China

China

What's Next For The VIX? RBC Explains

"From a ‘vol control’ fund deleveraging perspective, we still aren’t likely to have seen heavy de-risking flows from the masses yet (many targets at 8 or 10), as SPX realized vol—even of the short-term 20d varietal—remains painfully low at 6.5.  So, in order to ‘trigger’ it would either require another violent jump in vol, or a few more days further in this 15-16-17 vols level to ‘drag up’ the trailing number."

Frontrunning: August 11

  • Trump: military solutions 'locked and loaded' against North Korea threat (Reuters)
  • Any Korean war could quickly escalate (Reuters)
  • Could a North Korean Nuclear Missile Hit the White House? (BBG)
  • Standoff Leaves China With Few Options (WSJ)
  • Trump and Kim's War of Words Has Asia Bracing for Conflict (BBG)

Global Market Rout Spreads: VIX Marches Higher As China Stocks, Currency Plunge

The global rout resulting from tensions over the North Korean nuclear standoff continued on Friday following a third day of escalating verbal exchanges between Trump and Kim, with European and Asian shares tumbling as volatility across the globe spiked, with the selloff in US futures continuing albeit at a more modest pace.

Pentagon Unveils Plan For "Pre-Emptive Strike" On North Korea

The Pentagon has prepared a specific plan for a "pre-emptive strike" on North Korea's missile and nuclear sites should President Trump order such an attack. "Of all the military options … [President Trump] could consider, this would be one of the two or three that would at least have the possibility of not escalating the situation."

Beware A Second Korean War

There is no way we could be sure that preventive actions would not set off a second Korean War...

Pepe Escobar On North Korea: Fire, Fury, Fear, & False Flags

"Beware the dogs of war. The same intel 'folks' who brought to you babies pulled from incubators by 'evil' Iraqis as well as non-existent WMDs are now peddling the notion that North Korea has produced a miniaturized nuclear warhead able to fit its recently tested ICBM."