• Tag Archives Australia
  • Global Stocks Rise Amid Unexpected ECB “Trial Balloon”; Dollar Flat Ahead Of Fed Minutes

    European markets continued their risk-on mood in early trading for the third day, rising to the highest in over a week and rallying from the open led by mining stocks as industrial metals spike higher after zinc forwards hit highest level since 2007, lifting copper and nickel. The EUR sold off sharply, boosting local bond and risk prices after the previously discussed Reuters “trial balloon” report that Draghi’s speech at Jackson Hole would not announce the start of the ECB’s taper. The EURUSD has found support at yesterdays session low. Bunds have rallied in tandem before gilts drag core fixed income markets lower after U. K. wages data surprises to the upside. Early EUR/JPY push higher through 130.00 supports USD/JPY to come within range of 111.00.
    In Asia, Japan’s JGB curve was mildly steeper after the BOJ continued to reduce its purchases of 5-to-10-yr JGBs; the move was consistent with the BOJ’s desire to cut back whenever markets stabilize, according to Takenobu Nakashima, strategist at Nomura Securities Co. in Tokyo. The yen is little changed after rising just shy of 111 overnight. The S. Korean Kospi is back from holiday with gains; The PBOC weakened daily yuan fixing; injects a net 180 billion yuan with reverse repos; the Hang Seng index rose 0.9%, while the Shanghai Composite closed -0.2% lower. Dalian iron ore declines one percent. Japan’s Topix index closed little changed. South Korea’s Kospi index rose 0.6 percent, reopening after a holiday. The Hang Seng Index added 0.8 percent in Hong Kong, while the Shanghai Composite Index fell 0.2 percent. Australia’s S&P/ASX 200 Index advanced 0.5 percent. Singapore’s Straits Times Index was Asia’s worst performer on Wednesday, falling as much as 1.1 percent, as banks and interest-rate sensitive stocks dropped.
    The Stoxx Europe 600 Index rose 0.7%, the highest in a week. The MSCI All-Country World Index increased 0.3%. The U. K.’s FTSE 100 Index gained 0.6%. Germany’s DAX Index jumped 0.8% to the highest in more than a week. Futures on the S&P 500 Index climbed 0.2% to the highest in a week. Global markets are finally settling down after a tumultuous few days spurred by heightened tensions between the U. S. and North Korea. Miners and construction companies led the way as every sector of the Stoxx Europe 600 advanced as core bonds across the region declined. Crude gained for the first time in three days after industry data was said to show U. S. inventories tumbled 9.2 million barrels last week.

    This post was published at Zero Hedge on Aug 16, 2017.


  • Is Australian Government – Crossing the Line into a Totalitarian State

    Behind the Curtain, there seems to be no government going completely nuts more so than Australia. They are doubling taxes on all foreigners who own property, which is a violation of international law, and then they made it a crime for a foreign to even buy a house undisclosed. On top of all of this insanity, that they are planning to strip consumers of their legal protections if they pay in cash and fail to get a receipt. If an Australian pays for anything in cash, they suspect he is hiding money.
    This outrageous proposal is clearly exposing the Australian government as a leftist goose-stepping authoritarian regime going complete insane hunting Australians for taxes. They are even following children to school and then check the school as to how they are being paid. This is real Hitler stuff. That is why the Swiss created number accounts because he made it illegal for a German to have any account outside of Germany.

    This post was published at Armstrong Economics on Aug 11, 2017.


  • World Markets Slide Spooked By Latest N.Korea Statement; Dollar, Gold, Oil Jump

