China

China

China Suspends Foreign Banks' FX Trading As Offshore Yuan Spread Signals Massive Outflows

For the first time since the August collapse, Offshore Yuan is trading over 1000 pips weaker (relative to the USDollar) than onshore Yuan, signalling outflows are once again escalating. Following the chaos in HIBOR money-markets, Offshore Yuan has crashed to 6.5970 (below August spike lows) to the weakest since Dec 2010. On the heels of this recent divergence between on- and off-shore Yuan, China has suspended some foreign banks from FX trading, we suppose to try and stem the capital outflows.

Paul Craig Roberts: Why World War III Is On The Horizon

At this point in time, nuclear war can only be avoided in two ways. One way is for Russia and China to surrender and accept Washington’s hegemony. The other way is for an independent leader in Germany, the UK, or France to rise to office and withdraw from NATO. That would begin a stampede to leave NATO, which is Washington’s prime tool for causing conflict with Russia and, thereby, is the most dangerous force on earth to every European country and to the entire world. If NATO continues to exist, NATO together with the neoconservative ideology of American hegemony will make nuclear war inevitable.

The Rising Threats To Our Health

Though evidence of a looming global healthcare crisis is plainly visible, few seem to realize the consequences will be catastrophic to individuals, households and national economies.

This May Be The Greatest "Explanation" Ever For Cooking The Company's Books

"... On 12 December 2015, the Company was notified by the local public security bureau that the Truck was found but not the Lost Documents. As at the date of this announcement, although the possibility of finding the Lost Documents is not high, the Group has nonetheless deployed all possible resources in search of the Lost Documents."

Marc Faber Dials In From Thailand, Sees Another Recession

“I think 10-year USTs are quite attractive because of my outlook for the weakening economy. Actually I believe we’re already entering a recessionin the US. Given the weakness in the global economy and the deceleration of growth in the U.S., I would imagine that by next year the Fed will cut rates once again and launch QE4."

"2016 Will Be No Fun" - Doug Kass Unveils 15 Surprises For The Year Ahead

My overriding theme and the central drama for the coming year is that unexpected events can take on greater importance as the Federal Reserve ends its near-decade-long Zero Interest Rate Policy. Consensus premises and forecasts will likely fall flat, in a rather spectacular manner. The low-conviction and directionless market that we saw in 2015 could become a no-conviction and very-much-directed market (i.e. one that's directed lower) in 2016. There will be no peace on earth in 2016, and our markets could lose a cushion of protection as valuations contract. (Just as "malinvestment" represented a key theme this year, we expect a compression of price-to-earnings ratios to serve as a big market driver in 2016.) In other words, we don't think 2016 will be fun.

In The "Year When Nothing Worked", This Handful Of Traders Made Billions

While most hedge funds will be glad to close the books on a year in which they once again dramatically underperformed a market which hugged the flatline courtesy of just a few stocks (even as most stocks posted substantial declines) and where "hedge fund hotels" such as Valeant suffered dramatic implosions, a handful of traders generated impressive returns for their investors and made billions by going against the herd.

2016 Is An Easy Year To Predict

No year is ever easy to predict, if only because if it were, that would take all the fun out of life. But still, predictions for 2016 look quite a bit easier than other years. This is because a whole bunch of irreversible things happened in 2015 that were not recognized for what they are, either intentionally or by ‘accident’. Things that will therefore now be forced to play out in 2016, when denial will no longer be an available option. Simply put, 2016 will be the year when a lot of ‘underlying wealth’ evaporates.

Safe On The Sidelines - 405 Days And Counting

The S&P 500 closed at 2052 on November 18,2014. That was 405 days ago, and despite the rips and dips in the interim the broad market average has gone nowhere.

In Latest Blow To Apple, Taiwan Makers Cut iPhone Shipments Up To 10%

While the straws have been building on the camel's back of Apple's "no brainer" status over the past few months, today's news from DigiTimes appears to be the most damning yet on the 'peak Apple' phenomenon. Apple share are fading off early market highs as demand for iPhone 6s and iPhone 6s Plus appear to have slowed down recently, shipments of iPhone devices from production lines in the fourth quarter of 2015 are likely to be 5-10% lower than originally expected, according to Taiwan-based supply chain makers.

Frontrunning: December 29

  • The World's Richest People Got Poorer This Year (BBG)
  • Oil hovers near 11-year lows on abundant supply, slowing demand (Reuters)
  • Oil-Producing States Battered as Tax-Gushing Wells Are Shut Down (BBG)
  • A Bold Few Traders Earn Billions Flouting Rivals (WSJ)
  • Islamic State ruling aims to settle who can have sex with female slaves (Reuters)
  • Winter Storm Snarls Republican Presidential Traffic (BBG)
  • Donald Trump Urges Supporters to the Polls (BBG)

Global Stocks Rebound, US Stocks To Reopen Back In The Green For 2015 As Oil Halts Slide

Santa Claus is cutting it close: after stocks closed down yesterday, and just fractionally red for the year, the jolly old gift-giver (who now has activist investors breathing down his neck) has just three trading days to push if not stocks then the market into the green for the year. And so far, so good, with US equity futures rising by 8 points or 0.4%, on the back of some modest renewed Dollar strength but mostly on oil, which after yesterday's big slide, has managed to stem the decline and is up fractionally, just under $37, along with other commodities if not copper, which falls for second day.