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Fed Rejects Wells Fargo's Oversight Reform Plan; Asset Freeze Will Remain In Place


by Tyler Durden
Thu, 12/06/2018 - 09:05


Warren Buffet's favorite scandal-plagued US bank - which seemingly can't go one single quarter without evidence of more illegal behavior emerging - has failed to convince the Federal Reserve that its improvement of its oversight practices will help prevent future fraud and abuse directed at its customers and clients.

According to Reuters, the Federal Reserve has rejected Wells's reform plan and warned the bank that it needs stronger checks against management, or potentially face more sanctions from the central bank. This after the Wall Street Journal reported earlier this week and revealed that the bank would fire nearly 40 regional managers whom it has accused of complicity in the bank's disastrous cross-selling scandal.

By laying off staff, the bank had sought to convince the central bank that it is fixing problems related to its fraudulent sales practices.

In an unprecedented crackdown on a US bank, the Federal Reserve back in February revealed that it would cap assets in Wells' lending business at end-2017 levels, something we noted at the time resembled a "soft nationalization" as the central bank had effectively seized control over Wells's balance sheet.



But presumably, the Fed is trying to tell the bank that simply firing mid-level managers isn't enough: The bank must implement significant checks against abuse and fraud that will stay in effect regardless of who is running the bank. By rejecting the bank's proposal, the Fed will ensure that its asset-price cap on Wells Fargo's lending business will remain for the foreseeable future. If there is a silver lining here, it's that the bank has assured its shareholders that the restrictions will "only" hurt profits by $100 million this year.

Wells Fargo subsequently submitted its plan in April expecting the Fed to sign-off on it over the summer, but the central bank instead told the country’s fourth-largest lender to go back to the drawing board, the people said.​

The settlement requires Wells Fargo to toughen board oversight, repay customers hurt by past abuses, and make more than 20 other improvements to its governance, risk management and compliance controls.​

It also required the plan to be approved, implemented and an independent third-party review completed by Sept. 30, but the bank has missed this deadline, the people said.​

That alone could have triggered further sanctions under the terms of the settlement, but the Fed has granted Wells Fargo more time to satisfy the February order, the sources said.​

According to CNBC, Wells Fargo submitted its plan to the Fed back in April, hoping that it would approve it over the summer. Instead, the Fed sat on the report for months before sending the bank back to the drawing board. After submitting its plan, Wells CEO Tim Sloan met with Fed Governor Lael Brainard to try and agree on the specifics, but these talks were clearly unsuccessful.

In the months since the bank submitted the plan, Wells has published some of its worst mortgage-lending numbers since the financial crisis (back in February, Wells ceded its title as America's largest mortgage lender to Quicken Loans).

After rejecting the plan, the Fed could have imposed new sanctions against Wells; instead, it's choosing to allow the bank more time to fix its compliance issues.

Wells shares - which have fallen 6% over the past two years as the S&P has climbed 22% - slid 1.5% in premarket trading. The bank is facing several investigations - including a criminal probe into overcharging clients in its FX business as well as a scheme to rig bids for low-income tax credits.

And those are only the investigations we know about...

https://www.zerohedge.com/news/2018...ht-reform-plan-asset-freeze-will-remain-place
 

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Asian Metals Market Update: Dec 6 2018
By: Chintan Karnani, Insignia Consultants
Lots and lots of US economic data releases are there today and till 14th December. Most traders believe that the trend of metals and the US dollar Index will be set after the release of US nonfarm payrolls tomorrow. I do not think so. Next week also there can be trend changing US economic data releases like retail sales and GDP numbers. Physical demand of silver is there in India and Asia. But quick spikes happen when investment demand surges or herd trading happens.
 

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GM Worker Blames Trump For Job Cuts
DEMCAD


Published on Nov 30, 2018
My commentary on whether Trump or GM should be blamed for an Ohio factory being shut down. Did trump break his campaign promise to save American manufacturing jobs.

