Narrative, we have a problem. What is billed day after day as 'unequivocally good' is entirely not good for Alaska (oh and Texas and Pennsylvania and...) as with oil prices dropping, AP reports Alaska Gov. Bill Walker has halted new spending on six high-profile projects, pending further review. With oil taxes and royalties expected to represent nearly 90% of Alaska's unrestricted general fund revenue this year, officials warned, "the state's fiscal situation demands a critical look."
Case-Shiller's 20-city home price index dropped 0.1% MoM in October (on an unadjusted basis) - the second monthly drop in a row and biggest drop since the Polar Vortex. Year-over-year, home prices rose 4.5% - the weakest growth since October 2012. While this modestly beat expectations (+4.5% vs +4.4% exp.), it is the 11th month in a row of growth deceleration. Also of note: the Top 20 Composite index is now down for the second month in a row, dropping to 173.36. The question now is whether the downside momentum will pick up.
USDJPY has tumbled overnight back below 119.50, dragging stocks (equity futures now at session lows) and Treasury yields with it. But it appears the Gold/Yen trade that is reacting most significantly as a huge volume flushes through futures markets spiking Gold back above $1200...
- U.S. agency gives quiet nod to light oil exports (Reuters)
- China’s Stocks Fall to Pare Biggest Monthly Advance Since 2007 (BBG)
- The Cartel: How BP Used a Secret Chat Room for Insider Tips (BBG)
- BRICs Busted as Stocks Diverge Most on Record on Outlook (BBG)
- Petrobras deadline prompts some bondholders to push for default (Reuters)
- AirAsia Captain at His Happiest When Flying, Family Says (BBG)
- UK housing crisis: brick stocks hit record low (Telegraph)
Greece may be on the verge of a Grexit, crude may be taking out all key technical support levels, and US stocks will still close higher. But let the USDJPY slide and watch as the levitation ends with a bang. And tumble overnight is precisely what the USDJPY did, pushing not only the Nikkei lower by 1.6% but also leading to what is shaping up to be an unrecord, also known as red, open in the S&P - this surely calls for a "Markets in Turmoil" flashing siren on the 9th floor of the New York Fed.
The mystery of the disappearance of Malaysian flight MH-370 may remain forever, but at least the families of the 162 victims of AirAsia Flight QZ8501 will get some closure when a few hours ago, Indonesian rescuers pulled wreckage and bodies from the sea off the coast of Borneo on Tuesday. While the plane has yet to be found, and the possibility of finding survivors is slim, the Indonesian navy said some 40 bodies had been recovered as dusk fell.
Gold Held In NY Fed Vault Drops To Lowest In 21st Century After Biggest Monthly Withdrawal Since 2001Submitted by Tyler Durden on 12/30/2014 00:41 -0400
In November some 47.1 tons of gold were withdrawn from the NY Fed, bringing the Fed's total earmarked gold to just 6,029 tonnes: the biggest single monthly outflow going back to the turn of the century. This is also the lowest amount of gold held at the NY Fed in the 21st century.
What scares me about the Clash of Civilizations is that the three leaders of the three biggest civilizations – the US (Western), China (Sinic), and Russia (Orthodox) – will misplay their hands and take on another civilization directly or, worse, take on each other, and that will vaporize the Narrative of Central Bank Omnipotence in a nanosecond. The existential risk here for markets is not that China/Russia/Europe/America might “collapse”, whatever that means. No, the existential risk is that the great civilizations of the world will be “hollowed out” internally, so that the process of managing the ten thousand year old competition between civilizations devolves into an unstable game of pandering to domestic crowds rather than a stable equilibrium of balance of power.
China's Leading Index has fallen to its lowest since Feb 2009 this evening, down 4 straight months from credit-driven 18 month highs. This economic weakness has exaggerated the already weak tone in Yuan trading this evening pushing CNY to its weakest in almost 7 months (against the USD), its furthest on record from the CNY Fix (10-month highs), and very close to the PBOC's upper +2% band for CNY trading. At 6.23, USDCNY is over 1000 pips weaker than the CNY fix.
Natalie Heimel and her fiancé, Edward Mallue Jr., a pair of captains in the Army, received two letters from President Obama in less than 24 hours as they prepared for their wedding ceremony at Kaneohe Klipper Golf Course in Hawaii. The first, a nicely worded regretful but congratulatory RSVP to their wedding invite... and the second, as Bloomberg reports, informing them that their wedding would have to be moved since President Obama wanted to play through.
The Christmas Truce in 1914 showed that, given the choice, people do not want to be out fighting and killing each other. While The Truce was joyous for the soldiers, it was dangerous for the political leadership on both sides. Simply put, our efforts must be focused on opposing all war propaganda perpetrated by governments against the will of the people.
It appears, despite all the promises, all the lies, and all the constant propaganda, that foreign investors have finally seen right through Shinzo Abe's risible plan to revive the Japanese economy by crashing its currency (just like Russia?). As Bloomberg reports, after pumping record amounts of cash into Japanese shares last year, they’ve hardly added to holdings in 2014. Inflows are down 94 percent this year to 898 billion yen ($7.5 billion), on pace for the smallest annual amount since the 2008 global financial crisis.
It has become exceedingly apparent that most Americans no longer think for themselves. Rather, most conversations in America today consist of an exchange of sound bites, phrases, ideas and talking points that the “matrix” has fed us. Most of us are just zombies that spend our days searching for the things that we are desperately craving. For fictional zombies, that usually consists of brains. For American zombies, that usually consists of something that will feed our addictions. Our society is breaking down in thousands of different ways, and we can see the evidence of this all around us.
World GDP Growth Expectations for 2015 just dropped dramatically to their lowest since expectations began to be tracked. From 3.40% in early 2013, the consensus is expectating world economic growth at a mere 2.72% (a 20% decline in growth expectations). Of course, there is one thing that is not going down...