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Business News & Views - Metals, Markets, Shipping, Energy, More

Discussion in 'Coffee Shack (Daily News/Economy)' started by searcher, Aug 25, 2017.



  1. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Fuel shortages, crop losses among concerns as Hurricane Irma batters Florida

    Recovery efforts already taking shape
    Sep 10, 2017 Fleet Owner Staff

    [​IMG]
    More than $1 billion in Florida crops are reportedly at risk from Hurricane Irma.

    Related Media
    [​IMG]
    As Texas begins to recover, Florida braces for Hurricane Irma


    Even as Hurricane Irma was still working its way north through Florida, reports of widespread destruction were beginning to emerge, as were initial recovery plans.

    More than 3 million people were believed to be without power and thousands of stations were without fuel as the monster storm moved through Florida on Sept. 10. Utilities were warning it could take weeks to restore power, and agricultural officials suggested more than $1 billion worth of crops could be lost by the time the storm ends.

    Florida is among the top growers of fresh tomatoes, oranges, green beans, cucumbers, squash, and sugar cane. AIR Worldwide estimates insured losses in the United States will be at least $15 billion from Irma.


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    Nearly the entire state has come to a standstill due to Irma, which could also threaten major distribution centers of Atlanta and Charlotte, N.C. Ports in Florida remained closed and fuel shortages were expected to continue because the state relies on pipelines and tankers.

    Meanwhile, efforts were already underway to prep for after the storm ends. President Trump approved a request from Florida for a disaster declaration ordering federal aid to nine counties, including Miami-Dade and Hillsborough, which includes Tampa.

    Miami-Dade County announced crews planned to begin cleaning work at 5 a.m. on Sept. 11.

    Around the country, trucking fleets were also prepping to join the recovery efforts. For example, Owen Transport Services of Kentucky said it had drivers ready to haul water to a makeshift campsite at Daytona Racetrack. The company expects up to 20 trucks to travel to Florida and Georgia over the course of the coming week.

    http://fleetowner.com/operations/fu...m=email&elq2=f8cde44d58a74216b3b1c16d67964aa4
     
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    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    New Social Security Numbers for All
    TWiT Netcast Network



    Published on Sep 7, 2017
    Jason Howell and Megan Morrone talk to The Register's Iain Thomson about the Equifax data breach. It might be easier to ask who in the United States wasn't involved instead of who was. Equifax revealed names, Social Security Numbers, birth dates, addresses and, in some instances, driver's license numbers of 143 million Americans. Find out if you should give them the last six digits of your social security number to find out if you've been affected.
    Full episode at https://twit.tv/tnt/1848
     
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    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Baltic Dry Index Near 3-Year High

    September 11, 2017 by Reuters

    [​IMG]
    Photo: Shutterstock/Volodymyr Kyrylyuk


    Sept 11 (Reuters) – The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, touched a near three-year high on Monday, supported by higher rates across all vessel segments.

    The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, gained 23 points, or 1.73 percent, at 1,355 points – the highest since Nov. 2014.

    “The market has been solely driven forward by the capesize shipping segment this year. Only recently have we seen panamax and handysize climb to profitable freight rates,” said Peter Sand, Chief Shipping Analyst at industry lobby group BIMCO.

    “But it all originates from various solid Chinese demand, mainly imports of coal and iron ore.”

    Iron ore shipments account for around a third of seaborne volumes on the larger capesizes.

    The capesize index climbed 46 points, or 1.66 percent, to 2,813 points, the strongest level for the index since Nov. 2014.

    “Capsize dry bulkers have maintained momentum through the weekend with assessed earnings touching a new multi-year high,” Clarksons Platou Securities analysts said in a note.

    Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were up $488 to $20,831, a peak since Nov. 2014.

    The panamax index was up 19 points, or 1.38 percent, at 1,394 points.

    Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased $155 to $11,192.

    Among smaller vessels, the supramax index rose 10 points to 898 points, while the handysize index rose 5 points to 509 points.

    (Reporting by Karen Rodrigues in Bengaluru; Editing by Arun Koyyur)

    (c) Copyright Thomson Reuters 2017.

    http://gcaptain.com/baltic-dry-index-near-3-year-high/
     
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    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    DONG Energy to Build World’s Biggest Wind Farm in UK North Sea

    September 11, 2017 by gCaptain


    [​IMG]
    Photo: Dong Energy

    Danish energy company DONG has been awarded a contract to build the world’s largest offshore wind farm in the UK sector of the North Sea.

    With a massive capacity of 1,386MW, the Hornsea Project Two offshore wind farm will be capable of producing enough electricity to power 1.3 million homes in the UK. Once fully operational, it will be the world’s biggest wind farm, even surpassing the 1,200MW giant Hornsea Project One which DONG Energy is currently constructing.

    The project will also set a record for lowest-ever price for offshore wind in the UK, costing as much as 50% less than similar projects just two year ago.

    Hornsea Project Two will be built 89 kilometers from the Yorkshire coast and is to be operated from DONG Energy’s new operations hub in Grimsby, which will be the largest facility of its kind in the UK when built.

    DONG said the project will support up to 2,000 jobs during its construction phase, and up to 130 permanent jobs over its 25-year operational phase.

    “We’re delighted to be awarded a Contract for Difference for Hornsea Project Two, which is another important step towards fulfilling our vision of making offshore wind the most competitive form of electricity generation,” said Samuel Leupold, Executive Vice President and CEO of Wind Power.

    DONG said that at GBP 57,50/MWh, the strike price for the Contract for Difference (CfD) is 50% lower than the previous round of CfD allocations just two years ago, demonstrating the rapid reduction in cost across the industry.

    “We have always promoted size as a key driver for cost. The ideal size of an offshore wind farm is 800-1,500MW, and therefore it is natural that Hornsea Project Two will deliver record-low costs to society. At the same time, the low strike price demonstrates the cost saving potential of developer-built offshore grid connections, which in the UK is included in the project scope,” Leupold said.

    DONG Energy is already constructing Hornsea Project One and has started the consultation process for Hornsea Project Three, underlining the huge potential of this area of the North Sea for offshore wind.

    “This is a breakthrough moment for offshore wind in the UK and a massive step forward for the industry,” said Matthew Wright, Managing Director for DONG Energy UK.

    “Successive governments deserve great credit for providing the certainty for continued investment in offshore wind, enabling it to become the thriving renewable industry it is today. Costs are falling rapidly, long-term and highly-skilled jobs are being created across the North of England and the UK supply chain is going from strength to strength. We’re now really seeing the benefits of this commitment to offshore wind and there is still so much more to come. Indeed, it has the potential to play a key part in the realisation of the UK’s industrial strategy,” added Wright.

    DONG Energy has invested GBP 6 billion in the UK to date and will reach GBP 12 billion in UK investments by 2020. The company fully or partly owns 12 operational offshore wind projects in the UK.

    http://gcaptain.com/dong-energy-to-build-worlds-biggest-wind-farm-in-uk-north-sea/
     
  6. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Offshore Wind Costs Fall Below New Nuclear Plants in U.K.

    September 11, 2017 by Bloomberg

    [​IMG]
    Photo credit: Dong Energy

    By Anna Hirtenstein (Bloomberg) — The cost of generating electricity from offshore wind farms fell sharply in the U.K. to below the price the next nuclear reactors will charge, making the form of clean energy one of the cheapest ways to supply the grid.

    In a government auction that handed out power-purchase contracts worth 176 million pounds ($232 million) a year, all of the bids to build offshore wind farms and other renewable technologies were below the 92.50 pounds per megawatt-hour price awarded to the controversial Hinkley Point atomic plant due to be complete in the next decade.

    Winners included the Danish utility Dong Energy A/S, with an offer of 57.50 pounds per megawatt-hour for power from its Hornsea 2 offshore wind farm, and EDP Renovaveis SA and Engie SA, which will receive the same for their Moray Fifth East project. Environmental and renewable-energy groups said the 50 percent plunge in the cost of power from turbines sited in the sea indicates that clean-energy technologies are quickly rivaling traditional forms of generation without heavy subsidies.

    “This is a breakthrough moment for offshore wind,” Matthew Wright, managing director for Dong in the U.K. said in a statement. “It will also deliver high quality jobs.”

    This was the U.K.’s second contracts-for-difference auction, where would-be developers compete for projects by bidding the price it would be willing to accept for its electricity. The contest was for “less-established technologies” such as offshore wind, tidal and anaerobic digestion.

    Cheaper Power
    The power-purchase agreements are fixed for 15 years with a CfD mechanism. If the wholesale rate is lower than the set price, the government pays the developer the difference. If it’s higher, the company reimburses the state. Wholesale power prices in the U.K. have averaged about 47 pounds per megawatt-hour over the past year.

    The government said the contest indicated it’s succeeding in drawing in investment needed to replace aging power plants with low-pollution forms of generation.

    “We’ve placed clean growth at the heart of the industrial strategy to unlock opportunities across the country, while cutting carbon emissions,” said Richard Harrington, minister for energy and industry. “The offshore wind sector alone will invest 17.5 billion pounds in the U.K. up to 2021 and thousands of new jobs in British businesses will be created by the projects announced today.”

    Other Winners
    Other developments that received contracts included two biomass facilities and six advanced conversion technologies, including waste to energy, according to a statement from the Department of Business, Energy and Industrial Strategy. Innogy SE and Statkraft AS also won accords for their Triton Knoll offshore wind farm, although with a higher bid than Dong’s.

    All of the 11 selected projects, which will total 3 gigawatts of capacity, were cheaper than the price fixed for the controversial nuclear plant at Hinkley Point. The most expensive was 19 percent cheaper and offshore wind is now over a third less.

    As the renewable energy becomes more affordable, the government’s decision on the new nuclear project may come under additional scrutiny. It was approved in September 2015 and developer Electricite de France SA has increased the cost estimate from 18 billion pounds to more than 20 billion pounds.

    Costs Falling
    The offshore wind industry by contrast has seen its costs plunge as the capacity of its turbines doubled since 2007. It’s set to double again by 2020, driving down costs further, according to research by the environmental group Greenpeace.

    “We are witnessing a revolution in U.K. energy,”said Hannah Martin, head of energy at Greenpeace in the U.K., which has spent decades opposing nuclear energy. “The government needs to seize the opportunities of this great deal.”

    Until last year, developers offshore wind developers in Europe were targeting to reduce their costs to 100 euros a megawatt-hour by 2020. This target was broken by Dong Energy in July 2016, while an April auction in Germany yielded three projects that will require zero subsidy once they’re completed in the next few years.

    The U.K. auction didn’t result in projects as cheap as in Germany partly because the government in Berlin pays the cost to connect wind farms to the national electricity grid. Britain requires developers to cover those costs, so the companies contend that their projects need to be paid a higher price to make money.

    “The level of upfront government enablement is higher in some European markets, site selection to some upfront development costs are not shouldered by equity sponsors, leading to a lower cost of capital,” said Rob Marsh, head of renewables at law firm Norton Rose Fulbright LLP. “Water depth is another factor as well.”

    © 2017 Bloomberg L.P

    http://gcaptain.com/offshore-wind-costs-fall-new-nuclear-plants-u-k/
     
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    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    TVR [#395] #395 09-11-2017 END OF DAY REPORT - HACK IS BACK!!!
    ALGO CAPITALIST



    Published on Sep 11, 2017
    Please remember to RATE, SHARE, FAVORITE, COMMENT AND SUBSCRIBE.
     
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    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Revealed: The secret technique McDonald's employees claim to use to ensure that customers get LESS fries
    • Former McDonald's employees claim they are encouraged to under-fill cartons
    • Claim that they are instructed to pinch the package while filling it with fries
    • The food chain has strongly refuted the claims that were shared on Reddit


    Read more: http://www.dailymail.co.uk/femail/food/article-4875790/McDonald-s-employees-claim-cartons-fries.html#ixzz4sT0FJATg
    Follow us: @MailOnline on Twitter | DailyMail on Facebook
     
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    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    World Stocks Hit Fresh Record High As Irma, Korea Rally Continues; Pounds Surges

    [​IMG]
    by Tyler Durden
    Sep 12, 2017 6:52 AM


    World stocks hit new record highs on Tuesday amid a continuation of Monday's risk-on theme which unleashed a dramatic relief rally on easing North Korea tensions and signs that Hurricane Irma caused less damage than feared (which according to Keynesians should be GDP negative). The MSCI All-Country World Index gained 0.2%, hitting the highest on record with a fifth consecutive advance.

    European equities headed for the longest winning streak in five months while S&P 500 futures extended on Monday's record high, pointing to another all time high open. Meanwhile, the dollar struggled to build on a strong start to the week as concerns about lackluster inflation lingered before key U.S. data.

    Europe's Stoxx 600 Index gained for a fifth day, the longest run since April, up 0.6% hitting the highest level in 5 weeks, as the technology sector joined in the rally ahead of Apple iPhone unveiling later on Tuesday. Chip makers STMicroelectronics N.V. and Infineon Technologies AG were among big gainers, while the insurer index gained a further 0.3%, as insured property losses from Hurricane Irma’s are expected to be smaller than initially forecast.


    [​IMG]

    S&P index futures also rose as North Korea stayed silent - for now - in the face of another round of sanctions. As Bloomberg puts it well, "the appetite for riskier assets that took hold on Monday was sustained more by a lack of bad news than any positive catalysts." So far there have been no further provocative developments from North Korea after the UN Security Council approved a watered-down proposal to punish the nation for its latest missile and nuclear tests. Meanwhile, Hurricane Irma damage estimates were revised sharply lower (remember when the worse the hurricane, the better for GDP? Apparently for stocks, no matter what the hurricane outcome, it's all good). With a flat greenback, bonds across Europe followed Treasuries lower.

    “The absence of walking into any North Korea-related headlines, the general feeling that the worst-case scenario from Hurricane Irma was avoided and with the more significant economic data reserved for later in the week too, markets seem to have breathed a collective big sigh of relief,” strategists including Craig Nicol at Deutsche Bank AG wrote in a note to clients.

    In overnight geopolitical developments, Japan's Defense Minister Onodera said Japan cannot rule out possibility of further provocation by North Korea and will stay on alert. Shortly prior, the UN Security Council unanimously voted to increase sanctions against North Korea, albeit substantially watered down from the original version proposed by the US and excluding an oil embargo or asset freezes of the government. The US Ambassador to the UN Haley said the US is willing to act alone to stop North Korea’s nuclear programme and that half-measures have not worked. There were also comments from South Korea which later stated that North Korea is technically ready for a nuclear test.

    British consumer price inflation came in stronger than expected at 2.9 percent, offering more clues as to the Bank of England’s policy decision on Thursday, and sending the pound to the highest level against the USD, as cable rose as high as 1.328. The BOE has been struggling to keep inflation at 2 percent since sterling tumbled in response to Britain voting to leave the European Union in June 2016, pressuring on consumer spending and living standards (more below).

    Asia, too, was green across the board: Japan’s Topix index advanced 0.9 percent at the close in Tokyo. Australia’s S&P/ASX 200 Index added 0.6 percent. South Korea’s Kospi index rose 0.3 percent. The Hang Seng Index in Hong Kong and gauges in China fluctuated. The MSCI Asia Pacific Index climbed 0.4 percent. The Japanese yen fell 0.3 percent to 109.74 per dollar, the weakest in more than a week.

    The dollar failed to maintain momentum after Monday’s 0.6 percent gain, with market focus turning to whether U.S. consumer-price data due Thursday has the potential to improve the greenback’s allure. The Bloomberg Dollar Spot Index swung between gains and losses as investors unwound risk-off positions, while the pound rallied on the back of faster-than-estimated U.K. inflation. Sterling rose to $1.3282, its highest level in a year, as data showed annual core inflation in Britain accelerated to 2.7 percent in August, the most since 2011. Profit-taking in euro-pound longs also helped cable push above the August highs, according to currency traders in Europe and London.

    [​IMG]

    The strong U.K. data spurred an immediate repricing of Bank of England rate-increase odds. Based on MPC-dated overnight index swap rates, chances of a 25 basis point hike by the end of year have risen to 33 percent from 24 percent Monday. A tightening is fully priced in by end of summer next year. Risks are now skewed toward a hawkish shift in the BOE Monetary Policy Committee vote on Thursday, with more than two members now pushing for a rate increase, providing more support for the pound.

    Over in China, the onshore yuan slumps by the most in six months against a trade-weighted currency basket amid a weaker central bank fixing and a dollar surge overnight. The Bloomberg replica of the CFETS RMB Index slumped 0.44%, the biggest drop since March 16, to 94.9385, just two days after reaching this year’s high on Monday. On Tuesday, the PBOC weakened its daily reference rate by 0.43%, the most since Jan. 9 and the first cut in 12 days, to 6.5277 per dollar. The fixing was weaker than the 6.5245 average of estimates from 18 traders and analysts surveyed by Bloomberg, and followed on Friday's aggressive attempt by the PBOC to reignite volatility by invitine shorters into the currency after it cut reserve requirements from 20% to 0%.

    Brent traded near $53.50/bbl; Bloomberg reports that OPEC output fell in August. OPEC’s estimate of its oil production, compiled from four of six external data sets known as secondary sources, fell to 30.004m b/d excluding output from Libya and Nigeria, according to a person familiar with the matter; down from 30.113m b/d in July. At the same time, Saudi Arabia reportedly told OPEC it pumped 9.95m b/d of oil in August, down from 10.01m b/d in July. The data contrast with OPEC’s internal ests, which show Saudi Arabia pumped 10.022m b/d in August vs 10.049m b/d in July, according to information compiled from four of six secondary sources.

    “The OPEC monthly report is coming out later and that should set some kind of direction to the market,” says Tamas Varga, analyst at PVM Oil Associates. “Yesterday we saw the WTI-Brent arbitrage strengthening, it has been so weak that it’s inevitable that at some point people are going to find U.S. crude so cheap that it will reverse”

    Elsewhere, safe-haven assets such as U.S. Treasuries and gold gave back most of recent gains. The 10Y Treasury yield jumped to 2.1515% from 2.1250%, the highest in a week. Germany’s 10-year yield gained three basis points to 0.37 percent, the highest in a week. Britain’s 10-year yield rose three basis points to 1.076 percent, the highest in almost three weeks. Gold dropped to $1,326.31 per ounce, compared to Friday’s one-year peak of $1,357.4.

    Key events on today's calendar include the JOLTS job openings, NFIB small business optimism report, U.S. 10-year auction.

