News Corp

Frontrunning: October 20

  • Stick to tapering and rates pledge, says Boston Fed chief (FT)
  • Turkey to let Iraqi Kurds reinforce Kobani as U.S. drops arms to defenders (Reuters)
  • Obama makes rare campaign trail appearance, some leave early (Reuters)
  • Japan GPIF to Boost Share Allocation to About 25%, Nikkei Says (BBG)... or three months of POMO
  • Japan Stocks Surge on Report GPIF to Boost Local Shares (BBG)
  • China Growth Seen Slowing Sharply Over Decade (WSJ)
  • Russia, Ukraine Edge Closer to Natural-Gas Deal (WSJ)
  • Leveraged Money Spurs Selloff as Record Treasuries Trade (BBG)
  • After clashes, Hong Kong students, government stand their ground before talks (Reuters)

Frontrunning: October 1

  • European Bond Yields Go Negative (WSJ)
  • Traveler from Liberia is first Ebola patient diagnosed in U.S. (Reuters)
  • Hong Kong Protesters Step up Pressure on Leung to Quit (BBG)
  • JPMorgan to face U.S. class action in $10 billion MBS case (Reuters)
  • Turkey mulls military action against Islamic State (Reuters)
  • Singapore Home Prices Fall for Fourth Straight Quarter on Curbs (BBG)
  • Italy's Economic Woes Highlight Dilemma for European Central Bank (WSJ)
  • Advanced iOS virus targeting Hong Kong protestors (Reuters)
  • Fed Scrutiny of Leveraged Loans Grows Along With Bubble Concern (BBG)
  •  Mosquito Virus That Walloped Caribbean Spreads in U.S. (BBG)

Frontrunning: September 30

  • Hong Kong protesters stockpile supplies, fear fresh police advance (Reuters)
  • Protesters stay out on Hong Kong streets, defying Beijing (Reuters)
  • Traders Turn Up Grilling Sausages at Hong Kong Protests (BBG)
  • Ukraine Army Sees Worst Day Since Truce as Battles Flare (BBG)
  • Islamic State uses grain to tighten grip in Iraq (Reuters)
  • For Putin Ally, U.S. Sanctions Only Add to Anti-Russia Conspiracy Theory (WSJ)
  • Coinbase Leads Move to Bring Bitcoin to Masses (BBG) - good luck
  • Austria Cracks Down on Spies -- and Jihadis (BBG)
  • EU Believes Apple, Fiat Tax Deals Broke Rules (WSJ); Apple’s Irish Tax Deal ‘Engineered’ to Boost Employment, EU Says (BBG)

Frontrunning: August 8

  • Pope Francis calls for action as Iraqi Christians forced to flee (Reuters)
  • Richest Russians Deprived of Luxury Foods by Putin’s Ban (BBG)
  • Exxon Drilling Russian Arctic Shows Sanction Lack Bite (BBG)
  • Israeli Jets Strike Gaza Targets After Rockets Shatter Truce (BBG)
  • U.S. starts aid airdrops in Iraq but no strikes yet (Reuters)
  • Banks Said to Be Arranging Argentine Debt Buyer Group (BBG)
  • Siberia Flight-Ban Threat Forces Airlines to Mull Options (BBG)
  • Malaysia Airlines to Be Delisted in $429 Million Buyout (BBG)
  • Erdogan poised to win Turkey's first popular presidential vote (Reuters)
  • African Bank Fights Collapse in Espirito Santo-Like Drama (BBG)
  • China to build lighthouses on five isles in defiance of U.S. call (Reuters)

Futures Rebound On Latest European Bank Failure And Bailout

Following a ghastly week for stocks, the momentum algos were desperate for something, anything to ignite some upward momentum and stop the collapse which last week pushed the DJIA into the red for the year: they got it overnight with the previously reported bailout of Portugal's Banco Espirito Santo, where the foreplay finally ended and after the Portuguese Central Bank finally realized that the bank is insolvent and that no more private investors will "recapitalize" it further, finally bailed it out, sticking the stock and the subs into a bad bank runoff entity, while preserving the senior bonds. So much for Europe's much vaunted bail in regime and spreading of pain across asset classes. At least the depositors did not get Cyprused, for now. 

Frontrunning: June 26

  • Minorities Seen Driving U.S. Household Growth (Reuters)
  • GM prepares to recall some Cruze sedans with Takata air bags (Reuters)
  • PBOC Halts Repos as China Money Rate Climbs to Seven-Week High (BBG)
  • Ukraine Optimism Wavers on Peace as Cease-Fire Winds Down (BBG)
  • Economic Rebound Seen Undercut by Weak Pay as Vote Winner (BBG)
  • Cracks Open in Dark Pool Defense With Barclays Lawsuit (BBG)
  • The Survivor: How Eric Holder outlasted his (many) critics (Politico)
  • IBM, Lenovo Tackle Security Worries on Server Deal (WSJ)
  • Militants take Iraqi gas field town, president calls parliament session (Reuters)
  • Carney Surprises Confounding Markets as BOE Manages Guidance (BBG)

Frontrunning: June 19

  • Currency Probe Widens as U.S. Said to Target Markups (BBG)
  • Battle for Iraq refinery as U.S. hesitates to strike (Reuters)
  • Ukraine forces battle separatists after truce 'refused' (Reuters)
  • Fed Dots Ignored as Investors Focus on Yellen’s Message (BBG)
  • Retirees Suffer as $300 Billion 401(k) Rollover Boom Enriches Brokers (BBG)
  • American Apparel ousts CEO; source says Dov Charney 'will fight like hell' (LA Times)
  • House Panel Is Subpoenaed as Trading Probe Heats Up (WSJ)
  • GM Officials Ignored Alert on Car Stalling (WSJ)
  • Russia’s $20 Billion Bond Void Filled by China to Mexico (BBG)