Author: Reginald Kaigler
Location: Pikeville, KY
Facebook: https://www.facebook.com/reginald.kai...
Twitter: https://twitter.com/DEMCAD
 

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Ira Epstein's End of the Day Financial Video 12 6 2018
Ira Epstein


Published on Dec 6, 2018
 

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Ira Epstein's End of the Day Agriculture Video 12 6 2018
Ira Epstein


Published on Dec 6, 2018
 

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Chinese arrest will spark more Wall Street decline
RT America


Published on Dec 6, 2018
The already volatile stock markets were further spooked by the arrest of a Chinese tech mogul in Canada at the behest of the US government. Will markets continue to plunge and, if so, how low? Peter Schiff, CEO of Euro Pacific Capital, joins Rick Sanchez to share his insights and expertise
 

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Hyperinflation Is the Loss of Confidence in the State and Its Currency.
maneco64


Published on Dec 7, 2018
 

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Share Talk Bulletin Board Heroes, Friday 7th December 2018
Share Talk


Published on Dec 7, 2018
A charting look at some of the most followed stocks on the London market, Zak Mir covers.

Avocet Mining (AVM)
Evr Holdings (EVRH)
Highlands Natural Resources Plc (HNR)
Interserve plc (IVR)
Mporium Grp (MPM)
Maistro (MAIS)
Wishbone (WSBN)

@ZaksTradersCafe deductive reasoning as to what should happen next in terms of the newsflow regarding the companies listed in this video.

Zakmir.com is a purely journalistic website – Zak Mir is a member of the National Union of Journalists. There is no intention here of providing financial advice. It is recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.
 

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S&P Futures Slide, Europe Jumps As Traders Beg For Chaotic Week To Week





by Tyler Durden
Fri, 12/07/2018 - 07:28

There is a sense of almost detached resignation amid trading desks as we enter the last trading day of a chaotic, volatile week that has whipsawed and stopped out virtually everyone after the Nasdaq saw the biggest intraday reversal since April, and pattern and momentum trading has become impossible with one headline tape-bomb following another.

After yesterday furious tumble and sharp, last hour rebound, US equity futures are once again lower expecting fresh developments in the Huawei CFO arrest and trade war saga while today's payroll report may redirect the Fed's tightening focus in wage growth comes in hotter than the 3.1% expected; at the same time European stocks have rebounded from their worst day in more than two years while Asian shares posted modest gains as investors sought to end a bruising week on a more upbeat note. While stock trading was far calmer than Thursday, signs of stress remained just below the surface as the dollar jumped, Treasuries rose and oil whipsawed amid fears Iran could scuttle today's OPEC deal.






The MSCI All-Country World Index, which tracks shares in 47 countries, was up 0.3% on the day, on track to end the week down 2%.

After Europe's Stoxx 600 Index sharp drop on Thursday, which tumbled the most since the U.K. voted to leave the EU in 2016, Friday saw Europe's broadest index jump 1.2% as every sector rallied following the cautious trade in the Asia-Pac session and the rebound seen on Wall Street where the Dow clawed back nearly 700 points from intraday lows. European sectors are experiencing broad-based gains with marginal outperformance in the tech sector as IT names bounce back from yesterday’s Huawei-driven slump.






Technology stocks lead gains on Stoxx 600 Index, with the SX8P Index up as much as 2.3%, outperforming the 1.1% gain in the wider index; Nokia topped the sector index with a 5.9% advance in Helsinki after Thursday’s public holiday, having missed out on initial gains from rival Huawei’s troubles that earlier boosted Ericsson. Inderes said the arrest of Huawei CFO over potential violations of American sanctions on Iran will benefit Nokia and Ericsson, who are the main rivals of Huawei and ZTE. Similarly, Jefferies wrote in a note on Chinese networks that China may have to offer significant concessions to buy Huawei an “out of jail” card and reach a trade deal, with China’s tech subsidies and “buy local” policies potentially under attack. "For example, why would Nokia and Ericsson have only 20% share in China’s 4G market," analysts wrote.

Meanwhile, energy names were volatile as the complex awaits further hints from the key OPEC+ meeting today. In terms of individual movers, Fresenius SE (-15.0%) fell to the foot of the Stoxx 600 after the company cut medium-term guidance, citing lower profit expectations at its clinics unit Helios and medical arm Fresenius Medical Care (-7.8%). The news sent Fresenius BBB- rated bonds tumbling, renewing fears of a deluge of "fallen angels." On the flip side, Bpost (+7.5%) and Tesco (+4.8%) are hovering near the top of the pan-Europe index amid broker upgrades.

Earlier in the session, Japanese equities outperformed as most Asian gauges nudged higher. MSCI’s broadest index of Asia-Pacific shares outside Japan nudged up 0.2%, though that followed a 1.8 percent drubbing on Thursday. Japan’s Nikkei added 0.8 percent. Chinese shares, which were up earlier in the day, slipped into negative territory with the blue chips off 0.1 percent.