    Bulletin Headline Summary from RanSquawk:
    • GBP rallies, as CPI & RPI beats put focus on the MPC
    • In politics, UK Parliament passed the Brexit Bill and Norway’s ruling centre-right government won re-election
    • Looking ahead, highlights include potential comments from ECB’s Constancio and a US 10yr Auction
    Market Snapshot
    • S&P 500 futures up 0.1% to 2,490.75
    • STOXX Europe 600 up 0.5% to 381.49
    • MSCI Asia up 0.3% to 162.84
    • MSCI Asia ex Japan up 0.4% to 538.95
    • Nikkei up 1.2% to 19,776.62
    • Topix up 0.9% to 1,627.45
    • Hang Seng Index up 0.06% to 27,972.24
    • Shanghai Composite up 0.09% to 3,379.49
    • Sensex up 0.6% to 32,080.00
    • Australia S&P/ASX 200 up 0.6% to 5,746.44
    • Kospi up 0.3% to 2,365.47
    • German 10Y yield rose 2.6 bps to 0.362%
    • Euro up 0.04% to $1.1958
    • Italian 10Y yield rose 0.9 bps to 1.677%
    • Spanish 10Y yield rose 2.7 bps to 1.593%
    • Brent Futures down 0.5% to $53.57/bbl
    • Gold spot down 0.09% to $1,326.28
    • U.S. Dollar Index unchanged at 91.88
    Top Overnight News
    • President Donald Trump plans an aggressive travel schedule, taking him to as many as 13 states over the next seven weeks, to sell the idea of a tax overhaul as the administration tries to avoid repeating the communication failures of its attempt to repeal Obamacare
    • Florida’s ports re-open after Irma, but feeding gas stations could take days and restoring power also is a challenge in getting gas to consumers
    • Investors may pile into Treasuries and gilts at the expense of Japanese and Chinese debt if a proposal by the world’s biggest wealth fund is implemented
    • Hedge funds are less interested in shorting China after being wrong in predicting a sharp devaluation, a credit crisis and an economic hard landing
    • UN Votes New North Korea Sanctions Short of an Oil Embargo
    • Toshiba Board Is Said to Aim for Chip Sale Decision Wednesday
    • Equifax’s Seismic Breach Tests Trump Pledge to Dismantle Rules
    • CBOE Plans to Introduce Options on S&P Select Sector Indexes
    • U.K. Inflation Accelerates More Than Forecast to Reach 2.9%
    • $150 Billion Misfire: How Forecasters Got Irma Damage So Wrong
    • In Dismal Summer, ‘Despicable Me 3’ Producer Delivers $1 Billion
    • SoFi CEO Cagney to Step Down by Year End; Co. Seeks Successor
    • FPL Says Much of SW Florida Electric System Will Need Rebuild
    • Delta Says 1,100 Flights Canceled at Atlanta on Irma Effects
    • U.K. Will Offer Troops to Support EU Operations After Brexit
    • Li Upbeat on China Economy as Lagarde Cites Push to Curb Risk
    Asian markets traded mostly higher on positive momentum from the reduced North Korean concerns, which also followed a strong performance on Wall St where the S&P 500 closed at a fresh record level. ASX 200 (+0.7%) and Nikkei 225 (+1.2%) gained as financials mirrored the outperformance in their counterparts stateside where lower estimates of hurricane damages and rising yields buoyed the sector, while JPY weakness remained the driver for Japanese exporter sentiment. Conversely, Shanghai Comp. (+0.1%) and Hang Seng (Unch.) were less exuberant after the PBoC refrained from liquidity operations again and after the Hong Kong benchmark index met resistance around the 28,000 level. Finally, 10yr JGBs were lower as 10yr yields rose by the most YTD alongside increases in global yields, with demand for bonds also dampened by the positive risk tone and after a 5yr auction where the b/c declined and tail in price widened from prior. PBoC refrained from open market operations again today.
    PBoC set CNY mid-point at 6.5277 vs Prev. 6.4997, biggest fixing drop since January. Chinese Premier Li says China's economy will continue maintain trend seen in H1, adds China will not boost exports through CNY depreciation.

    Top Asian News
    • Hong Kong Finance Chief Warns Again of Property Risk as Fed Acts
    • Star Stock Geely Soars Most in Month on Market Sentiment Boost
    • China’s Banks Are Leading Globalization Charge, McKinsey Says
    • Hedge Funds Used to Love Shorting China. Now, Not So Much
    European equity markets also traded in the green across the board with Stoxx 600 sectors following the theme, as financials lead the way. UK home builders have struggled however, and underperform, likely weighed on after a report in the Times suggested that the chronic housing shortage is being made worse by the reluctance of banks to lend to small housebuilders, the Federation of Master Builders has claimed. Bunds underperform, leading the middle of the curve, as investors unwind safe haven flows. The Bund now trades around 162.40, with the next support to look-out for being 162.22. Gilts do trade slightly better than Bunds, however, the Gilt bears did catch up following the beats in UK CPI and RPI data. Gilts now trade through September lows, with the BoE possibly looking at a hawkish tilt on Thursday.

    Top European News
    • Norway PM Wins Second Term as Insurgency Against Oil Fizzles
    • Swedbank Plans Two-Tiered FICC Research Offering After MiFID II
    • Italian Quarterly Unemployment Rate Falls to Lowest Since 2012
    • U.K. Builders Fall; BofAML Sees Multiple Risks, Full Valuations
    In currencies, morning FX volatility has largely been based on data: the UK beat across the board, with EUR/GBP now hitting one-month lows, as the inflation figures could lead the BoE to be more forceful in realigning market forecasts with their own when it comes to rate hike expectations. The stronger data, supported by some form of Brexit direction clarity, has helped sterling find a bid through the European morning. Elsewhere, only a slight miss from Sweden helped some SEK bulls, with many pricing in a bad report, following Norway’s misses yesterday and inflation also remaining above the Riksbank's target. EUR/SEK fell from 9.5820, to print lows around 9.5440. Political news also caused some early volatility; as the latest Newshub poll showed a lead for the National Party vs. Labour in New Zealand, the details of the poll have the Greens now under the 5% threshold required to enter Parliament without the security of an electoral seat win. The lack of power from the Greens will lead to Labour not being able to form a coalition, leaving the national party with a 61 seat majority.

    In commodities, WTI and Brent saw some bearish pressure, as bulls failed to test yesterday’s high. Fundamentally, US refineries are restarting following the shutdowns caused by Hurricane Harvey, however, with restarts historically dangerous, operators did keep the shutdowns to a minimum. Precious metals continue to highlight metal markets, as the risk tone has picked up this week, the fail to fill Monday’s gap could be an indication of a strong bearish trend in Gold, which trades back within August’s range. OPEC figures show that the cartel's August output has fallen to 30mln bpd, according to sources.

    On today's calendar, there is the NFIB small business confidence reading and July JOLTS job openings. Away from the data, China Premier Li Keqiang will host an economic roundtable in Beijing that will include heads of IMF, the World Bank and WTO.

    US Event Calendar
    • 6am: NFIB Small Business Optimism, 105.30, est. 104.8, prior 105.2
    • 10am: JOLTS Job Openings, est. 6,000, prior 6,163
    DB's Jim Reid concludes the overnight wrap

    Yesterday felt a bit like a no-news-is-good-news-day for markets. Indeed, the absence of walking into any North Korea related headlines was part of the story, while the general feeling that the worst-case scenario from Hurricane Irma was avoided also played a big role. With the more significant economic data reserved for later in the week too, markets seem to have breathed a collective big sigh of relief with the S&P 500 (+1.08%) rallying to another all-time high after rising by the most in a single session since April. The Dow (+1.19%) and Nasdaq (+1.13%) are just off their respective record levels, while prior to this in Europe the Stoxx 600 had closed +1.04% for its best day since mid-August.

    Meanwhile, after flirting with a 1% handle last week, 10y Treasury yields jumped +8.0bps yesterday to close at 2.131% and finish what was the weakest session since late July. The stronger than expected China inflation data probably impacted at the margin too but as we said yesterday it feels like the bigger test for rates will come this Thursday with the August CPI report. Meanwhile bond markets in Europe finished anywhere from +1bp to +6bps higher in yield, with interestingly Italy outperforming although it wasn’t obvious what was driving that. Elsewhere, in further evidence of a classic risk-on session two of the bigger underperforming currencies were the Swiss Franc (-1.27%) and Yen (-1.42%), while Gold also tumbled -1.41%. WTI Oil rose +1.24% as OPEC members voiced support for a possible extension of production cuts.

    Just after the close of the US session last night, the UN Security Council voted unanimously for a watered down version of sanctions on North Korea, which does not include an oil embargo. The resolution passed seeks to cut imports of refined petroleum products to 2 million barrels per annum and ban textile exports, but does not include the more stringent oil embargo, likely reflecting the lack of support from China and Russia. We are yet to have heard a response from North Korea post the decision. One would have to imagine that the outcome helps nearterm sentiment insofar as not antagonizing China, but the reality is that it still doesn’t come closer to solving much.

    This morning in Asia, markets have largely followed the lead from the US and are trading broadly higher as we go to print, with the Nikkei (+1.01%), ASX 200 (+0.87%), Kospi (+0.12%) and Shanghai Comp (+0.07%) firmer. The Hang Seng is currently flat. US equity futures are also little changed while bond markets in Asia are weaker.

    Staying in Asia, yesterday our China Chief Economist Zhiwei Zhang published a report previewing the 19th National Congress meeting from October 18th. Zhiwei notes that this week-long event kicks off a six-month process that continues with the Central Economic Working Conference (CEWC) in December and the National People’s Congress (NPC) in March next year. He notes that the event is more about politics than setting economic policies, as the representatives will elect a group of leaders. Based on the age rule, five of seven incumbent members of the Politburo should retire as they are older than 67. Other important things to look out for include the CEWC setting GDP growth targets, while finally, the NPC will see a reshuffle of cabinet ministers and government posts. Overall, Zhiwei expects no substantial change in policy over the next six months, although the central government may slow fiscal spending a bit and the focus will turn to whether China may push for more deleveraging and structural reforms.

    Moving on. Following on from China’s better than expected inflation report the early focus in Europe yesterday was on the mixed August CPI reports out of Norway and Denmark. Norway disappointed with underlying CPI falling a fair bit more than expected (-0.9% mom vs. -0.4% expected) however Denmark then bettered expectations after coming in at -0.3% mom versus expectations for a bigger -0.5% decline. As a reminder, today we’ve got a bunch more inflation reports including Sweden first thing this morning, followed by the UK and then Portugal.

    Staying in Europe, there was a steady slate of comments from ECB board members yesterday. The early comments came from Benoit Coeure. Initially the headlines appeared fairly negative, warning that persistent gains in the euro may weigh on inflation, however the details of his comments revealed Coeure highlighting that the pass-through impact of the currency appreciation has declined as a result of a stronger economy and therefore any future impact is more limited on inflation. Later on, the ECB’s Ardo Hansson highlighted that “inflation rates have been gradually increasing” while fellow board member Sabine Lautenschlaeger said that “conditions are in place for inflation to pick up and move steadily towards our goal”.

    Elsewhere at the ECB, it was interesting to note the El Mundo report yesterday suggesting that the German government wants Bundesbank President Jens Weidmann to replace ECB President Mario Draghi when he steps down in October 2019. The article also suggested that a representative from Southern Europe as Vice-President would be nominated to keep the balance (Spain’s Economy Minister being highlighted). Weidmann has held relatively extreme and vocal views on ECB policy so it’s hard to know if this would improve his case across the wider Eurozone. Anyhow, this is still reasonably far off for now with a decision not due to be made until June 2019.

    Moving onto the latest on Brexit. Following a vote early this morning, PM May’s repeal bill secured enough votes (326-290) in the House of Commons to pass the first hurdle which would allow the UK government to copy EU law onto the domestic statute book. However, the real challenge will be how many amendments are made over the next eight days as Parliament debate the bill further. One such debate includes allowing ministers to make changes to existing laws, but bypass the normal scrutiny by parliament.

    Before we take a look at today’s calendar, in terms of the remaining data yesterday, in Italy July industrial production was above market at +0.1% mom (vs. -0.4% expected). This, coupled with solid gains in the preceding two months, has led to annual growth of +4.4% yoy (vs. +3.7% expected). In France, the business industry sentiment index was slightly lower than expectations at 104 (vs. 106 expected), but remains consistent with annual GDP growth of c.2% yoy. There was no data released in the US yesterday.

    Looking at the day ahead, in the UK, we have August CPI (+0.5% mom expected), PPI (+0.1% mom expected) and RPI (+0.5% mom expected). Across Europe, France’s 2Q total payrolls and Italy’s 2Q unemployment rate are also due. Over in the US, there is the NFIB small business confidence reading and July JOLTS job openings. Away from the data, China Premier Li Keqiang will host an economic roundtable in Beijing that will include heads of IMF, the World Bank and WTO.

    http://www.zerohedge.com/news/2017-...high-irma-korea-rally-continues-dollar-stalls
     
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    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Frontrunning: September 12

    [​IMG]
    by Tyler Durden
    Sep 12, 2017 7:46 AM

    • Trump Plans Aggressive Road Show to Sell Tax Overhaul (BBG)
    • Trump to weigh more aggressive U.S. strategy on Iran (Reuters)
    • Florida Turns to Recovery as Irma Moves North (WSJ)
    • What to Expect at Apple’s Biggest Event in Years (BBG)
    • A $150 Billion Misfire: How Forecasters Got Irma Damage So Wrong (BBG)
    • North Korea warns U.S. of 'greatest pain', rejects sanctions (Reuters)
    • DowDuPont to Change Breakup Plan (WSJ)
    • U.K. Inflation Jumps More Than Forecast to Match 4-Year High (BBG)
    • States to Trump: Leave Retirement Rule Intact or We’ll Act (WSJ)
    • Why American Workers Pay Twice as Much in Taxes as Wealthy Investors (BBG)
    • Equifax Breach Tests Trump Pledge to Dismantle Rules (BBG)
    • Corruption Battle Roils Ukraine (WSJ)
    • Less spark, slimmer profits for electric carmakers (Reuters)
    • Fintech Firm SoFi Says CEO Mike Cagney Will Step Down (WSJ)
    • Rich People From These Nations Hide the Most Offshore Wealth (BBG)
    • Google Plots to Conquer Self-Driving Cars—by Making Peace With Detroit (WSJ)
    • Ferrari's Entry-Level Portofino Confronts $2.5 Million Mercedes (BBG)
    • How Two Years of Crisis Has Tested Volkswagen’s CEO (WSJ)
    • Move Over, Millennials: ‘Generation Z’ Has Arrived (WSJ)
    • BP files for IPO of U.S. Midwest, Gulf Coast pipeline assets (Reuters)
    • Fixing the Stock Market’s ‘Clogged Toilet’ Starts in Delaware (BBG)

    Overnight Media Digest

    WSJ

    - Social Finance Inc, one of the most highly valued private financial-technology startups in the U.S., said on Monday night that Chairman and Chief Executive Mike Cagney would step down by the end of the year. on.wsj.com/2xWDcGM

    - Teva Pharmaceutical Industries Ltd on Monday appointed Kare Schultz, a nearly 30-year pharma industry veteran, as the company's new chief executive. on.wsj.com/2xXcAFy

    - ComScore Inc said Monday that most of its board members will resign and it would complete a strategic review of the business amid pressure from shareholders over the company’s management and lack of transparency on finances. on.wsj.com/2xWE1iQ

    - The Japanese government is likely to raise more than $10 billion by selling another chunk of Japan Post Holdings Co , which has struggled in its first two years as a public company. on.wsj.com/2xWIuls

    - The United Nations Security Council unanimously adopted new sanctions against North Korea on Monday after U.S. officials eased their demands to convince China and Russia to approve the measure. on.wsj.com/2xWYhRD

    - British Prime Minister Theresa May won a key vote on Brexit legislation early Tuesday. The bill would come into effect on March 29, 2019, the day the UK is scheduled to leave the EU. on.wsj.com/2xWObQH

    - BP PLC's subsidiary BP Midstream Partners LP said it was planning an initial offering of pipeline assets on the New York Stock Exchange of up to $100 million. on.wsj.com/2xXubgF

    FT

    Teva Pharmaceutical Industries said it will sell the rights and business of Paragard birth-control device to The Cooper Companies for $1.1 billion, as the pharmaceuticals giant continues to pursue asset sales to slim down and re-focus its global business.

    A deal to merge Tata Steel Ltd’s European steel operations and Germany’s ThyssenKrupp could be struck this month, after the Indian Group removed a significant obstacle by separating its UK pension scheme.

    Alphabet’s Google Inc said on Monday it had launched an appeal against its record 2.4 billion euros ($2.87 billion) European antitrust fine for abusing its dominance to favour its own shopping services.

    Britain’s Financial Conduct Authority summoned Standard Chartered Plc over allegations of bribery at an Indonesian power plant builder, Maxpower Group Pte, majority-owned by the bank’s private equity arm.


