Market Talk – November 4, 2016

As Japan was on holidays Thursday it was today that the Nikkei cash market caught up with yesterdays futures decline. With the market still nervous surrounding the FBI’s investigations ahead of the US elections, coupled with todays release of the Non-Farms Payrolls prices were hit closing down 1.4% on the day way before numbers were released. This move is probably catching the Yen’s rally as we trade mid 102’s. Both Shanghai and HSI saw their move yesterday and so was relatively calm closing almost unchanged at down 0.1%. Oil traded heavy throughout the Asian session also closing below the psychological $45 level. Gold saw the safe-haven bid closing a little over the $1300 level. HSI futures lost more ground late in the US session and were last seen -0.75% influenced heavily by European weakness. Both the Nikkei and China 300 futures were little changed.

This post was published at Armstrong Economics on Nov 4, 2016.

BOMBSHELL – But Only IF You Pay Attention

Go back and read these two articles:
What if… and Where’s The Media?
Now keep a few points in mind this weekend as you swill your beer or other adult beverage, going about your day.
There’s a lot of rumor floating around regarding what’s in those 650,000 new emails. Some of it is well beyond the range of disgusting and into the realm of events that would lead ordinarily-rational people, if the events happened to someone they care about, to personally act in a very violent manner with full knowledge and acceptance that it would lead them to be locked up forever or even face the needle.
The mere existence of this laptop, which is now admitted to be fact, is almost-certainly enough to void any previous immunity deal that anyone got on the premise of having turned over “evidence” or provided “assistance.” That’s because all immunity deals are conditioned on the person who gets them being truthful in all material respects. The very existence of this device and the material on it, some of which was never previously disclosed, by definition has breached that condition.
The FBI and NYPD both know which of the rumors swirling around this laptop’s discovery are true, and which are not — in other words, exactly what there is evidence of on that device and how strong that evidence (bare text, authenticated text bearing a cryptographic signature such as a DKIM key, audio, video, etc) is.

This post was published at Market-Ticker on 2016-11-04.

Demystifying The Chinese Yuan

With one of the world’s largest economies and a growing financial sector, China continues to rise as a global power. And, as The Money Project notes the country’s currency, the Chinese yuan (officially the Renminbi), is also starting to mature.
The most recent evidence of this? The IMF’s decision to include the yuan as a part of its SDR international reserve asset, a basket of major world currencies:

This post was published at Zero Hedge on Nov 4, 2016.

Smart Money Bets Ahead of a ‘Dangerous’ Election

This is a syndicated repost courtesy of Money Morning – We Make Investing Profitable. To view original, click here. Reposted with permission.
We’re nearing the end of what has been the longest presidential campaign in history. And no matter which candidate you’re voting for, the opposition looks like a dangerous choice.
The truth is, as far as the market is concerned, Hillary Clinton and Donald Trump are both dangerous, for different reasons.
Fortunately, no matter who you’re supporting, whether you’re a Republican, or a Democrat, or something in between, there are a few smart bets you can make now – and rake in good profits on the election outcome.

This post was published at Wall Street Examiner by Shah Gilani ‘ November 4, 2016.

Gold Daily and Silver Weekly Charts – Inside that ‘Great Wage Growth Number’ – Election Jitters

“The wealth of another region excites their greed; and if it is weak, their lust for power as well. Nothing from the rising to the setting of the sun is enough for them.
Among all others only they are compelled to attack the poor as well as the rich. Robbery, rape, and slaughter they falsely call empire; and where they make a desert, they call it peace.”
“He who makes a beast of himself gets rid of the pain of being a man.”
Samuel Johnson
In our artificial economy real things do not matter so much, but politics and managing the perceptions of the public are of paramount importance.
And so the ‘Goldilocks’ Jobs Report, which is how the business TV channels described that lukewarm piece of dreck, did little to rally the markets except fleetingly intraday.

This post was published at Jesses Crossroads Cafe on 04 NOVEMBER 2016.

Wanna Die?

This is why you care about privacy.
SEATTLE – A King County letter that ended up in the mailboxes of thousands of pet owners is raising concerns over privacy.
The letter told pet owners to license their pets or face a $250 fine.
“It feels weird to me, it feels like they’re kind of snooping around in a place where they shouldn’t be,” said dog owner Chris Lee.
Turns out for the last four years, King County has been using data companies to target specific taxpayers, or in this case pet owners. That means every time customers swipe those rewards cards, they’re gathering data.
Same with your apps on your phone.
Now consider this — that’s a government buying the data and then looking for who might not have a dog license.

