Tuesday, September 1, 2015

The Best And Worst Performing Assets In August: It Was A Good Month For Pet Rocks, Bad For "Hedge" Funds

US Manufacturing Plunges To 2-Year Lows As New Orders, Employment Tumble

Following disappoint PMIs from around the world, the US decoupling meme took another knock today as Markit PMI printed 53.0 (from 53.8) - its lowest in almost 2 years, led by a plunge in the employment subindex. Weakness was also evident in new factory orders. As Markit notes, "U.S. manufacturing sector continues to struggle under the weight of the strong dollar and heightened global economic uncertainty." On the heels of Milwaukee and Dallas Fed weakness, ISM Manufacturing printed a disastrous 51.1 (vs 52.5 expectations) - the lowest since May 2013. Employment tumbled, as did New Export ordedrs, but unadjusted New Orders plunged to its lowest since 2013, which is a problem given the massive inventory builds that have saved the world in the last few months.

US Equities Are Crashing Again - Dow Futures Down 430, AAPL -2.75%; NYSE Unleashes Rule 48 (Again)

US equity futures markets have just pushed to fresh overnight lows, with the last leg down seemingly triggered by the CAD recession print. Let's hope Cramer and Cook have another email up their sleeves as weakness in AAPL is notable - down 2.75% in the pre-market. Lastly, we noted US equities are rapidly catching back down to the XIV-implied lows as the last few days bounce evaporates.

VIX ETF Surges Above 'Black Monday' Spike Highs, Numerous ETF Flash-Crashes

As Nanex's Eric Hunsader notes "there are numerous mini-flash-crashes in ETFs this morning," as market structure comes under significant pressure. Nowhere is that more obvious than in the VIX complex with VXX spiking above last Monday's highs and XIV collapsing...

Gold & Silver Are Jumping On Heavy Volume

Modest USD weakness combined with significant risk-off across global equity markets (and a strange un-bid to bonds as China unwinds continue to weigh) has sparked heavy volume flows into precious metals this morning.

Hyperinflation CAN’T BE PREVENTED by Debt/Deflation — Jeff Nielson

This is not a chart of a potential hyperinflation. Rather, it is a chart of a currency which has already been hyperinflated.
by Jeff Nielson, Sprott Money:

A repetitive flaw continues to circulate throughout much of the media – mainstream and Alternative, alike. This flawed analysis contends that we are heading for a deflationary crash, and reflects a fundamental misunderstanding of economic dynamics.
This fundamental (and unforgivable) error comes from a failure to recognize the definition of deflation: it is when the currency in which a particular jurisdiction is denominated rises in value. It is with this basic fact in mind that we can now view a simple hypothetical example, which resolves the phony “inflation/deflation debate” once-and-for-all.
Read More…

Two-Thirds Of Global PMIs Deteriorate In August

First the good news: of the 28 global regions that have reported PMIs so far (the US Markit PMI is due later today), 18 posted a print of over 50, or indicating manufacturing expansion.
Now the bad news: more than two-thirds of PMIs in August deteriorated compared to July suggesting that while the global economy is not in a recession yet, absent some dramatic improvement, a global economic contraction is just around the corner.

Not "Unequivocally Good" - Canada Enters Recession

It appears low oil prices are not awesome for everyone. For the second quarter in a row, Canadian GDP dropped (-0.5%) pushing America's northern neighbor back into recession. What is ironic is that this was better than the 1% drop that was expected and so CAD is strengthening.

What Does Last Week’s Record Bounce Mean For Stocks?

Whatever the message is in these mega intra-week rebounds (if there is one), we're afraid it just hasn’t been the “out of the woods” bullish sign that many were hoping it was.

Global Trade In Freefall: South Korea Exports Crash Most Since 2009

While the market's attention overnight was focused on China's crumbling manufacturing and service PMI, data which was already hinted in the flash PMI reports earlier in August, the real stunner came not from China but from South Korea, which last night reported an unprecedented 14.7% collapse in exports, far worse than the -5.9% consensus estimate, and more than 4 times worse than July's 3.4%. The number is critical because not only do exports account for about half of South Korea's GDP but because it also happens to be the first major exporting country to report monthly trade data. That makes it the perfect barometer of global trade flows, or as the case may be, the canary in the global trade coalmine. It also confirms what we reported just one week ago when we said that "Global Trade Is In Freefall."

China Takes "10 Steps Back," Slaps 20% Reserve Requirement On Currency Forwards

Overnight, China decided to take steps to reduce "macro financial risks." And by that they mean "do something quick to help ease pressure on the yuan" and by extension, on the PBoC’s rapidly depleting FX reserves. To that end, starting October 15 banks will have to hold the equivalent of 20% of clients' FX forward positions with the PBoC, where the money will sit, frozen, for a year, at 0% interest.