    NYT

    - Leaders of the Senate Finance Committee on Monday demanded answers from Equifax Inc about its major data breach, including pressing for more details about three Equifax executives who sold shares after the breach was discovered. nyti.ms/2w2qQk1

    - Social Finance, an online lender that is one of the more prominent financial technology start-ups, said its co-founder and chief executive Mike Cagney planned to step down by the end of the year. nyti.ms/2w3KpIx

    - The first gene therapy treatment in the United States was approved recently by the Food and Drug Administration, heralding a new era in medicine that is coming faster than most realize — and that perhaps few can afford. The treatment, Kymriah, made by Novartis AG, is spectacularly effective against a rare form of leukemia, bringing remissions when all conventional options have failed. nyti.ms/2ffqRXv

    - Tesla Inc drivers in Florida got an unexpected assist this weekend as they scrambled to evade Hurricane Irma. Tesla confirmed that it had remotely enabled a free software upgrade for vehicles in the path of the storm, motivated by one customer who requested the change while making evacuation plans. The free upgrade will expire on Saturday. nyti.ms/2wWYLcR


    Canada

    THE GLOBE AND MAIL

    ** Canada Mortgage and Housing Corp reported that national starts of new home construction hit a seasonally adjusted annual rate of 223,232 units last month, up slightly from July's 221,974. tgam.ca/2gYgqLk

    ** Home Capital Group Inc's Oaken Financial division has been tantalizing investors with Guaranteed Investment Certificate (GIC) rates that were well-above most other Canadian GIC issuers, especially the large banks, after its investors and depositors lost confidence in the lender earlier this year. tgam.ca/2gXW056

    ** Enbridge Inc has run into a serious setback with its proposed C$7.5 billion ($6.2 billion) Line 3 expansion as Minnesota's Department of Commerce concluded the company has not established a need for the project as required under state rules. tgam.ca/2gYihjr

    NATIONAL POST

    ** Aspiring ultra-low-cost carrier Canada Jetlines Ltd will fly out of Hamilton and Waterloo when it launches next summer and offer customers a base fare below C$100, its chief executive said on Monday. bit.ly/2gYchHp

    ** The federal government is proposing to end what one pharmacist has called the "dirty little secret" of Canadian drug policy, requiring a prescription for codeine-containing drugs that are now freely available over the counter. bit.ly/2gXEvCg

    ** Distribution and sales of marijuana, after it has been legalized, will be carried out via a chain of special-purpose stores operated by the Liquor Control Board of Ontario (LCBO) and staffed by members of the Ontario Public Service Employees Union (OPSEU), thus fulfilling two key objectives of legalization: more money for the LCBO, and more members for OPSEU. bit.ly/2gZ3ipo


    Britain

    The Times

    Vodafone Group Plc is set to spend 2 billion euros ($2.39 billion) building new ultra-fast broadband networks in Germany, as it squares up to rivals including Liberty Global in a battle for control of Europe's biggest telecoms market. bit.ly/2wWmdVN

    Megan Butler, director of supervision at the Financial Conduct Authority, said that the watchdog would monitor closely how banks managed the expected rise in payment protection insurance complaints before the August 2019 deadline. bit.ly/2wVszEM

    The Guardian

    Alphabet Inc's Google is appealing against the record 2.4 billion euros ($2.87 billion) fine imposed by the European Union for its abuse of its dominance of the search engine market in building its shopping comparison service. bit.ly/2wWxeXe

    The United States has significantly diluted a package of proposed sanctions against North Korea, dropping an oil embargo and enforceable naval blockade in the hope of avoiding a Chinese veto at the UN Security Council. bit.ly/2wVq6dv

    The Telegraph

    The United Kingdom's offshore wind sector could power a 17.5 billion pounds ($23.05 billion) investment in the UK economy over the next four years after faster-than-expected cost-cutting slashed subsidies for the technology by half. bit.ly/2wVnah7

    Facebook Inc has been hit with a 1.2 million euros ($1.44 million) fine in Spain after the country's data watchdog found it broke privacy laws. The regulator found Facebook had failed to inform users how their data would be used as it collected the details of millions of people in Spain. bit.ly/2wVLShg

    Sky News

    Hellman & Friedman, a U.S.-based private equity firm and a former investor in Gartmore, the asset manager, has been approached about backing a buyout of Old Mutual Plc's 25 billion pounds fund management arm. bit.ly/2wX3V70

    Goldman Sachs Group Inc refused to comment on reports that it will open a retail banking offering in the United Kingdom. The U.S. investment bank is said to have hired a former director of TSB Bank Plc to lead a team selling personal loans and operating savings accounts from mid-2018. bit.ly/2wV73Qz

    The Independent

    More than 20,000 Ryanair passengers have had their flights on Tuesday cancelled due to a strike by French air-traffic controllers. Many other travellers are said likely to be affected by the action by members of the USAC-CGT union. ind.pn/2wW08ql

    The International Monetary Fund is resisting putting a moratorium on Barbuda's sovereign debt repayments in the wake of the devastation left by Hurricane Irma on the tiny Caribbean island which is said to have lost 90 percent of its structures because of the storm. ind.pn/2wVty8b

    http://www.zerohedge.com/news/2017-09-12/frontrunning-september-12
     
  12. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    DB - Opening Bell: 9.12.17
    http://dealbreaker.com/2017/09/opening-bell-9-12-17/

    Naked Capitalism Links 09/12
    https://www.nakedcapitalism.com/2017/09/links-91217.html

    TBP - 10 Tuesday AM Reads 09/12
    http://ritholtz.com/2017/09/tuesday-am-reads-39/

    SA - Market News Live Feed 09/12
    https://seekingalpha.com/market-news

    CWS - Morning News: September 12, 2017
    http://www.crossingwallstreet.com/archives/2017/09/morning-news-september-12-2017.html

    SA - Wall Street Breakfast: Apple's Biggest Event In Years 09/12
    https://seekingalpha.com/article/4105980-wall-street-breakfast-apples-biggest-event-years

    MtM - Dollar Sports Heavier Tone as Yesterday's Bounce Runs out of Steam 09/12
    http://www.marctomarket.com/#!/2017/09/dollar-sports-heavier-tone-as.html
     
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    Asian Metals Market Update: September-12-2017
    By: Chintan Karnani, Insignia Consultants
    Physical buyers of gold and silver will be looking for signs of a bottom formation. Premiums will rise with every fall. This is just profit taking before the Bank of England meeting on Thursday and the FOMC meet next week. I do not expect surprises in either of the meetings but investors are cautious. Quarter end profit taking is also seen in bullion and currency markets. German elections after the FOMC meeting will also keep everyone on their toes.
     
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    TVR [#396] 09-12-2017 PRE-MARKET PULSESCAN: SUPER-WEB CENTRAL BANK BLOCKCHAIN
    ALGO CAPITALIST



    Published on Sep 12, 2017
    Please remember to RATE, SHARE, FAVORITE, COMMENT AND SUBSCRIBE.
     
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    OW Bunker Investors Sue IPO Banks

    September 12, 2017 by Reuters

    [​IMG]
    Photo: OW Bunker

    COPENHAGEN, Sept 12 (Reuters) – A group of 24 Danish institutional investors in OW Bunker said on Tuesday it would sue Carnegie Investment Bank and Morgan Stanley , accusing both of misleading them about the 2014 listing of the now bankrupt marine fuel oil supplier.

    The investors, including two of Denmark’s largest pension funds, ATP and PFA, say they lost 767 million crowns ($123 million) after buying OW Bunker shares “on the basis of a prospectus which was insufficient in material aspects”.

    Denmark’s OW Bunker was valued at $1 billion when it floated in March 2014, but the company filed for bankruptcy in November that year after suffering hedging losses of almost $300 million, sending shockwaves through the global shipping and oil trading industry.

    Morgan Stanley declined to comment on the lawsuit, while Carnegie defended its handling of initial public offerings, saying it would contest any claims against it.

    It said it did not know the details of the writ. “But as we have stated many times following the bankruptcy of OW Bunker in 2014, we are confident that we have all necessary routines, quality standards and people in place to conduct proper IPOs and we will defend any claims vigorously,” a Carnegie spokesman said in a written response to Reuters.

    The investor group is already suing the bankrupt OW Bunker, and the former board and management.

    It said it had now decided to extend the case, which is pending at the Danish Eastern High Court, due to new information.

    “We believe that the banks knew about OW Bunker’s speculative activities and that the banks contributed to misleading investors. Against this background, we believe that they may be liable to pay damages,” said ATP’s head of legal investments, Tomas Krueger Andersen, in a statement.

    Denmark’s state prosecutor in July charged the former manager of OW Bunker’s Singapore subsidiary with fraud but cleared the Danish management of any criminal wrongdoing.

    Last month, another group of investors said it planned to sue Morgan Stanley and Carnegie in connection with the OW Bunker bankruptcy.

    ($1 = 6.2127 Danish crowns) (Reporting by Stine Jacobsen; Additional reporting by Teis Jensen; Editing by John Stonestreet and Andrew Heavens)

    (c) Copyright Thomson Reuters 2017.

    http://gcaptain.com/ow-bunker-investors-sue-ipo-banks/
     
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    Florida Faces Fuel Shortage in Wake of Hurricane Irma

    September 12, 2017 by Bloomberg

    [​IMG]
    File photo shows the petroleum docks at Broward County’s Port Everglades. Photo: Port Everglades

    By Kevin Orland and David Wethe (Bloomberg) — Hurricane Irma may now be gone, but its fallout will continue to haunt Florida for at least the next few days as the largest U.S. gasoline market after California and Texas thirsts for the fuel.

    The state gets almost all of its gasoline via its ports. While Port Tampa Bay and Port Everglades, which combined handle about 700,000 barrels a day of petroleum, are quickly restarting operations, it will take days for the fuel to make its way to retail stations, with the priority being first responders, utility trucks and work crews clearing roads.

    Florida last week ordered the evacuation of more than 6 million people. The bottom-line message for those who drove north to escape the storm: Stay there a day or two, says Patrick DeHaan, senior petroleum analyst at Boston-based GasBuddy, which monitors fuel markets across the country.

    “Availability is still challenging and going to get worse,” Haan said in a telephone interview Monday. “There’s not enough fuel for emergency responders, let alone people trying to go back to Florida.”

    Florida Governor Rick Scott’s office said the state is working to find routes for delivering fuel to gas stations and first responders. Scott also waived Florida’s motor fuel import tax for five days and rescinded all weight and driver restrictions for highways so supplies could be brought to the state quickly.

    Related: DHS Waives Jones Act Requirements in Wake of Major Hurricanes

    Those measures may help clear the way for more deliveries via tanker trucks than is typical for the state, said James Miller, a spokesman for the Florida Petroleum Marketers & Convenience Store Association. Miller said he couldn’t quantify how much more of the fuel would be made available through those means.

    Ports to Reopen
    While Port Tampa Bay was shut after suffering minor damage during the storm, it was expected to open on Tuesday, said Samara Sodos, a spokeswoman for the facility. The Florida Department of Transportation has cleared roads to the port, and the state’s highway patrol will escort trucks to resupply gas stations.

    Port Everglades sustained “minimal” damage, and is also expected to reopen Tuesday, according to spokeswoman Ellen Kennedy. Three petroleum tankers and two cargo ships were waiting offshore with the U.S. Coast Guard expected to complete its surveys of the harbor in the morning. The port was scheduled to get 10 fuel tankers through Friday.

    Additionally, five of 12 terminals at the port were up and running, with five more are set to be opened by mid-day, Kennedy said in an email. Tanker trucks were filled and positioned at the Everglades port before the storm to enable a quick resumption of supplies out into the community.

    Citgo Petroleum Corp., which operates terminals in Niceville, Port Everglades and Tampa, also was able to restart some of its operations at those sites, April Andrews, a spokeswoman for the company, said by email.

    The Port of Jacksonville may have more difficulty reopening, Miller said.

    Main Obstacle
    The dearth of fuel has become one of the main obstacles to recovery after Irma knocked out power to millions and wrought billions of dollars in damage over the weekend. DeHaan estimates that about 42 percent of Florida’s gas stations had run out of fuel as of Monday morning. Not only did people who fled the storm fill up on their way out, but those who stayed topped up their tanks in case they needed to leave, Miller said.

    The disruption to Florida’s ports and gas stations comes two weeks after Hurricane Harvey led the Texas refineries that supply most of their fuel to shut down, with some of them still working to come back to normal.

    While fuel deliveries may soon be starting up, there may be delays on the other end of their routes as well. About 5.54 million utility customers were without power in the state as of 8:59 a.m. New York time on Tuesday. That included about 21 percent of Florida’s gas stations as of Monday, according to DeHaan, whose group is working with utility companies to help find fuel for their trucks.

    “If you don’t have any power at the pump, all you have is gas sitting in a truck,” Miller said.

    © 2017 Bloomberg L.P

    http://gcaptain.com/florida-faces-fuel-shortage-in-wake-of-hurricane-irma/
     
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    U.S. Gulf Refiners Rumble Back to Life Post-Harvey

    September 12, 2017 by Reuters

    [​IMG]
    Coast Guard aircrews conduct flyovers to assess the ports of Houston, Texas City, Freeport and Galveston, Aug. 31, 2017.

    By Erwin Seba and David Gaffen HOUSTON, Sept 12 (Reuters) – U.S. refineries are restarting after Hurricane Harvey forced them to shut down two weeks ago, raising the risk of fires and explosions that could prolong fuel supply disruption as plants simultaneously reheat units and reactivate catalysts.

    Restarts are one of the most dangerous times for refinery workers, so operators keep shutdowns to a minimum. Plants typically shut only a few units for overhaul in spring and fall, with most refinery units remaining in operation for 4-6 years between full maintenance shutdowns.

    Harvey sparked several unscheduled closures, taking offline refineries capable of processing around 4.4 million barrels per day of crude, about a quarter of U.S. capacity to produce gasoline, diesel and jet fuel.

    Six refineries are currently restarting along the Texas Gulf Coast, according to their owners, some of them after dealing with several feet of floodwater in their facilities. Already, some of the difficulties are appearing, as market sources told Reuters on Monday that Total’s Port Arthur refinery could be closed for weeks after Tropical Storm Harvey caused crude oil to plug a key pipeline.

    “Any time you have water in a refinery you have to do lube checks on every instrument, which is literally thousands of checks,” Gary Simmons, senior vice president of supply and operations at Valero, told a conference last week.

    Three of Valero’s five Gulf refineries were shut by Harvey.

    Motiva’s 603,000 bpd Port Arthur plant in Texas is the largest U.S. refinery and one of the six restarting operations. The plant was down for 10 days, and as much as 6 million barrels of fuel output has already been lost. It aimed to return to 40 percent of capacity this week, according to a company spokeswoman.

    A major concern, according to sources familiar with operations there and at other refiners, is whether the pumps that supply the crude to the refinery will run successfully after being underwater for several days.

    Motiva declined to comment on the pumps or on the restart.

    The refinery was concentrating on restarting units that produce gasoline, kerosene and diesel, according to these sources. Those units were built during Motiva’s $10 billion expansion process finished in 2012.

    They include the large crude unit, which can process up to 325,000 barrels of oil a day. Refinery crude units produce the feedstock needed for other units.

    Other units also built during the expansion include a 105,000 bpd hydrocracker, which produces diesel and naphtha from gasoil, and the 110,000 bpd coker, which makes coker gasoline, petroleum coke, and other materials from sludgy oil that is a byproduct of initial distillation.

    Flooding delayed Motiva workers in accessing facilities to see what needed to be dried, and what may need replacing.

    The recently constructed facilities were built at higher level than original parts of the plant, sources said, so the flooding was less severe there.

    EXPORTS
    The Gulf Coast accounts for most U.S. energy exports. Shipments of diesel, jet fuel and other products from the Gulf to international buyers have increased by 50 percent over the last five years, to an average of 3.1 million barrels a day, according to the U.S. Energy Information Administration.

    Units that help meet that demand are the ones that refiners want to get working quickly.

    “On the startups you’re certainly trying to get the process units in the refineries that produce the highest margins – the units taking low-value feedstocks and turning them into high-value products,” said Eric Dietert, partner at consulting firm ERM in Houston.

    Units that grew cold when shut down and drenched with rain are now being reheated to hundreds of degrees. The strain that puts on the refinery during a restart are enormous and can reveal flaws that have developed in machinery.

    The worst refinery disaster during this century happened during a restart, when a unit at what was then BP Plc’s Texas City refinery exploded, killing 15 people. The March 23, 2005 blast came as BP was finishing a planned, multi-unit overhaul.

    Plant operators were unable to see the unit was overfilling, eventually sending volatile liquid raining out of a 170-foot tall tower.

    The U.S. Chemical Safety Board issued a safety alert to refiners the day before Harvey pummeled Beaumont and Port Arthur, noting the higher level of attention needed as “many automatic systems are run under manual control.”

    Pumps and compressors that move oil through refineries are at ground level, and at some plants have been under water for several days. Market sources said that at Total’s plant, the pipeline in question carries sour crude to the refinery’s two crude distillation units (CDUs).

    It was shut by a power outage in the early morning of Aug. 30. The pipe then was cooled by 20 inches (50 cm) of rain, the sources said.

    “If you have an incident during startup, that can lead to significant damage, particularly with the more complex units, which are the upgrading units,” said Roland Kell, a former refining executive and now an independent consultant.

    Refiners also have to contend with other damaged infrastructure that are disrupting supply chains.

    Colonial Pipeline Co, which sends 3 million barrels of gasoline and other fuels made by Gulf refiners to markets on the East Coast every day, said its tank farm in the Port Arthur area was damaged.

    That will likely limit the ability of refiners to ship fuel, and may encourage refiners coming back online to export more. (Reporting by Erwin Seba and David Gaffen; additional reporting by Jessica Resnick-Ault; Editing by Simon Webb and Dan Grebler)

    (c) Copyright Thomson Reuters 2017.

    http://gcaptain.com/u-s-gulf-refiners-rumble-back-to-life-post-harvey/
     
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    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Gold Seeker Closing Report: Gold and Silver Turn Higher in Late Trade
    By: Chris Mullen, Gold Seeker Report
    Gold dipped $4.90 to $1322.70 in London before it jumped up to $1329.00 at about 8:30AM EST and then chopped back lower in morning New York trade, but it then climbed to a new session high at $1331.80 in afternoon trade and ended with a gain of 0.29%. Silver rose to as high as $17.889 and ended with a gain of 0.62%.
     
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    National Debt Tops $20 Trillion!
    SalivateMetal



    Published on Sep 12, 2017
    Lets discuss the national debt and the difference between good and bad debt. Also, there is talk of GOLD!
     
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    Seadrill Files for Prearranged Chapter 11 Bankruptcy as Part of Comprehensive Restructuring Plan

    September 12, 2017 by Mike Schuler

    [​IMG]
    Photo: Seadrill

    Seadrill has commenced its long-awaited comprehensive restructuring plan which includes a prearranged Chapter 11 bankruptcy as the offshore driller finally gets to restructuring about $8 billion of outsanding debt.

    The restructuring agreement was entered into with more than 97 percent of its secured bank lenders, approximately 40 percent of its bondholders, and a consortium of investors led by its largest shareholder, Hemen Holding, which is indirectly controlled by trusts established by John Fredriksen for the benefit of his immediate family.

    As part of the restructuring agreement, Seadrill filed has for prearranged chapter 11 today in the Southern District of Texas. The bankruptcy, if granted, will allow Seadrill to raise $1.06 billion in new capital – comprised of $860 million of secured notes and $200 million of equity – which will allow the company to continue day-to-day operations as usual.

    The Company’s secured lending banks have agreed to defer maturities of all secured credit facilities, totaling $5.7 billion, by approximately five years with no amortization payments until 2020 and significant covenant relief. Additionally, assuming unsecured creditors support the plan, the Company’s $2.3 billion of unsecured bonds and other unsecured claims will be converted into approximately 15% of the post-restructured equity with participation rights in both the new secured notes and equity, and holders of Seadrill common stock will receive approximately 2% of the post-restructured equity.

    Shares of Seadrill (NYSE: SDRL) were up over 33% in after-hours trading.

    “The restructuring agreement we signed today is a comprehensive plan that raises over $1 billion of new capital, is underpinned by Hemen Holding Ltd., our largest shareholder, and is overwhelmingly supported by our banks and approximately 40 percent of our bondholders,” commented Anton Dibowitz, CEO and President of Seadrill Management. “This is a testament to our position in the sector, having a large, modern fleet, a top-quality customer base and a proven operating track record. With our improved capital structure, we will be in a strong position to capitalise when the market recovers.

    “The continued focus and dedication of all our employees throughout this process has been exceptional. It is due to our people’s commitment to deliver safe, efficient operations day in, day out that we have succeeded in reaching this restructuring agreement,” Dibowitz said.

    Seadrill was once the biggest offshore rig contractor by market value and the crown jewel of Norwegian billionaire John Fredriksen’s business empire, but the company’s shares have plunged 99 percent from a 2013 peak as a result of falling oil and gas prices.

    Seadrill’s full press release regarding the restructuring plan is below:

    Hamilton, Bermuda, September 12, 2017 – Seadrill Limited (“Seadrill” or the “Company”) has entered into a restructuring agreement with more than 97 percent of its secured bank lenders, approximately 40 percent of its bondholders and a consortium of investors led by its largest shareholder, Hemen Holding Ltd.