    European and Asian market and S&P futures have resumed their slide, as geopolitical tensions between North Korea and the U. S. spiked again overnight after Pyongyang responded to the latest set of warnings by Trump, revealing a plan to fire 4 ballistic missiles at Guam by mid-August. Gold gains for a third day while Brent rose above $53.
    Following de-escalation attempts by Rex Tillerson, and a NYT report that Trump’s “fire and fury” statement had been improvised, markets saw a tentative recovery in risk appetite in overnight U. S. and early Asian trading, but a risk off mood returned again as Asian stocks fell back and London, Frankfurt and Paris dropped 0.5-1.2 percent in Europe, spooked by North Korea’s latest response to Trump, which dismissed as a “load of nonsense” warnings by President Trump that it would face “fire and fury” if it threatened the United States and in which a general outlined a detailed plan on state TV to fire four Hwasong-12 ICBM at Guam by mid-August, sending virtually every Asian market lower. “Sound dialogue is not possible with such a guy bereft of reason and only absolute force can work on him” North Korea said of its diplomacy with Trump.
    Asia took the brunt of tonight’s selloff, with Japan’s Topix index ended less than 0.1 percent lower, while South Korea’s Kospi index slid 0.4 percent, adding to a 1.1 percent drop on Wednesday. The Hang Seng Index in Hong Kong fell 1.1 percent. Australia’s S&P/ASX 200 Index lost 0.1 percent. The MSCI Asia Pacific Index fell 0.5 percent. The won dropped to a four-week low and was trading 0.6 percent down, while the Japanese yen rose 0.2 percent to 109.80 per dollar, the strongest in eight weeks.

    This post was published at Zero Hedge on Aug 10, 2017.


  • Really Bad Ideas, Part 3: Government Debt Isn’t Actually Debt

    The failure of fiat currency and fractional reserve banking to produce a government-managed utopia is generating very few mea culpas, but lots of rationalizations.
    Strangest of all these rationalizations might be the notion that government debt is not really a liability, but an asset of sorts. Where personal and business loans are bad if taken to excess, government borrowing is not just good on any scale, but necessary to a healthy economy. Here’s an excerpt from a particularly assertive version of this argument:
    What if every government paid off its national debt?
    (Medium.com) – IT might make you feel better but tomorrow if the US Federal Government, or Australia or the UK repaid the entirety of its national debt, it would make not one dollar’s difference to your bank account. In fact the economy would tank.
    ‘If America repaid all its national debt tomorrow, we very likely would crash into the mother of all great depressions long before the debt is ‘paid off”, says economist, Professor Randall Wray.

    This post was published at DollarCollapse on August 9, 2017.


  • China’s Minsky Moment Is Imminent

    Crescat Capital’s Q2 letter to investors shouold be retitled “everything you wanted to know about the looming bursting of the world’s biggest credit bubble… but were afraid to ask…” Don’t say we didn’t warn you…
    History has proven that credit bubbles always burst. China by far is the biggest credit bubble in the world today. We layout the proof herein. There are many indicators signaling that the bursting of the China credit bubble is imminent, which we also enumerate. The bursting of the China credit bubble poses tremendous risk of global contagion because it coincides with record valuations for equities, real estate, and risky credit around the world.
    The Bank for International Settlements (BIS) has identified an important warning signal to identify credit bubbles that are poised to trigger a banking crisis across different countries: Unsustainable credit growth relative to gross domestic product (GDP) in the household and (non-financial) corporate sector. Three large (G-20) countries are flashing warning signals today for impending banking crises based on such imbalances: China, Canada, and Australia.

    This post was published at Zero Hedge on Aug 6, 2017.


  • Vicente Fox Drops F-Bomb Live On CNN; Says Trump Just “Trying To Save Face” With Voters On Border Wall

    Last night the Washington Post dumped it’s latest ‘bombshell’ White House leaks in the form of full transcripts of Trump’s calls with Mexican President Enrique Pena Nieto and Australian Prime Minister Malcolm Turnbull from back in January…which, in Trump years, feels like it was about 20 years ago (we covered it here: Trump Phone Call Transcripts Leaked: “New Hampshire Is A Drug Infested Den”).
    Among other things, the full transcripts revealed Trump describing the border wall as a politically important issue but otherwise the “least important thing that we are talking about,” an admission that will come as a surprise to a lot of folks who voted for him. Meanwhile, he also attempted to hedge his insistence that Mexico pay for border wall by proposing a “formula” that would allow the two countries to split the costs, a compromise, and likely the goal of his grandstanding all along, that would seemingly allow both candidates to declare victory politically.
    Here are some of the relevant exchanges from the January call:
    Trump: “Believe it or not, this is the least important thing that we are talking about, but politically this might be the most important. But in terms of dollars – or pesos – it is the least important thing.”
    “On the wall, you and I both have a political problem. My people stand up and say, ‘Mexico will pay for the wall,’ and your people probably say something in a similar but slightly different language. But the fact is we are both in a little bit of a political bind because I have to have Mexico pay for the wall. I have to. I have been talking about it for a two-year period.”

