- Obama, wiping tears, makes new push to tighten gun rules (Reuters)
- Global stocks hit by China worries, North Korea nuclear test (Reuters)
- Oil hits 11-year low, Saudi-Iran row cuts chances of output restraint (Reuters)
- North Korea says successfully conducts first H-bomb test (Reuters)
- Valeant Planning to Appoint New Leader as CEO Remains Hospitalized (WSJ)
- Treasuries Extend 2016 Winning Start With Growth Outlook Clouded (BBG)
Before we go into details of the overnight carnage, this is where we stand currently: S&P futures now down 33 points or 1.63% while 2Y Treasury rallies pushing its yield back below 1% as EU stocks extend their drop after China weakened its currency, North Korea says it tested a hydrogen bomb; Brent crude falls to lowest level since 2004.
North Korea Confirms It Conducted "Successful Hydrogen Bomb Test" As "Act Of Self-Defense" Against USSubmitted by Tyler Durden on 01/05/2016 23:00 -0400
Update: North Korea has confirmed that it has "successfully tested a hydrogen bomb." The test was "an act of self-defense" against threats like the US.
A 5.1-magnitude earthquake detected near North Korea’s nuclear test site appears to have been artificial, according to South Korea’s meteorological service, raising the prospect the isolated regime tested a nuclear device. As Bloomberg reports, the "earthquake" follows North Korea’s threat in September that it is ready to use atomic weapons against the U.S. at any time and that its main nuclear facility was fully operational. The Pentagon is reportedly "looking into" the quake reports.
There’s really one supreme element of this story that you must keep in view at all times: a society (i.e. an economy + a polity = a political economy) based on debt that will never be paid back is certain to crack up. Its institutions will stop functioning. Its business activities will seize up. Its leaders will be demoralized. Its denizens will act up and act out. Its wealth will evaporate. Given where we are in human history - the moment of techno-industrial over-reach - this crackup will not be easy to recover from. Things have gone too far in too many ways. The coming crackup will re-set the terms of civilized life to levels largely pre-techno-industrial. How far backward remains to be seen.
Elections, elections, and more elections is the 'regime change' meme for 2016 but, as Bloomberg details, the key events of the year ahead vary from a California marijuana referendum to Brazil's Olympics, and from Davos to SCOTUS. No matter what, 2016 holds a lot of opportunity for volatility, and without The Fed's safety net, who knows what that means for markets...
Bill Clinton Made $8 Million From Speeches To Companies With Matters Pending Before Hillary's State DeptSubmitted by Tyler Durden on 12/31/2015 16:11 -0400
As WSJ reports, "more than two dozen companies and groups and one foreign government paid former President Bill Clinton a total of more than $8 million to give speeches around the time they also had matters before Mrs. Clinton’s State Department."
On the heels of a “close call” in the Strait of Hormuz on Sunday, Washington is preparing new sanctions against a handful of companies and individuals tied to Tehran’s ballistic-missile program. "We've been looking for some time at options for additional actions related to Iran's ballistic missile program based on our continued concerns about its activities,” an unnamed US official says. Iran calls the new actions "illegal."
If ever there was a clearer indication of America's "need for war" it was the latest Durable Goods orders data, which confirmed, absent defense spending, the US economy is in a tail-spin. However, as NYTimes reports, foreign arms sales by the United States jumped by almost $10 billion in 2014, about 35 percent, even as the global weapons market remained flat and competition among suppliers increased, thanks to multibillion-dollar agreements with Qatar, Saudi Arabia and South Korea.
We apologize, but 2015 had so many negatives that we’re having trouble seeing the positives. It’s like we’re on the Titanic, and it’s tilting at an 85-degree angle with its propellers way up in the air, and we’re dangling over the cold Atlantic trying to tell ourselves: “At least there’s no waiting for the shuffleboard courts!” Are we saying that 2015 was the worst year ever? Are we saying it was worse than, for example, 1347, the year when the Bubonic Plague killed a large part of humanity? Yes, we are saying that.
In a shocking new report, Seymour Hersh reveals what he says was a covert operation run by the Joint Chiefs of Staff who sought to undermine the Obama administration and the CIA's goal of overthrowing the Assad regime in Syria. "If the American public saw the intelligence we were producing daily, at the most sensitive level, they would go ballistic."
This is WAY beyond ‘if you see something, say something.’
- Mario Draghi Is About to Become the World's Market Risk Manager (BBG)
- Five Things to Ask Mario Draghi From Negative Rates to QE (BBG)
- Leaving behind baby and bombs, couple sows panic in California (Reuters)
- Couple's motive in California rampage a mystery for police, family (Reuters)
- In Grim Ritual, Barack Obama Again Calls for Stricter Gun Control After Mass Shooting (WSJ)
- Islamic State Defeat Impossible Without Ground Force, Kerry Says (BBG)
- OPEC States Push for Output Cuts in Face of Saudi Opposition (BBG)
Stocks Jump On Hope For More Central Bank Intervention After Japan's Quintuple Recession, Syrian StrikesSubmitted by Tyler Durden on 11/16/2015 08:03 -0400
As so often happens in these upside down days, was the best thing that could happen to the market, because another economic slowdown means the BOJ, even without sellers of JGBs, will have no choice but to expand its "stimulus" program (the same one that led Japan to its current predicament of course) and buy up if not government bonds, then corporate bonds, more ETFs (of which it already own 50%) and ultimately stocks. Because there is nothing better for the richest asset owners than total economic collapse.
Trump, for all his contradictions, gives voice to the “isolationist” populism that Rubio and his neocon confederates despise, and which is implanted so deeply in the American consciousness. Why us? Why are we paying everybody’s bills? Why are we fighting everybody else’s wars? It’s a bad deal! This is why the neocons hate Trump’s guts even more than they hate Paul.
- Stock futures little changed as Yellen comments awaited (Reuters)
- Draghi stimulus hint underpins stocks, knocks euro (Reuters)
- Black Friday's Losing Its Mojo and Retailers Might Be Relieved (BBG)
- Macy’s Fights Downward Spiral With Bet on Off-Price Backstage Stores (WSJ)
- Greece Comes to a Standstill as Unions Turn Against Tsipras (BBG)
- Euro zone production falls more than expected in September (Reuters)
- Valeant played a key role in building, operating Philidor RX (Reuters)