The Euro sinks to a 12 year low as the U.S. Dollar reaches 99.49 this morning exacerbating international corporations financial woes. Falling oil prices and China's Industrial Production just saw its weakest year-over-year reading ever outside the global financial crisis.
However, futures are set for a fractional rebound after yesterday's sharp decline, but the session direction will follow oil. Investors are still questioning when the Fed's were going to raise rates and are they going to affect U.S. equities negatively?
European markets are broadly higher today with shares in France leading the region. The CAC 40 is up 1.84% while Germany's DAX is up 1.77% and London's FTSE 100 is up 0.06%.
Gold is trading up at 99.15, WTI is trading sideways at 48.70 and gold is trading down at 1157.30. The closing disparity of the Euro and U.S. Dollar is causing widespread concern in the world's financial system.
Following two clear recessionary indicators out of the US in the form of the recently reported factory orders...
and Wholesale Trade...
Overnight it was China's turn to remind the US that things can always get worse when it reported retail sales, industrial production and fixed asset investment all of which slid about as fast as the China Industrial production would allow them, and wildly missed expectations, suggesting that China will strugle significantly even with hitting its downward revised 7% growth bogey. Putting this ugly data in context, China's overall industrial production just saw its weakest year-over-year reading ever outside the global financial crisis.
Here is Goldman's summary:
Industrial production (IP): 6.8% yoy in Jan-Feb (GS and Bloomberg consensus: 7.7%); December: 7.9% yoy. Sequential IP growth (Jan-Feb over Dec) -4.4% annualized (seasonally adjusted b ...
NEW YORK (Reuters) - U.S. stock index futures were slightly higher on Wednesday, implying a modest rebound from a sharp decline in the previous session, though questions remains about when the Federal Reserve would adjust its rate policies.
While the dollar strength this morning, which has pushed it to a fresh 13 year high and has accelerated the EURUSD plunge to under 1.06 - a drop of over 300 pips since the start of the week - has been a recap of yesterday's trading action, the main difference is that unlike yesterday, the USDJPY has managed to find a strong bid in the overnight session, pushing not only the Nikkei up by 0.4%, but also lifting US equity futures as the entire global marketplace is now merely a sandbox in which the central banks try to crush their currencies as fast as possible.
And it isn't just Europe: overnight, China reported property sales in the first two months of 2015 which dropped by the most in three years amid a glut of housing supply, and real estate investment growth eased. Retail Sales (10.7%, Exp 11.66%) and Industrial Output also missed, rising 6.8% for the Jan/Feb period, below estimates of 7.7%. Even Goldman was shocked: "Activity data for the combined January-February period (the NBS releases these two months together given the difficulty of adjusting for Chinese New Year effects) was significantly weaker than expected across IP, FAI, and retail sales. For overall industrial production, this was the weakest year-over-year reading ever (China's IP data starts from 1995) outside the global financial crisis.
This follows news that China plans to merge its big state-owned enterprises, telling thousands of SOEs "that they need to rely less on state life support and g ...
DUBAI (Reuters) - Emirates airline's [EMIRA.UL] chief operating officer said on Wednesday that both Boeing and Airbus had made improvements to its respective 787 and A350 aircraft in response to requests from the Dubai-based carrier.
One of the "mysteries" of our modern (i.e. fraudulent) precious metals markets is explaining the face-value of our gold and silver minted coins, meaning relating their nominal price to their actual value. The face-value on U.S./Canadian silver 1-oz coins is $5, and the face-value for our 1-oz gold coins is $50. For those investors (including this analyst) who began using precious metals as a vehicle for wealth-protection at a relatively late date; the face-value of these coins seems totally arbitrary.
However, given the endemic nature of both the price-manipulation and brainwashing employed by the crime syndicate which rules over us (the One Bank), the choice of prices for any asset class is rarely (if ever) arbitrary. An "explanation" for the nominal face-values of these coins has materialized, albeit in a particularly circuitous manner.
We start this analysis by first looking not at the nominal face-value of our gold coins, but rather our silver coins. The reason for this is because as detailed by precious metals historian Charles Savoie (in his chronology "The Silver Stealers"), it is the banksters themselves who consider silver to be the more important of these two monetary metals.
LONDON (Reuters) - The euro dived to its lowest since early 2003 against the dollar on Wednesday, dragging other European currencies with it on the back of the huge differences developing in market interest rates between Europe and the United States.
LONDON (Reuters) - Credit Suisse's new boss Tidjane Thiam could cut almost 3,000 jobs from its investment bank, or 15 percent of staff, as part of a shift of capital away from trading desks to private banking in Asia, analysts said.
DETROIT/SEOUL (Reuters) - Hyundai Motor Co plans to expand its U.S. factory, three people familiar with the matter said, hoping to ramp up production of sport utility vehicles (SUVs) as lower oil prices boost demand for gas-guzzling trucks.
NEW YORK/TORONTO (Reuters) - UBS AG has poached a U.S. team of some 15 oil and gas investment bankers from Bank of Montreal (BMO), significantly weakening the energy dealmaking capacity at Canada's fourth-largest bank, people familiar with the matter said.
Greek attempts to compromise the united opposition of the Eurozone nations spectacularly backfired, forcing Finance Minister Varoufakis to play his final card. This card involved requesting a bridging loan in order to meet the country's current liabilities.
NEW YORK (Reuters) - Before last Friday, many investors opined that the U.S. Federal Reserve would probably raise interest rates only once this year. Making the first hike in about nine years would be almost symbolic, as if the central bank was showing it still knew how.
MUMBAI (Reuters) - Google Inc is in early talks to buy Bangalore-based start-up InMobi, in a move that would strengthen its offering in the increasingly competitive mobile advertising space, a source with direct knowledge of the matter said.
NEW YORK (Reuters) - Big U.S. banks, including JPMorgan Chase & Co and Citigroup Inc , are expected to win Federal Reserve backing on Wednesday to buy back more shares and increase their dividends in the coming year, but the approvals may be as much about the institutions' financial engineering as any improvement in their health.
The euro slid closer to parity with the dollar, long-term eurozone bond yields nudged closer to zero and U.S. stocks tumbledâ€"a stark demonstration of the reordering of the world's financial system by its central banks.
PHOENIX (Reuters) - Aircraft leasing companies are encouraging Boeing to build a jet to replace its discontinued 757, but stress the priority of all planemakers must be to deliver on existing orders for bread-and-butter models after a series of delays.
A quick reminder of what the biggest debt bubble currently facing America's population is.
Why is this a problem? Because as the TBAC revealed a few months back, the default risk from the $1 trillions in student loans is several orders of magnitude above the 9% student loans which the Fed has revealed as currently "in default", as one has to add those 12% of loans in deferment and 11% in forbearance to the entire risk pool. In short: a third of all student loans are likely to end up unrepaid!
And, the punchline: according to the TBAC's worst case scenario of the future of student debt, this gargantuan load will triple over the next decade, to as much as $3.3 trillion by 2024.
What should we make of the fact that core inflation in the U.S. is just as low as in the Eurozone if measured on the same basis? (Can you say "depression", boys and girls?)
David Rosenberg - former chief economist for Merrill Lynch, and now chief economist for Gluskin Sheff - comments:
I don't know whether to feel good or uneasy about the fact that 90% of the industrialized world economy is now anchored by near-zero or negative short-term rates. At one level, this should be supportive of risk assets; at another level, it is a symbol of how fixed-income investors and central banks see the world — deflation at a time of ultra-low rates is certainly not a confidence builder.
Remember, quantitative easing actually leads to deflation in the long-run.
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