    The agreement delivers $1.06 billion of new capital comprised of $860 million of secured notes and $200 million of equity. The Company’s secured lending banks have agreed to defer maturities of all secured credit facilities, totaling $5.7 billion, by approximately five years with no amortization payments until 2020 and significant covenant relief. Additionally, assuming unsecured creditors support the plan, the Company’s $2.3 billion of unsecured bonds and other unsecured claims will be converted into approximately 15% of the post-restructured equity with participation rights in both the new secured notes and equity, and holders of Seadrill common stock will receive approximately 2% of the post-restructured equity. The agreed plan comprehensively addresses Seadrill’s liabilities, including funded debt and other obligations. For additional information please refer to the Company’s Form 6K filed along with this announcement.

    The agreed restructuring plan was developed over the course of more than a year of detailed discussions, and the plan will ensure that Seadrill can continue to operate its large, modern fleet of drilling units. By extending and re-profiling the secured bank debt, reducing leverage and delivering a significant amount of new capital, this agreement provides Seadrill with a five-year runway. Post-restructuring, Seadrill will have a strong cash position and good liquidity to take advantage when the market recovers.

    To implement the restructuring agreement, Seadrill has today filed prearranged chapter 11 cases in the Southern District of Texas together with the agreed restructuring plan. As part of the chapter 11 cases, the Company filed “first day” motions that, when granted, will enable day-to-day operations to continue as usual. Specifically, the Company requested authority to pay its key trade creditors and employee wages and benefits without change or interruption. Additionally, the Company expects it will pay all suppliers and vendors in full under normal terms for goods and services provided during the chapter 11 cases. At the point of filing, Seadrill has over $1 billion in cash and does not require debtor-in-possession financing. The restructuring agreement contemplates a balance sheet restructuring that is not intended to affect the Company’s operations.

    As part of the restructuring process, Seadrill has successfully ring-fenced its non-consolidated affiliates from the Company’s restructuring, including Seadrill Partners LLC, SeaMex Ltd., Archer Limited and their respective subsidiaries. These non-consolidated affiliates did not file chapter 11 cases, and we expect their business operations to continue uninterrupted.

    Commenting today, Anton Dibowitz, CEO and President of Seadrill Management Ltd., said:

    “The restructuring agreement we signed today is a comprehensive plan that raises over $1 billion of new capital, is underpinned by Hemen Holding Ltd., our largest shareholder, and is overwhelmingly supported by our banks and approximately 40 percent of our bondholders. This is a testament to our position in the sector, having a large, modern fleet, a top-quality customer base and a proven operating track record. With our improved capital structure, we will be in a strong position to capitalise when the market recovers.

    The continued focus and dedication of all our employees throughout this process has been exceptional. It is due to our people’s commitment to deliver safe, efficient operations day in, day out that we have succeeded in reaching this restructuring agreement.”

    The Company has engaged Kirkland & Ellis LLP as legal counsel, Houlihan Lokey, Inc. as financial advisor, and Alvarez & Marsal as restructuring advisor. Slaughter and May has been engaged as corporate counsel, and Morgan Stanley served as co-financial advisor during the negotiation of the restructuring agreement. Advokatfirmaet Thommessen AS is serving as Norwegian counsel. Conyers Dill & Pearman is serving as Bermuda counsel.

    http://gcaptain.com/seadrill-files-...-as-part-of-comprehensive-restructuring-plan/
     
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    TVR [#397] 09-12-2017 END OF DAY REPORT: SILVER SHADOWS
    ALGO CAPITALIST



    Published on Sep 12, 2017
    Please remember to RATE, SHARE, FAVORITE, COMMENT AND SUBSCRIBE.
     
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    Rob Kirby - Silver The Most Underpriced Asset on the Planet
    Greg Hunter



    Published on Sep 12, 2017
    Forensic macroeconomic analyst Rob Kirby says people should be looking to buy gold and silver for protection because it’s still relatively cheap compared to the exploding value of some crypto currencies. Kirby explains, “When you look at the price differential between silver and gold, you see an ounce of silver selling for around $18, and you see an ounce of gold going for $1,340, and that means you would need to sell 75 ounces of silver to buy one ounce of gold. The ratio in nature suggests you should be able to sell eight ounces of silver to buy one ounce of gold. This tells me one of those two prices is very wrong. Either silver is too cheap or gold is too expensive. I don’t think gold is too expensive because I think it’s undervalued too. That leads me to believe that silver is insanely priced and probably the most underpriced asset on the planet. . . . I think silver will be going up in price much more than gold, even though gold is going to go up in price dramatically.”

    Join Greg Hunter as he goes One-on-One with Rob Kirby, founder of KirbyAnalytics.com.

    Donations: https://usawatchdog.com/donations/

    All links can be found on USAWatchdog.com: https://usawatchdog.com/dark-dollars-...

    Stay connected with USAWatchdog.com: https://usawatchdog.com/join/
     
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    World Stocks Pull Back Amid Rising Concerns Of A Market Correction

    [​IMG]
    by Tyler Durden
    Sep 13, 2017 6:51 AM


    For the first day in three S&P futures have pulled back modestly from record levels as some investors cautioned that gains had gone too far, too fast, European shares are mixed while Asian equities extended their longest rising streak in almost two months as continued gains in Japan and India offset the losses in Hong Kong. The dollar ended a two-day advance as TSY yields dropped in what has become a close correlation trade (see below) while oil and gold rose, perhaps in response to the ongoing plunge in bitcoin.

    [​IMG]

    Following yesterday's main, and largely disappointing events - the unveiling of the new iPhone(s) - European shares have faltered as a global equity rally showed signs of flagging, with Apple suppliers struggling after the new iPhone release disappointed with a later than expected shipping date. Chipmakers supplying to Apple were among the worst performers, with AMS down 3.9 percent, while Dialog Semiconductor slipped 1.7 percent and STMicro fell 1.1 percent.


    Traders said their shares were under pressure due to Apple’s new $999 iPhone X shipping later than expected, on November 3. The price tag could also dent demand for the device in markets such as China. “With the iPhone coming in around $1,000 it will be interesting to see how healthy demand is,” said Mike Bell, global market strategist at JP Morgan Asset Management. “If it’s relatively healthy I think it shows that there is still quite a lot of pricing power for U.S. companies and that consumers have confidence.”

    Bloomberg writes this morning that record stock prices are provoking concern in some corners of the market, with the number of investors seeking protection from a possible plunge jumping. Leon Cooperman, the billionaire founder of hedge fund Omega Advisors, says a correction could start “very soon.” The imminent reduction of bond purchases by central banks in coming months will put pressure on riskier assets including high-yield bonds and equities, according to Citigroup Inc. According to the latest BofA FMS report, the last month saw the largest jump in market participants "taking out protection" in 14 months.

    [​IMG]

    “Central banks will tread carefully and the direct impact of global tapering on the real economy will likely be modest,” Citigroup economists led by Ebrahim Rahbari wrote in a report. “But there is a material risk in our view that major asset price corrections could be triggered by this global tapering,” with U.S. high-yield corporate debt, euro-region periphery sovereign bonds, euro-area corporate bonds, global equities and emerging-market assets most at risk, they wrote.

    Furthermore, geopolitical concerns also remain after North Korea said it will accelerate its plans to acquire a nuclear weapon that can strike the U.S. homeland in its first response to fresh United Nations sanctions. Earlier, Treasury Secretary Steven Mnuchin warned the U.S. may impose additional sanctions on China -- potentially cutting off access to the American financial system -- if it doesn’t follow through on the new UN restrictions

    With all that, Europe's Stoxx 600 index headed for the first drop in six days after U.S. benchmarks and the MSCI All-Country World Index closed at all-time highs a day earlier. Miners led the decline as the price of industrial metals including copper and nickel retreated.

    The MSCI Asia Pacific Index advanced 0.1% with basic materials and consumer discretionary shares rising the most among industry groups. Hong Kong’s Hang Seng Index fell 0.3 percent, while the Shanghai Composite Index fluctuated before adding 0.1 percent. The Topix index rose 0.6 percent at the close in Tokyo. Australia’s S&P/ASX 200 Index was little changed and the Kospi index in Seoul finished the session 0.2 percent lower. Among Apple suppliers, Hon Hai Precision Industry Co. and Pegatron fell, weighing on the Taiex index, which was down 0.7 percent. AAC Technologies Holdings Inc. in Hong Kong also declined. Apple slid along with some of its biggest suppliers on Tuesday. Japan’s Topix climbed for a third day as investors focused on the local currency’s decline. India’s benchmark S&P BSE Sensex rose to a five-week high, led by the country’s most-valued company Reliance Industries Ltd. Hong Kong’s Hang Seng Index declined after nearing the key resistance level of 28,000. “Positive overnight leads support Asian markets to seek continued upside in the day, though we may witness more caution within the region,” Jingyi Pan, a market strategist at IG Asia Pte Ltd, wrote in an note

    In FX, the overnight session was dominated by a sharp reversal in the pound, with U.K. wages coming in weaker than expected underscored the dilemma facing Bank of England policy makers meeting on Thursday to review interest rates. Meanwhile the theme of inflation uptrend is intact across Europe, with CPI prints in Germany and Spain matching estimates; dollar bulls turn cautious, take some money off the table as market attention turns to U.S. CPI data on Thursday, while Canadian dollar advances as WTI crude rises for a third day; Treasuries and core euro-area bonds trade steady, with brief pressure on bund futures heading into auction supply window.

    In rates, the yield on 10-year Treasuries fell one basis point to 2.16 percent. Germany’s 10-year yield decreased one basis point to 0.39 percent. Britain’s 10-year yield dipped two basis points to 1.087 percent.

    West Texas Intermediate crude extended an advance after the International Energy Agency said global oil demand will climb this year by the most since 2015. Gold climbed 0.1 percent to $1,332.60 an ounce. Copper declined 1.6 percent to $2.99 a pound, the lowest in more than three weeks. The Bloomberg Commodity Index fell less than 0.05 percent to 84.79.

    Economic data include MBA mortgage applications, PPI and oil inventories. Cracker Barrel and United Natural are reporting earnings

    Market Snapshot
    • S&P 500 futures down 0.1% to 2,493.00
    • STOXX Europe 600 down 0.3% to 380.43
    • MSCI Asia up 0.2% to 163.07
    • MSCI Asia ex Japan down 0.08% to 539.04
    • Nikkei up 0.5% to 19,865.82
    • Topix up 0.6% to 1,637.33
    • Hang Seng Index down 0.3% to 27,894.08
    • Shanghai Composite up 0.1% to 3,384.15
    • Sensex up 0.5% to 32,328.75
    • Australia S&P/ASX 200 down 0.04% to 5,744.26
    • Kospi down 0.2% to 2,360.18
    • German 10Y yield fell 1.3 bps to 0.388%
    • Euro up 0.2% to $1.1986
    • Italian 10Y yield rose 5.6 bps to 1.733%
    • Spanish 10Y yield fell 0.9 bps to 1.593%
    • Brent futures up 0.5% to $54.56/bbl
    • Gold spot up 0.1% to $1,333.08
    • U.S. Dollar Index little changed at 91.84
    Top Overnight News
    • Secretary of State Rex Tillerson is consulting U.S. allies in Europe as he seeks a way to toughen restrictions on Iran’s nuclear program a month before President Trump faces a deadline to decide whether to walk away from what he’s called “the worst deal ever”
    • Germany’s August harmonized CPI remained unchanged at 1.8% in the final
      print, in line with estimates; Spain August CPI final reading matches
      forecast
    • In its first official response to new United Nations sanctions, North Korea said it will accelerate its plans to acquire a nuclear weapon that can strike the U.S. homeland
    • North Korea’s latest nuclear test may have been more than twice as powerful as first thought, according to an analysis by 38 North
    • Merkel’s bloc gets 37% support, the lowest for 4 months, in Forsa poll
    • Tuesday’s protests across France won’t deter the government from pushing through its plan to loosen the country’s labor law, Prime Minister Edouard Philippe said
    • U.K. Prime Minister Theresa May is in a double bind as she tries to navigate the politics of Brexit while keeping businesses on side: even when she thinks she’s giving companies what they want, they say she’s made it worse
    • Seadrill Ltd., the offshore driller controlled by billionaire John Fredriksen, filed for bankruptcy protection after working out a deal with almost all its senior lenders to inject $1 billion of new money into the company
    • Nordstrom family is said to be close to selecting private equity firm Leonard Green & Partners to help fund a buyout of the company, CNBC says
    • OPEC and its allies are discussing extending by more than three months the oil production cuts that expire in March 2018, potentially prolonging them well into the second half of next year in an effort to boost prices
    • North Korea rejected the latest round of United Nations sanctions on the isolated state, and vowed to accelerate its plans to acquire a nuclear weapon that can strike the U.S. homeland
    • Vikram Pandit, who ran Citigroup Inc. during the financial crisis, said developments in technology could see some 30 percent of banking jobs disappearing in the next five years
    • Denmark faces negative rates until 2020, central bank study says
    • Toshiba Signs Memo With Bain, Struggles to Sell Chip Unit
    • Bain Is Said to Gather $9.4 Billion for New Fund, Topping Target
    • UBS’s Orcel Sees Rocky 2018 For Banks’ Profit as MiFID Kicks In
    • Oil Trades Near $48 as IEA Sees Fastest Demand Growth in 2 Years
    • Bayer Sells $1.4 Billion of Covestro on Path to Separation
    • Trump Premium Gone From U.S. Banks Brings Opportunities: Goldman
    • Pandit Sees 30% of Banking Jobs Disappearing in Next Five Years
    • Deutsche Bank Said to Pledge Cap on U.S. Use of German Deposits
    Asia equity markets traded mixed as the momentum from Wall St. was counterbalanced by weakness in Apple suppliers following the tech giant’s product event. ASX 200 (+0.1%) and Nikkei 225 (+0.5%) gained at the open after a trifecta of record closes for the S&P 500, DJIA and Nasdaq, with strength in commodity names and financials leading the upside in Australia. Shanghai Comp. (- 0.1%) and Hang Seng (-0.3%) were subdued with underperformance in the Hong Kong benchmark on a continued pull-back from the 28,000 level, while disappointment was also seen across the Apple supply chain after the tech giant’s product announcement. 10yr JGBs were lower as positive risk appetite prevailed in Japan, although downside was stemmed amid the BoJ's presence in the market for just below JPY 1tln of JGBs in 1yr-10yr maturity range. PBOC injected CNY 30bln via 7-day reverse repos, CNY 20bln via 14-day reverse repos and CNY 20bln via 28-day reverse repos. PBoC set CNY mid-point at 6.5382 (Prev. 6.5277)

    Top Asian News
    • Record Flows to Bearish ETF Shows Taiwan Equities Skepticism
    • RBA’s Harper Says Growth Too Slow to Justify Rate Increase
    • Baring Private Equity Is Said to Restart Sale of SAI Assurance
    • Coal Stocks Lead Declines by Indonesian Miners on Price Concerns
    • Topix Index Posts Biggest Three-Day Gain Since May on Tech Rally
    • Offshore Yuan Interbank Costs Surge as Banks Seen Hoarding Cash
    • Banker Fees on Japan Post Deal Are Said to Top Tobacco Sale
    Equity markets trade mixed in Europe, as the FTSE behaves as one of the noticeable underperformers, as both the 100 and 250 struggle amid the pound’s strength yesterday. Sectors see materials underperform, with Glencore and Rio Tinto suffering despite an article from the FT noting market speculation that the two companies merger plans may be revived. The Bund auction will highlight issuance today; the market holds steady as we approach the bidding deadline. However, Portugal and Italy have seen some selling before their respective auctions. Price action has been seen in the UK, as Gilts did see a slight bid ahead of the BoE meeting Thursday, as a result of the marginal miss in the aforementioned UK jobs figures. The UK sold GBP 2.5bln 1.25% in its 2027 Gilt Auction at an average yield 1.161%, b/c 2.25 (Prev. b/c 2.56) and tail 0.2bps Germany sold EUR 2.446bln vs. Exp. EUR 3bln 0.5% 2027 Bund Auction with a b/c 1.6 (Prev. 1.27), average yield 0.39% (Prev. 0.41%) and retention of 18.5% (Prev. 19%)

    Top European News
    • Merkel Is Said to Want Schaeuble to Keep His Job After Election
    • Novo Sees Earlier China Launch for Diabetes Drug Amid Epidemic
    • Denmark Faces Negative Rates Until 2020, Central Bank Study Says
    • Richemont’s European Sales Disappoint as Asia Races Ahead
    • Swatch Falls After Apple Shows LTE-Enabled Watch
    In currencies, a nticipation was on the 9.30 UK earnings figures, with slight misses seen in both the average earnings issues. GBP has been thenoticeable mover for the morning, cable still resides around recent highs, as all eyes now move to the BoE tomorrow. The lack of safe-haven flows has continued, with the unwinding of recent positions being the theme of the week. Despite Twitter source comments overnight reporting satellites detected new activity in alternate North Korea tunnel portal areas, suggesting preparations for future underground nuclear tests; no reversal was seen in the risk tone. USD/JPY has continued to trade above 110.00, with the figure behaving as support overnight, bulls will be looking for a break of 110.60 to go on and test 111.00, however, we could see a retest of yesterday’s levels first. UOB are evident of this, placing a long limit order with an entry at 109.80. CHF pairs will be in focus this week with the SNB on Thursday, the mentioned dampening of geopolitical fears in the market have caused some franc selling this week; as USD/CHF looks to trade though 0.9620 and break the Aug 16th downward trendline resistance. EUR/CHF now looks towards August’s high at 1.1537, the bullish attacks could be supported by tone from the SNB tomorrow. ING FX expect the SNB to fan the flames of divergence between itself and the ECB, allowing the rate spreads to widen, one thing to watch tomorrow is if the SNB drop the adverb ‘significantly’ when referring to the strength of CHF.

    In commodities, OPEC commentary has once again fluttered into the market, resulting in a marginal bullish push in WTI and Brent crude futures. Bullish comments from the Kuwait oil minister stating that producers should comply with output cuts, were met by comments from Venezuela stating that OPEC and Non-OPEC are not close to a deal, yet did state that all options are open for an OPEC-Led supply cut pact.

    DOE raised 2018 crude outlook world oil demand growth to 1.69mln bpd (Prev. 1.61mln bpd). Qatar’s energy minister Al-Sada said that it is appropriate for OPEC to look at measures beyond March and that participating countries have been successful in implementing commitments. (Newswires) Venezuela President Maduro said Opec/Non-Opec output cuts are likely to extend until March next year.