This post was published at Market-Ticker on 2016-11-04.

Apple Offers Anti-Trump App Allowing Voters To Trade Votes

At a time rife with speculation that the presidential vote on Tuesday may be rigged or tampered, we find it troubling – not to mention illegal – that Tim Cook has allowed the Apple store to distribute an app called #NeverTrump created by Trimian, whose mission statement is “Red or Blue, we must all unite to defeat Trump this election. Let’s ensure Hillary wins in swing states, and make sure third-party votes count.”
The app allows potential voters to trade votes, boosting Hillary’s support in swing or battleground states, while 3rd party candidates get more (meaningless) support in blue states.
Vote Trading, also known as vote swapping or vote pairing, is the practice of voting for or against another person’s bill, position on a more general issue, or favored candidate in exchange for the other person’s vote for or against a position, proposal, or candidate that one supports. As the App explains:
We match Hillary voters in blue states with third-party voters in swing states to help them trade votes. Hillary gets more swing votes and third-party candidates get their votes counted. Find vote trading matches and get comfortable, before agreeing to the trade Optionally connect with Facebook or LinkedIn to increase confidence in the trade. Group Chat across members helps coordinate, evangelize and match Help others channel their frusration positively. Spread the word and help save America

This post was published at Zero Hedge on Nov 4, 2016.

October NFP: Not In Labor Force Jumps By 425K As Wage Growth YoY Finally Rises To Mid-2009 Levels

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.
It is Jobs Friday once again! The last one before the upcoming coronation election.
The Good News? 161,000 jobs were added in October.

The bad news? It was less than the expected 173,000 and lower than the revised figure for September of 191,000.

This post was published at Wall Street Examiner by Caleb Crawdad ‘ November 4, 2016.

Time For Anti-Trust HANDCUFFS On Mobile Providers

Folks, this is something you are probably ignoring but you damn well better stop that because it’s costing you hundreds of dollars a year — right here, right now — for many consumers, and this problem will only get worse.
A number of years ago the FCC went after mobile providers for refusing to provide unlocking codes to their handsets. See, cell companies locked handsets as a way to stop you from absconding on your bill — which included a “time payment” on the phone itself. While they could put you into collections plenty of people ignored that and it wasn’t worth suing someone over a couple hundred bucks.
That practice was defensible if you owned money on the phone, but not once it was paid off. Therefore the FCC required cell companies to make unlocking codes available if you paid for the handset in full, no matter when that was. This meant you did not lose either choice or the ability to change carriers without turning your expensive phone into a pile of slag — assuming the radio was compatible with your new provider.
The carriers appear to not like this, so they’ve “responded” in ways that clearly subvert the intent of the unlocking ruling.
They’ve started refusing to allow devices they did not sell to use all the services you paid for on your account.

This post was published at Market-Ticker on 2016-11-04.

Average Hourly Earnings of Production and Nonsupervisory Employees Lower Than Under LBJ

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.
We’ve come a long way, baby. Or not.
According to the US Bureau of Labor Statistics, the Average Hourly Earnings of Production and Nonsupervisory Employees grew at 2.4% YoY in October. Sounds impressive, no?
Average Hourly Earnings of Production and Nonsupervisory Employees YoY is lower than even in 1965 under Lyndon B. Johnson (LBJ). That is when LBJ and Congress launched ‘The Great Society’ programs.

This post was published at Wall Street Examiner by Caleb Crawdad ‘ November 4, 2016.

Which Government System Is The Best For People’s Wealth?

We have created a map which shows the per-capita GDP based upon the type of government in a country. The larger the country appears on the map, the higher the GDP per capita.
GDP for Republics
The map above shows the GDP per capita of countries with the republic form of government in red, including the United States. Among countries with this form of government, Singapore has the highest GDP per capita at $85.2k. Singapore is known for being hub of wealth management in the Asian region.

This post was published at Zero Hedge on Nov 4, 2016.