    This post was published at Zero Hedge on Aug 4, 2017.


  • We Can’t Do Anything About…..

    …. (stupendously high medical prices | ridiculous college costs | cops shooting unarmed Australian women | etc)
    Really?
    We can’t do anything peaceful and lawful about it? Oh, I fully understand why these outrageous practices exist. You see, the hospital administrator, doctor and pharma companies have no fear when they refuse to quote you a price or bill you at 10x what an insured person who has consumed their deductible would pay through their insurance, the college dean and provost have no fear when they cause your 18 year old son to rack up $50,000 a year in student loans and the cop has no fear when he shoots an unarmed Australian woman through the window of his cop car — and across the body of his partner.
    Everyone seems to think that the concept of “fear” in this regard means doing something illegal and for which they’d immediately go to prison, which is why they’re not (obviously) interested. Oh really?
    I would like to put a different postulate forward: You really don’t give a ****.
    Seriously, you don’t.
    In fact you approve of what they’re doing each and every day.
    You don’t care that your 17 year old son is about to get bent over the table by a university in regard to college cost. You in fact endorse your kid being forced to pay half the kid’s tuition sitting next to him in Calc class simply because you have more money than his parents do. In fact you have already gone so far as to conspire with that administrator in screwing your own son by filling out a FAFSA form!

    This post was published at Market-Ticker on 2017-08-05.


  • Here’s The Most Alarming Sign Yet That Manhattan Real Estate Is Heading For A Crash

    The Chinese government’s latest crackdown on capital outflows and corporate leverage is intensifying, and that’s bad news for Manhattan’s property market.
    According to a report by Morgan Stanley cited by Bloomberg, new restrictions being imposed on the most acquisitive Chinese companies will likely lead to an 84% drop in Chinese overseas property investment this year, and a further 18 percent drop in 2018.
    The markets most vulnerable to this slowdown, according to MS, are the US, UK, Hong Kong and Australia, with commercial properties the most vulnerable.
    Manhattan commercial real-estate prices could fall sharply.
    ‘Manhattan is a particular worry, with about 30 percent of transactions in the borough that’s home to Wall Street involving Chinese parties in 2017. In Australia, China is the largest foreign real estate investor, accounting for as much as 25 percent of office property transactions in the last two to three years, according to Morgan Stanley.’ As we reported on Tuesday, the Chinese government is pushing Chinse insurance company Anbang – the company that was in talks with Jared Kushner to buy his company’s stake in 666 Fifth Ave. – to liquidate most of its overseas holdings and repatriate the proceeds of the sale. The company, whose chairman was detained by Chinese authorities in June, responded by saying it has no plans to comply…but we think the Communist Party will find a way to convince the company’s executives that deleveraging is in their best interest.

    This post was published at Zero Hedge on Aug 2, 2017.


  • Aussie Weather Bureau Busted For Tampering With Climate Data

    Australian scientists at the Bureau of Meteorology (BOM) ordered a review of temperature recording instruments after the government agency was caught tampering with temperature logs in several locations.
    ***
    Agency officials admit that the problem with instruments recording low temperatures likely happened in several locations throughout Australia, but they refuse to admit to manipulating temperature readings. The BOM located missing logs in Goulburn and the Snow Mountains, both of which are in New South Wales.
    Meteorologist Lance Pidgeon watched the 13 degrees Fahrenheit Goulburn recording from July 2 disappear from the bureau’s website. The temperature readings fluctuated briefly and then disappeared from the government’s website.
    ‘The temperature dropped to minus 10 (13 degrees Fahrenheit), stayed there for some time and then it changed to minus 10.4 (14 degrees Fahrenheit) and then it disappeared,’ Pidgeon said, adding that he notified scientist Jennifer Marohasy about the problem, who then brought the readings to the attention of the bureau.

    This post was published at Zero Hedge on Aug 1, 2017.


