• GoldCore
    09/04/2015 - 07:43
    Large pools of gold in indebted nations will be vulnerable. Pool accounts, digital gold bullion vaulting providers and depositories in the UK and the US might have their companies and assets...
  • Sprott Money
    09/04/2015 - 05:58
    It can't continue indefinitely, and there has to be a terminal point, and I think obviously we're much closer to that.

Credit Suisse

Tyler Durden's picture

Yen Carry Lifts Risk Around The Globe In Quiet Overnight Trade





In a carry-trade driven world in which news and fundamentals no longer matter, the only relevant "variable" is whether the JPY is down (check) and the EUR is up (check) which always results in green equities around the globe and green futures in the US, with yesterday's sudden and sharp selloff on no liquidity and no news long forgotten. The conventional wisdom "reason" for the overnight JPY underperformance against all major FX is once again due to central bank rhetoric, when overnight BOJ's Kiuchi sees high uncertainty whether 2% CPI will be reached in 2 years, Shirai says bank should ease further if growth, CPI diverge from main scenario. Also the BOJ once again hinted at more QE, and since this has proven sufficient to keep the JPY selling momentum, for now, why not continue doing it until like in May it stops working. As a result EURJPY rose above the 4 year high resistance of 138.00, while USDJPY is bordering on 102.00. On the other hand, the EUR gained after German parties strike coalition accord, pushing the EURUSD over 1.36 and further making the ECB's life, now that it has to talk the currency down not up, impossible. This is especially true following reports in the German press that the ECB is looking at introducing an LTRO in order to help promote bank lending. Since that rumor made zero dent on the EUR, expect the ongoing daily litany of ECB rumors that the bank is "technically ready" for negative rates and even QE, although as has been shown in recent months this now has a half-life measured in minutes as the market largely is ignoring whatever "tools" Draghi and company believe they have left.

 
Tyler Durden's picture

Frontrunning: November 26





  • M&A Mystery: Why Are Takeover Prices Plummeting? (WSJ)
  • Hedge-Fund Fight Club Traded Illegal Tips Not Punches (BBG)
  • Speed Traders Meet Nightmare on Elm Street With Nanex (BBG)
  • A new wave of U.S. mortgage trouble threatens (Reuters)
  • Penny Lane: Gitmo's other secret CIA facility (AP)
  • US hardens threat to leave Afghanistan with no troops (WSJ)
  • Russian Prison Stuns Captain of Greenpeace’s Bombed Ship (BBG)
  • ECB's Weidmann Warns Central Banks Might Be Too Dominated by Fiscal Concerns (WSJ)
  • China Air Move Splits Japan as Carriers Obey New Rules (BBG)
  • Inside the Breakup of the Pritzker Empire (WSJ)
 
Tyler Durden's picture

Frontrunning: November 25





  • Washington turns bond market upside (FT)
  • China Air-Zone Move Expands Field of Islands Spat With Japan (BBG); Japan rejects China claim on airspace over disputed islands (FT)
  • 'Great Satan' meets 'Axis of Evil' and strikes a deal (Reuters)
  • Iran Pact Faces Stiff Opposition (WSJ)
  • Allies Fear a US Pullback in Mideast (WSJ)
  • India to resume paying Iran in Euros (Economic Times)
  • At 'Business Insider,' it's time to sell (USA Today)
  • More ECB currency war jawboning: ECB’s Hansson Says Rate Cut Options Not Fully Exhausted (BBG)
  • Spy World Links Plus Obama Ties Stoke Concern About NSA Review (BBG)
  • A disunited Europe will struggle even to disintegrate (FT)
 
Tyler Durden's picture

Switzerland Rejects Proposal To Limit Executive Pay





Confirming that the brotherhood of the "fairness doctrine" in which everyone is equal to everyone else (but some are too big to fail or prosecute, and are thus a little more equal) will have to do much more work to bring wayward Swizterland, home to some of the world's biggest companies, fattest bank accounts and wealthiest individuals, into the socialist fold was the announcement moments ago that Switzerland roundly rejected a proposal to limit executive salaries to 12 times that of the lowest paid employee, with 66% of the voters opposing. This so-called "1:12 initiative for fair pay," was brought about by the youth wing of the Social Democrats (JUSO) which claimed that nobody should earn more in a month than others earn in a year. The outcome is notable because it was in March when Swiss voters backed proposals to impose some of the world's strictest controls on executive pay, with some 70% of voters thought to have supported plans to give shareholders a veto on compensation and ban big payouts for new and departing managers. Surprisingly, just over six months later, the drive to bring more equality to all appears to have lost it steam.

