Tuesday, August 2, 2016

European Bank Bloodbath Destroys Stress Test Credibility

If the goal of the EBA Stress Tests was to reassure investors and regain confidence that 'all is well' in Europe's increasingly fragile and systemically interconnected banking system, then it has utterly failed. The broadest European bank stock index is now down 7% from the post-stress-test spike highs, Italian banks are at record lows and being halted (despite Renzi's promises), Commerzbank is struggling with capital raise chatter, and Deutsche Bank and Credit Suisse are tumbling after being booted from the Stoxx 50.

A "1 In 10,000 Year Event": JPM Head Quant Explains Why The S&P Refuses To Sell Off

"... one would expect this scenario to happen once every ~10,000 years. The fact that we see this type of behavior demonstrates market inefficiency—in this case driven by hedging of option exposure. Quite literally, the market was pinned. Over the past 3 weeks, the amount of call options exceeding put options (in terms of gamma exposure) averaged almost $40bn (per 1%), which is the largest call to put gamma imbalance ever observed."

Bazooka'd - USDJPY Tumbles To 100 Handle

The BoJ launched its mini-ETF-bazooka but disappointed overall, and last night Abe unveiled a disappointing 26th fiscal stimulus plan since 1990 - practically admitting that Abenomics had failed. The worrying thing is that this double whammy of under-delivering appears to have shaken the world's faith in everything Japanese as bonds, stocks, and the JPY carry trade are unwinding in a hurry. While 10Y JGB yields rise back near 0bps, USDJPY just broke back to a 100 handle, near one-month lows...

Donald Trump To Respond To Warren Buffett In Latest Campaign Speech - Live Feed

“I don’t care much about Warren Buffett..."

NYPD Chief Bratton Resigns After Angry "Black Lives Matter" Protests

One day after about a 100 protesters gathered in Lower Manhattan Monday, calling for an end to police brutality and the firing of NYPD Commissioner William Bratton, they got just what they wanted and moments ago NYPD Commissioner, news broke that Bill Bratton is set to resign later today according to ABC. Mayor Bill de Blasio is expected to announce Bratton’s departure today, along with his succession by NYPD chief James P. O’Neill.

Inflation Hidden In Plain Sight

Can we be honest and say that many of the reductions in value, quantity and quality are actually instances of fraud?

Why Goldman Is Shocked By What Bill Dudley Said: "This Can't Be In The Best Interest Of The US"

"More striking, at least in our eyes, was his language on the Dollar, where he essentially made the case that weaker fundamentals elsewhere require a dovish offset from the Fed, to prevent the Dollar from appreciating. This language comes very close to “Dollar targeting."

JGB Carnage Sparks Contagion Across Global Bond Market

Disappointing fiscal stimulus, loss of faith in The BoJ, and increasingly headless-chicken policymakers has sparked a sudden and severe rush for the exits from Japan's government bond markets. 10Y JGB yields exploded from -30bps to almost 0bps in the last 4 days - the biggest crash in prices in over 3 years. This bloodbath is roiling the rest of the global developed bond market with Bund yield spiking (+12bps in last 2 days, almost back to 0), Swiss, UK, and Danish bonds are all blowing out, and Treasury yields up 14bps since Friday alone.

The Wall Street Hockey Stick Fades Again - S&P 500 EPS Drops Another 8% In The Past Month

Based on June 2014 EPS estimates, “fair value” of the S&P 500 at 15 times CY 2015 earnings would have been 2,169 for the index. But those forward earnings were a mirage, the real reported value more than a third less than that. “Fair value” on an actual basis would have been instead 1,297!

Billionaire Warren Buffett Pledges To Drive Voters To The Polls In November

Just when you think this election could not get more ridiculous, with even the Simpsons endorsing Hillary as President, the king of crony capitalism Warren Buffett has offered to drive voters to the polls in November.

US Personal Income Growth Slumps To Lowest Since 2013, Spending Rises

Savings are slumping (which means credit is surging) as the American consumer keeps on spending (+3.7% YoY near highest since May 2015) despite income growth at its slowest since Dec 2013 (+2.7% YoY). The diverging trend of the last 6 months (higher spending, lower income) is unlikely to last but with the savings rate at 5.3% (down from 6.2%)at March 2014 lows, we suspect the run way is running out.

Trump Calls Hillary Clinton "The Devil" As He Tries To Move Beyond Khan Flare Up

In his first campaign rally since a public spat erupted with the parents of Muslim Army captain, Humayun Khan, who was killed in Iraq, Donald Trump sought to change the subject away from a topic that has led to an unprecedented media onslaught, and to redirect to Hillary as well as economic issues and concerns. Criticizing Vermont Senator Bernie Sanders’ endorsement of Clinton, Trump pulled no punches. “He made a deal with the devil. She's the devil."