    US Event Calendar
    • 7am: MBA Mortgage Applications, prior 3.3%
    • 8:30am: PPI Final Demand MoM, est. 0.3%, prior -0.1%;
      • PPI Ex Food and Energy MoM, est. 0.2%, prior -0.1%. PPI Ex Food, Energy, Trade YoY, prior 1.9%
      • PPI Ex Food, Energy, Trade MoM, est. 0.1%, prior 0.0%; PPI Ex Food and Energy YoY, est. 2.1%, prior 1.8%
    • 2pm: Monthly Budget Statement, est. $119.0b deficit, prior $107.1b deficit

    DB's Jim Reid concludes the overnight wrap

    I never thought I'd say these words but man it's good to be back at work. The last two weeks have been wonderful and brutal in equal measures. The best bit has been taking nearly 2 year old Maisie to various clubs and classes. Although if I hear the Hokey Cokey again I'll go nuts. As for the twins (James and Eddie) they are doing well. Identification is tricky apart from the fact that Eddie is smaller as unbeknown to us the cord was wrapped around him in the womb and he stopped growing towards the end of the pregnancy. However he is feeding ok now and slowly starting to put on weight. However not as much as James who treats meal times as the bond market treats QE. In fact feeding is brutal, especially at night. With one baby and a hard working, breast feeding wife I'm ashamed to say you can hide a little bit. However with premature twins there is no hiding place. They feed a minimum of 8 times a day and each feed takes around 90 minutes when you include nappy changes, pass the parcelling, the initial feed, the bottle of previously expressed milk as a top up as they are too small and weak to naturally feed for very long, the burping and comforting, then the new round of expressing fresh milk and then finally the cleaning and sterilisation of all the expressing units and bottles for next time. If this goes well at best you can get 90 minutes sleep between feeds.

    However more often than not they don't settle and you need to hold them in your arms until they are so asleep they don't notice that you've put them back in their cot. Sometimes the feeds blend into each other. When in their cot whenever you put them down on their backs they naturally roll on their sides to cuddle each other. It is very sweet and we have many images that will take centre stage at their weddings in years to come. All I can say is being a mum to newborns requires a dedication that is astonishing to watch. More so with twins. Although having been ordered around for the last two weeks I'm looking forward to revenge so my team had better watch out today.

    So what did I miss? Well in my last EMR It was Jackson Hole, (very) elevated North Korean tensions and stress about the debt ceiling that was dominating markets. As it stands the fact that we have freshly agreed UN sanctions probably puts the ball back in the North Korean's court in so far as the risk of unilateral and immediate US action has thus been reduced. Clearly if NK provokes the situation it will become a live issue again but as it stands the US is highly unlikely to make the next move. At the same time the debt ceiling has obviously been pushed out and with the devastating hurricane perhaps causing less havoc than that feared before the weekend, markets continue to take some safe haven hedges off the table. Indeed 10 year USTs and Bunds have now climbed 14bp and 11bp off their intra-day lows from Friday (+4bp and +6bp yesterday).

    The bond market sell off received an extra push yesterday with the UK August inflation print which surprised on the upside. Headline inflation rose 0.6% mom (vs. 0.5% expected), but the bigger surprise was core inflation which increased 0.6% mom, lifting through-year inflation to 2.7% yoy (vs. 2.5% expected) – the highest reading since December 2011. Within the details, the inflation pick up was led by clothing and footwear (+4.6% yoy) and prices for household goods (+4.2% yoy). Elsewhere, the PPI and retail price index were also higher than expected, with PPI at 0.4% mom (vs. 0.1% expected) and RPI at 0.7% mom (vs. 0.5% expected).

    In response, Gilts were sold off with yields up 9bp to 1.132%, Sterling rallying 0.91% versus the Greenback and the chance of a rate hike next February rising from 44% to 61% (per the Bloomberg calculator). To be fair, other sovereign bond yields were also higher, in part driven by the improving risk sentiment. Core and peripheral bond yields increased 3-7bp across the maturities, with Bunds (2Y: +3bp; 10Y: +6bp), French OATs (2Y: +3bp; 10Y: +7bp), Italian BTPs (2Y: +3bp; 10Y: +6bp) and Portuguese (2Y: +3bp; 10Y: +5bp) yields all higher Elsewhere, US bond yields were modestly higher yesterday (2Y: +2bp; 10Y: +4bps), but have rallied 1bp this morning.

    Although the inflation print is not going to change the BOE policy rate tomorrow, it will be interesting to see how much of a hawkish tone we get. For those who may have missed it, DB’s Mark Wall has outlined his expectations for the BOE rate decision tomorrow. The team continues to expect the BoE to remain on hold until uncertainty about the Brexit transition diminishes, as too many aspects of the policy trade-off hinge on the outcome. For more details Continuing on the inflation theme, the Swedish inflation print for August wasn’t as weak as feared at -0.2% mom (vs. -0.3% expected) yesterday and later on today, we will get the US PPI reading where our team expect a 0.2% mom print at the core level, which will likely see annual inflation rise three-tenths to 2.1% yoy. All this before the main event of the week tomorrow namely the US’s August CPI inflation reading. Can we buck a trend that has seen US inflation undershoot expectations for 5 months?

    Now shifting to the very long term, Austria has just sold €3.5bn of 100 year debt in the largest European century bond sale to date. I'm prepared to predict that none of us reading this will be around to see the bond mature, but it’s worth noting that Austria only became an independent republic again 62 years ago (as the second republic). Investor demand was reportedly strong, with bids reaching €11bn. The deal was priced at a yield of 2.112%, which compares favourably to other recent similar maturity bonds, including: Belgium (€0.1bn bond at 2.057%), Ireland (€0.1bn at 2.116%), Mexico (€1.5bn at 4.21%) and Argentina (US$2.75bn at 7.19%).

    Moving on, this morning in Asia, markets are a little mixed but generally slightly higher as we go to print, with the Nikkei (+0.47%), ASX 200 (+0.25%), Kospi (+0.16%) leading the way but with the Hang Seng -0.46% and Chinese bourses only c.0.1% higher. US equity futures are pointing to a slightly softer start. This follows US bourses strengthening to another record high last night with the S&P +0.34% and both the Dow and Nasdaq up c.+0.3%. Within the S&P, only the utilities (-1.75%) and real estate sector were in the red, likely reflecting the higher bond yields, while gains were driven by the Telco and financials space.

    In Europe, the Stoxx 600 rose for the fifth consecutive day (+0.52%), which the longest streak since April. Across the region, the DAX (+0.40%), CAC (+0.62%) rose but the FTSE dipped 0.17% likely due to the strength in Sterling. Indeed turning to currencies, most of the action was with Sterling after being up 0.79% versus the Euro and +0.91% versus the USD and to a one year high which slightly eases the pain of buying the new iPhone X! Elsewhere, the US dollar index was marginally higher while the Euro/USD edged up 0.12%. In commodities, WTI oil was 0.33% higher following reports that OPEC producers may extend production cuts. Precious metals were slightly higher (Gold +0.32%; Silver +0.56%) and industrial metals also rose modestly with Copper (+0.42%), Zinc (+1.16%) and Aluminium (+2.70%).

    Away from the markets and onto the US tax reform. The messaging continues to be a little mixed. On the one hand Treasury Secretary Mnuchin recognized that “there is no question that the stock market has an expectation we are going to get tax reform done….and we are going to create significant growth…which is what this President and administration is focused on”. Further, he has also signalled that new tax rules could be backdated to January. However, in terms of finer details, Mnuchin echoed similar comments by House Speaker Ryan in that the corporate tax rate will be lower, but unlikely to be as low as the 15% originally envisaged by President Trump. Mnuchin said “I don’t know if we’ll be able to achieve that (15%) given budget issues, but we’re going to get this down to a very competitive level”.

    Circling back to Brexit. Negotiators have confirmed that next week’s scheduled Brexit talks have been postponed one week to 25 September, with the aim to give both sides more time to ensure they make progress when they reconvene. The delay adds credence to prior reports that PM Theresa May was preparing to make an “important intervention / speech” on the 21st to kick start the talks. Elsewhere, Chancellor Phillip Hammond noted that the UK is seeking a transitional deal which keeps the “status quo”, where the UK keep its access to the EU single market after it departs. Notably, with the Tory Party conference also due in early October, some form of circuit breaker to the talks is likely required to meet the tight deadlines for an EU summit in October. We shall find out soon.

    Before we take a look at today’s calendar, we wrap up with other data releases from yesterday. In the US, the July JOLTS report showed the number of job vacancies rose to a new high of 6.17m (vs. 6m expected). Elsewhere, the NFIB small business confidence index remained upbeat and was above market at 105.3 (vs. 104.8 expected). Over in France, the 2Q total payrolls was a tad lower at 0.3% qoq (vs. 0.4% expected) and Italy’s 2Q unemployment rate came in at 11.2% (vs. 11.3% expected).

    Looking at the day ahead, the final reading on Germany’s August inflation will be out early in the morning (0.2% mom and 1.8% yoy expected). Then the Eurozone’s July IP and 2Q employment stats are due. Elsewhere, over in the UK, the ILO unemployment rate for July (4.4% expected), claimant count rate and jobless claims change stats are due. In the US, the PPI for August (2.1% yoy for core expected), monthly budget statement and MBA mortgage applications stats are also due. Onto other events, the EU Commission President Jean-Claude Juncker will deliver the state of the union address in France.

    http://www.zerohedge.com/news/2017-...l-back-amid-rising-concerns-market-correction
     
  26. searcher

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    Frontrunning: September 13

    [​IMG]
    by Tyler Durden
    Sep 13, 2017 7:57 AM

    • Apple takes shine off global stocks rally (Reuters)
    • Apple’s New iPhones Gamble on Allure of Premium Pricing (WSJ)
    • North Korea defiant over U.N. sanctions as Trump says tougher steps needed (Reuters)
    • Crews Face Herculean Task Restoring Power in Florida (WSJ)
    • Supreme Court Reinstates Travel Ban’s Refugee Restrictions (WSJ)
    • Seadrill Files for Bankruptcy in Effort to Shrink Debt Burden (BBG)
    • There’s a Speeding Mass of Space Junk Orbiting Earth, Smashing Into Things (WSJ)
    • Act or Wait? Fed Debate Heats Up After Inflation Misses Target (BBG)
    • Congress votes to call on Trump to denounce hate groups (Reuters)
    • Uber’s Legal Chief Salle Yoo Is Resigning (WSJ)
    • Greece to beat budget target, plans more bonds: finance ministry official (Reuters)
    • Inequality Persists Despite U.S. Progress on Incomes and Poverty (BBG)
    • Cities Swimming in Raw Sewage as Hurricanes Overwhelm Systems (BBG)
    • 30% of Bank Jobs May Disappear in Next Five Years: Ex-Citi CEO Pandit (BBG)
    • After the Equifax Hack, LifeLock Sign-ups Jump Tenfold (BBG)
    • Emails Show How the Food Industry Uses ‘Science’ to Push Soda (BBG)
    • IEA Sees Strongest Global Oil-Demand Growth in Two Years (BBG)
    • Saudi Arabia Pushes OPEC on New Tack to Curb Oil Supplies (WSJ)
    • J.C. Penney Missed Out on 3300% Rally as Dumped Asset Skyrockets (BBG)
    • No federal charges for Baltimore cops in Freddie Gray's death (Reuters)
    • China Prepares Sale of $2 Billion in U.S.-Dollar Bonds (WSJ)
    Overnight Media Digest

    WSJ

    - Apple Inc introduced a trio of new iPhones, including the premium iPhone X, which will cost from $999 to $1,149. on.wsj.com/2xXSdbs

    - DowDuPont Inc is altering its plan to splinter into three companies, bringing to an end the threat of a fight with as many as four activist investors. on.wsj.com/2xYrSdt

    - Britain pledged to contribute troops and to work with the European Union to implement foreign sanctions after Brexit. on.wsj.com/2xYKslH

    - U.S. President Donald Trump touted what he described as a plan by Malaysia Airlines Bhd to spend between $10 billion and $20 billion on Boeing Co jets and General Electric Co engines as he opened a White House meeting with Malaysia's prime minister Najib Razak. on.wsj.com/2xYZ4RO

    - Salle Yoo, the top lawyer at Uber Technologies Inc, is departing the company as it faces three federal investigations into its operations and welcomes a new chief executive. on.wsj.com/2h0v2dj

    - Samuel Shen, a Microsoft veteran of 24 years and the former general manager of its cloud and enterprise business in China, took the job as JD.com Inc's president of cloud unit. on.wsj.com/2h0d6iT

    - The Donald Trump administration threatened to impose further sanctions on China if Beijing does not do more to shut down banks and other Chinese firms aiding North Korea. on.wsj.com/2gZPf2N

    - The UK government referred Twenty-First Century Fox Inc's $15.5-billion proposal to consolidate ownership of Sky Plc to British antitrust regulators and said it was likely to broaden that review to include Fox's commitment to the country's broadcasting standards. on.wsj.com/2h25Nr4

    FT

    - Businesses in South Africa have come under pressure to cut ties with KPMG over the auditor's work for companies owned by the Gupta family, as the fallout deepens from a scandal that has caused the collapse of Bell Pottinger's British arm. on.ft.com/2eTrwgk

    - Concerns over standards at Fox News Network has put Rupert Murdoch's proposed 11.7 billion pound ($15.54 billion) takeover of European pay-TV group Sky Plc into doubt after the UK government signalled that it was likely to widen an investigation by regulators into the deal. on.ft.com/2eUDlTF

    - DowDuPont has revised its plan to break up into three separate companies by shifting some operations in the three units, a plan welcomed by its activist investors. on.ft.com/2eTwDx8

    NYT

    - Nancy Gibbs, the first woman to lead Time magazine, is stepping down as editor in chief, ending her four-year run at the publication's helm. nyti.ms/2f3ZYZN

    - Britain's culture minister said on Tuesday she was inclined to ask the country's competition regulator to carry out a detailed review of a bid by Rupert Murdoch's Twenty-First Century Fox to take full control of the British satellite television giant Sky Plc. nyti.ms/2jnRKgg

    - After a year-long investigation, the National Transportation Safety Board concluded that a Tesla Inc system capable of automatically steering and controlling a car had "played a major role" in a fatal crash in Florida. nyti.ms/2h2ypk9

    - DowDuPont Inc, the chemicals giant, said it would shift the focus of its reorganization plan after shareholders opposed a proposal to break up the company. nyti.ms/2eUN10i


    Canada

    THE GLOBE AND MAIL

    ** The Real Estate Council of Ontario (RECO) has laid charges against three realtors for allegedly accepting money from prospective home buyers in exchange for preferential access to preconstruction condo units. tgam.ca/2eUVJMc

    ** Brookfield Infrastructure Partners LP is on the cusp of its second decade, and chief executive officer Sam Pollock is shoring up capital while preparing to welcome a new slate of index investors to mark the occasion. tgam.ca/2eW31zs

    ** Shareholders in Home Capital Group Inc have resoundingly rejected Warren Buffett's bid to boost his stake in the mortgage lender, which must now try to rebuild its fortunes without additional support from its star investor. tgam.ca/2eUQyMm

    ** Canada and Britain have joined forces in their efforts to get Boeing Co to drop its trade complaint against Bombardier Inc, with British Prime Minister Theresa May taking her concerns over the case to U.S. President Donald Trump. tgam.ca/2eUR0Ky

    NATIONAL POST

    ** The Financial Accountability Office of Ontario on Tuesday released a commentary covering the province's proposal to increase the minimum wage to C$15 ($12.4) an hour, finding the added labour costs for businesses will increase workers' incomes, but that those extra payroll costs will force firms to axe some lower-income positions. bit.ly/2eUHrv5

    ** Single-family house prices may be overvalued by as much as 60 percent in Toronto, but cooling measures may take a bigger bite out of markets away from the country's largest metro area, says a new report. bit.ly/2eU8x5i

    ** Canada's two major rail companies, Canadian National Railway Co and Canadian Pacific Railway Ltd, sounded off on Tuesday against a new legislative proposal they say will give U.S. competitors unfair access to the Canadian rail network, and potentially cause more of the country's smaller and remoter rail lines to be abandoned. bit.ly/2eVrgh1


    Britain

    The Times

    - 21st Century Fox Inc's 11.7 billion pounds ($15.54 billion )bid to take over Sky Plc has suffered a setback after the culture secretary, Karen Bradley, said that she was minded to refer the deal to regulators over concerns about broadcasting standards. bit.ly/2xXZ3hc

    - High Court judges will be asked to rule on whether the inquiry team investigating the causes of the Grenfell Tower fire is sufficiently ethnically and socially diverse. bit.ly/2xY2AMr

    The Guardian

    - The Murdochs face the biggest investigation into their record as media owners since the Leveson inquiry after the culture secretary said their proposed 11.7 billion pounds takeover of Sky should face a further six-month inquiry. bit.ly/2fh6OI5

    - Air Berlin has been forced to cancel about 100 flights after an "unusually high number" of pilots called in sick, in what is believed to be a wildcat strike against possible redundancies at the bankrupt airline. bit.ly/2fg5Uf1

    The Telegraph

    - Bell Pottinger Pvt has succumbed to the scandal of a divisive campaign it ran for controversial billionaire family the Guptas in South Africa and filed for administration. bit.ly/2gYwWLA

    - The Competition and Markets Authority has cleared the way for an oil-services mega-merger after agreeing that Amec Foster Wheeler Plc's plan to sell off its North Sea business would be enough to assuage its concerns over the John Wood Group takeover. bit.ly/2h1t8cq

    Sky News

    - The fourth round of Brexit talks has been delayed by a week to Sept. 25. A spokesperson said "both sides" had agreed to push back the date to give negotiators "flexibility" to make progress at the current stage. bit.ly/2xXImm0

    -Matthias Wissmann, head of the German Automotive Association, said contingency plans were being formed to deal with a possible failure of Brexit negotiations in the next 18 months. bit.ly/2xY4EnA

    The Independent

    - Hope Hicks has officially become the third person to hold the title of communications director in United State President Donald Trump's White House. ind.pn/2xXL3nC

    - Theresa May has asked Donald Trump to help settle a trade dispute over Bombardier which could financially devastate one of Northern Ireland's biggest employers and put thousands of jobs at risk, following pressure from the DUP. ind.pn/2xYebLf

    http://www.zerohedge.com/news/2017-09-13/frontrunning-september-13
     
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    Massive Equifax Hack Shows Cyber Risk to Deposits and Investments Today


    -- Published: Wednesday, 13 September 2017

    By Jan Skoyles
    • 44% of US population affected by Equifax hack
    • Hackers took names, birthdays and addresses, Social Security and driver’s license numbers
    • Steve Mnuchin “concerned about the global financial system and keeping it safe,”
    • Hacks is a reminder of the vulnerabilities created in a connected world
    • Cyber security is a major threat to both banking and financial industry
    • Investors should hold physical gold as insurance against hacking and cyber attacks
    [​IMG]

    Last week 143 million people woke up to the news that a data breach at Equifax has left them wide open to financial and identity fraud.

    Readers will have no doubt read about the hacking of credit bureau Equifax. Not only were they slow to deal with the issue but three senior executives (including the CFO) sold almost $2 million worth of stock prior to alerting customers to the security breach.

