This page has been archived and commenting is disabled.

Global Equities In "Sea Of Red" After German Industrial Data Horror, Hints Japan May Give Up On Weak Yen

Tyler Durden's picture




 

While the economic data, especially out of Europe, just keeps getting worse by the day, with the latest confirmation that Europe is now officially in a triple-dip recession coming out of Germany and the previously observed collapse in Industrial Production which tumbled the most since February 2009, it was once again the Dollar and especially the New Normal favorite currency, the Yen, that was in everyone's sights overnight, when it first jumped to 109.20 only to slide shortly after midnight eastern, when Abe repeated once again that a plunging Yen is hurting small companies and consumers - and to think it only took him 2 years to read what we said would happen in late 2012 - but also the BOJ minutes which did not reveal any addition easing, which apparently disappointed algos and triggered USDJPY slel programs, pushing the USDJPY 80 pips lower to 108.40.

The last nail in the overnight USDJPY trading range coffin was the statement by Japan Toshihiro Nikai, chairman of ruling Liberal Democratic Party of Japan’s general council, who said after meeting other LDP lawmakers, representatives of Ministry of Finance and Bank of Japan today, that the Japan government should consider a monetary policy exit strategy. Quotes Bloomberg "It could be important to get involved in this issue and the government should thoroughly examine it,” lawmaker Toshihiro Nikai said after a meeting of the ruling Liberal Democratic Party’s general council. An exit strategy should be considered was an opinion that came up at the council meeting. Nikai, the council chairman, cited fellow LDP lawmaker Seiichiro Murakami as telling the council meeting that it may be necessary to change the direction of the central bank’s policy. The council is responsible for reviewing and approving bills from LDP members before they are put to parliament.

It appears that the weak Yen, which is leading to the highest Japanese Misery Index in Japan in 4 decades, is finally manifesting itself in political disconent and is about to end Abenomics for good. At least Abe has a trusty old scapegoat friend, in the face of diarrhea, when he once again, has to exit stage left.

The overnight Asian session the tone is, on balance, firmer. The Hang Seng (+0.46%) is up for their third consecutive day. Crowds at key protest sites continue to dwindle whilst representatives from HK’s Occupy Central movement have agreed to hold formal discussions with the government. Both sides hope to start formal talks before 12 October. Chinese markets remain shut. The KOSPI is up by a modest 0.2% whilst the Nikkei is sliding. Asian IG credit spreads opened tighter overnight whilst HY benchmarks are also firmer across the board. The Asia iTraxx roll markets are currently being quoted at 22/23bp with flows broadly skewed towards sellers of protection. Broader EM sentiment is also benefiting from the sharp rally in the overall Brazilian risk complex yesterday. The Bovespa rallied 4.7% to post its biggest daily performance in two years. 5yr Brazil CDS narrowed 16bp and the BRLUSD is now about 2% higher from its Friday’s close.  MSCI Asia Pacific up 0.2% to 139.53. Nikkei 225 down 0.67%, Hang Seng up 0.46%, Kospi up 0.23%, Shanghai Composite up 0.26%, ASX down 0.16%, Sensex down 0.65%.

European equities trade in a sea of red alongside the lacklustre German industrial production data which came in at its lowest level since 2009. On a sector specific basis, materials is the only sector in the green across Europe with support provided by reports that Glencore (up as much as 1.5%) is said to be laying the groundwork for potential merger with Rio Tinto (+5%) in 2015 after reaching out to Rio Tinto's biggest investor (Aluminium Corp. of China) to gauge its interest in a potential deal, according to people familiar with the matter. To the downside, healthcare names are seeing notable outperformance with GSK (-1.7%) trading lower following a negative broker move at Kepler Chevreux. Furthermore, airlines names are also being weighed on this morning following an amalgamation of profit-taking and negative news stories including reports that a Spanish nurse has tested positive for the ebola disease, which could potentially have the scope to hamper travel across Europe. 18/19 sectors decline, led by travel and leisure, health care and financial services. Eurostoxx 50 -0.93%, FTSE 100 -0.67%, CAC 40 -0.91%, DAX -0.91%, IBEX -0.89%, FTSEMIB -0.25%, SMI -1.06%.

