jueves, 8 de agosto de 2019

ND AUG 7 19 SIT EC y POL



ND  AUG 7  19  SIT EC y POL 
ND denounce Global-neoliberal debacle y propone State-Social + Capit-compet in Eco


ZERO HEDGE  ECONOMICS
Neoliberal globalization is over. Financiers know it, they documented with graphics

A manic day in stocks and bonds today with an early collapse panic-bid back to unchanged as precious metals soar and commodities crash.
The extreme vol prompted a warning from Guy Haselmann, chief executive officer of FETI Group LLC and Scotia-bank’s former head of capital market strategy, who said global markets are moving closer to a Minsky moment, or a sudden collapse of asset prices. FETI is a Summit, New Jersey-based company that works with portfolio managers.
“An extended period of low volatility like we have seen in recent years significantly increases leverage and risk-seeking behavior,” he said in an interview.
When volatility turns like it has, people often need to sell assets to meet margin calls. That’s what makes this so combustible”
"Just one more waffer-thin quantitative easing...?" What could go wrong?

A weaker than expected (though fractionally stronger than 7) Fix by the PBOC unleashed hell globally once again overnight...
See Chart:
CNY  Fix  vs.  Offshore Yuan

But, thanks to rate-cuts from New Zealand, Thailand, and India combined with Chicago Fed President Evans comments suggesting more easing and QE4EVA prompted some PPT-sponsored panic-bids in US equities.
"...you could take the view that the risks now have gone up, and as we think we’re going to get closer to the zero lower bound with higher probability, that would also call for more accommodation."

Nevertheless, investor sentiment has collapsed from euphoric greed just a month ago to "extreme fear" ...
See Chart:
FED and Greed Index
What emotion is driving the market now? [The market doesn’t exist, we’ve speculat +]

In the US, markets were mixed with Nasdaq best as desperate panic bids appeared to lift stocks back to unch (and to top the farce off a super-spike at the close)...
See Chart:

VIX was smashed back to a 19 handle...
See Chart:

Stocks and bonds decoupled overnight, with stocks tumbling back to bonds reality, but then the US cash open sparked stock-buying, bond-selling all day...
See Chart:
Nasdaq Futs  vs. 10Y Yield

Treasury yields tumbled again overnight but ramped back higher after Europe closed...ending the day practically unchanged
See Chart:

30Y Yield plunged to near record lows...
See Chart:

The Dollar roundtripped like everything else to end unch...

Gold surged to new six-year highs...
See Chart:

Oil prices collapsed, crude build sent WTI prices back to a $51 handle...BUT then late in the day, Saudis takes to halt oil price drop back above $52..
See Chart:

Finally, with $15 trillion (and rising tonight) in negative-vielding debt, bullion and bitcoin appear the preferred safe haven against policy-maker panic...
See Chart:

Still, global bonds and stocks remain massively decoupled...
See Chart:
So can you guess who will be right in the end?
….
----
----
Even speculators wants to avoid the funeral of US Econ..But rethorically
Financial markets are raising risks of recession. Equities continue to slide and volatility has spiked, but the alarm bell is loudest in rates markets, where the yield curve inverted the most since just before the start of the financial crisis.
Financial markets are raising risks of recession. Equities continue to slide and volatility has spiked, but the alarm bell is loudest in rates markets, where the yield curve inverted the most since just before the start of the financial crisis.

Not all indicators are as bearish as the yield curve, however. While equities have sold off rapidly since last week, the sell-off late last year was much larger only to recover just as rapidly.

Within the economic data, the near-term indicators are even less downbeat than the lower frequency signals coming from the low unemployment rate and recent decline in the profit margin.

Bottom line, we stick with our macro indicators and see the odds of US (and global) recession in the coming 12 months closer to 40% (the average of our near-term and medium-term indicators).
See Chart:
Probability of US recession over next 12 months

At the same time, we continue to flag downside risk to our modal growth outlook as the latest data and likely hit to sentiment from the recent trade war escalation and financial market moves suggest global growth running below our forecast of 2.5% in 2H19.
….
----
----
More and more Americans are getting themselves into so much debt that it becomes impossible to pay back their loans. In the month of July, there was a 5% increase in the number of bankruptcies filed in the United States.

In a “booming” economy, this is worrisome. Far too many Americans are spending way too much more than they make. There were 452,797 filings in the first seven months of 2019, up from 450,568 during the same period last year. There were roughly 1,000 more consumer bankruptcies at this point this year, compared to the same point last year, the organization added. This rise in bankruptcies is coming off a ten year low.

Southern states seem to be affected the most as well, according to Market Watch. Alabama had the highest per capita rate, with 5.61 filings per 1,000 people, followed by Tennessee (5.39) and Georgia (4.31), Mississippi (4.25) and Nevada (3.79).

