Japan

Tyler Durden's picture

"We Have Front-Row Seats To An Imminent Market Shock", Hedge Fund Billionaire Warns





"Central banks are not all singing and all dancing," and cannot avoid the consequences of what they are doing, concluding, "you and I have got grandstand seats here [to an imminent market shock]," and investors are about to "find out just how illiquid it really is out there."

 
Tyler Durden's picture

Bank Of Korea Unexpectedly Cuts Interest Rate To Record Low 1.75%, 24th Central Bank To Ease In 2015





The currency war salvos just keep on coming.  Moments ago the BOK unexpectedly (the move was predicted by just 2 of 17 economists polled by Bloomberg) cut its policy rate from 2.00% to a record low 1.75%, in what is clearly a full-blown retaliation against the collapse currency of its biggest export competitor, Japan, whose currency has cratered to a level that many in South Korea believe has become a direct subsidy for its competing exports. As such the only question is why the BOK didn't cut earlier. And following the surprise rate cut by Thailand earlier today, the "surprise" South Korean rate cut means there are now 24 easing policy actions by central banks in 2015 alone.

 
Tyler Durden's picture

Currency Wars... Are Not Working





While none of the current batch of currency-devaluing Central Bankers would admit that their policies are designed to weaken the currency, enhance competitiveness, and hail a new bright future of growth for their nation (by printing money), it is clear that is the chosen textbook-based path chosen. However, as the following charts show, it's not working...

 
Tyler Durden's picture

Plunge Protection Exposed: Bank Of Japan Stepped In A Stunning 143 Times To Buy Stocks, Prevent Drop





The BoJ has now gone full intervention-tard - buying Japanese stocks on 76% of the days when the market opened lower.

 
Tyler Durden's picture

Everyone Is Guessing When It Comes To Oil Prices





Predicting and diagnosing the trajectory of oil prices has become something of a cottage industry in the past year. But along with all of the excess crude flowing from the oil patch, there is also an abundance of market indicators that while important, tend to produce a lot of noise that makes any accurate estimate nearly impossible.

 
Tyler Durden's picture

"Neither Central Bankers Nor Market Participants Can Extract Any Information From Current Bond Valuations"





All is not what it seems. Markets are upside down. Some ‘risk?free’ assets can be purchased for a guaranteed loss. EU asset markets (ex?Greece) are soaring at the same time that EU disunity is rising. An interest rate hike by the Fed is likely to cause a rally in Treasury bonds and a steep correction in US equities.

 
Phoenix Capital Research's picture

A Bond Market Revolt is Fast Approaching





Yields can always go lower… but at some point investors will have to ask, “how much am I willing to pay the Government to sit on my money? 1%? 2%? 3%?”

 
 
Tyler Durden's picture

Tsipras Slams “Crimes Of Third Reich And Hitler’s Hordes", Threatens Seizure Of German Assets





Earlier today, Greek Prime Minister Tsipras was busy not making German friends, following the latest Greek overture to confiscate German assets in response for allegedly unpaid German WWII reparations. “After the reunification of Germany in 1990, the legal and political conditions were created for this issue to be solved. But since then, German governments chose silence, legal tricks and delay. And I wonder, because there is a lot of talk at the European level these days about moral issues: is this stance moral?” Tsipras said and added that "despite the crimes of the Third Reich and Hitler’s hordes, the German debt was written off." As a result Greece is now seeking to recoup German WWII reparations which may amount to as much as 80% of Greek GDP!

 
Tyler Durden's picture

Frontrunning: March 11





  • Fed Likely to Remove ‘Patient’ Barrier for Rate Increase as Soon as June (Hilsenrath) - which year?
  • Clinton says used personal email account for convenience (Reuters)
  • Euro sinks to 12-year lows as yield gap grows (Reuters)
  • Get Ready for Oil Deals: Shale Is Going on Sale (BBG)
  • EIA raises 2015 US oil production forecast, cuts 2016 outlook (Reuters)
  • How Falling Oil Prices Are Hindering Iraq’s Ability to Fight Islamic State (WSJ)
  • China economic data weaker than expected, fuels policy easing bets (Reuters)
  • ECB ‘Chasing Own Tail’ as Bond Rates Turn Negative, SocGen Says (BBG)
  • Swiss makers quietly gear up with smartwatches of their own (Reuters)
 
Tyler Durden's picture

Euro In Freefall, Dollar Surge Accelerates; Futures Rebound On USDJPY Rise; Greece On The Ropes





While the dollar strength this morning, which has pushed it to a fresh 13 year high and has accelerated the EURUSD plunge to under 1.06 - a drop of over 300 pips since the start of the week - has been a recap of yesterday's trading action, the main difference is that unlike yesterday, the USDJPY has managed to find a strong bid in the overnight session, pushing not only the Nikkei up by 0.4%, but also lifting US equity futures as the entire global marketplace is now merely a sandbox in which the central banks try to crush their currencies as fast as possible.

 
Tyler Durden's picture

"Unprecedented" JGB Supply/Demand Imbalance If Inflation Stays Muted In Japan, Morgan Stanley Says





"If inflation expectations remain muted, then the amount available for purchase by the BoJ is liable to be largely exhausted during the next 1.5 to 2 years, at which point supply/demand may tighten to unprecedented proportions," Morgan Stanley writes. Meanwhile, a BoJ "liquidity auction" intended to allay concerns around JGB availability attracts tepid demand a day after a dealer survey revealed concerns about the health of the market.

 
Tyler Durden's picture

US May Run Out Of Oil Storage Space As Soon As June





Oil storage capacity in the US is now at 60% and is set to be completely exhausted in just three months. With storage at a premium, the contango breakeven trade will become increasingly more unprofitable and come June, each incremental barrel will have to be dumped on the market forcing prices lower.

 
Tyler Durden's picture

Central Banks Are Crack Dealers & Faith Healers





The entire formerly rich world is addicted to debt, and it is not capable of shaking that addiction. Not until the whole facade that was built to hide this addiction must and will come crashing down along with the corpus itself. Central banks are a huge part of keeping the disease going, instead of helping the patient quit and regain health, which arguably should be their function. In other words, central banks are not doctors, they’re crack dealers and faith healers. Why anyone would ever agree to that role for some of the world’s economically most powerful entities is a question that surely deserves and demands an answer.

 
Tyler Durden's picture

Futures Sell Off As Soaring Dollar Weighs On Risk, European Yields Slide To Fresh Record Lows





As noted earlier, starting early with the overnight session there was already some serious fireworks in Asia, when first the USDJPY soared then tumbled, pushing the Nikkei lower some 0.7% with it, driven entirely by the surge in Dollar which rose to a fresh 12 year high overnight after gaining as much as 0.59%, in an extension of Friday’s post-NFP gains. Additionally, the EUR/USD slipped below 1.0800 to touch its lowest level since Sept’03 while USD/JPY rose above 122.00 for the first time since Jul’07, after breaching long-term resistance at 121.85. However, in recent trade the pair has seen a straight line sell-off which in turn has sent US equity futures sliding, and the ES down about 14 points as of this moment. Meanwhile, the frontrunning of the ECB continues, with German 10 Year yields sliding -3bps to 0.281%, the lowest in series history. Also touching fresh record lows were Austrian, Belgian, Dutch, Finnish, Irish, Italian, Spanish 10 Year rates.

 
Tyler Durden's picture

BoJ Conducts Survey, Promptly Ignores Results





A survey of 40 financial institutions shows that BoJ purchases are sapping liquidity and making it difficult for dealers to fill orders. Defiant to the end, the central bank pledges to stay in the market until inflation hits 2%.

 
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