We’ll get more data flow today with the IBD/TIPP economic optimism (Oct) and JOLTS job openings (August) being the notable ones from the US. Fed’s Dudley and Kocherlakota are also scheduled to speak at some point today. In Europe, Industrial production data from the UK and Germany will probably be the key. We should also get the latest World Economic Outlook from the IMF today.

Market Wrap

  • S&P 500 futures down 0.3% to 1949.4
  • Stoxx Europe 600 down 0.7% to 333.64
  • US 10Y yield down 1bps to 2.41%
  • German 10Y yield little changed at 0.91%
  • MSCI Asia Pacific up 0.2% to 139.53
  • Gold spot up 0.1% to $1208.84/oz

Bulletin Headline Summary

  • European equities trade lower across the board from the get-go amid Eurozone recession fears after German industrial production printed its lowest level since 2009.
  • USD/JPY has been dragged lower following signals from Japanese officials that the JPY weakness may have reached its conclusion, with lower US yields also adding to the downside.
  • Looking ahead, attention turns towards the host of central bank speakers due to comment with ECB’s Costa, Fed’s Kocherlakota and Dudley all on the speaker slate
  • Treasury yields fall slightly in overnight trading as German industrial production drops the most since 2009; this week’s Treasury auctions begin with $27b 3Y (WI 1.025%), yielded 1.066% at last auction, was highest auction stop since April 2011 (1.28%).
  • The Bank of Japan maintained its record stimulus as the yen traded near a six-year low and economists pushed back forecasts for further monetary easing
  • Japanese PM Abe said the weak yen is hurting small companies and households; Economic Minister Amari said government trying to minimize damage of weak yen
  • The largest global banks will have to hold more capital and liabilities than previously reported as regulators take on lenders deemed too big to fail
  • U.S. prosecutors are discussing whether to press Deutsche Bank to plead guilty to interest-rate rigging, and they’ll probably charge at least one bank with currency manipulation this year, the New York Times reported
  • The number of funds in Europe’s distressed debt market has doubled in the past two years as money managers seek to boost returns in a world of record-low interest rates
  • Euro area is building history’s biggest current-account surplus. The result: mountains of money likely to buoy the world’s stock and bond markets
  • Hong Kong’s protest leaders held a second round of talks with government officials, easing tensions in the streets as the city began to assess the impact of almost two weeks of demonstrations
  • President Obama’s pledge to boost screening for Ebola- infected airline passengers will mean devising a way to check thousands of flights arriving daily at U.S. airports for those who are ill but symptom-free
  • The U.S. is helping Ukraine plan how to keep homes and businesses heated during winter as fighting continues in the country’s eastern region
  • $8.6b IG corporates priced yesterday; last Monday saw no new issues price, monthly volume just shy of $20b; $75m HY priced yesterday, five deals for $2.7b priced last week, four deals totaling $1.725b MTD
  • Sovereign 10Y yields mixed with Greece rising +20.1bps. USD drops after closing at highest level since June 8, 2010 on Friday. Asian and European stocks mostly lower. U.S. equity- index futures drop. WTI crude, gold, copper fall

US Event Calendar

  • 10:00am: JOLTs Job Openings, Aug., est. 4.7m (prior 4.673m)
  • 10:00am: IBD/TIPP Economic Optimism, Oct., est. 45.1 (prior 45.2)
  • 3:00pm: Consumer Credit, Aug., est. $20b (prior $26.006b) Central Banks
  • 2:30pm: Fed’s Kocherlakota speaks in Rapid City, S.D.
  • 3:00pm: Fed’s Dudley speaks in Troy, N.Y.
  • 4:30pm: Fed’s Potter speaks in New York
  • 1:00pm: U.S. to sell $27b 3Y notes
  • 11:00am POcket Change POMO: Fed to purchase $250m-$350m TIPS in 2019-2044 sector