E-Mini futures for the S&P 500 also started firmer but were last down 0.4 percent. Markets face a test from U.S. payrolls data later in the session amid speculation that the U.S. economy is heading for a tough patch after years of solid growth.

Will the last employment report released this year (the December report comes out in early January) help markets to continue to form a base? The consensus for nonfarm payrolls today is for a 198k print, following the stronger-thanexpected 250k reading last month. Average hourly earnings are expected to rise +0.3% mom which should be enough to keep the annual reading at +3.1% yoy while the unemployment rate is expected to hold steady at 3.7%. DB's economists are more or less in line with the consensus with a 200k forecast and also expect earnings to climb +0.3% mom, however that would be consistent with a small tick up in the annual rate to +3.17% and the fastest pace since April 2009. They also expect the current pace of job growth to push the unemployment rate down to 3.6% which would be the lowest since December 1969.

Meanwhile, Fed Chairman Jerome Powell confused traders when late on Thursday, he emphasized the strength of the labor market, throwing a wrench into trader expectations the Fed is poised to pause tightening - arguably the catalyst for Thursday's market-closing ramp following a WSJ article which reported Fed officials were considering whether to signal a new wait-and-see mentality after a likely rate increase at their meeting in December.






While Friday's market has stabilized, for many the recent gyrations are just too much. For Dennis Debusschere, head of portfolio strategy at Evercore ISI, there’s still far too much risk to wade back into a market this riven by volatility. “Overall still untradeable in our opinion, until we get more clarity on trade and we think it will pay to wait this out,” he wrote in a note to clients Thursday. “That being said, our desk is open for business if you’re feeling up to trading this backdrop.”

Meanwhile, the big question is what happens next year: “The big question mark still is what’s going to happen in 2019” with the Fed, Omar Aguilar, CIO of equities and multi-asset strategies at Charles Schwab, told Bloomberg TV. “The jobs report could easily be the catalyst that will tell us a little more about what the path may be.”

Expecting that a big slowdown is coming, interest rate futures rallied hard in massive volumes with the market now pricing in less than half a hike next year, compared to just a month ago when they had been betting on more than two increases. Treasuries extended their blistering rally, driving 10-year yields down to a three-month trough at 2.8260 percent, before last trading at 2.8863 percent. Yields on two-year notes fell a huge 10 basis points at one stage on Thursday and were last at 2.75 percent. Investors also steamrolled the yield curve to its flattest in over a decade, a trend that has historically presaged economic slowdowns and even recessions.

The seismic shock spread far and wide. Yields on 10-year paper sank to the lowest in six months in Germany, almost 12 months in Canada and 16 months in Australia. Italian debt climbed as European bonds largely drifted.

The greenback advanced against most of its Group-of-10 peers ahead of U.S. jobs data that are expected to show hiring slowed last month. The pound fell as U.K. Prime Minister Theresa May was said to be weighing a plan to postpone the vote on her Brexit deal.

In commodity markets, gold firmed to near a five-month peak as the dollar eased and the threat of higher interest rates waned. Spot gold stood 0.1 percent higher at $1,239.49 per ounce. Oil was less favored, however, falling further as OPEC delayed a decision on output cuts while awaiting support from non-OPEC heavyweight Russia. Brent futures fell 0.5 percent to $59.77 a barrel, while U.S. crude also lost half a percent to $51.19.

Cryptocurrencies continued their collapse with fresh losses after U.S. regulators dashed hopes that a Bitcoin exchange-traded fund would appear before the end of this year.

