econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



>> Click Here for Historical Wall Post Listing <<

What We Read Today 20 September 2014

Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.

  • Platinum Fixing Under the Microscope (Dimitri Speck, Seasonax, The Hedgefund Journal) Over a period of 16 years (December 1997 to April 2014) the price of platinum (Pt) increased from $376 an ounce to $1,440. During that time there was systematic price suppression at the two daily reference price fixings in the London Platinum and Palladium Market. There is now a class action suit for restitution and damages by those who traded physical platinum and palladium during the specified time period. (Palladium (Pd) increased from $203 at the end of December 1997 to $802 at the end of April 2014.)

Speck provides the following chart which includes data for 4,189 trading days. Manipulation is alleged because there has been a greater tendency for price declines before the fixing times. In a market that has risen several fold there would be the expectation that the average for the fixing prices would be no less than the average for each day and most probably higher. The graph below shows that the average price increase for each of the 4,189 trading days was 0.03%. The average decline to the am fixing was 0.02% and to the pm fixing 0.06%. Manipulators could have averaged a gain of 0.09% per day over the 4,189 days by buying at the pm fix and selling at the close. That may seem like a tiny amount, but if a trader can skim 0.09% a day from $1 million daily trades that is more than $200,000 a year into the skimmer's pocket and out of the other non-manipulating traders' pockets. That is a 20% annual gain just from the skim on a trading account, extracted from all the other market participants. With more than $5 billion of platinum produced each year, large traders can make millions a year in net skims.

For more about the class action suit filed for recovery of losses and damages from alleged manipulators, see GEI News.

pt-intraday-ave-1997-2014-speck-2014-aug-31

  • Recent articles about Scotland Independence Vote :

Scotland referendum: Scots reject independence in historic vote (Fox News)

Scots spurn independence in historic vote, devolution battle begins (Reuters)

Scottish leader Alex Salmond quits after 'no' vote in independence referendum (CNN World)

  • Articles about wars elsewhere in the world:

Liberian female rebel Martina Johnson held for war crimes (BBC News)

Obama team: No timetable on Syria strikes (USA Today)

Syrian Kurds warn of mounting crisis as ISIS advances, takes more villages (CNN World)

Dem Rep: 40 American ISIS fighters have already returned to the United States (Fox News)

Turkish hostages held by IS in Iraq released (BBC News)

France Joins US Against Islamic State Over Iraq (abc News)

Buffer Zone Agreed on in Ukrainian Peace Talks (abc News)

Ukraine, Poland and Lithuania form joint military unit (Reuters, Yahoo News)


There are 11 articles discussed today 'behind the wall'.

Do not miss "Other Economics and Business Items of Note", the final section every day.

Please support all that we do at Global Economic Intersection with a subscription to our premium content 'behind the wall'.

There are between 75 and 100 articles reviewed most weeks. That is in addition to the 140-160 articles of free content we provide.

You get a full year for only $25.


  • Alibaba Would Be The 12th Biggest Company In The S&P 500 (Sam Ro, Business Insider) Alibaba (NYSE:BABA), the Chinese internet company, went public yesterday in New York. The offering was priced at $68, first secondary market trade was $92.70 and the stock closed at $93.89. This put the market cap at $231.44 billion. The graph below was drawn when the price of BABA was $92.70. At the end of the day BABA had added enough value that it moved up a notch to a market cap larger than JP Morgan Chase. That means the headline should be changed to Alibaba would be the 11th largest company.

alibaba-sp500

  • Home prices decline in more cities in China (Xinhua, Want China Times) Hat tip to Ian R. Campbell, GEI Discussion Group, LinkedIn. In August 68 of 70 Chinese metro real estate markets saw month-over-month price declines for new homes. In July it was 64. The data for existing homes was similar, declines in 67 markets in August, compared to 65 in July. Although the cooling real estate market continues to broaden into all corners of the country, the size of price declines diminished in 21 of the markets, up from only 8 in July. However, market examples in this article mentioned monthly declines of 1% and 2%, which is a very high rate if annualized.
  • Deeper shade to first-time homebuyers' blues (Michelle Jamrisko and Alexis Leondis, The Seattle Times) One of those interviewed for this article was Susan Wachter who has contributed to GEI. Already beset by stagnant wages, student debt and competition from investors who are snapping up listings, those looking to purchase moderately priced houses must also provide more cash up front. Younger adults, who would normally be making initial forays into real estate, are among those most affected, weakening the foundations of the housing market and limiting its contribution to economic growth.