ASIA

JGBs traded higher by 8 ticks at 146.05 underpinned by spill-over buying in USTs during yesterday’s session and some weakness in Japanese stocks. The Nikkei 225 (-0.67%) recovered some of the earlier losses as the USD gained back lost ground on the JPY. Markets paid little attention to the Bank of Japan rate decision, unanimously unchanged as attention remained on the USD/JPY rate. The Hang Seng (+0.46%) continued to extend on the recent 2-day gains, as participants await the outcome of talks between the government and protesters.

FIXED INCOME

Bunds continue to underperform USTs with the German benchmark subject to profit-taking after printing contract-highs earlier in the session. This level was touched following the concerning German industrial production figures (M/M -4.0% vs. Exp. -1.5% (Prev. 1.9%, Rev. 1.6%)) which has triggered further concerns over the possibility of Germany entering into recession with analysts at ING saying that the drop in IP is too strong to explain by one-off factors. Nonetheless, Bunds have since pulled away from these levels after meeting technical resistance amid a lack of notable economic commentary to further drive price action.

EQUITIES

European equities trade in a sea of red alongside the lacklustre German industrial production data which came in at its lowest level since 2009. On a sector specific basis, materials is the only sector in the green across Europe with support provided by reports that Glencore (up as much as 1.5%) is said to be laying the groundwork for potential merger with Rio Tinto (+5%) in 2015 after reaching out to Rio Tinto's biggest investor (Aluminium Corp. of China) to gauge its interest in a potential deal, according to people familiar with the matter. To the downside, healthcare names are seeing notable outperformance with GSK (-1.7%) trading lower following a negative broker move at Kepler Chevreux. Furthermore, airlines names are also being weighed on this morning following an amalgamation of profit-taking and negative news stories including reports that a Spanish nurse has tested positive for the ebola disease, which could potentially have the scope to hamper travel across Europe.

FX

USD/JPY is one of the notable movers in FX markets with JPY gaining at the expense of USD following comments from Japanese PM Abe who said JPY strength is hurting small Co.’s and households, thus signalling that Japanese authorities believe JPY weakness may have reached its conclusion. This move to the downside for the pair has also been exacerbated by unfavourable interest differential flows alongside the move lower in US yields. Elsewhere, AUD fell 40 pips overnight as the RBA once again highlighted the over-valued currency, however the weakness was quickly erased as the market saw nothing new in the policy statement, with AUD/USD now residing in positive territory. GBP/USD trades relatively flat after failing to sustain the move above the 1.6100 level with the pair relatively unreactive to the in-line UK industrial and manufacturing report

COMMODITIES

Once again both Brent and WTI crude futures trade in negative territory with the move to the downside exacerbated by WTI slipping back USD 90.00bbl ahead of tomorrow’s DoE inventory report which is expected to reveal a build of 2mln bbls. Nonetheless, WTI crude futures still reside above yesterday’s low print of USD 88.76bbl. In the metals complex, spot gold trades above the key USD 1,200 albeit of its highs, with support overnight stemming from the weakness observed in the USD index and short-covering.

* * *

DB's Jim Reid Concludes the overnight recap

Its been a mixed start to the week for markets with US equities trimming back some of its post-payrolls gains while European equities edged ahead for the second consecutive day. The S&P 500 (-0.16%) paused after a two-day rally although sentiment was also weighed by the weakness in small caps. The Russell 2000 fell -0.91% yesterday to extend further its underperformance this year. Indeed whilst the S&P 500 and the Dow are now around 6.3% and 2.5% ahead for the year the Russell is nearly -6% YTD. In the absence of major data flow the market is perhaps happy to ‘wait-and-see’ before Alcoa kicks off the earnings season on Wednesday. Credit markets broadly moved in lockstep with equities with CDS index rolls being a key focus on the day. Roll markets for the CDX IG S22/23, Main S21/22 and Xover S21/22 closed at around 8bps, 8bps and 100bps, respectively. In the FX space, the USD reversed most of Friday’s gains (DXY -0.88%) even though we are seeing a slight rebound into the Asian session overnight.