Market Snapshot
  • S&P 500 futures down 0.4% to 2,680.00
  • STOXX Europe 600 up 1.3% to 347.69
  • MXAP up 0.2% to 151.21
  • MXAPJ up 0.2% to 485.67
  • Nikkei up 0.8% to 21,678.68
  • Topix up 0.6% to 1,620.45
  • Hang Seng Index down 0.4% to 26,063.76
  • Shanghai Composite up 0.03% to 2,605.89
  • Sensex up 0.9% to 35,631.53
  • Australia S&P/ASX 200 up 0.4% to 5,681.49
  • Kospi up 0.3% to 2,075.76
  • German 10Y yield rose 0.8 bps to 0.244%
  • Euro down 0.05% to $1.1368
  • Italian 10Y yield rose 13.9 bps to 2.835%
  • Spanish 10Y yield unchanged at 1.46%
  • Brent futures up 0.2% to $60.16/bbl
  • Gold spot up 0.2% to $1,239.70
  • U.S. Dollar Index little changed at 96.88
Top Overnight News from Bloomberg
  • The arrest of Huawei Technologies Co. Chief Financial Officer Meng Wanzhou in Canada over potential violations of American sanctions on Iran has triggered a debate in China over whether to carry on with trade talks with the U.S. or link the two issues and retaliate; Meng will have a bail hearing Friday to determine whether she is a flight risk and should remain in detention during proceedings on extradition to the U.S.
  • Oil extended losses near $51 a barrel after OPEC entered a second day of talks in an attempt to draw up a deal to cut output. Iran sees no possibility of agreeing to reduce its output, Oil Minister Bijan Zanganeh said Friday
  • Theresa May met with her top ministers in London on Thursday to discuss options of delaying the Dec. 11 Parliamentary vote on her Brexit deal to avoid a landslide defeat that would risk a major U.K. political crisis, according to a person familiar with the matter
  • EU leaders are poised to turn their next summit into a Brexit crisis meeting, but so far, it doesn’t look like they’re willing to offer her anything that could help to break the deadlock in the U.K. Parliament
  • Angela Merkel’s long exit from politics begins Friday when her party gathers in Hamburg to decide whether to appoint her chosen successor as its new leader or break with the legacy of her 13 years in charge of Germany
  • Italian Finance Minister Giovanni Tria has complained that he is the victim of one ambush after another as his future is called into question amid tensions with populist leaders over a spending spree to fund election policies, according to newspaper Il Giornale
Asian stocks saw cautious gains with the region getting an early tailwind after the sharp rebound on Wall St, where most majors inished lower albeit off worse levels as tech recovered and the DJIA clawed back nearly 700 points from intraday lows. ASX 200 (+0.4%) and Nikkei 225 (+0.8%) were both higher at the open but gradually pared some of the gains as the risk tone began to turn cautious heading into today’s key-risk NFP jobs data. Hang Seng (-0.3%) and Shanghai Comp (U/C) were indecisive amid further PBoC inaction in which it remained net neutral for a 5th consecutive week and with the upcoming Chinese trade data over the weekend adding to tentativeness, while pharmaceuticals were the worst hit due to concerns of price declines from the government’s centralized procurement program. Finally, 10yr JGBs were flat amid a similar picture in T-note futures and although early selling pressure was seen in Japanese bonds alongside the strong open in stocks, prices later recovered as the risk appetite somewhat dissipated.

Top Asian News
  • China’s FX Reserves Rose Despite Intervention, Outflow Signs
  • Hong Kong May Slip Into Recession in 2019, Deutsche Bank Warns
  • SoftBank Seeks to Assuage Investors on Pre-IPO Mobile Outage
  • Southeast Asia Reserves Recover a Bit in November as Rout Eases
European equities extended on gains from the cash open (Eurostoxx 50 +1.2%) following the cautious trade in the Asia-Pac session and the rebound seen on Wall St where the Dow clawed back nearly 700 points from intraday lows. European sectors are experiencing broad-based gains with marginal outperformance in the tech sector as IT names bounce back from yesterday’s Huawei-driven slump. Meanwhile, energy names are volatile (currently marginally underperforming) as the complex awaits further hints from the key OPEC+ meeting today. In terms of individual movers, Fresenius SE (-15.0%) fell to the foot of the Stoxx 600 after the company cut medium-term guidance, citing lower profit expectations at its clinics unit Helios and medical arm Fresenius Medical Care (-7.8%). On the flip side, Bpost (+7.5%) and Tesco (+4.8%) are hovering near the top of the pan-Europe index amid broker upgrades.