    This is the third time in sixteen months that Equifax has been hacked. It is the umpteenth time there has been a data breach at a company that holds financial and personal information of its customers. Each time millions of people’s data and livelihoods has been put at risk.

    ‘Have no doubt: This means you will be hacked. This means your SIM card will be spoofed. This means someone will try to get into your email and online accounts. This means someone will try to open a credit card in your name.’ John Biggs, Tech Crunch.

    Equifax is yet another example of incompetence on the part of data-heavy company, with little recourse for customers affected.

    Cyberattacks are continuously evolving into incidents that are relentless and unforgiving. In the last 25 years the sophistication of hackers’ tools has improved.

    This recent attack puts the Yahoo breaches of 2014 and 2015 in a rather dim light in comparison to the harm caused by Equifax hackers.

    2017 has almost proved to be a coming of age year for hackers. So far this year we have already had the biggest ransomware outbreak that saw data breaches at the NHS, FedEx, Telefonica and Deutsche Bahn.

    It is now inevitable that something like this goes on and that we are no longer surprised by it. Why is it happening and what can we do about it?

    [​IMG]

    Why is this happening?

    Governments and banks want everything to be digital from online accounts through to digital money. This not only saves them money but also helps with their knowledge about us and means they can continue to print cash without us paying too much attention. They share our information with one another and use this for their own advantages.

    As customers we don’t mind this so much because the majority of the time an interconnected world makes our lives easier. It helps us to travel, it helps us to apply for mortgages, it even helps us to book a hotel room with just one click.

    The cost of this easy life is the growing threat of hacking. Our entire lives are available to be seen by those who (if they really want it) can get access to it.

    We trust these governments and companies not only with our most personal of information but also that they will protect it.

    But this is a trust that is not respected by so many organisations.

    When it comes to Equifax, customers did not ask them to eat up and store all of this data about them, just for it then to be sold onto marketing companies. It is not the customers’ fault that this data was not kept secure.

    Equifax is just one headline in the last month regarding hacks. TechCrunch warns us about a few more:

    Hacker group Dragonfly has penetrated operational networks of energy companies that control power grids in the US and Europe, which could allow them to disrupt utilities to hundreds of millions of people

    An indefensible vulnerability in all modern cars could let attackers affect sensors, airbags, and anti-lock brakes.

    Hackers penetrated voting systems before the 2016 presidential elections, but local officials weren’t warned and the systems haven’t been properly investigated for malware or alterations since.

    Hackers are fooling mobile carriers into letting them change the phone associated with a phone number, allowing attackers to empty people’s cryptocurrency wallets

    German voting machines can be hacked to change the vote tallies

    Hackers want this information for three reasons:
    1. To show you that they can have it if they want it. For some hackers it can be that the actual hacking is more important than what they can actually do with the data. This motive is becoming increasingly rare.
    2. To make money from you or the company. This can either be by using your information to steal from you or claim money on your behalf, or by issuing hefty ransoms in exchange for the data.
    3. Cyber warfare. This is unfortunately the case at the forefront of everyone’s minds when we see big hacks such as the Equifax breach. This has huge implications for not only your personal financial security but also for global safety and security.

    [​IMG]

    Hacking weapons for cyberwar

    Avivah Litan, an analyst at Gartner, told NBC News that the data gathered in these data breaches was not necessarily just going to be used to steal money and identities. Instead, it might end up playing a key role in cyber warfare.

    “Cyberwar is in large part conducted through data mining and cyber-intelligence…Enemy nation states build databases of Americans that they then use to get to their targets, for example a network operator at a power grid, or a defense contractor at a missile defense company.”

    US Treasury Secretary Steve Mnuchin has also recognised how this latest hack is a sign that far worse things could be on the horizon. Speaking to the CNBC Institutional Investor Delivering Alpha Conference in New York Mnuchin said his main concern was “about the global financial system and keeping it safe.”

    For those of a more military leaning cyber hacks are very serious indeed. In June the British American Security Information Council (BASIC) released a report entitled ‘Hacking UK Trident: A Growing Threat’. In the report BASIC explained that a successful cyber intrusion could “neutralise operations, lead to loss of life, defeat or perhaps even the catastrophic exchange of nuclear warheads (directly or indirectly).”

    What can be done about it?

    In the short-term we need to be aware that this latest attack may have some very significant lasting effects.

    The hackers have access to victims’ credit files, social security numbers, credit card details and even driving license information. This is not something we can just change the data for. Unless the US government decides to issue new social security numbers and 143 million Americans decide to move house and change their birth dates then this data is permanently vulnerable to exploitation.

    Access to this information could result in major financial theft through identity fraud and just plain access to information. The Federal trade Commission told customers last week to file their tax returns early “as soon as you have the information, before a scammer can.”

    Companies need to seriously up their game when it come to security of client accounts. In the United States it is not uncommon to be able to access account just through the last four digits of your social security number. If this wasn’t easy to find out before, it certainly is now thanks to Equifax.

    Each time a data breach of this nature takes place it seems that the most companies merely breathe a sigh of relief that it wasn’t their systems which were hacked. Those who were hacked issue an apology and resolve to strengthen their systems.

    Instead companies should be striving to become tech companies where security is at the forefront of their strategies.

    In the long-term consumers need to protect themselves notably against financial fraud but also the impact of cyber warfare on the wider world.

    [​IMG]

    Protect yourself, don’t rely on others

    We used to be told that changing our usernames and passwords on a regular basis was good enough to protect ourselves from security issues.

    Now, we have no idea where to start when it comes to information stored online. On a daily basis we partake in a panorama of activities that keep us locked into the interconnected world and our data vulnerable.

    Of course one of the biggest areas that we are happy to have automated and made as easy as possible is our money. This is both at the end of money creation and our own personal investments.

    As hackers and cyber attackers become more sophisticated we need to be ahead of the game.

    All manner of financial, government and infrastructure companies have been hacked. It is likely that many of these small scale attacks have been merely testing of defences.

    Be aware that in the future a concerted attack on the global financial system would likely include attempts at disabling various exchanges (both stock and foreign exchange). Banks would also be a key target, ATMs and wire transfers could be disabled and bank balances, which are merely digital figures, could be erased.

    We are all dependent on technology and the digital monetary system. A cyberattack would economically paralyse our system. The primary wealth would longer be primarily digital – cash, stocks and bonds – access to tangible wealth would be vital.

    Whilst it would be imprudent to predict cyber warfare that results in the collapse of the financial system we do believe it would be prudent to take necessary precautions and diversify into physical gold and silver bullion.

    Conclusion – buy gold bullion for insurance

    As we explained following the possible US Navy cyber attacks:

    By owning allocated and segregated physical gold with GoldCore you are protecting yourself against potential hackers in two ways

    First: GoldCore works extremely hard to provide the highest level of security for their clients – both online and offline.

    Second: Gold is a tangible asset. This means it cannot just disappear at the touch of a few buttons, courtesy of a few hackers. Should there be a global cyberattack on the financial system, the primary wealth would no longer be primarily digital (cash, stocks and bonds etc).

    Gold will not only be important because of its tangible nature but also because of its role as a safe haven in times of geopolitical risks. A cyberattack whether on the U.S. Navy, a civilian ship, an election or across the financial sphere is an attack. It is a weapon being fired by one party on another.

    These also pose risks to digital gold providers who do not allow clients to interact and trade on the phone and are solely reliant for pricing and liquidity from online portals and online trading platforms.

    Those who have outright legal ownership of physical gold and silver coins and bars outside the banking system will weather the cyber storm better than those who do not.

    The hope is that these risks will not materialise. Hope is never a strategy. We believe it is prudent to be aware of and take appropriate measures – sooner rather than later – to protect your wealth.

    Related content:




    News and Commentary

    Gold turns up as dollar falls from its highs (Reuters.com)

    Gold steady amid firm dollar, geopolitical tensions support (Reuters.com)

    Gold Demand Stifled in Top Buyer by Prices, Laundering Curbs (Bloomberg.com)

    JPMorgan CEO Jamie Dimon says bitcoin is a ‘fraud’ that will eventually blow up (CNBC.com)

    Bitcoin slides after Jamie Dimon bashes the cryptocurrency (BusinessInsider.com)

    [​IMG]
    Source: Business Insider

    US National Debt Surges Over $20 Trillion (USDebtClock.org)

    US Debt Finally Tops $20 Trillion, Jumps By $318 Billion In One Day (ZeroHedge.com)

    Gold diggers: Buried treasure shows Vikings hoarded precious metals (USAToday.com)

    Fed’s is following a playbook written when gold fled the Nazis (MarketWatch.com)

    Ray Dalio Talks About the Dollar and Gold (Investopedia.com)

    Gold Prices (LBMA AM)

    13 Sep: USD 1,332.25, GBP 1,003.85 & EUR 1,112.43 per ounce
    12 Sep: USD 1,326.25, GBP 1,000.66 & EUR 1,109.41 per ounce
    11 Sep: USD 1,338.75, GBP 1,015.31 & EUR 1,114.24 per ounce
    08 Sep: USD 1,350.90, GBP 1,026.82 & EUR 1,120.71 per ounce
    07 Sep: USD 1,340.45, GBP 1,026.52 & EUR 1,119.54 per ounce
    06 Sep: USD 1,340.15, GBP 1,028.03 & EUR 1,122.11 per ounce
    05 Sep: USD 1,331.15, GBP 1,029.51 & EUR 1,120.43 per ounce

    Silver Prices (LBMA)

    13 Sep: USD 17.91, GBP 13.50 & EUR 14.94 per ounce
    12 Sep: USD 17.75, GBP 13.37 & EUR 14.87 per ounce
    11 Sep: USD 17.85, GBP 13.51 & EUR 14.86 per ounce
    08 Sep: USD 18.21, GBP 13.80 & EUR 15.09 per ounce
    07 Sep: USD 17.79, GBP 13.59 & EUR 14.85 per ounce
    06 Sep: USD 17.77, GBP 13.62 & EUR 14.90 per ounce
    05 Sep: USD 17.88, GBP 13.80 & EUR 15.03 per ounce

    http://www.goldcore.com/us/

    http://news.goldseek.com/GoldSeek/1505305535.php
     
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    Gold Seeker Closing Report: Gold and Silver Fall Nearly 1%
    By: Chris Mullen, Gold Seeker Report
    Gold edged up to $1334.60 in London, but it then fell to as low as $1320.90 in late morning New York trade and ended with a loss of 0.74%. Silver slipped to as low as $17.668 and ended with a loss of 0.67%.
     
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    Carrier Competition for Market Share Could Start a New Freight Rate War

    September 13, 2017 by The Loadstar

    [​IMG]
    Photo: By MAGNIFIER / Shutterstock


    By Mike Wackett (The Loadstar) – With the first anniversary of the Hanjin Shipping bankruptcy just passed, there are growing fears that ocean carriers are sliding towards a new freight rate war.

    There is a “clear sign that rate cutting is starting to take hold once again,” said Alphaliner.

    “The rate truce carriers have largely abided by since Hanjin’s sudden exit now appears to be crumbling.

    The consultant added that the discounting of rates just before the Chinese Golden Week holidays early next month pointed to “further rate instability as carriers continue to jostle for market share”.

    Alphaliner noted that the Shanghai Containerized Freight Index (SCFI) had recorded six consecutive weekly falls, despite what seems to be strong peak season demand this year.

    Carriers have been unable to impose higher FAK rates or GRIs on the major trades and The Loadstar has, for example, seen pre-advice of new FAK rates from Asia to North Europe set below current levels.

    As a result, the trickledown impact on the SCFI since July leaves the headline index 16% lower overall.

    Alphaliner calculates that spot rates from Asia to North Europe have declined by 15.7% during this period and by 14.2% to Mediterranean ports.

    On the transpacific, there has also been significant erosion with spot rates to the US west coast down by 12.7%, while for the east coast the decline is 16.9%.

    Moreover, with the exception of the Asia to Australasia trade, spot rates have fallen on all other routes since July – Alphaliner calculates a slump of 33.1% and 43.5% in the SCFI for South America and West Africa respectively.

    Confirmation of the widespread erosion of rates came from Neil Dekker, director of container research at Drewry Shipping Consultants.

    On the sidelines of a London International Shipping Weeknconference at the IMO headquarters last night, Mr Dekker told The Loadstar he was receiving many reports of “widespread rate cutting” by carriers across several trades.

    He suggested this pointed to a new liner trade rate war at the worst possible time: start of the slack season and just prior to the launch of annual contract negotiations on the Asia-Europe trades.

    The immediate aftermath of the Hanjin crash saw spot rates soar and provide a sound base for carriers to negotiate much higher contract rates from Asia to Europe as well as Asia to the US.

    Concerns over “a second Hanjin” and a rush of M&A activity prompted shippers to sign up for longer periods, and carriers have so far this year enjoyed a higher ratio of contract business than in the past few years.

    The result for the industry is a projected cumulative $5bn profit this year, according to recent Drewry estimates, reversing a deficit of a similar amount in 2016.

    Notwithstanding the obvious preference for container lines to carry higher-revenue contract containers, the spot market continues to act as a bellwether for the liner industry and carriers will not welcome the continuing erosion of spot rates before they sit down with shippers for new contract talks.

    The Loadstar is fast becoming known at the highest levels of logistics and supply chain management as one of the best sources of influential analysis and commentary.

    Check them out at TheLoadstar.co.uk, or find them on Facebook and Twitter.

    http://gcaptain.com/carrier-competition-for-market-share-could-start-a-new-freight-rate-war/
     
  33. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    TVR [#398] 09-13-2017 END OF DAY REPORT: CRYPTOS GET SMASHED BY CENTRAL BANKS
    ALGO CAPITALIST



    Published on Sep 13, 2017
    Please remember to RATE, SHARE, FAVORITE, COMMENT AND SUBSCRIBE.
     
  34. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Elemetal & Provident Metals Seperate!
    SalivateMetal



    Published on Sep 13, 2017
     
  35. searcher

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  36. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Global Stocks Pull Back From All Time Highs On Poor Chinese Data; All Eyes On CPI

    [​IMG]
    by Tyler Durden
    Sep 14, 2017 6:51 AM


    Global stocks backed off from all time highs, and S&P futures are unchanged ahead of the much anticipated US CPI report, which is expected to break a streak of five consecutive misses, while eyeing disappointing overnight Chinese economic data which missed across the board. European stocks and Asian markets were also modestly in the red, with the relentless global rally to new daily record highs taking a breather amid some concerns China's economy is rolling over, which weighed on commodities including base metals, which in turned dragged down mining stocks. Most major currencies drifted before today's other major report: the BOE rates decision, where the central bank is expected to keep rates unchanged.

    As reported last night, Chinese retail sales, industrial production and fixed-asset investment all slowed and missed last month after a lackluster July as efforts to rein in credit expansion slammed the economy. Offsetting China's weakness was the latest Australian employment report, according to which the country added 54,200 jobs in August from July, more than twice the 20,000 estimated. The jobless rate was steady at 5.6%. The Aussie dollar rallied past 80 cents to the U.S. currency on stronger-than-expected employment numbers, before paring gains on the disappointing Chinese economic data.

    [​IMG]


    The sharp but brief dollar rally appears to have lost steam, with Trump denying a DACA deal was made with Democrats putting the recent euphoria over Trump's Tax Reform in question, but the currency held most of its recent gains. Not even another threat by North Korea to nuke Japan had much of an impact on the value of the greenback.

    [​IMG]



    Treasuries and bunds were little changed ahead of Thursday’s U.S. CPI report. The euro advanced against the Swiss currency after the SNB signaled the franc remains “highly valued” while cutting its economic outlook; the pound stuck to a tight range as investors waited to see how the Bank of England will try to balance policy amid faltering wages and faster inflation.

    Shares fell in Asia, knocking MSCI’s All-Country World index which tracks shares in 46 countries, off a record high hit on Wednesday, when Asian shares hit their highest since 2007 and Wall Street closed at all-time peaks. Asian markets are mostly lower, led by China and Hong Kong. Asia’s benchmark stock index, which has outperformed the U.S., traded just shy of its highest level since December 2007 ahead of the US CPI data report. The MSCI Asia Pacific Index fell 0.1% to 162.57, dragged by materials and telecom stocks. China’s Shanghai Composite Index closed lower after industrial output and retail reports suggested an unexpectedly slower pace of growth in the world’s second-biggest economy, while Japan stocks erased early gains. On the flip side, the Philippine benchmark rose to a record high as property and consumer-related shares gained after a report that the Senate will rein in the government’s plan to increase taxes on low-cost homes and sugary drinks. The momentum of Asia stocks wasn’t as strong as U.S. counterparts in this week’s rebound, said Margaret Yang, a market analyst at CMC Markets Singapore Pte Ltd, citing a greater year-to-date gain in the region. Investors are awaiting the U.S. inflation report that may determine whether the Federal Reserve delivers an interest-rate increase before year-end.

    European shares opened lower. The STOXX 600 index dipped 0.1 percent with down 0.3 percent, following the mildly negative tone seen during Asia-Pacific trade as markets eye upcoming key risk events including the BoE rate decision and US inflation report. In terms of a sector breakdown, material names are the notable laggards amid downbeat industrial production and retail sales figures from China overnight, while energy names have been supported from the recent gains in WTI and Brent. Elsewhere, UK retail names have been dealt a helping hand after Next (+10%) upgraded their guidance, which has also provided support to some of their domestic competitors including Marks & Spencer (+4.5%). From a fixed income perspective, paper has traded in a particularly tight range throughout the session after yesterday’s digestion of supply with just Ireland stepping up to the plate today. Note, tomorrow sees notable redemptions which some have suggested could guide price action later in the session (EUR 15.5bln IT principals, EUR 13bln GE, EUR 6bln FI, EUR 8bln AT, EUR 6bln EFSF, EUR 2bln coupons).

    Following Friday's PBOC margin announcement, the Yuan has been a one way train in reverse, and the onshore yuan has now dropped for a fifth day, heading for longest run of declines since early July, as China’s central bank weakens its daily fixing after overnight rise in the dollar. CNY falls 0.18% to 6.5568 per dollar as late afternoon in Shanghai, taking five-day retreat to 1.1%. Investors were seen buying the dollar to close short USD/CNY positions before end of session, triggering stop-losses that pushed CNY weaker, according to Bloomberg. Banks also cut short USD/CNY positions to avoid another overnight USD surge like Wednesday’s. Korean won weakest in Asia following the latest threat from North Korea.
    Treasury yields are little changed. Australia’s 10-year yield up 6 bps.
    Dalian iron ore futures drop.

    The main event for European currency traders is likely to be the Bank of England policy meeting. While no change in rates is expected, investors will be watching whether there is any shift in the number of rate-setters voting for a rise after a jump in inflation last month. Weak wage growth and questions over what Brexit will mean for the economy suggest most policymakers will see the recent surge in inflation to well above the BoE’s target as temporary. Sterling held steady around $1.32 having risen as high as $1.3329 on Wednesday. The pound was also flat at 89.95 pence per euro.