Samuel Gerdano, ABI’s executive director, said:
According to a new survey from Bankrate of about 3,000 Americans, 23% of people who were adults when the recession started in December 2007 say they are now financially worse off than they were before the recession hit. That percentage amounts to just under 50 million Americans. Another 25% say they are doing the “same.” In all, just over half believe their “overall finances” are better than before.
Americans were and continue to be in a degree of denial of the financial crisis and Great Recession,” said Mark Hamrick, Bankrate’s senior economic analyst according to a report by Yahoo Finance. “One of the constant themes
that presents itself in the data is that Americans are still digging out in many ways from that experience.”
“While some have managed to prosper in the decade since, there are still tens of millions who are struggling to even get back to where they were before the economy took a turn for the worse,” added Hamrick. Could that mean that the economy is not all that robust? We certainly think so. But speaking the truth is a revolutionary act in times of deceit.          
Not only are 25% of Americans worse off than they were before the Great Recession, but many others are also using credit to buy essentials, such as food. Millions more people are buying essential goods and services on credit. Consumers had $14 trillion in household debt (and rising) in the first quarter of 2019, according to the Federal Reserve Bank of New York data. That is up from approximately $13 trillion in debt consumers held back in 2008.
….
----
----

"If the US escalates the tariff fight further (i.e. 25% tariffs on the remaining $300bn of Chinese imports) or takes other additional measures against China, it would not be inconceivable for USD-CNY to rise to 7.50 or 7.70."
The French bank's EM strategist Jason Daw, is correct there is much more pain to come for the emergers, and especially the yuan, which after sliding below 7.00 for the first time ever this week, is now expected to plummet as low as 7.70, a level which would certainly prompt currency war retaliation from the Trump administration.

As Daw writes overnight, the US and China are increasingly engaged in an entrenched tit-for-tat escalation phase, and as he correctly predicts "one of the two sides probably need to reach their pain limit before there is a chance of a de-escalation phase." 

Meanwhile, "the Chinese authorities can deploy their formidable defenses to stop or slow the depreciation", as they may want to see the impact on capital flows before permitting another leg higher. However, as the SocGen strategist cautions, the upside risks to USD-CNY have intensified and he now forecasts USD-CNY modestly higher than our previous forecasts (to 7.10, 7.15, 7.20, 7.25) over the next four quarters.

Worse, if the US escalates the tariff fight further (i.e. 25% tariffs on the remaining $300bn of Chinese imports) or takes other additional measures against China, "it would not be inconceivable for USD-CNY to rise to 7.50 or 7.70."

If Daw is right, the trade is simple: buy either the USDCNH or the USDCNH +12 month forward outright, which as of today is pricing in that the Offshore Yuan will only drop to just 7.1335 in 12 months time.
See Chart
CNH 12 Months forward Outright

That said, even the bearish FX strategist concedes that it is important to remember that the Chinese authorities have strong policy tools and it is likely that CNY will only weaken as much and as quickly as they want it to.  In other words, if China really wants to devalue its currency, it can, and will do so with relish. The question is what Trump will do to provoke such a devaluation.
….
----
----
Government is preparing for a farm crisis; this time, it could be worse than the 1980s.
President Trump on Tuesday morning hinted at what appears to be yet another farm bailout (the third one must be the charm), as farm bankruptcies soar and agricultural debt loads become unbearable.
A farm crisis on par to what was observed in the early 1980s could be coming, especially since the US Senate passed a bill late last week that makes it more accessible for farmers with larger debt loads to file for bankruptcy protection, reported Reuters.
See Chart:
% of Commercial Agricultural Loans more than 30 days past due

Republicans and the Trump administration are preparing for Farmageddon with new interventionist measures that will hopefully cushion farmers from retaliatory tariffs by China.
See Chart:
Shrinking Soy

Reuters notes that not everyone is excited about the change. The American Bankers Association told lawmakers to oppose the bill and warned "credit terms would tighten considerably for many family farms, with a disproportionate impact on the most distressed farms most in need of credit," according to a memo sent to House lawmakers on July 25.