With FX on the move and very much in the headlines lately, we've seen two interesting research pieces from DB on this subject over the last few days. First over the weekend DB strategist Alan Ruskin published a note entitled, ‚What the world looks like in large USD cycles.? In it he writes how, ‚Since 1973, the big USD up cycles are associated with surprisingly strong equity performance, less surprisingly weak commodity prices; some widening in BAA spreads versus Treasuries; weaker not strong manufacturing ISM, with soft ISM prices; and weaker developing country growth notably in Latam and Asia.? The piece has lots of interesting charts looking at how different assets have performed during the varying USD cycles back to 1973. See here for full report: http://pull.db-gmresearch.com/p/2201-1F56/72725008/DB_FXDaily_2014-10-06...

We also have a short but dramatic piece from DB strategist George Saravelos which attracted a lot of attention yesterday. The report is called "Euroglut: a new phase of global imbalances." In it George argues that, "both 'secular stagnation' and 'normalization' are incomplete frameworks for understanding the post-crisis world. Instead, "Euroglut" – the global imbalance created by Europe’s massive current account surplus will be the defining variable for the rest of this decade. Euroglut implies three things: a significantly weaker euro (forecast 0.95 in EUR/USD by end-2017), low long-end yields and exceptionally flat global yield curves, and ongoing inflows into "good" EM assets. In other words, he expects Europe’s huge excess savings combined with aggressive ECB easing to lead to some of the largest capital outflows in the history of financial markets.? It’s an interesting big picture view of the financial world we live in and is well worth a read. Although we can't help wondering what the response from other countries will be if the Euro drops to 0.95 vs USD. More QE from Japan, the Fed returning to QE? A response from China? Anyway they're just a few thoughts of ours after a first read of the note.

Turning to the overnight Asian session the tone is, on balance, firmer. The Hang Seng (+0.35%) and the HSCEI (+0.24%) are up for their third consecutive day. Crowds at key protest sites continue to dwindle whilst representatives from HK’s Occupy Central movement have agreed to hold formal discussions with the government. Both sides hope to start formal talks before 12 October. Chinese markets remain shut. The KOSPI is up by a modest 0.2% whilst the Nikkei is just slipping into negative territory now as we go to print. Asian IG credit spreads opened tighter overnight whilst HY benchmarks are also firmer across the board. The Asia iTraxx roll markets are currently being quoted at 22/23bp with flows broadly skewed towards sellers of protection. Broader EM sentiment is also benefiting from the sharp rally in the overall Brazilian risk complex yesterday. The Bovespa rallied 4.7% to post its biggest daily performance in two years. 5yr Brazil CDS narrowed 16bp and the BRLUSD is now about 2% higher from its Friday’s close.

There was limited data flow for markets to digest yesterday. A notable release was perhaps the disappointing factory orders from Germany which declined by a larger than expected 5.7% mom in August. Core orders also fell 2.5% mom to reverse the gains over the previous two months. All of which are not inconsistent with the recent softening trend in German data. Moving on to central bank activities, in a widely expected decision by the market, the RBA overnight left its cash rate unchanged at 2.5% for the 14th month. Ahead of the BoJ meeting conclusions, Bloomberg news noted that a majority of BoJ’s board members think it should drop the two-year timeframe for meeting its inflation target on concerns that investors may view April 2015 as a binding deadline which may fuel talks of more stimulus to meet the target. Back in Europe there’s also reports that the EU is preparing to reject France’s 2015 budget with the country preparing to run a budget deficit that is wider than EU compliance rules (4.3% of GDP vs 3.0%) as government cost cuts would be just 0.2% GDP (short of 0.8% previously agreed) (WSJ). Although we think ECB QE is highly likely in 2015, these stories are likely to lead to heated debate and disagreements on the ECB council.