    The Swiss franc edged lower against the dollar and the euro after Switzerland's central bank said its currency was highly valued and that the situation on the foreign exchange market was still fragile.

    In rates, U.S. 10Y yields edged down 0.3 basis points to 2.192 percent. Bunds hit a 3-1/2-week high just shy of 0.42% after some harsh words from Jeff Gundlach. A weaker euro, which is down 1.7 percent from 2-1/2-year highs hit against the dollar last week, could encourage the European Central Bank to bring forward plans to withdraw monetary stimulus that has crushed euro zone bond yields.

    “The weaker euro has amplified the headwinds facing the bond market,” said Rainer Guntermann, a strategist at Commerzbank. “With the euro off its highs, it is easier for the ECB to taper next year.”

    Oil extended gains, trading at a five-week high amid demand optimism. Copper fell to near the lowest level in a month. Brent traded above $55/bbl, highest since mid-April, after IEA on Wednesday said worldwide demand is strong. WTI near $49.50. “In general it’s a bullish picture,” says Eugen Weinberg, head of commodities research at Commerzbank. “Yet again, the International Energy Agency confirmed the view that demand recently was extremely high”

    Economic data includes initial jobless claims and August inflation. Oracle and Empire are reporting earnings

    Bulletin Headline Summary from RanSquawk
    • GBP has been offered as we approach the BoE despite outside bets of further dissent on the MPC
    • The greenback has remained subdued to the benefit of its major counterparts while AUD/USD gained ground on strong jobs
    • Looking ahead, highlights include BoE, US CPI and ECB’s Weidmann
    Market Snapshot
    • S&P 500 futures little changed at 2,493.30
    • STOXX Europe 600 down 0.1% to 380.79
    • MSCI Asia down 0.05% to 162.56
    • MSCI Asia ex Japan down 0.02% to 538.63
    • Nikkei down 0.3% to 19,807.44
    • Topix down 0.3% to 1,632.13
    • Hang Seng Index down 0.4% to 27,777.20
    • Shanghai Composite down 0.4% to 3,371.43
    • Sensex up 0.1% to 32,228.68
    • Australia S&P/ASX 200 down 0.1% to 5,738.68
    • Kospi up 0.7% to 2,377.66
    • German 10Y yield fell 0.2 bps to 0.399%
    • Euro up 0.1% to $1.19
    • Italian 10Y yield rose 1.5 bps to 1.748%
    • Spanish 10Y yield rose 1.1 bps to 1.591%
    • Gold spot little changed at $1,324.05
    • U.S. Dollar Index down 0.2% to 92.34
    Top Overnight News
    Saudis Are Said to Prep for Possible Aramco IPO Delay to 2019
    • North Korea Threatens to Use Nuclear Weapon to ‘Sink’ Japan
    • Apple Is Said to Discuss $3 Billion Stake in Bain Chip Bid
    • China’s Economy Cools Again as Industry, Retail, Investment Slow
    • Trump Blocks China-Backed Lattice Bid as Beijing Urges Fairness
    • U.K. Subjects Murdoch’s Fox to Wider Probe Over Sky Takeover Bid
    • Democrats Say They Have Tentative ‘Dreamers’ Deal With Trump
    • Munich Re Says It May Miss Profit Target on Irma, Harvey
    • Carney’s Rate Dilemma No Easier as Inflation Rears Up Again
    • Hermes Warning Raises Concern Strong Euro to Erode Luxury Sales
    • Australia employment surges in August, led by full-time roles
    • Saudis are said to prep for possible Aramco IPO delay to ’19
    • U.K. Aug. RICS house price index at 6, vs 1 in July
    • AT&T opens iPhone price war with buy-one-get-one-free offer
    Asia equity markets were lacklustre with a non-committal tone seen for most of the day after the cautious gains in the US and as the region also digested key data releases. ASX 200 (-0.1%) and Nikkei 225 (-0.2%) were subdued with weakness across miners and discouraging Chinese data weighing on Australia, while a softer JPY struggled to keep the Japanese index afloat. Hang Seng (-0.5%) and Shanghai Comp. (-0.2%) also lacked demand as an increased liquidity effort by the PBoC was clouded by a miss on Chinese Industrial Production and Retail Sales data. 10yr JGBs were lower despite the subdued risk-tone seen across markets, with prices weighed following a weaker 20yr JGB auction where the b/c, amount and accepted prices were all lower than the prior month. PBoC injected CNY 60bln in 7-day reverse repos, CNY 30bln in 14-day reverse repos and CNY 10bln in 28-day reverse repos. PBoC set CNY mid-point at 6.5465 (Prev. 6.5382) Chinese Industrial Production (Aug) Y/Y 6.00% vs. Exp. 6.60% (Prev. 6.40%). Chinese Retail Sales (Aug) Y/Y 10.10% vs. Exp. 10.50% (Prev. 10.40%)

    Top Asia News
    • ZhongAn Online Is Said to Set Terms for Up to $1.5 Billion IPO
    • India’s August Wholesale Inflation Rises Most in Four Months
    • Bullet Train Pact Sends Shares of India Power-Gear Maker Soaring
    • Morgan Stanley Upgrades Philippine Stocks to Overweight
    European equities (Eurostoxx 50 -0.3%) have largely followed on from the mildly negative tone seen during Asia-Pacific trade as markets eye upcoming key risk events including the BoE rate decision and US inflation report. In terms of a sector breakdown, material names are the notable laggards amid downbeat industrial production and retail sales figures from China overnight, while energy names have been supported from the recent gains in WTI and Brent. Elsewhere, UK retail names have been dealt a helping hand after Next (+10%) upgraded their guidance, which has also provided support to some of their domestic competitors including Marks & Spencer (+4.5%). From a fixed income perspective, paper has traded in a particularly tight range throughout the session after yesterday’s digestion of supply with just Ireland stepping up to the plate today. Note, tomorrow sees notable redemptions which some have suggested could guide price action later in the session (EUR 15.5bln IT principals, EUR 13bln GE, EUR 6bln FI, EUR 8bln AT, EUR 6bln EFSF, EUR 2bln coupons).

    Top European News
    • Vivendi Hit by Watchdogs on Telecom Italia, Mediaset Stakes
    • Syngenta Is Said to Plan $7 Billion Bond to Refinance M&A
    • Glapinski Wins Ally in Push for Stable Polish Rates Through 2018
    • SNB Says Franc Drop Has Reduced ‘Significant Overvaluation’
    • Macquarie Sells Its Stake in Copenhagen Airports to ATP
    • Next CEO Says Favorable Weather Helped Sales in Recent Months
    In currenices, as has been in the case in other markets, price action has been on the light side ahead of key risk events. A bulk of the focus in the FX space thus far has been on CHF after the SNB kept rates unchanged as expected while tweaking their rhetoric on the CHF from ‘significantly overvalued’ to ‘highly valued’, however, the SNB also stated that they will remain active in the FX markets, subsequently leading to some choppy price action in the safe-haven. Elsewhere, NZD took a tumble in early trade after the latest News1 poll for the upcoming election put the Labour party in the lead; a result which was at odds with the NewsHub poll from earlier in the week. Finally, focus for FX markets will likely centre around GBP with markets looking to see whether or not the 2.9% Y/Y inflation rate in the UK will lead to any further dissents on the MPC.

    In commodities, WTI crude futures continue to hold onto yesterday’s gains after the Nigerian energy minister stated that the nation would be willing to impose an output cap for six months if they were able to hit production levels of 1.8mln bpd. Elsewhere, gold has seen little in the way of price action while copper prices were sideways overnight amid a subdued risk tone which somewhat provided the metals complex mild respite from the prior day’s selling.

    Looking at the day ahead, in the UK, we have the BOE rate decision, the asset purchase target as well as retail sales data for August. Over in the US, the August inflation along with the initial jobless claims and continuing claims are also due. Onto other events, there is the BOE and Swiss national bank official interest rate decision. The ECB governing council member Jens Weidmann will also speak in Frankfurt

    US Event Calendar
    • 8:30am: Initial Jobless Claims, est. 300,000, prior 298,000; Continuing Claims, est. 1.97m, prior 1.94m
    • 8:30am: US CPI MoM, est. 0.3%, prior 0.1%; CPI Ex Food and Energy MoM, est. 0.2%, prior 0.1%
    • US CPI YoY, est. 1.8%, prior 1.7%; US CPI Ex Food and Energy YoY, est. 1.6%, prior 1.7%
    • 8:30am: Real Avg Weekly Earnings YoY, prior 1.08%; Real Avg Hourly Earning YoY, prior 0.7%
    • 9:45am: Bloomberg Consumer Comfort, prior 52.6
    DB's Jim Reid concludes the overnight wrap

    The two main strands of conversations I had on returning to the office yesterday was a) how tired I looked and b) whether I was buying the new iPhone X. Without even knowing what features it has Apple had me at "new i.....". Actually someone asked me if I was buying the new iPhone 8 instead and I was actually a little offended. I'm still dreading the day they get into cars. Regular readers will be aware how much I hate spending money on cars. However there would be a real risk of personal bankruptcy if and when the iCar comes out and updates itself every year.

    Anyway before we preview an important day headlined by US CPI and the BoE meeting, straight to Chinathis morning where the latest monthly main data dump is out. August industrial production and retail sales were softer than expected. The IP was up 6% yoy (vs. 6.6% expected) - the slowest pace this year, and retail sales grew 10.1% yoy (vs. 10.5% expected) while fixed assets expanded 7.8% (vs. 8.2% expected). Asian markets generally weakened on the numbers after a firmer start to the session without being much changed overall. The Nikkei (-0.19%), Hang Seng (-0.42%) and Shanghai Comp (-0.17%) are all lower while the Kospi (+0.25%) is slightly higher.

    Once the market has moved on from the Chinese data the main event today is US CPI with the market and DB at +0.3% mom for headline and +0.2% for core. Remember we have had 5 consecutive downside misses on the core. We also saw a miss on PPI yesterday (more later). Even an in line MoM core figure would result in the YoY rate slipping one tenth to 1.6% and to the lowest since Jan 2014. Our US economist Brett Ryan thinks CPI won’t bottom out until Q1 2018 but highlights that inflation tends to lag GDP growth by 5 or 6 quarters so any current weakness may reflect weak growth around the end of 2015/beginning 2016. In today's PDF we've cropped their chart showing the tight relationship (with the lag) between the two over the last couple of decades. This is fine but inflation needs to start beating soon to suggest that the normal relationship between growth and inflation is still there and we're not in a near perpetually low inflation world with today's current policy choices. As an aside we still think inflation will edge up over time due to weaker demographics meaning a lower future supply of labour relative to the past and also due to policy slowly being more directed to fiscal over monetary largely due to populism and the fact that monetary policy alone has almost been fully exhausted. This week's removal of the 1% pay cap for certain UK public sector workers is a small sign of the direction of travel. We acknowledge that this argument has no baring on the short-term inflation outlook but I think we'll look back on 2016-17 as the secular trough in inflation.

    As for the BoE consensus is of course for no change in policy but the devil is in the detail and the committee have a few signalling headaches given this week's higher than expected inflation numbers. DB's Oliver Harvey thinks the risks are that the MPC sounds increasingly uncomfortable about a sleepy market attitude towards interest rates. He thinks they are unlikely to be thrilled about the market reaction after the August 3rd inflation report when the broad GBP TWI fell 3% in the three weeks after (although recovered half of that since). He thinks the BoE are increasingly sceptical about benefits of a falling currency from a growth perspective, notwithstanding the impact on inflation persistence. Overall DB continue to expect the BoE to remain on hold until uncertainty about the Brexit transition diminishes. Too many aspects of the policy trade-off hinge on the outcome. There are justified concerns about the profile of future spare capacity and inflation, but protestations about these may cut little ice with the market absent a clear acceleration in wage growth or resolution of political uncertainty.

    Moving on, the US tax reforms appears to gaining momentum although we have heard this before. On Fox news, Director of US office of management and business Mulvaney said the target release date for a framework of the tax plans will be on September 25th, while House Speaker Ryan also confirmed party leaders would release a Republican only “template” on tax in the last week of September. Elsewhere, the President has tweeted that “the approval process for the biggest Tax Cut & Tax Reform package…will soon begin”. For now, details are still sketchy, on the one hand Trump has reaffirmed his commitment to cut the corporate tax rate to 15% and said the tax change will benefit the middle class, not the wealthy. However, both the Treasury Secretary Mnuchin and Ryan noted the corporate tax rate is open to compromise, potentially towards c20% instead. Hopefully we will get some clarity soon.

    Onto the market performance yesterday. US equities nudged up to another fresh record high, with the S&P up +0.08% (+11.5% YTD), the Dow (+0.18%) and the Nasdaq (+0.09%). Within the S&P, gains were led by the energy sector (+1.24%) while yield sensitive sectors such as real estate and utilities (-0.53%) fell slightly. European markets were also generally slightly higher, with gains also led by the energy sector. Across the region, the DAX (+0.23%) and CAC (+0.16%) rose slightly while the FTSE 100 dipped -0.28%.

    Over in sovereign bonds, core European yields were mixed but little changed across the maturity spectrum, with Bunds (2Y: +1bp; 10Y: unch) and Gilts (2Y: +1bp; 10Y: +1bp) up a little in yield, but French OATs (2Y: +1bp; 10Y: -1bp) a little more mixed. Notably, peripherals such as Spain and Portugaloutperformed with 10y yields down c3bp. Over in the US, yields were slightly higher (2Y: +1bp; 10Y: +2bp).

    Turning to currency markets, the US dollar index gained 0.69%, partly reflecting the increased momentum on tax reforms. Conversely, the Euro and Sterling fell 0.69% and 0.54% respectively versus the Greenback. In commodities, WTI oil rose 2.22% to a five week high, following an IEA forecast for global crude demand to be 1.7% higher in 2017 given stronger than expected consumption in Europe and US. Precious metals fell modestly (Gold -0.65%; Silver -0.74%) along with Copper (-0.66%). Elsewhere, LME Nickel dropped 5.25% overnight, but is still up c29% since June.

    Away from the markets, in the EC President Juncker’s State of Union speech, he touched on a few topics, which included calling for a tighter EU integration where he proposed a series of overhauls such as the creation of i) an EU finance and economy minister, ii) a single president for the European Commission and Council, iii) an EU monetary fund and iv) an EU cybersecurity agency . On the EU economy, he noted it was growing as now the “wind is back in Europe’s sails” and the migration crisis had been brought under control. On Brexit, he noted that it would be “a very sad and tragic moment in our history…we will always regret this…but I think you (UK) will regret it as well”.

    Staying in Europe, the ECB’s executive board member and Chief economist Peter Paret noted “the baseline scenario for inflation going forward remains crucially contingent on very easy financing conditions, which to a large extent, depend on the current accommodative policy stance.”

    Finally, for those of you interested in the upcoming roll of the iTraxx and CDX indices, our team have published the report “CDS Index Roll: Europe & US, September 2017” which describes the index changes and estimates their impact on index spreads. It should be in your inbox, please contact Michal.Jezek@db.com if not.

    Before we take a look at today’s calendar, we wrap up with other data releases from yesterday. In the US, the core August PPI (ex-food and energy) was slightly below market at 0.1% mom (vs. 0.2% expected), although the base effect has helped the annual rate to nudge up to 2.0% yoy (vs. 1.8% previous; 2.1% expected). Notably, the healthcare series within the PPI, which is relevant to healthcare as measured in the core PCE deflator – fell 0.1% mom in August (the largest mom decline since October 2015). Elsewhere, the August federal budget data showed a slightly smaller deficit at -$107.7bln (vs. -$119bln expected) and MBA’s new mortgage applications index rose last week, with the four week average up 5% yoy.

    In the UK, the July ILO unemployment rate fell to 4.3% (vs. 4.4% expected), which is the lowest level since 1976. However, growth in average weekly earnings was soft and lower than expected at 2.1% yoy (vs. 2.3%). Elsewhere, the claimant count rate was 2.3%, steady on a mom basis and the jobless claims change came in at -2.8k, which is similar to revised figure for the prior month. Over in Germany, the final reading on August inflation was unchanged at 0.2% mom and 1.8% yoy. Elsewhere, the Eurozone’s July IP was broadly in line at 0.1% mom and 3.2% yoy (vs. 3.3% expected), while employment across the euro area rose 0.4% qoq in Q2, leaving through-year growth steady at a solid 1.6% yoy.

