Morgan Stanley

Eurozone Business Growth "Unexpectedly" Slows Down To 16 Month Low

It wasn't just Japan's PMI which overnight printed at a disappointing 47.6, missing expectations and signaling the sharpest decline in operating conditions since December 2012. Overnight Markit showed that the Chinese credit-induced global slowdown is coming far faster than most (if not Morgan Stanley) expected, when the Eurozone flash PMI printed at 52.9, the lowest level in 16 months. As Reuters put it, this offers "the latest evidence that a strong acceleration in growth in the first three months of the year was only temporary" and likely

"The Time Is Now" For Markets To Price In China's Next Slowdown, A Gloomy Morgan Stanley Warns

"With it now taking 6.5 units of debt to produce 1 unit of GDP, additional gains from the lending channel are limited, in our view. China data already suggest diminishing returns from a flagging stimulus. Our China economic activity indicator (MS-CHEX) is at 3% versus 10% last month, while property sales in top cities have slowed to 15%Y in the first two weeks of May compared to 55%Y in April. If we think China growth softens again over the summer, the question for markets is how far ahead of this prices react. The risks are rising that the time is now."

Bill Clinton Confirms "Wants Economic Role" In Hillary's Administration

Is this why stocks are slipping? Following Hillary's hint last night that she would like to put her husband in "charge of revitalising the economy, because you know he knows how to do it," Bill confirmed the farce this morning, admitting he has asked for an "economic role" in his wife's adminstration. As Yves Smith so eloquently noted, after having institutionalized the neoliberal economic policies that have enriched the 1% and particularly the 0.1% at the expense of everyone else, Hillary Clinton wants to give the long-suffereing citizenry an even bigger dose. Good luck America.

LendingClubbed: Stock Plummets On News Of A DOJ Grand Jury Subpoena As Accusations Fly

"On May 9, 2016, following the announcement of the board review described elsewhere in this filing, the Company received a grand jury subpoena from the U.S. Department of Justice (DOJ)... In the five business days since we announced our review and resignation of our CEO, we have experienced a slowdown in a significant amount of investment capital...  The identified material weakness is the result of the aggregation of control deficiencies related to the Company’s “tone at the top,” which manifested in three primary areas described further below."

In China, Nobody Wants To Be A Bagholder

With the frenzied speculation that drove levels and volumes in Chinese commodities off the charts having dawned on everyone from Cramer to Chinese Securities regulators as 'not real', it appears everyone is scrambling to not be the bagholder for this bubble as authorities crackdown on Chinese asset managers pooling retail investor funds, warning of the rise of "ponzi schemes." While nobody knows for sure how much of the trading surge has been driven by individuals, but the evidence suggests retail punters are playing a big role, and as Bloomberg reports, the average holding period for contracts including rebar and iron ore was less than 3 hours in April!

Hard LendingClub: Fallout From P2P Scandal Results In Another Resignation; John Mack Is Dragged In

As we reported earlier today, following the surprising "resignation" of the company's CEO and Chairman, Renaud Laplanche as a result of an "internal board review of sales of $22 million in near-prime loans to a single investor", which resulted in the stock losing a quarter of its market cap in minutes, subsequent revelations have seen the spotlight shining brightly on none other than former Morgan Stanley CEO and current Lending Club board member, John Mack, who according to Bloomberg invested in the same venture that led to the termination resignation of the CEO.

Finally Good News For Canada's Raging Wildfire: Rain, Wind Conditions Push Blaze Away From Oil Sands

Cooler weather on Monday will help in firefighters  battle to get the Alberta wildfire under control. The fire, which has destroyed about 620 square miles and has been nicknamed "The Beast", has been burning since May 1 and now has more than 100 water-dropping helicopters flying over it. After expecting the fire to double in size over the weekend, light rains and cooler temperatures helped prevent that from happening. "This is great firefighting weather, we can really get in here and get a handle on this fire, and really get a death grip on it," said Alberta fire official Chad Morrison on Sunday.

P2P Bubble Bursts? LendingClub Stock Plummets 25% After CEO Resigns On Internal Loan Review

Moments ago all of our warnings about P2P lending were validated (quite painfully for those still long the company) and the Peer2Peer bubble may have finally burst, when as part of its Q1 earnings release, the board of directors announced that on May 6, 2016 it had accepted the resignation of Renaud Laplanche as Chairman and CEO. His resignation followed an internal review of sales of $22 million in near-prime loans to a single investor.

Will "Inevitable USD Strength" Lead To Another Market Selloff

With stocks the biggest beneficiary of the late January "Shanghai Accord", it stands to reason that the US Dollar was the biggest loser. Sure enough, overnight the WSJ writes that the "powerful rallies that have lifted stocks, crude oil and emerging markets for the past three months have one important thing in common - the falling dollar - and investors are growing anxious that it could prove to be the weak link." But is a strong dollar about to make another appearance and unleash the next leg lower in risk assets?