Click for large image at Advisor Perspectives dshort.com.
stocks-buffett-valuation-2014-sep-19-600x450

  • A test of will (The Economist) When everything is "headed south" it's time for more wind from "the north" (Beijing), aka stimulus.

china-slowdown-the-econ-2014-sep-18

  • U.S. Health System Among Least Efficient Before Obamacare (Anna Edney, Bloomberg) America's health-care system ranked 44th of 51 nations in terms of per person spending, life expectancy and health-care cost as a percentage of the economy. It's an improvement from 46th of 48 last year. The data is from 2012 so it is the next to last benchmark for the U.S. before Obamacare implementation.

Click for large image at Bloomberg.
healthcare-efficiency-based-on-life-expectancy-600x450

  • Wishful thinking and economics (Simon Wren-Lewis, mainly macro) Prof. Wren-Lewis uses the Scotland independence vote to illustrate that the two are often the same thing.

Click for full infographic at The Austrian.
keynesian-vs-austrian

  • Median Household Income by State: A Look at the Latest Data (Doug Short, Advisor Perspectives dshort.com) Doug Short is a regular contributor to GEI. In the 21st century U.S. real median income has declined 8.7%. Yet six states have had gains in real median income greater than the national loss; and 22 states overall have seen gains. Surprisingly, perhaps, 42 states have experienced better change numbers than the national -8.7%. So the losses in the other 8 states are particularly draconian.

household-income-states-winners-losers-21st-century

  • Other Economics and Business Items of Note

DATA SNAP: Canada CPI Climbs 2.1% in August (Nasdaq.com)

Argentina joins the Venezuela School of Economics (The Washington Post)

China President Xi's India Visit: The economics behind setting up two industrial parks in India (The Economic Times)

Italians get faux-Nobels for economics and art (The Local)

Betting Markets, Polls, and the Human Drama: We're Wasting Resources and Throwing Away Information (Library of Economics and Liberty)


Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.






Econintersect Behind the Wall



search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
Why Long-Run Theories of Profit and Accumulation Fall Short
Brexit - Who Wins and Loses
News Blog
Early Headlines: Asia Stocks Up, Dollar And Oil Down, Gold Stable, Trump Tax Plan Today, Trump Reviews National Monuments, UK Deficit Lowest In 10 Years, China Banking Crisis, Canadian Lumber Tariff, And More
Jesus Christ vs. Confucius
2016 The Worst Year So Far For Syria's Children
Macron And Le Pen To Face Off For French Presidency - But She Won't Be Pleased With First Round Result
Best Selling Hard Soda Brands In The U.S.
What We Read Today 25 April 2017
April 2017 Chemical Activity Barometer Suggests Continued Growth Through 2017
Final April 2017 Michigan Consumer Sentiment Slips but Remains Strong
Richmond Fed Manufacturing Survey Again Improves In April 2017.
March 2017 Headline New Home Sales Improve and Above Expectations
Case-Shiller 20 City Home Price Index February 2017 Shows 5.9 % Year-over-Year Growth
Infographic Of The Day: Comparison Of Population Density
Early Headlines: Asia Stocks, Dollar, And Oil All Up, Gold Down, China Stocks Diverge, Bankrupt Retail, Courtiers To Palace Wed., US Starts Trade War With Canada Over Lumber, And More
Investing Blog
How Broken Is The Market?
Investing.com Technical Summary 24 April 2017
Opinion Blog
Trump Just Imposed A New Tax On Lumber
The Euro Is Stronger Than You Think
Precious Metals Blog
A New Age For Gold
Live Markets
25Apr2017 Market Close: Nasdaq Pushes Above 6,000; Dow Broke 21k Before Pulling Back; Dollar And Gold Slide While Oil Advances
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government































 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved