China

China

Could This Rally Be A Head-Fake?

If there's nothing supporting this rally but euphoric sentiment arising from orchestrated buying, any eruption of reality will reveal the rally as a head-fake.

Yen Soars, Stocks Slide After Kuroda Says "No Need Or Possibility For Helicopter Money"

In a surprising rejection of Ben Bernanke, BOJ governor Haruhiko Kuroda said that there will be no helicopter money in Japan, amid increasing speculation over monetary and fiscal policy in the world’s third-largest economy. Given the current institutional setting, there is "no need and no possibility for helicopter money," Kuroda said in a BBC Radio 4 program that was broadcast Thursday. “At this moment, the Bank of Japan has three options with quantitative and qualitative easing with negative interest rates."

234 Billion-Dollar-Managing Fund Unclear Why Market Ignoring The Biggest Risk

"It's unclear why this hasn't been a significant driver of markets across the board... maybe we just haven't hit the threshold," exhorts $234 billion bond fund Invesco's Ray Yu. The head of the firm's macro research told Bloomberg that a general theme of political risks increasing or political risk premium has been prevailing for the last few years and we are now seeing tension between established political regimes and populist movements.

Potential Crisis Triggers Continue To Pile Up In 2016

We are a little over half way through 2016 and, at the current rate, it will be a miracle if the year finishes without outright catastrophe in half the nations of the world. Some might call these events “Black Swans,” some might call them completely engineered threats, others might call it all a simple “coincidence” or a tragedy of errors. We stand strictly by the position that most of the dangers we see today have been deliberately escalated, if not strategically implemented. Chaos is NOT the end game, it is only a tool by which the elites gain psychological leverage over the masses so that people willingly give up their rights to self determination and hand more power to the establishment.

"My Own People Hate Me!" - Black Brooklyn Cop Slams "False Narrative Of Black Lives Matter"

"I haven’t slept well in the past few nights. Heartbreak weighs me down, rage flows through my veins, and tears fills my eyes. I realized...  Black Lives do not matter to most black people. Only the lives that make the national news matter to them. Only the lives that are taken at the hands of cops or white people, matter. The other thousands of lives lost, the other black souls that I along with every cop, have seen taken at the hands of other blacks, do not matter."

Why SocGen Thinks There Is Less Than 1% Chance That 10-Year Yields Will Fall Below 1.1%

SocGen has become the latest in a long and illustrious line of (so far wrong) forecasters, to predict that the 30-year-old bond rally is finally over. Using a new and improved "model", the French bank says that there’s less than a 1 percent chance U.S. 10-year yields fall below 1.1% especially as the Federal Reserve moves to raise interest rates. "Our analysis shows a roughly an adjusted fair value for the 10yT of 1.95%." Here's why.

S&P Sees A "Crisis Of Confidence Around The Globe" As Corporate Debt Hits $75 Trillion In 2020

"A worst-case scenario would be a series of major negative surprises sparking a crisis of confidence around the globe. These unforeseen events could quickly destabilize the market, pushing investors and lenders to exit riskier positions (a ’crexit’ scenario). If mishandled, this could result in credit growth collapsing as it did during the global financial crisis.”

"The World's Central Banks Are Making A Big Mistake"

Debt is future consumption brought forward. Once debt is incurred, consumption that might have happened in the future won’t happen. And it should come as no surprise that at a certain debt level, growth and income begin to diminish. That is exactly what we are seeing in the real world.

Globalization's Few Winners And Many Losers

Globalization is presented as a win-win solution: the developed countries get cheaper goods and the developing world get the benefits of industrialization. But now a new study, Poorer Than Their Parents? Flat or Falling Incomes in Advanced Economies, finds that globalization has been a bad deal for 80% of the people in developed economies, as their income and wealth has stagnated or declined.

Art Sales Tumble: Christie's Reports 38% Plunge In First Half Sales

There is yet another confirmation that the slowdown in luxury spending continues, nowhere more so than in the world of "luxury" art. As the WSJ reports, Christie said it sold $3 billion in art during the first half of the year, down a third from the same period last year. Contemporary art, long the engine of Christie’s market dominance, was hardest hit, its $788 million in auction sales down 45% from a year earlier. Sotheby's didn't fare better: the New York-based auction house said first half sales dropped a quarter from the year before

Oil Surges After Gartman Exits Crude Long

"this aggressive “bidding” is sufficient to cause us to abandon our modest, one unit long positions in crude immediately upon receipt of this commentary. Being wrong is part of the business we are in; remaining wrong is anathema and the market is about to tell us that we are very, very wrong."