Good morning. The dollar is up 95. Bonds are stronger. Stocks are down 1.3 to 1.6% currently. Gold is up $12 unchanged after being down $18 overnight. Silver is up 35. Crude oil is down $1.09. Nat Gas is down 5c. Crypto is down 1.2 to 2.0%. Grains are all down 50bps.- PPI and retail sales today
WEDNESDAY, MARCH 15
8:30 am Retail sales Feb. -0.4% 3.0%
8:30 am Retail sales ex autos Feb. -0.1% 2.3%
8:30 am Producer price index Feb. 0.3% 0.7%
8:30 am Core PPI Feb. 0.4% 0.6% 8:30 am PPI (year over year) Feb. -- 6%
8:30 am Core PPI (year over year) Feb. -- 4.5%
8:30 am Empire State manufacturing March -7.7 -5.8
10:00 am Business inventories Jan. 0.0% 0.3%
10:00 am Homebuilders survey March 40 42
Yesterday we noted the Credit Suisse risk was increasing after reading a Bloomberg note on their violations:
Turns out it was pretty bad news. More below as well as TD’s latest :
“Absolutely Not”
Comment: Markets were quite stable through Asia. Gold was down $13, stocks were up some, and the dollar was backing off. Then at around 5:30 ET hell broke loose. Eu bank stocks started sliding hard. Credit Suisse started plummeting. Shares of Soc Gen and BNP Paribas took on water.
The observable reason: The Saudi National Bank chairman ( their current largest shareholder) was asked if it would add more funds to CS given the selloff in banks. He answered unequivocally:
"The answer is absolutely not, for many reasons outside the simplest reason, which is regulatory and statutory," Saudi National Bank Chairman Ammar Al Khudairy told Bloomberg TV in an interview on Wednesday.
That was in response to a question about whether Credit Suisse would receive fresh injections if another liquidity crisis emerged.
Saudi National Bank, which is 37% owned by the kingdom's sovereign wealth fund, is Credit Suisse's largest shareholder as of late 2022 after acquiring a 9.9% stake. Al Khudairy said there are no plans at the moment to take the stake over the 10% threshold because of regulatory hurdles.
In the last several months, since the bank's equity has been on a waterfall lower, the Saudis have lost more than 500 million francs on their position.
The news the Saudis are perhaps done supporting the troubled Swiss bank sent shares down as much as 25% to a new record low in Zurich.
And like that Gold and Silver rallied, European stocks cratered and yesterday’s gains in the US are now losses in the EU.
The global financial system is under attack… by itself. And we think seeing the game the West is playing with commodity prices lately, the East will not assist in any self-inflicted finanicial implosions now
Note the Swiss National Bank is a major holder of US stocks. Also note with every crisis, the EU gets closer and closer to revaluing Gold on its balance sheet. and that is a license for the world to buy gold non stop
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