New Zealand

Tyler Durden's picture

If "Everything's Awesome" Why Did Aussie CapEx Just Collapse By The Most In Its 30 Year History

Day after day, the 'stability' in the stock "markets" (specifically in AsiaPac) is posited as 'proof' that China is 'fixed', the worst is over in EMs, The Fed can raise rates, and massive monetray policy manipulation of market signals had no mal-investment consequences. Well all of that utter crap just got obliterated as China's right-hand-man in the credit-fueled commodity boom bust - Australia - just saw its business capital expenditure collapse 20% YoY - the biggest drop ever, accelerating the crash in business spending to 11 quarters. As Goldman warns, this exposes significant downside risk to any forecast for GDP recovery in 2016.

Tyler Durden's picture

Global Stocks Tread Water After Two Consecutive Terrorist Scares; Oil Rises, Industrial Metals Tumble

If this weekend's gruesome terrorist attack on Paris ended up being hugely bullish for stocks, then two subsequent events, a stadium-evacuation scare in Hannover (where Angela Merkel was supposed to be present) and a raid in north Paris which left several dead in the ongoing manhunt against the alleged ISIS mastermind, appear to have but some question into if not stocks then algos whether a rising wave of terrorist hatred across Europe is truly what central bankers need to unleash more QE. That said, we expect the current weakness to last only until the traditional USDJPY carry ramp pushes stocks traditionally higher.

Tyler Durden's picture

Frontrunning: November 16

  • Belgian Police 'Arrest' Public Enemy No.1 (Sky News)
  • France Widens Crackdown at Home as Bombs Rain on Islamic State (BBG)
  • Putin Goes From G-20 Pariah to Player at Obama Turkey Talk (BBG)
  • Paris Attacks: 150 Raids as France Goes to 'War With Terrorism' (NBC)
  • 'Rocket Launcher Found' In French Police Raids (Sky)
  • Geopolitical worries lift oil after Paris attacks, but glut weighs (Reuters)
  • Japan's economy falls back into recession again (BBC)
Tyler Durden's picture

Breadth, Buybacks, & The Piercing Of The "Grandaddy Of All Bubbles"

Global policymakers have gone to incredible measures to stabilize market, financial and economic backdrops. Yet reflationary measures will continue to only further destabilize. When policy-induced “risk on” is overpowering global securities markets, fragilities remain well concealed. Fragilities, however, swiftly manifest with the reappearance of “risk off.” Rather quickly securities markets demonstrate their proclivity for illiquidity and so-called “flash crashes.” So after an unsettled week in global markets, the critical issue is whether “risk on” is giving way to “risk off” dynamics.

Tyler Durden's picture

"Irreversibly Broken & Dysfunctional" - There's Something Wrong In The Markets

Today’s dilemma – for financial markets and central bankers – is that pushing back against nascent “risk off” unleashes another forceful bout of “risk on.” At this point, it’s either Bubble on or off – destabilizing either way. The global Bubble has grown too distended and the market backdrop too dysfunctional. Central bankers over the past 25 years have created excessive “money,” while incentivizing too much finance into financial speculation. There is now way too much “money” crowded into the securities and derivative markets, and the upshot is an increasingly hostile backdrop for leverage and speculation.

GoldCore's picture

“I Can’t Deny It – The Outlook For Gold Isn’t Pretty Right Now”

It is important to note that the current weakness of gold is primarily in dollar and sterling terms. For investors in Canada, Australia, New Zealand and the EU gold is once again acting as a hedge.

Tyler Durden's picture

Frontrunning: November 10

  • Bonds Rise as China Drags Down Metals, Selloff in Stocks Resumes (BBG)
  • European Stock Rally Runs Out of Steam Amid China Growth Concern (BBG)
  • Obama's immigration action blocked again; Supreme Court only option left (Reuters)
  • Ukraine: Cyberwar’s Hottest Front (WSJ)
  • With $170.4 Million Sale at Auction, Modigliani Work Joins Rarefied Nine-Figure Club (NYT)
  • IEA Sees OPEC Market Share Growth in 2020 as Rivals Stagnate (BBG)
Phoenix Capital Research's picture

Warning: Your Deposits Can and Will Be Used to "Bail-In" the Big Banks

In the last 24 months, Canada, New Zealand, the US, the UK, and now Germany have all implemented legislation that would allow them to first FREEZE and then SEIZE bank assets during the next crisis.

Tyler Durden's picture

ObamaTrade Details Unveiled, Officials Warn "It's Worse Than We Thought"

"The Trans-Pacific Partnership means that America will write the rules for 21st century trade," according to President Obama, but as Reuters reports, U.S. unions, lawmakers and interest groups questioned the long-awaited text of a landmark U.S.-backed Pacific trade deal on Thursday. "It's worse than we thought,” Lori Wallach, director of Public Citizen’s Global Trade Watch, told members and U.S. labor representatives said the agreement contained weak, poorly worded or unenforceable provisions, concluding "we do not believe those improvements are significant or meaningful for workers." It appears, that ObamaTrade may be a boon for factory and export economies like Malaysia and Vietnam, but - as expected - will achieve little for the average joe in America.

Phoenix Capital Research's picture

You Will Not Be Warned When the Bank Holidays Come

You will not be warned of the risks to your wealth by anyone in a position of power in the political financial hierarchy.

Tyler Durden's picture

"Social Expenditures" In the US Are Higher Than All Other OECD Countries, Except France

While redistributive social spending in the US is indeed different from many other countries, the overall magnitude is actually greater (both proportionally and in absolute terms) in the US than in almost all other countries measured. One can argue that the way that the wealth is redistributed through public policy in the US is "wrong" or "suboptimal." But, to argue that there is less redistribution as a result of public policy in the US than elsewhere is simply wrong.

Tyler Durden's picture

China's Manufacturing Misses; Nonmanufacturing Worst Since 2008 Despite Unprecedented $1 Trillion "Debt Injection"

The most anticipated economic release over the weekend was the early glimpse into China's manufacturing and non-manufacturing sectors via the two key PMI surveys released by China's National Bureau of Statistics, to get a sense if the slowdown across China is stabilizing or, as some have suggested, rebounding. It did not: overnight the NBS reported that the manufacturing PMI remained unchanged in October at 49.8 missing consensus estimates of a modest rebound to 50.0, its third consecutive month in contraction territory.

Tyler Durden's picture

Mother Yellen's Little Helper - The Rate-Hike Placebo Effect

Americans are increasingly likely to respond positively to a placebo in a drug trial – more so than other nationalities. That’s the upshot of a recently published academic paper that looked at 84 clinical trials for pain medication done between 1990 and 2013. These findings, while bad for drug researchers, does shed some light on our favorite topic: behavioral finance. Trust and confidence makes placebos work, and those attributes also play a role in the societal effectiveness of central banks. That’s what makes the Fed’s eventual move to higher rates so difficult; even if zero interest rates are more placebo than actual medicine, markets believe they work to support asset prices.

GoldCore's picture

Gold Up 3% In October and Enters “Seasonal Sweet Spot”

Gold is up 3.1% in October and had even larger gains in other currencies. Entering gold’s “seasonal sweet spot” in November, December, January and February.

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