  • RBA Preview: Beware Of Doves, Leaks And Stop Hunts

    In addition to the Chinese Caixin Manufacturing PMI due out shortly, which will either confirm or deny Sunday’s modest decline in the official Mfg PMI, the Reserve Bank of Australia’s (RBA) decision (due at 2:30pm Sydney time) headlines the region’s risk events this week.
    All of those surveyed expect the RBA to stand pat, which would leave its cash rate sitting at 1.50%. The minutes from the July meeting reaffirmed labor and housing markets as particular areas of interest, with both leaving many questions unanswered. The most interesting note to take from the minutes was the discussion surrounding the neutral interest rate, which some market participants deemed as hawkish, and which sent the AUD surging. However, in his most recent address last week, RBA Governor Lowe turned unexpectedly dovish and rejected this view, with Westpac suggesting that he reinforced the Bank’s ‘firmly on hold’ stance. Lowe also tried to talk down the currency, stating that it “would be better if the AUD was a bit lower”.
    This was underscores by last week’s sub-consensus headline 2Q CPI print (0.2% QoQ vs. 0.4% expected) which supports the RBA’s view that domestic inflationary pressures are lacklustre, but officials may take some comfort in the slightly firmer core readings, according to analysts at ING.

    This post was published at Zero Hedge on Jul 31, 2017.


  • Demand for Physical Gold Up, Supply Down in First Half of 2017

    It’s easy to get caught up in what the Fed will do next, or the latest political brouhaha in Washington D. C. And of course, this stuff matters. But when it comes to gold, you should never lose sight of fundamentals.
    Nothing is more fundamental than supply and demand. Based on the GFMS Gold Survey 2017 H1 Update Outlook, the fundamentals for gold are trending in a positive direction. Demand is pushing upward, while supply is falling.
    Demand for physical gold rose to 1,895 tons in the first half of 2017, a 17% increase over the same period last year.
    Comparing the first and second quarter of this year also reveals an upward trend. Demand climbed in Q2 2017 to 957 tons. That was up from 938 tons in Q1, a 2% increase.
    Meanwhile, total supply dropped 5% in the first half of the year. Mine output was stagnant, falling by 0.2%. Production dropped precipitously in China and Australia, the world’s number one and number two producers. The amount of scrap gold also fell, helping to drive the decline in supply.
    In many ways, the demand increase signals a return to normalcy after a tumultuous 2016.
    After the rollercoaster ride of events for the gold market in 2016, from a jewelers’ strike to Brexit to Trump to demonetization, 2017 has avoided similar dramatic events in the first half, at least from a gold perspective with far right candidates seeing little success in a range of European countries. Indeed the first half of this year has arguably been more of a reversion to normality across much of the gold market, with neither the highs (of ETF demand) or lows (of truly pitiful Asian demand) that were recorded in the first half of 2016 being repeated.’

    This post was published at Schiffgold on JULY 27, 2017.


  • Scientists Warn That The Countdown To The Extinction of The Human Race Is Accelerating

    Humanity is steamrolling toward a date with extinction, and yet most people have absolutely no idea that this is happening. Most of us like to think that we are part of the smartest, tallest and fastest generation in human history, but science has actually shown that the exact opposite is true. Compared to our ancient ancestors, we areshorter, slower and we have been losing mental capacity for thousands of years. And just this week, a groundbreaking study that discovered that large numbers of human males in the western world may soon be incapable of reproducing made headlines all over the planet…
    Humans could become extinct if sperm counts in men from North America, Europe and Australia continue to fall at current rates, a doctor has warned.
    Researchers assessing the results of nearly 200 separate studies say sperm counts among men from these areas seem to have halved in less than 40 years.
    The 185 studies that the researchers took their data from were all conducted between 1973 and 2011. Dr. Hagai Levine was one of the lead scientists involved in the study, and he found that for men in North America, Europe, Australia and New Zealand, sperm concentrations declined by 52.4 percent during the study period, and total sperm count declined by a whopping 59.3 percent.
    If these trends continue, we will soon have tens of millions of young men that are incapable of producing children. The following comes from the Washington Post…

    This post was published at The Economic Collapse Blog on July 25th, 2017.