    Looking at the day ahead, in the UK, we have the BOE rate decision, the asset purchase target as well as retail sales data for August. In France and Italy, the final readings on the August inflation are due. Over in the US, the August inflation along with the initial jobless claims and continuing claims are also due. Onto other events, there is the BOE and Swiss national bank official interest rate decision. The ECB governing council member Jens Weidmann will also speak in Frankfurt

    http://www.zerohedge.com/news/2017-...all-time-highs-poor-chinese-data-all-eyes-cpi
     
  37. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Frontrunning: September 14

    [​IMG]
    by Tyler Durden
    Sep 14, 2017 7:58 AM


    • Trump Says No Deal Reached on DACA (WSJ); Trump Denies Democrats’ Claim That They Made a Deal on ‘Dreamers’ (BBG)
    • Weak China data knocks global stocks off record highs (Reuters)
    • GOP to Release Tax Overhaul as Trump Says Rich Won’t Benefit (WSJ)
    • North Korea threatens to 'sink' Japan, reduce U.S. to 'ashes and darkness' (Reuters)
    • Saudi Arabia Clamps Down as Prince Consolidates Power (WSJ)
    • Thank You for Calling Equifax. Your Business Is Not Important to Us (BBG)
    • BOE Says Interest Rates Could Rise Within Months (WSJ)
    • U.S.'s Mnuchin Sought Government Plane for Honeymoon in Europe (BBG)
    • New York’s Plaza Hotel Is in the Sights of This Shy Billionaire (BBG)
    • Russian submarines fire cruise missiles at Islamic state in Syria (Reuters)
    • United Tech-Rockwell Deal Faces Potential Antitrust Obstacle (WSJ)
    • Shortage of Insurance Adjusters Could Stall Florida’s Recovery (WSJ)
    • Campaigners unveil banner linking racism and baseball at Red Sox game (Reuters)
    • This Is the Crazy Tax Math Trump Must Master, Fast (BBG)
    • Samsung’s New $300 Million Fund Bets on Automotive Innovation (WSJ)
    • United Tech-Rockwell Deal Faces Potential Antitrust Obstacle (WSJ)
    • Goldman Takes Stake in Under Armour CEO’s Baltimore Development (WSJ)

    Overnight Media Digest

    WSJ

    - A group including Apple Inc and Dell Technologies Inc surged to the front in a race to acquire Toshiba Corp's memory-chip business. Apple and Dell would likely supply debt financing for the Bain Capital's bid. on.wsj.com/2y0Hzkl

    - Equifax Inc said hackers exploited a vulnerability with a U.S. website application called Apache Struts in the data breach that affected potentially 143 million Americans. on.wsj.com/2y0bNDJ

    - Tenet Healthcare Corp, is exploring strategic options including a possible sale of the hospital company. on.wsj.com/2y0hHVF

    - U.S. President Donald Trump and congressional Democrats closed in on a deal to give legal status to undocumented immigrants who were brought to the U.S. as children, and to work out a package of border security, excluding the wall. on.wsj.com/2y0cddh

    - Halimah Yacob, 63, has been named Singapore's first female president. on.wsj.com/2y0i2Yr

    - Jian Yung, a Chinese-born New Zealand lawmaker has acknowledged he once taught English to Chinese spies, an admission that comes as his party faces a closer-than-expected fight in a general election just 10 days away. on.wsj.com/2y0mbf5

    FT

    - The Trump administration on Wednesday told U.S. government agencies to remove Kaspersky Lab products from their networks, saying it was concerned about the ties between certain Kaspersky officials and Russian intelligence. on.ft.com/2vUeIxv

    - South Africa's main opposition party has taken aim at Global consultancy McKinsey for its involvement in the scandal surrounding the Gupta business family that has caused the collapse of Bell Pottinger's British arm. on.ft.com/2vUacyP

    - Facebook has tightened its rules on who can make money from advertising on its network, after brands withdrew their ads from Youtube for being placed before explicit or controversial content. on.ft.com/2vUasOj

    - Toshiba Corp said on Wednesday it has agreed to focus on selling its prized chips unit to a group led by Bain Capital, although it is not ruling out a deal with other bidders. on.ft.com/2vUaDcr (Compiled by Bengaluru newsroom; Editing by Sandra Maler)

    NYT

    - U.S. President Donald Trump on Wednesday blocked a China-backed investor from buying an American semiconductor maker over national security concerns, a rare move that could signal more aggressive scrutiny of China's deal-making ambitions. nyti.ms/2wrp8E8

    - The U.S. federal government moved on Wednesday to wipe from its computer systems any software made by a prominent Russian cybersecurity firm, Kaspersky Lab, that is being investigated by the FBI for possible links to Russian security services. nyti.ms/2fknf6B

    - Martin Shkreli, the former pharmaceutical executive who is awaiting sentencing for a fraud conviction, was sent to jail on Wednesday after a federal judge revoked his bail because he had offered $5,000 for a strand of Hillary Clinton's hair. nyti.ms/2y0f327

    - Toshiba Corp said on Wednesday it had agreed to negotiate with a group led by Bain Capital, the American investment firm, that also includes two organizations controlled by the Japanese government. They will seek to strike a deal over Toshiba's chip business, the world's second-largest manufacturer of flash memory chips. nyti.ms/2wqTDK8


    Canada

    THE GLOBE AND MAIL

    ** Canada is pushing for major changes to a NAFTA provision that governs the adjudication of lawsuits filed by North American businesses against governments for damages to their investments – and the United States has yet to reject the idea. (tgam.ca/2vVX2kZ)

    ** Air Canada said in a news release that the Air Canada Pilots Association, which represents 3,600 pilots, agreed to amendments to the current 10-year labor deal that will allow the company to improve flexibility and lower costs. (tgam.ca/2vVpenY)

    ** The ratio of Toronto house listings compared with monthly sales has moved back into longterm balance, limiting the potential for significant further price corrections in the region, a new analysis concludes. (tgam.ca/2vUTTBN)

    NATIONAL POST

    ** Transat AT Inc is calling on the government to remove a joint venture provision from proposed legislation amending the Transportation Act, saying it is unnecessary and detrimental to competition among airlines in a market dominated by one carrier. (bit.ly/2vUXakz)

    ** Canadian oil production could edge closer to the five million barrel-per-day milestone in 2018, with supplies expected to grow the second fastest among major producers in coming years, a new report says. (bit.ly/2vVMj9Y)

    ** According to a Statistics Canada release based on census data, the Canadian median household income increased from the inflation-adjusted equivalent of C$63,457 in 2005 to C$70,336 in 2015


    Britain

    The Times

    A new tax for internet companies such as Facebook Inc and Alphabet Inc's Google is to be drawn up in Brussels amid frustration that tech companies can too easily shield profits from national governments. bit.ly/2xZyM1Y

    Easyjet Plc passengers will be able to book flights for Singapore, Los Angeles and Buenos Aires for the first time under a scheme to open up the budget airline to long-haul flights. bit.ly/2h22kZB

    The Guardian

    The co-founder of Bell Pottinger Pvt, Tim Bell, has emerged as one of the creditors the firm's administrators are unlikely to be able to pay back, with a 300,000 pounds bill outstanding from his multimillion-pound deal to leave the City PR firm last year. bit.ly/2h3Vtip

    The chief executive of Kensington and Chelsea Tenant Management Organisation that managed Grenfell Tower, Robert Black, is still being paid his full salary despite resigning from the role after the fire that killed at least 80 people. bit.ly/2h2HJV8

    The Telegraph

    The Government is stepping up pressure on Silicon Valley giants to take responsibility for unlawful material online and share the spoils of the internet with media companies. bit.ly/2h3KFk4

    Theresa May has been urged to change the law on aid spending after it emerged that Britain cannot use its 13 billion pounds ($17.17 billion) aid budget to help its overseas territories devastated by Hurricane Irma. bit.ly/2h3wM5J

    Sky News

    Car products retailer Halfords Group Plc is to replace departing chief executive Jill McDonald with the boss of Dixons Carphone Plc's software business. Halfords said Honeybee chief operating officer Graham Stapleton would begin work in mid-January. bit.ly/2h1Rlzb

    British energy production company, Drax Group Plc wants to convert two of its remaining coal-fired power units to gas. The move by Drax has been driven by the shift away from coal power. bit.ly/2h2fpC3

    The Independent

    Japanese investment bank Mitsubishi UFJ Securities has announced that it is putting measures in place to move some of its European securities division from London to Amsterdam because of Brexit. ind.pn/2h2NAtA

    A criminal investigation has been opened after eight people died and more than 100 had to be evacuated when a nursing home was left without air conditioning in the aftermath of Hurricane Irma. ind.pn/2y0s2AN

    http://www.zerohedge.com/news/2017-09-14/frontrunning-september-14
     
  38. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Massachusetts Kicks Off State Lawsuits Against Equifax Over Massive Data Breach

    [​IMG]
    by ZeroPointNow
    Sep 13, 2017 4:35 PM

    [​IMG]

    Content originally published at iBankCoin.com

    Consumer credit reporting agency Equifax has already been hit with over 30 lawsuits over what may be the largest breach of sensitive information in U.S. history – at least 23 of which are class-action filings, and all of them representing individuals.

    On Tuesday, Massachusetts AG Maura Healey – a Democrat who in March led the state in suing the Trump administration over the travel ban – announced her intent to take Equifax to court, the first such lawsuit from a state prosecutor’s office over a data breach which has affected up to 143 million Americans. “In all of our years investigating data breaches, this may be the most brazen failure to protect consumer data we have ever seen,” said Healey.

    In a press release, the Mass AG’s office is claiming that Equifax did not “maintain the appropriate safeguards to protect consumer data,” which is a violation of state consumer protection and privacy laws.

    While Equifax offered people a free credit monitoring service which initially waived the right to sue the company, they later clarified that customers could sue if they sent Equifax written notice within 30 days. Yesterday, the company said that use of the free credit monitoring service does not waive the right to take legal action.

    Via CNN:

    New York Attorney General Eric Schneiderman said the clarification came as a result of conversations with his office.

    “The victims of this breach shouldn’t also have to worry that they’ve waived their legal rights simply because they were trying to protect themselves. That’s why my office reached out to Equifax last week about the terms of use,” he said in a statement.

    Schneiderman’s office is currently investigating the breach, as are attorneys general in Pennsylvania, Connecticut and Illinois.

    Regulators and investigators across the country have already begun to dig into the scope and disclosure of the hack – including safeguards and procedures Equifax had in place prior to the attack. The NY AG’s office begun an investigation into the breach last week, along with the Consumer Financial Protection Bureau and the FBI.

    Setting sale before the storm

    [​IMG]

    Separate of the lawsuits, a bipartisan group of senators called upon federal prosecutors to investigate stock sales by three Equifax executives before the company publicly disclosed the hack, generating nearly $2 million in proceeds shortly after the breach was detected.

    SEC filings show that Equifax CFO John Gamble sold $946,000 worth of shares on Aug 1, while two other executives sold shares and exercised options worth nearly $850,000.

    The lawmakers, led by senators John Kennedy (R-LA) and Jack Reed (D-RI) is asking the SEC and the FTC to look into the sales.

    “As part of your investigations, we request that you conduct a thorough examination of any unusual trading, including any atypical options trading, for violations of insider trading law,” the senators wrote. “We request that you spare no effort in your investigations and in enforcing the law to the fullest extent against anyone who is found to be at fault.”

    http://www.zerohedge.com/news/2017-...uits-against-equifax-over-massive-data-breach
     
  39. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

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    Oil Rich Venezuela Stops Accepting Dollars
    By janskoyles
    September 14, 2017 0 Comments
    Facebook Twitter LinkedIn Addthis

    • President Maduro ‘ Venezuela will create a basket of currencies to free us from the dollar,”
    • Oil traders ordered to stop accepting U.S. dollar in exchange for crude oil
    • Order comes following calls from Russia and China to find alternatives to current reserve system
    • U.S. Dollar accounts for two-thirds of global trade
    • Venezuela has over ten-times more oil than United States
    • Super powers are gradually turning to gold to avoid using world’s main reserve currency
    • Are we seeing the beginning of the end for the U.S. dollar?
    [​IMG]
    Source: The Burning Platform

    The oil-rich country of Venezuela has stopped accepting the U.S. Dollar as payment for oil.

    Last week President Maduro warned that the country would this week ‘free’ itself from the US dollar.

    “Venezuela is going to implement a new system of international payments and will create a basket of currencies to free us from the dollar,”

    Yesterday Venezuela temporarily suspended the sale of U.S. dollars through its Dicom auction system. This (and other moves) was in response to U.S. sanctions put in place by the Trump administration.

    Trump claims the sanctions are there to punish the country’s autocratic leaders. Maduro claims Washington’s move was part of an “economic war”.

    This morning The Wall Street Journal reports that the Venezuela is already telling oil traders not to accept the US currency.

    Oil traders who export Venezuelan crude or import oil products into the country have begun converting their invoices to euros.

    The state oil company Petróleos de Venezuela SA, known as PdVSA, has told its private joint venture partners to open accounts in euros and to convert existing cash holdings into Europe’s main currency, said one project partner.

    The decision to suspend dollar trading on Diacom and to no longer accept the the U.S. currency for oil is potentially a major blow for the world’s reserve currency.

    Venezuela’s decision comes at a time when other countries (namely Russia and China) are already finding ways to avoid using the U.S. dollar.

    History shows us that currency domination does not last forever. Are we seeing the cracks in the latest global currency reserve system? Will those who seek to come out of the shadows and force of the US begin to build up their own systems to survive outside of the U.S. dollar and how important will gold be?

    How important is oil to Venezuela

    According to OPEC oil accounts for 95% of Venezuela’s exports. The country has ten times more oil reserves than the US, and nearly 70 billion more barrels than Saudi Arabia.

    [​IMG]
    However, because of its heavy reliance on oil as an export this means it is heavily reliant on the price. Since President Maduro came to power the oil price has crashed. Inflation is out of control and the bolivar is practically worthless: $1,000 of local currency bought in 2013 would today be worth $1.20.

    [​IMG]

    The Trump administration has made it clear that it will achieve a regime change through the destruction of what is an already severely debilitated Venezuelan economy. Prior to the latest round of sanctions one could see a way out for Venezuela but not anymore.

    It is clear that Venezuela will have to seek outside help in order to survive. That help will no doubt come from the other countries that are fed-up of or suffering as a result of U.S. dollar hegemony.

    China is set to launch a crude oil futures contract priced in yuan and convertible into gold. This will give the likes of Russia and Iran a means of bypassing both the U.S. Dollar and sanctions. Now, it may also be an option for the world’s largest oil producer.

    By making this convertible into gold it means countries are no longer held hostage by foreign currencies. Gold is a borderless currency which speaks everyone’s language.

    Liberate us from the U.S. dollar

    The new policy on oil payments has not been officially announced but it comes less than a week after both President Maduro and Vice President Tareck El Aissami called for liberation from the US dollar.

    El Aissami (blacklisted by the US) has called for other sovereign currencies to be used. On Friday he said, “To fight against the economic blockade there will be a basket of currencies to liberate us from the dollar.”

    In an hour-long address to a new legislative body last week, President Maduro said, “If they pursue us with the dollar, we’ll use the Russian ruble, the yuan, yen, the Indian rupee, the euro,”

    As mentioned in the introduction super-powers such as China and Russia are keen for countries such as Venezuela to join them in avoiding the U.S. dollar.

    Plans have gone beyond just negotiating around U.S. sanctions and are now in full infrastructure building mode. Russia, China and Iran are all setting up a new financial system that will, in Putin’s words, focus on a “fair multipolar world”, and “against protectionism and new barriers in global trade.”

    “Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulation reforms and to overcome the excessive domination of the limited number of reserve currencies.

    Excessive domination

    [​IMG]

    Oil rich nations are certainly weary of the U.S dollar’s excessive dominance over trade. Currently they have little choice over which currency to use.

    One theory put forward in William R. Clark’s book Petrodollar Warfare is that the U.S. led wars ‘are fueled by the direct effect on the U.S. dollar that can result if oil-exporting countries opt to sell oil in alternative currencies. For example, in 2000, Iraq announced it would no longer use U.S. dollars to sell oil on the global market. It adopted the euro, instead.’

    Even if countries are not oil-rich or fearful of the gun-wielding powers of the U.S. they would still like the option to decide which currencies they trade in. Trading in the U.S. dollar can make life very difficult elsewhere.

    When using the U.S. dollar foreign banks are required to clear payments through the US, even if they are doing business elsewhere. This can’t just happen, a dollar clearing licence from US authorities is required. This can also be quickly taken away if Washington decides it wants to punish you somehow.

    Will the euro want them? Gold will

    In the short-term, the solution for Venezuela might not be as simple as accepting the euro.

    Much of the current plan assumes that Europe will not sanction Venezuela. Should they also take a similar stance to the US then Maduro’s nation will be left with a choice of Rubles, Yuan and, of course, gold.

    This is where Russia, China and Iran will certainly be on board. We know that all three countries hold huge amounts of gold and are very open to using it for trade purposes.

    Jim Rickards explains:

    China, Russia and Iran are coordinating a new international monetary order that does not involve U.S. dollars. It has several parts, which together spell dollar doom. The first part is that China will buy oil from Russia and Iran in exchange for yuan.

    The yuan is not a major reserve currency, so it’s not an especially attractive asset for Russia or Iran to hold. China solves that problem by offering to convert yuan into gold on a spot basis on the Shanghai Gold Exchange.

    This marks the beginning of the end of the petrodollar system that Henry Kissinger worked out with Saudi Arabia in 1974, after Nixon abandoned gold.

    This is not some back-of-a-beer-mat plan. At last week’s BRICs summit members expressed full support to China moving away from the U.S. Dollar.

    This is particularly pertinent at a time when U.S. Treasury Secretary is threatening to cut China out of the U.S. Dollar system

    If China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the U.S. and international dollar system. And that’s quite meaningful.

    But how meaningful is it when the Asian super-power is putting infrastructures (and deals) in place to trade in gold. Don’t forget, this is the world’s biggest buyer of gold. They will unlikely need the U.S. dollar forever.

    How will this unfold?

    Who knows how this will unfold. But what is clear is that the U.S. has been relatively short-sighted with how it has used the power of its currency.

    As it has sought to sanction, threaten and bully countries into the using its currency, others have been slowly building up their gold reserves and infrastructure systems. This means that the U.S. dollar sanctions will soon not mean as much as they once did.

    It is relatively easy to put controls on a country’s currency, but it is very difficult to do so with gold.

    Whilst Venezuela is no doubt struggling with the impact of the sanctions from Washington they do have support from those elsewhere and that support is very interested in physical gold.


    Related reading

    China Reassures Global Markets and Promotes Yuan Denominated Gold Investments


    China’s Yuan Set To Become Global Reserve Currency With Gold Backing?


    http://info.goldcore.com/currency_wars_bye_bye_petro_dollar_buy_buy_gold_goldcore_insight

    News and Commentary

    Gold falls to lowest in nearly 2 weeks, U.S. inflation data in focus (Reuters.com)

    Stocks Rally Stalls in Asia; Dollar Holds Advance (Bloomberg.com)

    U.S. government posts $108 billion deficit in August (Reuters.com)

    Wholesale Prices in U.S. Increase on Jump in Energy Costs (Bloomberg.com)

    Ex-UBS Trader Accused by U.S. of Manipulating Metals Prices (Bloomberg.com)

    Central London House Prices Post Worst Performance Since 2008 (Bloomberg.com)

    [​IMG]

    Seen strong performance in gold: Marc Faber (MoneyControl.com)

    China’s New Gold-Backed Oil Benchmark to Deal Blow to U.S. Dollar (TheTrumpet.com)

    Former BIS Chief Economist Warns “More Dangers Now Than In 2007” (ZeroHedge.com)

    What Britain’s best-loved estate agent can tell us about UK house prices (MoneyWeek.com)

    Julian Robertson: “There’s A Bubble” And “It’s The Federal Reserve’s Fault” (ZeroHedge.com)

    Gold Prices (LBMA AM)

    14 Sep: USD 1,323.00, GBP 1,002.44 & EUR 1,111.58 per ounce
    13 Sep: USD 1,332.25, GBP 1,003.85 & EUR 1,112.43 per ounce
    12 Sep: USD 1,326.25, GBP 1,000.66 & EUR 1,109.41 per ounce
    11 Sep: USD 1,338.75, GBP 1,015.31 & EUR 1,114.24 per ounce
    08 Sep: USD 1,350.90, GBP 1,026.82 & EUR 1,120.71 per ounce
    07 Sep: USD 1,340.45, GBP 1,026.52 & EUR 1,119.54 per ounce
    06 Sep: USD 1,340.15, GBP 1,028.03 & EUR 1,122.11 per ounce

    Silver Prices (LBMA)

    14 Sep: USD 17.75, GBP 13.40 & EUR 14.91 per ounce
    13 Sep: USD 17.91, GBP 13.50 & EUR 14.94 per ounce
    12 Sep: USD 17.75, GBP 13.37 & EUR 14.87 per ounce
    11 Sep: USD 17.85, GBP 13.51 & EUR 14.86 per ounce
    08 Sep: USD 18.21, GBP 13.80 & EUR 15.09 per ounce
    07 Sep: USD 17.79, GBP 13.59 & EUR 14.85 per ounce
    06 Sep: USD 17.77, GBP 13.62 & EUR 14.90 per ounce


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    http://www.goldcore.com/us/gold-blog/oil-rich-venezuela-stops-accepting-dollars/
     
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