WIKILEAKS: Hillary Took Cash From Company Accused of Sponsoring ISIS

by Nafeez Ahmed, The Canary:
This story is UNBELIEVABLE– Except that it’s Hillary Clinton we’re talking about…
Wikileaks is reporting on deals Hillary Clinton did with the the French industrial giant Lefarge – a company accused of secretly sponsoring ISIS.
The City of Paris has struck a corporate partnership with French industrial giant, Lafarge, recently accused of secretly sponsoring the Islamic State (Isis or Daesh) for profit.
Documents obtained by several journalistic investigations reveal that Lafarge has paid taxes to the terror group to operate its cement plant in Syria, and even bought Isis oil for years.
Yet according to the campaign group, SumOfUs, Lafarge is the corporate partner and sand provider to the City of Paris for this summer’s Paris-Plages urban beach event. The project run by Office of the Mayor of Paris, Anne Hidalgo, will create artificial beaches along the river Seine in the centre and northeast of Paris.
Read More

How And When Does This Mess End?

What cannot go on forever won’t...

China Prepares For "Sudden, Cruel And Short" War With Massive Naval Drill In East China Sea

“The drill is aimed at honing the assault intensity, precision, stability and speed of troops amid heavy electromagnetic influences,” said a navy statement released Monday. “An information technology-based war at sea is sudden, cruel and short, which requires a fast transition to combat status, quick preparation and high assault efficiency.”

Why Japan's "Massive" ¥28 Trillion Fiscal Stimulus Plan Was A Disappointment

Last week, when details of Japan's "massive" JPY28 trillion stimulus plan emerged, we pointed out the "minor" snag that assured the plan would be a disappointment: only about JPY7 trillion of this amount would be in the form of new spending. Overnight, Japan finally revealed the full plan, and as expected it was met with significant disappointment by the market, which sent the Yen soaring to new multi-week highs and saw Japanese bond yields surging .

Global Shares Slide As Japan Stimulus Disappoints, RBA Underwhelems, Italy Bank Fears Return

European stocks slid to a two-week low amid mixed earnings, as bank stocks extended yesterday’s decline as fears that Italy is not "fixed" have reemerged, not helped by an adverse market reaction to a disappointing Japanese fiscal stimulus announcement, while the AUD first dropped but then jumped after the RBA's priced in rate cut was announced, seen as underwhelming.

An America Neither Republicans Nor Democrats Dare Show

For all the moronic celebrity surrounding Donald Trump, stoked by a self-serving media, “the Donald” could find a grateful place in America’s history books. No, absolutely not as a president, but as the dragon-slayer of America’s corrupt duopoly...We could be living a dream in America as opportunity stares at us to break the political chains enslaving our Republic, finally making Abraham Lincoln’s dictum of “a government of the people, by the people, for the people” not fiction but a reality.

Trump: "I'm Afraid The Election Is Going To Be Rigged"

Following Trump confidant Roger Stone's allegation that Hillary Clinton might "steal this election" using the Supreme Court, and the Reuters' poll "tweaks" which sent her to a 7-point lead, Donald Trump is raising the alarm that he "is afraid the election is going to be rigged."

Japan Panics, "Grinds To A Halt" As Officials Issue Massive Earthquake False Alarm

In a shockingly unsurprising snafu on Monday, trains ground to a halt, a mobile network became jammed, and thousands of citizens began to panic as Japan’s meteorological agency sent an alarm that a massive earthquake was about to strike the capital Kanto Region, home to more than 40 million people... before admitting the false alarm: "it's an error on our part, we sincerely apologize."

The Looming Financial Crisis Nobody Is Talking About, But Should Be

A chain of events has been set in motion that will expose the massive fraud world banks and governments have perpetuated on their citizens. When fear porn is being promoted on the major networks, keep in mind the real threats to freedom and security will not be openly announced.

Japanese Government Bonds Are Crashing

Ahead of tonight's 10Y JGB auction and reportedly the unleashing of Abe's fiscal stimulus, it appears the world's investors are losing faith in the Bank of Japan's buying power and the MoF's credibility as Japanese government bonds are collapsing for the 3rd day in a row. With the biggest crash in prices (JGB Futures) since May 2013 (back to 5 month lows), yield across the entire JGB curve are exploding higher since Kuroda punted last week and questioned monetary policy effectiveness.