We’ll get more data flow today with the IBD/TIPP economic optimism (Oct) and JOLTS job openings (August) being the notable ones from the US. Fed’s Dudley and Kocherlakota are also scheduled to speak at some point today. In Europe, Industrial production data from the UK and Germany will probably be the key. We should also get the latest World Economic Outlook from the IMF today.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 10/07/2014 - 06:50 | 5297943 fonzannoon
fonzannoon's picture

If the Euro/USD drops to 0.95 how in the hell could the fed return to QE? The 10yr would be back at 1.6% on it's own.

Tue, 10/07/2014 - 07:03 | 5297959 Dr. Engali
Dr. Engali's picture

The 10 year or hit 1.6% at some point in time regardless of what happens. It's just a matter of when.

Tue, 10/07/2014 - 07:10 | 5297969 fonzannoon
fonzannoon's picture

Agreed but the fed really wants to fake a small growth spurt and its just rude to not play along. Some decent looking blonde chick is yelling at CNBC right now that the 10yr is going to sub 1% and at least 30% correction on the way. But she made sure to say that you absolutely do not want to own gold.

Tue, 10/07/2014 - 07:26 | 5297986 GetZeeGold
GetZeeGold's picture

 

 

The bubble headed beach blondie comes on at 5:00....she can tell you about the plane crash with a gleam in her eye.

 

Stay away from real money whatever you do!!!

 

Who needs Germany when you have Belgium?

Tue, 10/07/2014 - 08:23 | 5298139 Manthong
Manthong's picture

..love the lyrics.. not many of the young have the connection.

and oh yeah.. the Belch bank vector  :-)

Tue, 10/07/2014 - 07:37 | 5298019 Dr. Engali
Dr. Engali's picture

I saw that, Joe Kernan was acting like his usual prick self and asking the question "what do you think Stocks are really going to go down?"

Tue, 10/07/2014 - 07:44 | 5298031 fonzannoon
fonzannoon's picture

The producers must have electrocuted her because she immediately said "nah no reason to worry" after she laid out the Marc Faber wet dream minus gold.

Tue, 10/07/2014 - 07:55 | 5298050 SoilMyselfRotten
SoilMyselfRotten's picture

I'm not sure i've ever seen Joe Kernen ask anything but rhetorical questions, the douche

Tue, 10/07/2014 - 08:21 | 5298140 wallstreetapost...
wallstreetaposteriori's picture

"sea of red"....  yeah but more like a kiddie pool of red...  how about its time to let the froth drown..

Tue, 10/07/2014 - 08:15 | 5298117 Lewshine
Lewshine's picture

The black hand of the Fed is still trying to offset further losses in US equities. The futures market is getting bought up as we near the open, by those nifty Norad computers. Money is also being poured into the Dax futures market. It's really kind of funny - The Fed will fight this collapse till they can't. Desperate hombres!!

Tue, 10/07/2014 - 07:13 | 5297971 TheSlav
TheSlav's picture

The Fed's 5-Year, % Year Forward Inflation Expectation rate, their go-to metric for QE is plummeting fast towards the Mendoza line of 2.1%, where in the past they have implemented QE programs. It has dropped from 2.6% in July, currently sitting at 2.3%, approx when the "taper turns to rising rates" talk firmed up. Given the deflation talk coming out of Europe, and the decline in rates you mention we ought to back in the QE game somewhere between Halloween and Thanksgiving. My guess would be it won't / can't be done before the elections for Fed credibility purposes (like Madonna being concerned about her chastity), but after that smoke clears, we'll see who is Pavlov and who is the dog between the market and the Fed. 

Tue, 10/07/2014 - 07:28 | 5297995 fonzannoon
fonzannoon's picture

They are actually going to have to send out checks this time. Bond buying qe ain't gonna fly.

 

Tue, 10/07/2014 - 07:33 | 5298006 NoDebt
NoDebt's picture

That's right.  They will send out checks.  Because they're going to buy everything next time, just like Japan is now.  Stocks, corp. bonds, REITs, etc.  Hell, they might buy accounts receivable straight out off company balance sheets, for all we know.  But you won't see a check personally.