Top European News
  • LandSec, Undeterred by Brexit, Makes New Bet on London Offices
  • Danske Says It’s Looking Into Selling Its Swedish Pension Assets
  • Chinese Group Agrees to Buy Amer Sports in $5.2 Billion Deal
  • Bad Air Warnings in London And Paris Peak With Fish And Chips
Currencies:
  • DXY - Typically rangebound trade in the run up to US labour data, and with markets also monitoring OPEC+ headlines as a decision on whether to cut output and if so by how much remains highly uncertain. The index is hovering just under the 97.000 handle within a 96.767-96.931 band, and well within nearest technical support and resistance levels at 96.300 and 97.311 respectively.
  • GBP - A marginal G10 underperformer as Cable retreats back below 1.2750 from just above 1.2800 at one stage, but this could be more flow-related rather than anything fundamental as Eur/Gbp rallied towards 0.8930 peaks from just under the big figure into the Frankfurt fixing before drifting back again. However, Halifax house prices were much weaker than expected and latest Brexit news is hardly Sterling supportive given more speculation about delaying the meaningful vote to try and avoid a resounding rejection, even though the Government appears to be resolute and standing firm on December 11.
  • NZD/AUD - The Kiwi is at the opposite end of a relatively narrow Usd/Major spectrum, and like the Pound also impacted by indirect factors to a degree, if not in the main. Indeed, Nzd/Usd remains capped ahead of 0.6900, but Aud/Nzd is pivoting 1.0500 as the Aussie unit continues to feel the adverse effects of recent bearish impulses, namely softer than forecast Q3 GDP and a more dovish RBA via Debelle. Hence, Aud/Usd is softer between 0.7210-40 parameters and bound to be wary of huge option expiries from 0.7250-60 in 6.6 bn that form a formidable barrier ahead of circa 1.2 bn up at 0.7300.
  • EUR/JPY - In the pre-NFP ‘hiatus’ and awaiting anything further on the Italian budget front, option expiries may also exert directional impetus on Eur/Usd and Usd/Jpy, as the former faces 2+ bn at the 1.1400 strike and latter is flanked by 1+ bn at 112.50 and 113.00.
  • CAD - The Loonie has pared a bit more lost ground from recent lows, albeit partly due to a broad Usd retracement, eyeing OPEC and also Canada’s jobs report given latest BoC guidance indicating even greater data dependency. Usd/Cad currently just shy of the 1.3400 mark vs 1.3440+ at one stage yesterday.
In commodities, WTI (+0.2%) and Brent (+0.9%) are choppy in what was a volatile session thus far as comments from energy ministers emerged ahead of the key OPEC+ meeting, after yesterday’s OPEC talks ended with no deal for the first time in almost five years. Brent rose after source reports noted that Moscow are ready to cut output by 200k BPD (below OPEC’s desire of 250k-300k but above Russia’s prior “maximum” of 150k) if OPEC are willing to curb production by over 1mln BPD. Prices then fell to session lows following a less constructive tone from Saudi Energy Minister who reiterated that he is not confident there will be a deal today, which came after delegates noted that OPEC talks are focused on a combined OPEC+ cut of 1mln BPD (650k from OPEC and 350k from Non-OPEC). Markets are awaiting the start of the OPEC+ meeting after delegates stated that talks are at deadlocked as Iran appears to be the main sticking point to an OPEC deal, though sources emerged stating that Iran, Venezuela and Libya are set to get exemptions from cuts, adding that OPEC and Russia are looking for a symbolic production commitment from Iran as fears arise that Iran may not be able to follow-through on curb pledges due to US sanctions. In terms of metals, gold hovers around session highs and is set for the best week since August with the USD trading in a tight range ahead of the key US jobs data later today, while London copper rose over a percent is underpinned by the positive risk tone.

US Event Calendar
  • 8:30am: Change in Nonfarm Payrolls, est. 198,000, prior 250,000
    • Unemployment Rate, est. 3.7%, prior 3.7%; Underemployment Rate, prior 7.4%
    • Average Hourly Earnings MoM, est. 0.3%, prior 0.2%; YoY, est. 3.1%, prior 3.1%
  • 8:30am: Average Weekly Hours All Employees, est. 34.5, prior 34.5
  • 10am: Wholesale Inventories MoM, est. 0.7%, prior 0.7%; Wholesale Trade Sales MoM, prior 0.2%
  • 10am: U. of Mich. Sentiment, est. 97, prior 97.5; Current Conditions, prior 112.3; Expectations, prior 88.1
  • 3pm: Consumer Credit, est. $15.0b, prior $10.9b
DB's Jim Reid concludes the overnight wrap
The age of innocence has truly gone in financial markets after a turbulent 24 hours but one that saw a spectacular rally after Europe closed last night and one that has steadily carried on in Asia overnight (more on this below). Before we get to that I’m on an intense client marketing roadshow at the moment on the 2019 Credit outlook and there are a litany of worries out there from investors. Maybe I’m trying to be too cute here but I think the problems we’re seeing in credit at the moment are more of a “ghost of Xmas future” rather than a sign of an imminent disaster scenario. However my overall confidence that credit will blow up around the end of this cycle has only intensified in the last couple of weeks. Liquidity is awful in credit and it’s been a broken two way market for several years (probably as long as I’ve worked in it - 24 years). However this has got worse this cycle as the size of the market has grown rapidly but dealer balance sheets have reduced. As such you can buy massive size at new issue but your ability to sell in secondary is constrained to a small percentage of this. This didn’t matter much when inflows dominated - as they mostly did in this cycle pre-2018 - but in a year of outflows across the board the lack of a proper two way market is increasingly being felt. As discussed I don’t think this is the start of the crisis yet but be warned that when this economic cycle does roll over or even starts to operate at stall speed the credit market will be very messy and will influence other markets again.