  • Euro Surges To 2-Year High In “Bipolar” Draghi Reaction; Futures Flat

    The euro’s surge to an almost two-year high put a cap on the global market rally in Friday’s quiet session, with most major exchanges consolidating after a second strong week of gains. The MSCI Asia-Pacific index declined for first time in ten days while the European Stoxx 600 index was fractionally in the green as were US equity futures ahead of earnings reports from General Electric, Honeywell, Schlumberger and others. Oil gained with Brent flirting with $50, zinc rallied along with most base metals. European stocks are little changed, while Asian stocks decline with Tokyo shares falling for first time in three days.
    Also overnight, AUD traders were caught wrongfooted for the second time in one week after the Aussie fell sharply following an unexpectedly dovish speech from RBA Deputy Governor Debelle, who said there’s no significance in the board’s neutral rate discussion, which earlier this week sent the Aussie surging. “No significance should be read into the fact the neutral rate was discussed at this particular meeting,” Debelle said in text of speech. “Most meetings, the board allocates some time to discussing a policy-relevant issue in more detail, and on this occasion it was the neutral rate.” In addition to the drop in AUDUSD, Australian sovereign yields all dropped 5-7 basis points in bull steepening move; three-year yield drops as much as nine basis points to 2.00% – the steepest decline since March on a closing basis. Kiwi rallied to highest since September 2016 on Finance Minister Joyce comments; yen little changed. S&P futures near unchanged. WTI crude holds near $47; Dalian iron ore falls 0.7%.
    But most of the attention was on the EUR in the aftermath of Thursday’s paradoxical Draghi press conference, which led to a “bipolar” market reaction, seen as dovish by rates while hawkish by FX.

    This post was published at Zero Hedge on Jul 21, 2017.


  • RBA Minutes Turn Hawkish On News That the AUD/USD Had Moved Higher

    I have written several articles discussing my long term prospects for the Australian Dollar against the US Dollar over the past 6 months. In February I had written that there was likely a multi-year low in place on the AUD/USD, and then on May 2nd I followed up writing that there was now a longer term trade setup in place on the AUD/USD.
    At the time of the May article the Australian Dollar was trading at 0.7550 against the US Dollar and I had noted that:
    ‘From a trading perspective, this current pattern is providing us with a fairly clean long setup around current levels with stops just under the 0.7159 zone. Targets for this longer term trade setup come in at the 0.8372-0.8593 zone.’
    On May 9th the AUD/USD bottomed at 0.7328 and as of July 19th is trading 8% higher off of that May low.
    The AUD/USD has now strongly broken through several price levels that have now given us the initial signals that the pair is indeed following through on this longer term trade setup that had been laid out back in May.
    I have also recently written several articles discussing how the pundits seem to always find some exogenous news item to explain the price movements in the financial instrument in which they are reporting on. Often times the connection between this exogenous event and the financial instrument is suspect, and other times it’s just down right absurd.

    This post was published at GoldSeek on Thursday, 20 July 2017.


  • CLOSE TO NEW GOLD STANDARD? Australia Exports Record Amount Of Gold To China

    Are the Chinese getting close to announcing a new gold-backed currency? Well, if the record amount of Australian gold exports into China is an indicator, it may be close at hand. While the Chinese have been importing a lot of gold from Australia, it reached a new record high in 2017.
    According to the recently released data by the Australian Government June 2017 Resources and Energy Quarterly, Australia exported more gold to Hong Kong and China during the first quarter of 2017 than any other quarter in history.

    This post was published at SRSrocco Report on JULY 19, 2017.


  • Hedge Fund CIO: “We’ve Realized Roughly 3 Years Of Gains In The First 6 Months Of 2017”

    As part of the local Sunday ritual, here is Eric Peters with his latest Weekend Notes, providing some context on recent, and not so recent market moves.
    Weekend Notes
    ‘US stocks rise roughly 7% per year,’ he said. ‘Same holds true for Australia; basically, for all economies uninterrupted by catastrophic war at home.’
    The 7% roughly equals 5% nominal GDP growth plus an extra 2% which is due to the S&P 500 index periodically kicking out bad companies and replacing them with better ones.
    ‘Sometimes the market runs ahead of this 7% rate of return, which doesn’t mean it’s the wrong price, it simply means it’s premature.’ In a world of fiat money, high prices are never wrong, they’re only early.
    ‘It took fourteen years for the stock market to return to its 1968 highs,’ he continued. ‘And at that point in 1982, with overnight interest rates at 20% and the S&P 500 price-to-earnings multiple at roughly 8, the market still had miles to run.’