Tue, 10/07/2014 - 07:41 | 5298026 fonzannoon
fonzannoon's picture

I just got $350 from NY state due to a budget surplus (astonishing) and supposedly another check is on its way due to some property tax thingy adjustment. Its enough to pay my water bill and one bar tab. I figure they could send us all at least 10k each for the holidays. Why not do it, it would end up back up in the same hands once its spent anyway.

Tue, 10/07/2014 - 06:51 | 5297944 jubber
jubber's picture

Would suggest a little bit of panic from the Central Bankers, looks like an emergency USJPY ramp at exactly 10:00 am GMT was launched and DXY has recovered a massive 50 pips this morning...also no POMO until next Tuesday after todays small injection

Tue, 10/07/2014 - 06:52 | 5297946 Oldwood
Oldwood's picture

It all seems so normal now. frightening, combined war disease and pestilence.

Tue, 10/07/2014 - 07:05 | 5297964 negative rates
negative rates's picture

Well the end is near so, but you didn't hear that from me, Noo sir re.

Tue, 10/07/2014 - 07:30 | 5298001 GetZeeGold
GetZeeGold's picture

 

 

I don't think the heavy stuff is going to come down for quite a while.

http://www.youtube.com/watch?v=t3lshY4PwI4

Tue, 10/07/2014 - 07:19 | 5297981 Peter Pan
Peter Pan's picture

I can almost see the dumbed down masses sitting on the couches with their pocorn and 2 litre bottles of soft drink waiting for the televising of the economic meltdown. In fact I CAN see them. They have already assumed the position. Evolution my ass. We are closing in on the apes at the rate of knots.

Tue, 10/07/2014 - 07:35 | 5298009 Oldwood
Oldwood's picture

Ammo and weaponry is all that gives me any comfort at this point, and that is a sad, sad thing to say. When I see the reaction to Ebola in Dallas, I understand what we really must fear is panic, that caused by economic, terrorism or disease. People have been indoctrinated to dependency, meaning they have NO confidence in themselves and will freak the fuck out when any real threat exists. We have converted people into potential childlike lunatics who will run through the streets in some surreal movie scenario. I see the skies full of large black swans,or it could be my meds speaking.

Tue, 10/07/2014 - 07:52 | 5298048 GetZeeGold
GetZeeGold's picture

 

 

In fact I CAN see them

 

I DID see them trashing the streets of New York City in the name of global warming......I hope they don't come back anytime soon.

Tue, 10/07/2014 - 07:36 | 5298018 LULZBank
LULZBank's picture

Dumb down masses dont have money to invest (maybe mortgages), what do you expect them to do?

Tue, 10/07/2014 - 07:43 | 5298030 valley chick
valley chick's picture

Actually got a sister that obesses on the weather channel when the snow starts falling. However, when I try to get her to pay attention to economics she gets that glazed over look and then has to go do something. I believe the sheeple will resume the couch position after the debit and ebt cards will not work and of course after looting has begun. 

Tue, 10/07/2014 - 07:58 | 5298065 new game
new game's picture

just watch the dolla, very volitile as of late. whole scheme volitile lately, signaling a top before some kind of correction. corrections have a way of correcting and finding an afterlife of sorts. so many factors, mostly negative, but could actually end up being another dip to buy, ha...

i have no idea though, just babbling. gotta got up north and look for vlad in da nort woods, see ya!

Tue, 10/07/2014 - 06:53 | 5297947 yrbmegr
yrbmegr's picture

"and to think it only took him 2 years to read what we said would happen in late 2012".

ZH said everything would happen in 2012.  It is merely coincidence that this one thing actually happened.

Tue, 10/07/2014 - 06:58 | 5297948 Dr. Engali
Dr. Engali's picture

Considering an exit strategy and actual execution are two different things. How long has Fisher been pretending like he wants to exit the fed's insane policies?