Deutsche Bank, Credit Suisse Kicked Out Of Stoxx Europe 50 Index

from ZeroHedge:
What do you do when you are one of the biggest indices in Europe and are unable to rise simply because two of your biggest constituents, if not so much in market cap any more but certainly in terms of systemic importance, just can’t catch a bid? Why you delete them, of course even if the two names in question happen to be Europe’s two largest banks, Deutsche Bank and Credit Suisse.
Moments ago, STOXX Ltd, the operator of Deutsche Boerse Group’s index business, announced component changes in the STOXX Europe 50 Index due to the fast-exit rule. All changes become effective with the open of markets on Aug. 8, 2016.
What is the Fast Exit rule? “The rule states that a component is deleted from the Dow Jones EURO STOXX 50 or Dow Jones STOXX 50 indexes if it ranks 75 or below on the respective index’s monthly selection lists for a consecutive period of two months. Deleted components for all three indexes will be replaced by the highest ranking non-components on the monthly selection list. Component changes will be announced on the first trading day of the month following the publication of the monthly selection lists, implemented on the close of the fifth trading day and effective the next trading day.”
Read More

7000 Turkish Forces With Heavy Equipment Surround US Air Base In Turkey

from Next News Network:

Walid ShowBat reports, The massive presence of pro-Erdogan armed police supported by heavy vehicles enforced a lock down at the Incirlik base means that no one from inside the base is allowed entry and no one allowed exit.

Natural “Recipes” to Heal Your Heart and Prevent Heart Attacks

by Thomasina Copenhaver, Natural News:
In ancient times, the art of healing was carried out by women. The word “recipe” referred to a healing tonic, balm, tincture, syrup, etc. Ingredients were botanical and found locally in the wild or grown in gardens. These recipes were written down in books along with grandma’s healing chicken soup, rosewater tonic, candle making instructions, and perfume. The lady of the farm, or manor house, created these recipes in a room off the kitchen called the “Still Room.” Often these women were the only chance a person had to survive until a doctor could arrive by horseback or carriage—if there was a doctor. These women apprenticed with their elders, learned their craft, passed down their wisdom, and healed people naturally for millennia.
Make no mistake. This was a healing art that required intuition, apprenticeship, knowledge and skill. Without these women, none of us would be here.
Read More

“We’re Not Dangerous”: Deutsche Bank’s Chief Risk Officer

by Wolf Richter, Wolf Street:
No crisis at Deutsche Bank, really, I swear.
When Stuart Lewis, Chief Risk Officer at Deutsche bank, was asked in an interview, published in the Frankfurter Allgemeine on Sunday, if his institution is “the most dangerous bank in the world” – a reference to the IMF’s call that among globally systemically important banks, “Deutsche Bank appears to be the most important net contributor to systemic risks” – he replied:
“No, not at all. Only one IMF report has recently muddled up the situation: We are not dangerous. We are very relevant. Deutsche Bank is interwoven with the entire financial sector. We are one of the largest universal banks in the world. But to make it clear: Our house is stable. The balance sheet is healthy.”
Could he say that “in good conscience?”
Read More


by Jeff Berwick, The Dollar Vigilante:
Most are unaware that we don’t live in a real democracy. In the US, in particular, Presidents aren’t elected, they are selected. It has been this way for centuries and was fully cemented, and never questioned again, after JFK was killed when he tried to stand up to the nefarious groups who control the system.
The people who control the US government are those who control the monetary and financial system (and the media and nearly everything else of importance). A key historical figure of these “elites” was Mayer Amschel Bauer Rothschild. He was purported to have said, more than two centuries ago, “Give me control of a nation’s money and I care not who makes it’s laws.”
And, just as expected, anyone who would even question the role of the Federal Reserve has now been removed from the political process in the US election.
Read More

Globalist Establishment Rigged Election for Clinton

from BATR:
Most glimpses into past history provide insights on what is taking place in the real time current society. When applied to the realm of politics and raw power, the established order gets their way. Ignoring the will of the people is so evident that only a dedicated flunky for maintaining the false narrative of democratic rule would deny the reality of the illicit system. Allowing voters to actually elect their leaders is a risk that the masters of the world order will not tolerate.
Even the first Trilateral Commission President admits the truth in 2016: The Year Americans Found out Our Elections Are Rigged.
Now it’s just an oligarchy, with unlimited political bribery being the essence of getting the nominations for president or to elect the president. And the same thing applies to governors, and U.S. senators and congress members.” — Former President Jimmy Carter
Read More…


No comments:

Post a Comment