Comment BandGap
BandGap's picture

Buying inflated stocks?

ObamaCare kicks in after January 1st. I think all hell breaks loose.

Sun, 12/15/2013 - 22:20 | Link to Comment game theory
game theory's picture

all the loose cash in the economy wiill migrate to s&p firms...or to hookers and heroin. I'm just waiting to see which it is....

Sun, 12/15/2013 - 23:46 | Link to Comment BringOnTheAsteroid
BringOnTheAsteroid's picture

I think you meant to say" Obamacare kicks in heads after January 1st". 

Sun, 12/15/2013 - 21:02 | Link to Comment nmewn
nmewn's picture

Ben? Yellen? Legarde? Satoshi?

Someone do something!!!

Sun, 12/15/2013 - 21:29 | Link to Comment Nue
Nue's picture

Satoshi already did something. He has given the world an alternative monetary model one that can set the world free. The only way the other 3 people in your post can do anything to stop it would be to take us back on the gold and silver standard.

Sun, 12/15/2013 - 21:57 | Link to Comment wallstreetapost...
wallstreetaposteriori's picture

bitcoin..... the greatest and dumbest idea at the same time.  Does anyone else smell the scam?

Sun, 12/15/2013 - 22:24 | Link to Comment TheHound73
TheHound73's picture

It forces us to examine what we are actually doing when we go one step beyond barter.  What are we actually doing?  Intangible scarce fungible divisible durable recognizable tokens of exchange were not technologicially possible when most economic textbooks were written.  We are now taking the evolution of money into our own hands.

Mon, 12/16/2013 - 00:29 | Link to Comment Compwiz4u
Compwiz4u's picture

Bitcoin is a sign of hyperinflation, a proxy for Gold & Silver and a scam to make people think inherently worthless "money" has value.

Who invented Bitcoin? Who benefits? It has to be the banksters/gov't who want to deflect the QE hyperinflation from Gold &Silver.

A virtual currency like Bitcoin cannot be created out of thin air because somebody benefits unfairly. It has to be backed by something. When you sell something at ebay and keep the funds at Paypal you now have a virtual currency backed by something, which is usable elsewhere. Can they then be considered PayPal virtual bucks?

If you then take those Paypal funds and buy Gold & Silver via an honest, allocated account or storage facility, you have real savings.

Bitcoin is now being hyped by "legitimate" entities as a lottery ticket to easy money to fuel people's animal spirits & keep them from real $$.


Sun, 12/15/2013 - 21:06 | Link to Comment Whatta
Whatta's picture

Risk on, taper off, party at zerohedge's house.


Sun, 12/15/2013 - 21:06 | Link to Comment Heroic Couplet
Heroic Couplet's picture

Good riddance. If 49 US states don't have Wall Street, New York state doesn't need Wall St either. Same goes for Japan. There was a period in the US where speculation and investment MIGHT have helped a developing US. Might not have. The only sections of the world that are developing are few and far between. Everything else is malinvestment and should be banned.

Sun, 12/15/2013 - 22:03 | Link to Comment stant
stant's picture

china and us ships are trying to ram each other off the coast of japan to get the 10yr down isnt that enough?

Sun, 12/15/2013 - 21:14 | Link to Comment chump666
chump666's picture

Japan is essentially self funding it's economy (by killing it's JGB market), which is going straight into it's military.  So therefor I would not expect investment and/or other industries booming outside from Japan's war-machine.

Same with China, on major sells military stocks actually do quite well.

Fund managers will be slaughtered once this cold war goes hot.

Mon, 12/16/2013 - 02:15 | Link to Comment W74
W74's picture

Everyone knows that Japan's Navy morphs into a 300 ft. tall Gundam Wing with laser cannon in one arm and 200 ft. long buster sword in the other.  China bess be skurd.

Sun, 12/15/2013 - 21:27 | Link to Comment Jugdish
Jugdish's picture

What when Japan runs out of rubber this time ......

Sun, 12/15/2013 - 22:33 | Link to Comment TheHound73
TheHound73's picture

It only takes a spark to get a fire going.  Pass it on, pass it on.

Sun, 12/15/2013 - 21:31 | Link to Comment HUGE_Gamma
HUGE_Gamma's picture

this type of sunday night move is often a fake

Sun, 12/15/2013 - 22:15 | Link to Comment Seize Mars
Seize Mars's picture

To all you French option traders in Tokyo, good luck. The good days are over.

Mon, 12/16/2013 - 09:17 | Link to Comment d edwards
d edwards's picture

The Tankan is up but the Nikkei is tankin'! :-D

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