The Purchase Of Our Republic

The massive consolidation of wealth, combined with the removal of any limits on money in campaigns, has allowed for the purchase of our government. Americans know that something is wrong, deeply wrong. They see signs of the problem everywhere: income inequality, growing concentration and power of mega corporations, political donations/corruption, the absence of jobs with decent salaries, the explosion of the US prison population, healthcare costs, student loan debt, homelessness, etc. etc. However, the true causes and benefactors behind these problems are purposely hidden from view. What Americans see is Kabuki Theater of a functioning form of capitalism and democracy, but beyond this veneer our country has devolved into the exact opposite.

Frontrunning: May 9

  • Omnicom, Publicis call off proposed $35 billion merger (Reuters)
  • Apple in talks for $3.2bn Beats deal (FT)
  • Alibaba IPO Grew Out of ’80s Chaos and Guy From Goldman (BBG)
  • Nigeria's president at WEF pledges to free kidnapped girls (Reuters)
  • JPMorgan Joins Wells Fargo in Rolling Out Jumbo Offerings (BBG)
  • It's 1999 all over again: Young Bankers Fed Up With 90-Hour Weeks Move to Startups (BBG)
  • ECB stimulus talk knocks euro, peripheral yields (Reuters)
  • Deutsche Bank Currency Crown Lost to Citigroup on Volatility (BBG)
  • London Taxis Plan 10,000-Car Protest Against Uber App Use (BBG)
  • Pfizer Holders Could Face Tax Hit in a Deal for AstraZeneca (WSJ)

David Stockman: Why We Are Plagued With Drivel Masquerading As Financial Reporting

One of the evils of massive over-financialization is that it enables Wall Street to scalp vast “rents” from the Main Street economy. These zero sum extractions not only bloat the paper wealth of the 1% but also fund a parasitic bubble finance infrastructure that would largely not exist in a world of free market finance and honest money. The infrastructure of bubble finance can be likened to the illegal drug cartels. In that dystopic world, the immense revenue “surplus” from the 1000-fold elevation of drug prices owing to government enforced scarcity finances a giant but uneconomic apparatus of sourcing, transportation, wholesaling, distribution, corruption, coercion, murder and mayhem that would not even exist in a free market. The latter would only need LTL trucking lines and $900 vending machines. In this context, the sprawling empire known as Bloomberg LP is the Juarez Cartel of bubble finance.

Frontrunning: March 27

  • BOE to Sign Agreement With China on Yuan Clearing Next Week (BBG)
  • U.S. law firm plans to bring suit against Boeing, Malaysia Airlines (Reuters)
  • Citigroup Fraud Stings Mexico Star as Medina-Mora Chased (BBG)
  • Fraternity Chief Feared for Son as Hazings Spurred JPMorgan Snub (BBG)
  • UBS suspends six more forex traders (FT)
  • Goodbye CSCO Q1 EPS: China to strengthen Internet security after U.S. spying report (Reuters)
  • Good luck: Spain Banks With $55 Billion of Property Seek Deals (BBG)
  • Citic Pacific Said to Plan About $4 Billion Public Offering (BBG)
  • Yahoo Japan to buy eAccess from SoftBank for $3.2 billion (Reuters)
  • "Whatever it takes" to talk down the Euro: Euro, peripheral bond yields fall on ECB easing debate (Reuters)

Frontrunning: March 26

  • One-Ship Ukraine Navy Defies Russia to the End (WSJ)
  • Crimea-Induced Trading Surge Stokes Moscow Exchange Rally (BBG)
  • Moscow says Ukraine stops Russian crews disembarking in Kiev (Reuters)
  • New images show more than 100 objects that could be plane debris (Reuters)
  • Anger of Flight 370 Families Explodes in Beijing (BBG)
  • Murdoch Promotes Son Lachlan in Succession Plan for Empire (BBG)
  • Facebook to buy virtual reality goggles maker for $2 billion (Reuters)
  • Syrian Regime Exploits Rebel Despair (WSJ)
  • King Digital IPO price may not bode well for stock (Reuters)
  • Rothschild in Twitter Spat as Bakries Cut Ties With Miner (BBG)

Overnight Futures Track USDJPY Tick For Tick, As Usual

This was one of the all too real Bloomberg headlines posted overnight: "Asian Shares Rally as U.S. Manufacturing Data Beats Estimates." Odd: are they refering to the crashing Philly Fed, or the just as crashing Empire Fed data? Wait, it was the C-grade MarkIt PMI that nobody ever looks at, except to confirm that where everyone else sees snow, the PMI saw sunshine and growth. Remember: if the data is weak, it's the snow; if it's strong, it's the recovery. Odder still: one would think Asian shares care about manufacturing data of, say, China. Which happens to be in Asia, and which two nights ago crashed to the lowest in months. Or maybe that only impact the SHCOMP which dropped 1.2% while all other regional markets simply do what the US and Japan do - follow the USDJPY, which at one point overnight rose as high as 102.600, and brought futures to within inches of their all time closing high. Sadly, it is this that passes for "fundamental" analysis in this broken market new normal...