What Mises Would Say About Austria’s New 70-year Bond

Last week, Austria issued a 70-year bond, the longest dated sovereign in the Eurozone. (Italy had issued a 50-year bond on October 4.) Austria’s bond issue was a ‘dual tranche transaction,’ involving around 3 billion euros worth of 7-year debt and 2 billion of 70-year debt. The July 2023 bond yielded -0.191% while the yield on the November 2086 bond was 1.53%. And even at these piddling yields order books exceeded $5.4 billion euros for the 7-year bond and 7.8 billion for the 70-year bond.
In today’s environment, the eagerness to invest in long-term bonds is surprising to say the least. With bond yields being relentlessly suppressed by central banks at artificially low levels and bound to rise, the risk of substantial capital losses for holders of long-term bonds is significant. Furthermore, since the means used to effect this financial repression involves inflationary monetary policy, the risk of consumer price inflation speeding up and eroding the real value of bond yields and principal is also significant. So the question is: Why would anyone with a modicum of foresight buy long-term bonds?
Nearly seven decades ago, Ludwig von Mises explained the seemingly irrational hunger among capitalists for long-term government bonds as based on an illusion. The illusion is that wealth once painstakingly accumulated in risky ventures can be removed from the competitive and uncertain sphere of the dynamic market process and preserved forever intact in a changeless realm of perfect certainty created by an imaginary political sovereign who is eternal, all-powerful, and unchanging.

This post was published at Ludwig von Mises Institute on November 4, 2016.

FANG Stocks Lose Over $100 Billion In A Week

In the last week the so-called FANG stocks (FB, AMZN, NFLX, GOOGL) have stumbled. As earnings and outlooks disappointed, shareholders have awoken to the new normal low growth world and wiped over $100 bilion in market capitalization of the four horsemen of the Fed’s wealth creation bubble.
FANGs are now down 8 days in a row…

This post was published at Zero Hedge on Nov 4, 2016.

Can The Oligarchy Still Steal The Presidential Election? – Paul Craig Roberts

The election was set up to be stolen from Trump. That was the purpose of the polls rigged by overweighting Hillary supporters in the samples. After weeks of hearing poll results that Hillary was in the lead, the public would discount a theft claim. Electronic voting makes elections easy to steal, and I have posted explanations by election fraud experts of how it is done.
Clearly the Oligarchy does not want Donald Trump in the White House as they are unsure that they could control him, and Hillary is their agent.
With the reopening of the FBI investigation of Hillary and related scandals exploding all around her, election theft is not only more risky but also less likely to serve the Oligarchy’s own interests.
Image as well as money is part of Oligarchic power. The image of America takes a big hit if the American people elect a president who is currently under felony investigation.
Moreover, a President Hillary would be under investigation for years. With so much spotlight on her, she would not be able to serve the Oligarchy’s interests. She would be worthless to them, and, indeed, investigations that unearthed various connections between Hillary and oligarchs could damage the oligarchs.

This post was published at Paul Craig Roberts on November 4, 2016.

Weekend Reading: Markets Send A Warning

Submitted by Lance Roberts via,
Over the past few months, I have repeatedly written about being stuck within an ongoing trading range and warned of the dangers of a downside break. From last week:
‘The problem with going nowhere is that it makes managing money much more difficult. With the market having broken the bullish trend line from the February lows, as shown below, along with remaining overbought with a sell signal in place, the risk to the downside outweighs the potential for a further advance currently. With downtrend resistance from the previous highs pushing prices lower, the risk of a break below 2125 is elevated. Being a bit more cautious given the current technical backdrop will likely be prudent.’

This post was published at Zero Hedge on Nov 4, 2016.

Biggest IPO of the Year Sags to New Low

What the heck’s wrong with the IPO market? Hot air keeps hissing out of it.
Shares of parcel-delivery company ZTO Express dropped another 4.9% today on the New York Stock Exchange and closed at a new all-time low of $15.20. The previous all-time low had been obtained the day it went public on October 27: it plunged 15% from its IPO price of $19.50. The IPO had raised $1.4 billion, the largest US IPO of 2016.
It is now down 22% from its IPO price. The company is based in Shanghai and doing all its business in China. Why did it go public on the NYSE? We assume because that’s where the money is.
And because of its toxic dual-class share structure – illegal in China – that give founder Lai Meisong 80% voting power in the company. The shares traded on the NYSE are not actually shares of the Chinese company but shares of a ‘variable-interest entity’ set up in the Cayman Islands, which is contractually entitled to the profit of the Chinese company.

This post was published at Wolf Street on November 4, 2016.