On the positive side and despite a very steep mid-session selloff, US markets ultimately closed well off the lows. The DOW, S&P 500 and NASDAQ finished -0.32%, -0.15% and +0.42% respectively, though they traded as low as -3.14%, -2.91%, and -2.43% respectively, around noon in New York. At its lows, the S&P 500 was on course for its worst two-session stretch since February, and before that you’d have to go back to August 2015 or 2011 to find the last episode with as steep a two-day drop. The DOW and S&P 500 dipped into negative territory for the year again, but clawed back and are now +0.92% and +0.84% YTD (+3.16% and +2.69% on a total return basis). The NASDAQ has clung to its outperformance, as it is now up +4.13% this year, or +5.20% on a total return basis, though of course the difference is narrower in the low-dividend paying, high-growth tech index.

Unsurprisingly, the moves yesterday coincided with higher volatility with the VIX climbing as much as +5.2pts to 25.94 and pretty much back to the October highs, though it too rallied alongside the equity market to end close to flat at 21.15. Meanwhile, the price action was even uglier in Europe as the US lows were around the close. The STOXX 600 plunged -3.09% and is down -4.22% in two days – the most in two days since June 2016. Nowhere was safe. The DAX (-3.48%), CAC (-3.32%), FTSE MIB (-3.54%) and IBEX (-2.75%) all saw huge moves lower. The DAX has now joined the Italy’s FSTEMIB in bear market territory, as it is now -20.49% off its highs earlier this year. The FTSEMIB is down -24.04% from its highs. European Banks – which were already down nearly -27% YTD going into yesterday – tumbled -4.29% for the biggest daily fall since May and the third biggest since immediately after Brexit. The index is now at the lowest since October 2016 and within 17% of the June 2016 lows all of a sudden. US Banks fell -1.87%, though they had dipped -4.3% at their troughs to touch the lowest level since September 2017.

As for credit, HY cash spreads in Europe and the US were +8.5bps and +14.8bps wider respectively. For context, US spreads are now at the widest since December 2016 and this is the best performing broad credit market over the last couple of years. In bond markets, 10y Treasuries rallied-2.4bps but was as much as 9bps lower intra-day. Thanks to an outperformance at the front end (two-year fell -3.7bps), the 2s10s curve actually ended a shade steeper at 13.0bps (+1.3bps on the day). However that move for the 10y now puts it at the lowest since September at 2.89%, and only +48.6bps above where we started the year. The spread on the Dec 19 to Dec 18 eurodollar contract – indicative for what is priced into Fed hikes for next year - is down to just 16bps. It was at 60bps in October. This certainly appears to be too low, though a Wall Street Journal article yesterday seemed to signal a willingness by the Fed to moderate its pace of rate hikes. Finally, in Europe, Bunds closed -4.1bps lower at 0.236%.

Quite amazing moves with Bunds continuing to defy all fundamental logic and trading instead as a risk-off lightning rod. There was some talk that the sharp moves lower at the open yesterday were exaggerated by the unexpected midweek close for markets in the US which resulted in futures systems failing to be programmed to adjust and orders backing up. However the combination of a -2.25% drop for WTI (-5.2% at the lows) post the OPEC meeting (more below) and the Huawei story that we mentioned yesterday certainly aided to the initial malaise. There was some talk that both the Chinese and US authorities would have been aware of the arrest before last weekend’s talks and as such this story shouldn’t be necessarily a threat to the truce, though Reuters reported last night that President Trump did not know about the planned arrest.