In The Month Of September 2015 We Officially Enter The Danger Zone

by Michael Snyder, The Economic Collapse Blog:
Is September 2015 going to be one of the most important months in modern American history?  When I issued my first ever “red alert” for the last six months of 2015 back in June, I was particularly concerned with the months of September through December, and not just for economic reasons.  All of the intel that I have received is absolutely screaming that big trouble is ahead.  So enjoy these last few days of relative peace and quiet.  I mean that sincerely.  In fact, that is exactly what I have been doing – over the past week I have not posted many articles because I was spending time with family, friends and preparing for the national call to prayer on September 18th and 19th.   But now as we enter the chaotic month of September 2015 I have a feeling that there is going to be plenty for me to write about.
Read More…

Frontrunning: September 1

  • Charting the Market: New Month, Same China (BBG)
  • China jitters send stocks tumbling (Reuters)
  • Oil falls on weak China factory data (Reuters)
  • Euro zone factory growth eases in August despite modest price rises (Reuters)
  • Euro-Area Joblessness Falls to Lowest Level Since Early 2012 (BBG)
  • Clinton friend advised on U.S. politics, foreign policy (Reuters)
  • Korea exports slump as Asia's woes deepen (Reuters)

US Futures Tumble After Latest Abysmal Chinese Economic Data, Crude Surge Stalls

Just like the last time when Chinese flash PMI data came out at the lowest level since the financial crisis, so overnight when both the official Chinese manufacturing and service PMI data, as well as the Caixin final PMI,s confirmed China's economy has not only ground to a halt but is now contracting with the official manufacturing data the lowest in 3 years and the first contraction in 6 months, stocks around the globe tumbled on concerns another major devaluation round by the PBOC is just around the corner with the drop led by the Shanghai Composite which plunged as much as 4% before, the cavalry arrived and bought every piece of SSE 50 index of China's biggest companies  it could find, and in a rerun of yestterday sent it to a green close, with the SHCOMP closing just -1.23% in the red. So much for the "no interventions" myth. We wonder which journalist will take the blame for today's rout.

Victoria Nuland, Kiev Pupets & The Destabilization of Ukraine

from RT:
The same forces that are pushing radicals in key hot spots in and around Europe – the US in the first place – also have a part in the protests going on in Kiev. They are not innocent, they just don’t appear in the picture in front of the TV cameras, says political analyst Aleksandar Pavic.
In Kiev, Ukraine’s capital, crowds of protesters came to oppose amendments to the constitution that would provide for decentralization of the country. As a result dozens were injured and one security officer was killed after a grenade was thrown outside the parliament.
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filed under (unt

Legal experts see no criminal trouble for Clinton thus far

from Denver Post:
Experts in government secrecy law see almost no possibility of criminal action against Hillary Clinton or her top aides in connection with now-classified information sent over unsecure email while she was secretary of state, based on the public evidence thus far.
Some Republicans, including leading GOP presidential candidate Donald Trump, have called Clinton’s actions criminal and compared her situation to that of David Petraeus, the former CIA director who was prosecuted after giving top secret information to his paramour. Others have cited the case of another past CIA chief, John Deutch, who took highly classified material home.
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The End of the US Dollar As The World’s Reserve is Well On Its Way

The Death of the US Dollar
from FutureMoneyTrends:

(2014 Documentary)

More Dangerous than GMO’s! ~ BioEngineered NanoFoods ~ but Shhh It’s a Secret!

from aplanetruth.info:

GMO Soy Accumulates Cancer-Causing Formaldehyde

by Christina Sarich, Natural Society:
In a groundbreaking new study published in the peer-reviewed journal Agricultural Sciences, researchers have found that when soy is genetically engineered, it disrupts the plant’s natural ability to control stress and even sparks the production of carcinogenic formaldehyde.
This new research led by an MIT trained biologist, Dr. V.A. Shiva Ayyadurai, Ph.D., an MIT-trained systems biologist, utilized a method to integrate 6,497 in vitro and in vivo laboratory experiments from 184 scientific institutions, across 23 countries. The researchers discovered that the accumulation of formaldehyde, a known carcinogen, and a dramatic depletion of glutathione, an anti-oxidant necessary for cellular detoxification, is the result of genetic tinkering with soy plants.
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What is Your Computer Hiding From You?

by Philippe Gastonne, The Daily Bell:
A good question arose in the comments to our Thursday story about U.S. border agents searching and seizing laptop computers. Can’t people simply store their data on the cloud to keep it safely from government hands?
Let’s think this through. Say you have a few megabytes of data that you wish to keep private. Nothing illegal, just private. You want to access your data after you cross outside U.S. borders. What are your options?
One choice is to store the data in a computer or on a thumb drive and carry it with you. As we saw yesterday, you run the risk of having government agents seize the physical device from you.
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Russia to Begin Airstrikes Against ISIS in Syria

by Kurt Nimmo, Infowars:
During a speech Sunday at the Citadel in South Carolina Republican presidential hopeful Scott Walker said ISIS would not be defeated in Syria until the government of Bashar al-Assad is brought down.
Walker said so long as Syrian President Bashar Assad “is still in power and Iran, his patron, has a base of operations in Damascus,” ISIS will not be defeated.
“But let me be clear: Defeating ISIS and rolling back Iran will require a greater investment of U.S. resources,” Walker said. “Therefore, we must do more to recruit and support fighters in Syria who oppose both ISIS and Assad.”
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Wall Street Parasites Have Devoured Their Hosts — Your Retirement Plan and the U.S. Economy

by Pam Martens and Russ Martens, Wall Street on Parade:

The riveting writer, Michael Hudson, has read our collective minds and the simmering anger in our hearts. Millions of American have long suspected that their inability to get financially ahead is an intentional construct of Wall Street’s central planners. Now Hudson, in an elegant but lethal indictment of the system, confirms that your ongoing struggle to make ends meet is not a reflection of your lack of talent or drive but the only possible outcome of having a blood-sucking financial leech affixed to your body, your retirement plan, and your economic future.
In his new book, “Killing the Host,” Hudson hones an exquisitely gripping journey from Wall Street’s original role as capital allocator to its present-day parasitism that has replaced U.S. capitalism as an entrenched, politically-enforced economic model across America.
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