Tue, 10/07/2014 - 07:07 | 5297966 negative rates
negative rates's picture

They want(the Fed) to force you on their suicide death wish, I always just say NO. If you like your death wish, you can keep your death wish. 

Tue, 10/07/2014 - 07:04 | 5297961 Peter Pan
Peter Pan's picture

Europe thinks it is swimming because it still has one nostril out of the water.

Heaven help the politicians from the wrath of the people when the bleeding obvious dawns on the masses.

Tue, 10/07/2014 - 07:13 | 5297973 Bill of Rights
Bill of Rights's picture

As long as the Welfare State checks keep flowing all will be calm.

Tue, 10/07/2014 - 07:15 | 5297978 Peter Pan
Peter Pan's picture

That's the problem, the cheques are either shrinking or not buying as much as they used to.

Tue, 10/07/2014 - 07:27 | 5297994 negative rates
negative rates's picture

That was the Feds policy of, "inflating your way out" or in this case, their way out.

Tue, 10/07/2014 - 07:39 | 5298025 LULZBank
LULZBank's picture

Some countries have passed legislation to reduce the monthly rents by about couple hundred bucks.

That is approx 200 million extra cash to spend per million per month.

Stealth EBT Bitchezz!!

Tue, 10/07/2014 - 07:14 | 5297977 Millivanilli
Millivanilli's picture

Does this mean the economic sanctions are working? 

 

Tue, 10/07/2014 - 07:21 | 5297984 Peter Pan
Peter Pan's picture

Like I said in a post in recent days, "he who digs a grave for others usually falls in it himself". 

Tue, 10/07/2014 - 08:02 | 5298043 fervent in spirit
fervent in spirit's picture

.

Tue, 10/07/2014 - 08:21 | 5298138 Colonel Klink
Colonel Klink's picture

Cool story bro!

EDIT:  Awww you took away the storybook quote.

Tue, 10/07/2014 - 07:24 | 5297989 Keltner Channel Surf
Keltner Channel Surf's picture

Perhaps setting up for a wild whipsaw week, with potential JPY carry trade dumping from 108 downward, then stocks pumping back intraday as every one of a dozen Fed speakers tries to smooth over markets.  Or, could this be the first hint markets turn a deafer ear to Fed blathering ?

Tue, 10/07/2014 - 07:33 | 5298005 Bill of Rights
Bill of Rights's picture

Disney bails out its European theme park - Oct. 6, 2014

 Euro Disney has a market value of about 124 million euros, and owes Disney 1.75 billion

 

Full of win!

 

Tue, 10/07/2014 - 07:42 | 5298028 yogibear
yogibear's picture

Euro Disney seemed to be bad luck since it was created. Cost overruns from French labor. They should have opened it elsewhere.

Tue, 10/07/2014 - 07:34 | 5298007 firstdivision
firstdivision's picture

Draghi is just about to get his green light for ECB QE programs.  This will be fun.

Tue, 10/07/2014 - 07:35 | 5298008 New_Meat
New_Meat's picture

"...and triggered USDJPY slel programs, ..."

Those damn slel programs--getcha' every time!

- Ned

Tue, 10/07/2014 - 07:47 | 5298038 GetZeeGold
GetZeeGold's picture

 

 

- Ned

 

Ned Ryerson?

http://www.youtube.com/watch?v=xkW_ZkMtmlQ

Tue, 10/07/2014 - 08:23 | 5298153 Colonel Klink
Tue, 10/07/2014 - 07:49 | 5298041 new game
new game's picture

dollar/gold relationship in sync-that is what be happening short term here and now.

so maybe after this manipulation we finally have logical baramter, ha....

fucking bonds are not behaving anywhich way but manipulated/zirp/nirp/darth vader/plungers/risers/fucking not reflecting true risk whatsoever...faux, imaginary/wish/think bullshit econ...kaboom goes the dolla some day! then gold will be set free to reflect is intrinSIC value...