The implications of this are unclear, since it could mean that Trump has less direct control over the arresting agency, but it could also indicate that the move is not part of trade policy. Either way, how this development will be key for the market moving forward, especially any response from Chinese officials.

This morning in Asia markets are largely trading higher with the Nikkei (+0.60%), Hang Seng (+0.21%), Shanghai Comp (+0.08%) and Kospi (+0.51%) all up. Elsewhere, futures on the S&P 500 (-0.11%) are pointing towards a flattish start. Meantime crude oil (WTI -0.39% and Brent -0.60%) prices are continuing to trade lower this morning. It wouldn’t be an EMR worth it’s place in the daily schedule without an Italy and Brexit update. As we go to print Italian daily La Stampa has reported that the Italian Premier Conte and Deputy Premier Di Maio are in favour of the resignation of Finance Minister Tria while Deputy Premier Salvini is against his resignation. So signs of tension. In the U.K. a few press articles (like Bloomberg) are suggesting that PM May is considering postponing Tuesday’s big vote. There doesn’t seem to be a lot of substance to the story at the moment but it mentions going back to the EU for concessions on the Irish backstop as one possibility. How the EU will feel would be the obvious question.

As mentioned earlier, oil had a difficult session yesterday, falling back to its recent lows with WTI touching a $50 handle and Brent trading back below $60 per barrel. The first day of the OPEC summit did not appear promising for the odds of a new production deal, as the ministers apparently discussed a 1 million barrel per day cut, below the 1.5 million needed to balance the market.The Libyan oil minister abruptly left before the day’s meetings concluded, and the organization canceled their scheduled press conference. The Russian delegation will join the OPEC contingent today in an effort to finalize a deal, but Saudi Energy Minister al-Falih said that “Russia is not ready for a substantial cut.” Watch this space today.

Overnight, the Fed Chair Powell delivered an upbeat message on the US economy and the Job market ahead of today’s payrolls release. He said, “our economy is currently performing very well overall, with strong job creation and gradually rising wages,’’ while adding, “in fact, by many national-level measures, our labour market is very strong.’’ Elsewhere, the Fed’s John Williams said yesterday that the biggest challenge which the policy makers are facing is achieving a soft landing. He said, “we have a pretty strong economy -- unemployment pretty low, inflation near our goal -- it’s just managing a soft landing, keeping this expansion going for the next few years.”

So will the last employment report released this year (the December report comes out in early January) help markets to continue to form a base? The consensus for nonfarm payrolls today is for a 198k print, following the stronger-thanexpected 250k reading last month. Average hourly earnings are expected to rise +0.3% mom which should be enough to keep the annual reading at +3.1% yoy while the unemployment rate is expected to hold steady at 3.7%. Our US economists are more or less in line with the consensus with a 200k forecast and also expect earnings to climb +0.3% mom, however that would be consistent with a small tick up in the annual rate to +3.17% and the fastest pace since April 2009. They also expect the current pace of job growth to push the unemployment rate down to 3.6% which would be the lowest since December 1969.

Going into that, yesterday’s ADP employment change report for November was a tad disappointing at 179k (vs. 195k expected) while more interestingly the recent tick up in initial jobless claims held with the print coming in at 231k. The four-week moving average is now 228k and the highest since April having gotten as low as 206k in September. So the climb, while not yet at concerning levels, is certainly notable and worth watching now on a week to week basis. As for the other interesting data points yesterday, the October trade deficit was confirmed as reaching a new cyclical wide. The ISM non-manufacturing print for November was a relative positive after coming in at 60.7, up 0.4pts from October and ahead of expectations for a decline to 59.0. Worth noting is that the three-month moving average of non-manufacturing ISM is now the highest on record which is a fairly reliable lead indicator for private nonfarm payrolls. US durable goods orders for October were revised slightly higher to -4.3% mom from -4.4%, though the core measures stayed at 0.0% mom. Factory orders declined -2.1% mom, though both were nevertheless higher year-on-year.

