Keystone Aftermath Arrives: Canada Pledges To Sell Oil To Asia, As US Becomes Source Of "Uncertainty"Submitted by Tyler Durden on 01/19/2012 13:13 -0400
America's loss is China's gain. In the aftermath of the Keystone XL fiasco, which will see not only a number of jobs "uncreated" but a natural source of crude lost, Canada is already planning next steps. Which will benefit Shanghai directly and immediately. As Bloomberg reports, "Prime Minister Stephen Harper, in a telephone call yesterday, told Obama “Canada will continue to work to diversify its energy exports,” according to details provided by Harper’s office. Canadian Natural Resource Minister Joe Oliver said relying less on the U.S. would help strengthen the country’s “financial security.” The “decision by the Obama administration underlines the importance of diversifying and expanding our markets, including the growing Asian market,” Oliver told reporters in Ottawa." Ironically, it is diversifying away from the US, with its ever soaring, politically-predicated uncertainty, that is a source of stability and diversification. But it is not only crude. Wonder why no jobs are being created? Wonder why despite record low mortgage rates there is no bottom in sight for housing? Simple - nobody can plan one month, let alone one year ahead for any US-based venture or business. The political risk is simply too great - whether it is contract law (see GM and Chrysler) or simple solvency (see record high levels of cash hoarded by companies), it is there, and as long as it is there, there will be no hiring, no capex spending, no growth, and no real improvement in the economy, the real economy, not that defined by where the Russell 2000 closes on any given day.
- Italy Is Biggest Risk to Euro, Says Fitch (WSJ)
- Greek Bailout in Peril (WSJ)
- Swiss Currency Test Looms for SNB’s Jordan in Race to Replace Hildebrand (Bloomberg)
- Daley to Depart as Obama Shifts Strategy From Compromise to Confrontation (Bloomberg)
- BOE Stimulus Expansion May Not Be Enough to Revive U.K. Recovery, BCC Says (Bloomberg)
- Geithner in China to Discuss Yuan, Iran (Bloomberg)
- China Won’t See Hard Landing in 2012, Former PBOC Adviser Yu Yongding Says (Bloomberg)
- Measures to boost China financial markets (China Daily)
- Obama Panel to Watch Beijing (WSJ)
And now a trade war has broken out. Politicians, have a word with your corporate sponsors.
Just in case the general population was getting accustomed to the image of a demonic creature from the depths of hell every time the name "Chairsatan" was invoked in impolite conversation, here comes Jon Hilsenrath via the WSJ's blog, to attempt to humanize the man who together with 9 other academics who have no real world experience, runs the world out of a private (and locked) conference room in the Marriner Eccles building. So lest someone expect pentagrams to accompany today's FOMC statement, coupled with Bernanke breathing fire and smelling of sulfur at the next Fed conference, here is WSJ's Jon to put a humanly halo around the printer operator himself...
A 787 point gain on the Dow this week, second only ever in absolute points gained to w/e 10/31/08, ended on a disappointing note as equities gave back significant early gains around the NFP print to end the day practically unch (128pts off the highs). Equities underperformed credit on the day with another strangely impressive (given NAV and HY spread differentials) outperformance by HYG. On a medium-term basis, equities began to revert back to where broad risk assets are more supportive but on a short-term intraday basis, risk assets (most notably EURJPY, AUDJPY, and TSY levels and curves) were in a more aggressive derisking mode. ES definitely maintained strength for longer than many expected today before giving it all back into the close, but financials (especially the majors) were surprisingly positive today even after such a good week - quite a squeeze.
The conclusion is inescapable. Fox News is deliberately misinforming its viewers and it is doing so for a reason.
We are far enough away from the onset of the Great Recession that another down-wave in the depression (or a new recession if you go by NBER) is either here or due soon. It may not be a severe downturn, as housing and autos would be falling from first- or second-floor windows in that case, but it would be occurring on the backdrop of a weakened structure, and thus the financial effects could be more severe than the economic effects (which could be severe or mild). Here is what you need to do.
- EU Bank Risks ‘Rapidly’ Growing, Andersson Says (Bloomberg)
- Inside the Fed Fight Over Bond Buys (Hilsenrath)
- France ready to give banks public capital (FT)
- Berlusconi Will Defend Government in Parliament as Confidence Vote Looms (Bloomberg)
- Germany urges treaty to strengthen bloc (FT)
- China's Appetite for Commodities Wanes (WSJ)
- China Exports Slow on ‘Severe Challenges’ (Bloomberg)
- Fed’s Plosser: Operation Twist is fiscal policy (Reuters)
Down 20% from September 2006. Toyota and Honda got brutally slammed. But don't blame post-earthquake inventory shortages. They have been resolved. It's a shift in the market.
China Joins Russia in Blasting U.S. Borrowing After Debt Ceiling Agreement (Bloomberg)
Eurozone Moves to Prop Up Rescue Fund (FT)
SNB Cuts Rate to Zero to Counter Franc Strength (WSJ)
US Retreats from Brink of Debt Default (FT)
Strains Ease on Short-Term Credit Markets (Hilsenrath)
China’s Non-Manufacturing Industries Expanded in July, PMI Surveys Show (Bloomberg)
Moody's, Fitch Maintain U.S. Triple-A Rating (Reuters)
Britain’s ‘Weak’ Economy May Need Tax Cuts to Boost Demand, Institute Says (Bloomberg)
Japan Keeps Up Warnings on Yen After U.S. Debt Deal (Reuters)
No Double-Dip Seen in GDP (Shanghai Daily)
Relevant news by www.thetrader.se
- IMF Chief Raises Idea of Seeking More Cash (WSJ)
- US Money Market Funds Build Liquidity (FT)
- Interbank Loan Probe Focuses on Yen Rates (FT)
- Watchdog Sees Financial Weak Spots (WSJ)
- China’s 29% Jump in Industrial Profit to Spur Growth by Fueling Investment (Bloomberg)
- Shanghai to Step Up Probes of Home Prices (Bloomberg)
- Lessons From the Malaise (NYT)
- Hurtling toward economic chaos (LA Times)
- Who Elected the Rating Agencies? (WSJ)
Debt Crisis Being Used as Shock Doctrine to Steal More Money from the American People to Give to the Richest .1%Submitted by George Washington on 07/21/2011 16:15 -0400
There's an EMERGENCY ... give us all your money!!!