    This post was published at Zero Hedge on Jul 16, 2017.


  • They Want to Put Nano-Chips into Currency So they can track every note

    Believe it or not, Australia has a Black Economy Taskforce that hunts down citizens in every possible way. They look at where they send their kids to school and then inquire at the school who pays the bills and how. They are using technology to hack people’s phones of anyone suspected of hiding money to get all their messages and emails as well as where they call overseas. Their own website says:
    The Black Economy Taskforce has been established to develop an innovative, forward-looking whole-of-government policy response to combat the black economy in Australia, recognising that these issues cannot be tackled by traditional tax enforcement measures alone.

    This post was published at Armstrong Economics on Jul 15, 2017.


  • THIS TRAIT SHARED IN COMMON BY INTERNET TROLLS AND POLITICIANS IS WHY WE CAN’T HAVE NICE THINGS

    Sport to some, digital bullying to others – whether you abide online trolling or find the inflammatory, sometimes cruel, practice repulsive – the Internet’s myriad disparate troll armies are apparently here to stay.
    Seeding malcontent, disputation, division, needless provocation, and, often, chaos, trolls merit their characterization by the hordes as the bane of the Internet.
    But, upon examining the psychology of these ruthless keyboard provocateurs, their likely detriment to civil discourse – already evinced in the mimicry of youth – sounds a warning not to be ignored.
    Trolls, researchers found, possess a worrisome psychologic profile, laced with psychopathy and sadism, as well as a dearth in empathy – all of which they employ in online manipulation to sow mayhem, an ultimate reward for their mischief.
    Researchers at Federation University in Australia queried 415 participants, approximately two-thirds of them female, with a median age of 23, to determine their levels of psychopathy, sadism, and empathy – such as gauging trolls’ agreement with the statement, ‘People would enjoy hurting others if they gave it a go.’

    This post was published at The Daily Sheeple on JULY 10, 2017.


  • Global Stocks Rise Amid Strong Economic Data; Yen Drops To 2 Month Low As Oil Resumes Slide

    In a quiet overnight session, S&P 500 futures are fractionally in the green (2,426, +0.2%) with European and Asian stocks as oil drops second day after an initial ramp higher amid speculation that LIbya and Nigeria may be asked to cap their production. Nasdaq 100 Index are again higher, following the biggest daily advance in more than a week, up 0.4% as of 6:20 a.m. in New York.
    With Friday’s jobs data seen as largely favorable, and the lack of wage growth expected to keep the Fed subdued, focus is turning to Janet Yellen’s semi-annual testimony on monetary policy and a meeting of Canada’s central bank on Wednesday for the latest policy signals from the world’s major central banks. Over the past two weeks, markets have reassessed the outlook for tighter monetary policies from major central banks following a string of hawkish remarks. “We’ll see just how much substance there is to these comments on Wednesday, when the Bank of Canada announces its latest decision, with investors now expecting a 25 basis point increase,” said Craig Erlam, senior market analyst at OANDA. A rate rise from Canada’s central would be its first interest rate rise in nearly seven years
    Global macro markets have traded with a cautiously positive tone as weekend’s G-20 meeting ended without market-moving surprises, while continued hawkish sentiment has pushed benchmark yields modestly higher. The yen slipped to fresh 2-month low against the dollar, trading at 114.22, after trade deficit data and BOJ Governor Haruhiko Kuroda reiterated that policy could be adjusted as needed. In Asia, stocks rose in Tokyo and Sydney, with the MSCI Asia Pacific Index rising 0.3% after hitting a five-week low Friday. MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.4 percent while Japan’s Nikkei rose 0.8 percent to a one-week high helped by weakness in the Japanese currency; the Topix Index added 0.5% . Australia’s S&P/ASX 200 Index gained 0.4 percent. Hong Kong’s Hang Seng Index rose 0.7 percent, while shares on the mainland declined 0.2% after the PBOC drained net 30 billion yuan in liquidity after withholding open market operations for the 12th consecutive day even as the yuan strengthens for first time in six days. Dalian iron ore reverses early loss to gain for fourth day.

    This post was published at Zero Hedge on Jul 10, 2017.