A Reuters investigation of the Federal Deposit Insurance Corporation showed that major Wall Street banks are now winding down risky lending to farmers as farm incomes decline and delinquency rates soar.
Government is preparing for a farm crisis; this time, it could be worse than the 1980s.
….
----
----

US  DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete; it’s full of frauds & corruption. Urge cambio

Why not? It’s not yours.
….
Are Banks free to do whatever they want?  IF so, take out your USD now. Put it in safer inside your house or family house. Or  by gold coins or kriptos
====
The significance of the spike is difficult to overstate...
There are moments of inflection in the market when the phrase 'prices have changed more than the facts' becomes particularly apropos and today's Treasury rally ostensibly qualifies. We'll caution here however that the devolving macro narrative is very consistent with with such a repricing.
The overnight round of Asian central bank cuts combined with the weakest yearly change in German industrial production since 2009 are symptoms of changing expectations rather than the root cause of the move. Nonetheless, 10-year German yields dipped as low as -0.613% to a fresh record low. The selloff in domestic equities offers echoes of Q4 2018, with the primary difference being the Fed just cut rates versus the December hike-too-far.
Our primary concern linked to the sharp selloff in stocks is a spike in equity vol that tightens financial conditions to rapidly price in the Fed's series of three quarter-point-eases
See Chart:
Financial conditions vs. Market- implied Fed rate change

An inter-meeting ease isn't on our radar; although the futures market shows the August contract trading with an implied rate of 2.115% -- 1.5 bp of easing (or a 6% chance of a quarter-point emergency move).

What is even more compelling are the odds of a 50 bp cut in September jumped >50% -- 54% depending on how one slices it or 38.5 bp net easing. To say the Fed's fine tuning ambitions just became a lot more complicated would be an understatement.
See Chart:
Sept Rate- Cut Odds

We've included a chart of the absolute 5-day change in 30-year yields dating back to 1990 to illustrate just how dramatic the recent 40 bp rally in the long bond has been. Every time the market moved in a comparable fashion, 'something has changed' was invariably the takeaway.
See Chart:

If there was ever any question whether or not there is a significant shift in investor expectations afoot, the performance of the long bond should make it abundantly clear -- particularly in light of the proximity to the August refunding auctions.
Remember when supply events warranted a concession? So pre-crisis.

In keeping with our efforts to demonstrate the relevance of the magnitude of the recent move, we offer a chart of 3-month 30-year swapt implied volatility -- in both percentage and basis point terms.
See Chart:
3 months 30 years swaption implied volatility

The significance of the spike is difficult to overstate.
….
----
----

The ruling is just one element of the infighting that has gripped former Gov. Rosselló's New  Progressive Party...
====

... present voters are willing to steal from future generations, many of whom do not yet get to vote, or are poorly informed or involved in the political process.
====

US-WORLD  ISSUES (Geo Econ, Geo Pol & global Wars)
Global depression is on…China, RU, Iran search for State socialis+K-, D rest in limbo

Is it true that the US is arming both sides?  Or only Paks?
PM Khan said he would take "all possible options" in support of Kashmir's Muslim-majority population.
====

For the first time since March 2008, PBOC fixed the yuan weaker than 7 per USD.
See Chart:

But, as Nomura notes, it could be set to get worse.  [ To whom?  China plays Chess ]
If it turns out that actual economic momentum in China has flagged to the extent suggested by the deterioration in Chinese equity sentiment, past patterns suggest that there is still scope for RMB to weaken further. 
See Charts
[ What variables include his sample? Fixing values to an index is not real research.. I guess Nomura is becoming too sentimental,  or subjectivist. So: lack of objectivism ]

The possibility remains that the yuan could depreciate even more against JPY and EUR than against USD, judging by the relative shift lower in the RMB Basket versus USDCNH, it seems that pressure is starting.
See Chart:

The PBOC decision comes as trend-following CTAs are chasing downside in Hang Seng futures and H-share futures at an increasing pace. They have restored their existing net short positions in Hang Seng futures to 48% of the YTD peak (June), and to 67% for H-share futures, which suggests room to build these positions further.

[ The fact is that Nomura & US pressure doesn’t affect China, but to US mainly. Check the recent moves in US Economy. US got desperate & incoherent: Zombie Empire? ]
….
----
----

SPUTNIK and RT SHOWS
GEO-POL n GEO-ECO  ..Focus on neoliberal expansion via wars & danger of WW3

----
----

NOTICIAS IN SPANISH
Lat Am search f alternatives to neo-fascist regimes & terrorist imperial chaos

REBELION
Eco-S:  Los piratas del Smithonian  Julio César Centeno 
====
RT EN ESPAÑOL
----
----

INFORMATION CLEARING HOUSE
Deep on the US political crisis: neofascism & internal conflicts that favor WW3
- Walmart Shooter Manifesto  By ICH   [ Made by US police or real one? ]
- An Open Invitation to Tyranny  By Paul Craig Roberts
----
----

COUNTER PUNCH
Analysis on US Politics & Geopolitics

----
----

GLOBAL RESEARCH
Geopolitics & Econ-Pol crisis that leads to more business-wars from US-NATO  allies

----
----


DEMOCRACY NOW
Amy Goodman’  team

----
----

PRESS TV
Resume of Global News described by Iranian observers..

----
===

No hay comentarios:

Publicar un comentario