 
Tyler Durden's picture

A (Visual) Tale of 25 Cities (And Half The World's GDP)





With more people in the world living in cities than ever before, cities’ share of global GDP is rising: 25 cities account for approximately 50% of the world’s GDP. But not all cities can be winners, and not all are destined for greatness. The following smorgasbord of charts highlight how successful cities have typically had natural advantages such as location, time zone and resources; but more importantly, to remain successful they need education, a skilled workforce, strong property rights, a broad base of industries and in some cases, policies aimed at attracting capital and talent. Conversely, As Goldman notes, when cities fail it tends to be either because of an overreliance on an industry that has seen a dramatic shift in its profitability, or as a result of the vested interests of those that control them.

 
Tyler Durden's picture

Frontrunning: November 22





  • Wonder why: JPMorgan plans to keep pay roughly flat from last year (Reuters) - maybe this: Charles Schwab Warns "We Are In A Manipulated Market"
  • Democrats overturn filibuster rule, increasing Obama’s power (FT)
  • Day JFK Died We Traded Through Tears as NYSE Shut (BBG)
  • When even dictators snub Obama - Afghanistan rejects U.S. call for quick security deal (Reuters)
  • Obama Plunges in Investor Poll as Stocks Make New Highs (BBG)
  • Iran, six powers struggle to overcome snags in nuclear talks (Reuters)
  • Derision for China’s ‘rejuvenation index’ (FT)
  • Bottom is in: Paulson Said to Inform Clients He Won’t Add More to Gold (BBG)
  • German business sentiment rebounds strongly (WSJ)
  • WTO on verge of global trade pact (FT)
 
Tyler Durden's picture

Frontrunning: November 21





  • When it fails, do more of it - Bank of Japan hints at extending ultra-loose monetary policy (FT)
  • PBOC Says No Longer in China’s Interest to Increase Reserves (BBG)
  • Fed casts about for endgame on easy-money policy  (Hilsenrath)
  • Big trucks still rule Detroit in energy-conscious era (Reuters)
  • Debt Limit Rise May Not Be Needed Until June, CBO Says (BBG)
  • Some Insurance Regulators Turn Down White House Invitation (WSJ)
  • Say Goodbye to the Car Salesman (WSJ)
  • U.S. drone kills senior militant in Pakistani seminary (Reuters)
  • French business sector contracts sharply (FT)
  • How Germany's taxman used stolen data to squeeze Switzerland (Reuters)
  • Fed casts about for endgame on easy-money policy (WSJ)
  • France, Italy call for full-time Eurogroup chief (Reuters)
 
Tyler Durden's picture

DJIA 16000, S&P 1800 Looking Increasingly More Distant





After the DJIA and S&P briefly crossed the key resistance levels of 16000 and 1800, the upper bound on the markets has been looking increasingly more distant and this morning's lack of an overnight ramp only makes it more so. Perhaps the biggest concern, however, is that with both Yellen and Bernanke on the tape yesterday, the S&P still was unable to close green. This follows on Monday's double POMO day when the S&P once again closed... red. Not helping things was the overnight announcement by the Japanese government pension fund, the GPIF, in which the fund announced it would lower its bond allocation further however the new law to reform the GPIF could be written by spring 2015. This was hardly as exciting as the market had expected, and as a result both the USDJPY and the ES-moving EURJPY find themselves at overnight lows. Will the EURJPY engage in its usual post 8 am ramp - keep a close eye, especially since the usual morning gold and silver slam down just took place.

 
Tyler Durden's picture

The Structural Decline Of US GDP In 4 Charts





Much is made of the expected hockey-stick - any quarter now - in US GDP growth (whether it's a lower fiscal drag or rise in CAPEX or any range of miracle-driven hope factors). Credit Suisse is not so sure; not just in the short-term, but in the long-term of the potential for US GDP growth. They note that basic growth accounting provides links between potential GDP to the size of the labor force, its productivity, and the capital assets – both public and private – it has available to work with. The problem - longer-term for the US, is, as CS notes, the following four exhibits collectively speak to the recent slowdown in potential, and do not augur positively for future growth.

