"There are more people in the world who need a currency they can trust, than there are people in the world who can trust their currency."
Friday's nearly 6% plunge on the SHCOMP left some market participants wondering where the plunge protection team was hiding in the final minutes of trading. As FT reports, Beijing's so-called "national team" now owns 6% of the entire mainland market and as we saw in September, the paper losses on that kind of portfolio can add up quickly when things go south. The question now is whether the PBoC will step back in if we have a few more days like today.
With the winter of 2015 so far shaping up to be what some have dubbed "abnormally hot", we thought that at least this year the weatherconomists would keep their mouth shut: after all, if you blame cold weather for an underperforming economy, you better say nothing at all if the weather is warmer than usual as it has been in October and November. Alas, it was not meant to be, and so, without further ado, here are everyone favorite economweathermen from Goldman Sachs, warning everyone that, drumroll, yes, Winter Is Coming.
Within the last week China appears to have hit the panic button with regards the seemingly unstoppable collapse of commodity prices. First, desperate Chinese producers began to demand a QE-for-commodities bailout; then, following the well-trodden (and failing) path of China's equity market maipulation, authorities began to crackdown on "malicious" commodity short-sellers. So why now? Why focus attention on the commodity markets? Perhaps this chart holds the key...
At least 151 people have been put to death since Saudi Arabia's current King Salman rose to power after the death of King Abdullah in January 2015, dramatically higher than the total of 90 in 2014. As Amnesty International warns, "it is clear that the Saudi Arabian authorities are using the guise of counter-terrorism to settle political scores."
China Begins Military Colonization Of Africa With First Ever Overseas Army Base At Key Oil ChokepointSubmitted by Tyler Durden on 11/27/2015 11:30 -0500
“China has for decades proudly proclaimed its lack of military facilities on foreign soil, so seeking long-term military access at a quasi-base level is a massive about-face… China is poised to cross the Rubicon.”
In a statement, the People’s Bank of China thanked the IMF for the recommendation and said it was “an acknowledgment of the progress in China’s recent economic development, reform and opening up”.
The fact of the matter is that despite public opinion, there are problems that are so big that the Central Banks cannot fix them. We’ve seen this in Switzerland and China and now in Europe. It will be spreading to other countries in the near future.
With over 1.6 million internally displaced in South Sudan, and another 600,000 refugees in neighboring countries, are oil price declines exacerbating humanitarian crises in oil-producing African countries, and can we expect further deterioration as a result of the recent price depression?
From witch hunts to corporate defaults to abysmal data, Friday marked a rather unceremonious end to the week for China, as a veritable perfect storm of bad news sent the SHCOMP reeling. Unfortunately for China's day trading masses the plunge protection team was, like Guotai Junan International Holdings’ CEO Yim Fung, "missing" in action.
- Russia Takes Aim at Turkish Economy Amid Fighter-Jet Spat (WSJ)
- ‘Commercial scale’ oil smuggling into Turkey becomes priority target of anti-ISIS strikes (RT)
- Russia-Turkey Ties Are Headed Into a Deep Freeze (WSJ)
- France signals softer stance on Assad after Russia talks (FT)
- China Calm Shattered as Brokerage Probe Sparks Selloff in Stocks (BBG)
- China Stock Bulls Hit Breaking Point as State Dials Back Support (BBG)
- China's Bond Stresses Mount as Two More Companies Flag Concerns (BBG)
After several months of artificial, centrally-planned calm in Chinese markets, where "malicious sellers" found out the hard way the Politburo means business, overnight the relative quiet in Chinese stocks since August broke with a bang when the Shanghai Composite tumbled as much 6.1% before closing down 5.5%, the biggest drop in three months and the largest weekly loss since the depth of the Chinese rout in mid-August while a gauge of Chinese volatility surged from the lowest level since March.
When you have a billion people willing to work instead of expecting free "stuff", anything's possible... Earlier this year, a Chinese construction company had erected a 57-story skyscraper in just 19 days. This time the Chinese have built an overpass in mere 43 hours!
While we patiently dig to find who the on and offshore "commodity trading" middleman are, who cart away ISIS oil to European and other international markets in exchange for hundreds of millions of dollars, one name keeps popping up as the primary culprit of regional demand for the Islamic State's "terrorist oil" - that of Turkish president Recep Erdogan's son: Bilal Erdogan.