Tue, 10/07/2014 - 07:51 | 5298047 Last of the Mid...
Last of the Middle Class's picture

Fundamentally, what economists will never tell you is that devaluing a currency to make goods and services more competitive on the global market is the same thing as making local goods and services cost more to consumers. It's math, a fact and no way around it, no matter how many smiles, hand shakes, winks or blow jobs are involved. Keeping the masses dumbed down is critical in this global slight of hand game as they are in fact the ones footing the bill for the economic insanity. It's gone on so long and we've fallen so far from a government who's only economic drive is to make sure there is a level playing field that there is now way back without major "friction" between classes. Everyone with a whit of common sense knows what's coming and we all should educate those around us as to what must be done to protect our families and loved ones when the "friction" begins. We are being "financed" back to the dark ages, good luck.

Tue, 10/07/2014 - 08:00 | 5298072 new game
new game's picture

been going on since 12/1913...

Tue, 10/07/2014 - 08:01 | 5298075 Seize Mars
Seize Mars's picture

Sea of red my ass. European indices are all down less than a percent.
Seriously there is a whole new generation if dumb ducks who don't know what volatility is.
Anyways wake me up when the DAX is down a solid five percent intraday.

Tue, 10/07/2014 - 08:12 | 5298112 AdvancingTime
AdvancingTime's picture

Valid point in that 100 points is not the same in a 17,000 point market as whena market is trading at 1,000 points. 

When a major decline does start the first 10% may be taken away little by little.

Tue, 10/07/2014 - 12:24 | 5299203 Bemused Observer
Bemused Observer's picture

I don't think any of these folks could handle a major decline...On CNBS, the market was down by 10 points and change, and they're all going on about the "sell-off"...the sell-off? Not even 11 points down in a market at nearly 17,000, and they're talking sell-off.
10 % would strike them all dead where they sit.

Tue, 10/07/2014 - 08:06 | 5298094 AdvancingTime
AdvancingTime's picture

It is to late to reverse the weak yen policy, Japan has gone over the edge into the abyss. It is clear that the prospects for Japan are lousy. The writing is on the wall. Japan is facing a wall of debt that can only be addressed by printing more money and debasing their currency.

This means paying off their debt with worthless yen where possible and in many cases defaulting on promises made. Japan's public debt, which stands at around 230% of its GDP and is the highest in the industrialized world. They are past the point where they can return to a "free and fair market" interest rate marketing their bonds to the world and still be able to pay the debt service.

The moment the Japaneses stock market fails to rise enough to offset inflation and realizes even a weaker yen will not help we will see a tsunami of money fleeing Japan. This will constitute the end of the line for those left holding both JGBs and the yen. This has been a long time coming and I contend the cross-border flow of money leaving Japan is why some stock markets have remained so resilient . When Japan crumbles it will be felt across the world. More on this subject in the article below.

http://brucewilds.blogspot.com/2014/05/japan-sliding-towards-abyss.html

Tue, 10/07/2014 - 08:11 | 5298108 homiegot
homiegot's picture

The U.S. will be next. 

Tue, 10/07/2014 - 08:13 | 5298111 jubber
jubber's picture

DOW miraculously bounces 60 points from nowhere

Tue, 10/07/2014 - 08:24 | 5298156 new game
new game's picture

bruce japan will set us free, contagion will set us free, free markets that is, markets unshakled from cb's. a rogue, mad max style unsettling affair that will define the future and i have no clue when this starts, but sooner than later...

Tue, 10/07/2014 - 08:34 | 5298193 jubber
jubber's picture

and now a real Black Swan possibility:-Nine people die as Pakistan-India tensions flare in Kashmir http://on.wsj.com/1tvgOuq

+Ebola and all the other shit going on...

Tue, 10/07/2014 - 09:59 | 5298538 ClassicCommodity
ClassicCommodity's picture

I'm keen for this movie to begin. I hate knowing more than average and not being rewarded for it.

Do NOT follow this link or you will be banned from the site!