 
Tyler Durden's picture

Frontrunning: November 19





  • J.P. Morgan, U.S. Reach Historic Settlement (WSJ)
  • OECD cuts global growth forecast (AP)
  • Guess the profit margin: Wal-Mart Touts $98 TV as Holiday Seen Weakest Since 2009 (BBG)
  • Republicans defy threat, block another Obama judicial pick (Reuters)
  • Fed Ponders How to Temper Tapering Without Rate Increase (BBG)
  • Wall Street uses 'merchant' workaround to cling to commodity assets (Reuters)
  • PBOC to ‘Basically’ End Normal Yuan Intervention, Zhou Says (BBG)
  • Italy’s leader warns Germany of rise of anti-European sentiment (FT)
  • Yellen Nomination for Fed Chairman to Get Vote This Week (BBG)
  • As U.S. default threatened, banks took extraordinary steps (Reuters)
  • NSA vowed repeatedly to fix its collection errors (AP)
 
Tyler Durden's picture

Frontrunning: November 18





  • What can possibly go wrong: Tepco Successfully Removes First Nuclear Fuel Rods at Fukushima (BBG)
  • Japan's Banks Find It Hard to Lend Easy Money (WSJ)
  • U.S. Military Eyes Cut to Pay, Benefits (WSJ)
  • Airbus to Boeing Cash In on Desert Outpost Made Field of Dreams (BBG); Dubai Air Show: Boeing leads order books race (BBG)
  • Sony sells 1 million PlayStation 4 units in first 24 hours (Reuters)
  • Russian Tycoon Prokhorov to Buy Kerimov's Uralkali Stake (WSJ)
  • Google Opening Showrooms to Show Off Gadgets for Holidays (BBG)
  • Need. Moar. Prop. Trading: Federal Reserve considering a delay to Volcker rule (FT)
  • Raghuram Rajan plans ‘dramatic remaking’ of India’s banking system (FT)
  • SAC Capital's Steinberg faces insider trading trial (Reuters)
 
globalintelhub's picture

The Forex Paradox - Is Forex a net loser?





The Forex market is the largest in the world and the least understood.  Since the late 90's, traders and asset managers have flocked to it as an alternative to trade, compared to other common markets (Stocks, Bonds, Futures).  

 
Tyler Durden's picture

Frontrunning: November 14





  • Yellen to defend Fed's ultra-easy monetary policy (Reuters)
  • Japan growth slows on global weakness (WSJ)
  • Eurozone third-quarter growth falters (FT)
  • Fed Debates Its Low-Rate Peg (Hilsenrath)
  • Yellen: Economy Still Needs Fed Aid (WSJ)
  • ‘Obamacare’ launch fiasco rouses sceptics (FT)
  • DoubleLine's Gundlach says U.S. equities 'only game in town' (Reuters)
  • Indian Inflation Exceeding Estimates Adds Rate-Rise Pressure (BBG)
  • HUD Said to Fail in Bid to Sell $450 Million of Mortgages (BBG)
  • Boeing machinists reject labor deal on 777X by 67 percent (Reuters)
 
Tyler Durden's picture

Head Of Recently Shuttered "World's Largest FX Hedge Fund" On Hook For Firm's Debt





It's been a tough year for John Taylor - cursed by the CNBC Squawk Master monicker - but it appears to be getting worse. As Hedge Fund Alert reports, less than a year before his currency-trading shop filed for bankruptcy, the FX Concepts founder personally guaranteed a chunk of the debt his firm owes to its largest creditor. AMF, the Credit Suisse hedge fund incubator, is owed $34.4 million with Taylor on the hook for $5 million and "is going to clearly try to get the money out of John," but, "by any stretch of the imagination, it's not there." Recent court documents suggest the fund was in even worse shape than previously understood as the liquidation of FX Concepts' four main assets is ongoing but as a whole, however, the trading programs probably are worth little, one source said. “If their models worked, they would have produced returns,” he said. “Their brand has no value, unless you want to advertise negative returns.”

 
Tyler Durden's picture

Frontrunning: November 13





  • Desperate Philippine typhoon survivors loot, dig up water pipes (Reuters)
  • Fading Japanese market momentum frustrates investors (FT)
  • China's meager aid to the Philippines could dent its image (Reuters)
  • Headline du jour: Granted 'decisive' role, Chinese markets decide to slide (Reuters)
  • Central Banks Risk Asset Bubbles in Battle With Deflation Danger (BBG)
  • Navy Ship Plan Faces Pentagon Budget Cutters (WSJ)
  • Investors pitch to take over much of Fannie and Freddie (FT)
  • To expand Khamenei’s grip on the economy, Iran stretched its laws (Reuters)
  • Short sellers bet that gunmaker shares are no long shot (FT)
  • Deflation threat in Europe may prompt investment rethink (Reuters)
 
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