As for the day ahead, the aforementioned November employment in the US will no doubt be front and centre, however, prior to that, we’ve October industrial production prints in Germany and France, along with Q3 labour costs in the former, and the final Q3 GDP revisions for the Euro Area (no change from +0.2% qoq second reading expected). We’ll also get the monthly inflation reporting for November in the UK. Also due out in the US is October wholesale inventories and trade sales, the preliminary December University of Michigan survey and October consumer credit. November foreign reserves data in China is also expected out at some point. Away from that the OPEC/OPEC+ meeting moves into the final day while the ECB’s Coeure and Fed’s Brainard are scheduled to speak. Today is also the day that Germany’s ruling CDU party elects a new chair to succeed Merkel. Our FX strategists noted yesterday that according to polls, the result should be a close call between general secretary Annegret Kramp-Karranbauer (AKK) and Friedrich Merz. Broadly speaking, AKK stands for a continuation of the Merkel-era strategy of positioning the CDU at the centre of the political spectrum, whereas Merz stands for a sharpening of the party's traditional profile as a centre-right party. Last night our German economics team put out a piece explaining the event and suggesting that Merz would be good for the DAX and AKK good for the Euro.

https://www.zerohedge.com/news/2018-12-07/us-futures-slide-europe-jumps-traders-beg-chaotic-week-end
 

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China Prepares Retaliation To Huawei CFO Arrest





by Tyler Durden
Fri, 12/07/2018 - 08:12

As Beijing's outrage over the arrest of Huawei CFO Wanzhou Meng simmers ahead of her Friday arraignment in a Canadian court, Bloomberg has shed some light on how news of her arrest has resonated with different factions in the Chinese leadership.

The upshot is that while officials in charge of managing China's trade negotiations believe China shouldn't allow Wanzhou's arrest to impact trade negotiations, hardline national security officials believe the arrest is an embarrassment to Chinese leader Xi Jinping, who reportedly had 'no idea' that the daughter of a Chinese business icon and Communist Party member had been arrested in Canada - and that China should use trade talks as leverage to demand that she be released.

Western media outlets have reported that, while White House officials and National Security Advisor John Bolton knew about Wanzhou's arrest before Saturday's meeting between Trump and Xi, the president somehow had no idea.

Now, BBG is reporting that Xi similarly had no idea that one of his country's most prominent executives had been taken into custody hours before he sat down with Trump. This asymmetry is viewed as deeply embarrassing to China's leader, and many believe that simply letting trade negotiations to move forward as plan would be an unconscionable capitulation - particularly if (as many analysts believe) the Trump Administration intends to use her arrest as leverage.






Still others believe that Wanzhou's arrest is a "gift" for Xi, because it gives cover for the Chinese to dig in their heels and accuse the US of using the trade war as a pretext to stymie China's ascent as a global superpower. In light of Wanzhou's arrest, such a stance would likely garner more sympathy from the rest of the world.

As China contemplates how to respond, at least there is one silver lining: It helps China appear sincere to the world in wanting to resolve the trade war. He can say he is trying to resolve the issue but the US has an entrenched strategy to cut off China’s rise as a global power - a theme that state-run media picked up on Friday.

"The Huawei arrest gives China’s leaders a huge gift,' said Barry Naughton, a professor at the University of California in San Diego who studies China. "It makes super plausible the narrative they’ve been trying to promote all along: 'The U.S. just can’t stand our rise, they can’t stand to lose their dominance, they can’t treat anybody like an equal.'"

But one salient fact has been agreed on by all sides: Wanzhou's arrest doesn't bode well for a trade detente.

Officials concerned about the economy warned a collapse in trade talks would hurt China more than the Huawei arrest. Trump has threatened to raise tariffs to 25 percent on $200 billion worth of Chinese goods if a deal isn’t reached in 90 days. In the worst case of a 25 percent duty on all Chinese goods, 2019 economic growth could slump about 1.5 percentage points to 5 percent, down from 6.6 forecast for this year, according to Bloomberg Economics.

"The detention of Huawei’s CFO is not an accidental incident and will cast a shadow over the trade talks, but both sides will work hard to avert that bad influence," said Wei Jianguo, former vice minister of commerce and now a vice chairman of the China Center for International Economic Exchanges. "The negotiation between Chinese and U.S. working groups is going smoothly, and actually much better than people outside expected."

Because even if President Xi does opt to continue negotiating as per Saturday's deal, he will now need to extract even more concessions in order not to look powerless. And although Chinese officials have said they won't retaliate by arresting US executives - well - we wouldn't blame any US executives in China for grabbing their passports and chartering a flight to anywhere but China as quickly as humanly possible.

"Ms. Meng’s arrest threatens to make China’s leadership look powerless in securing the release of not only a citizen, but a senior executive and daughter of one of China’s business icons," said Michael Hirson, Asia director at Eurasia Group and a former U.S. Treasury Department official. "Nationalist sentiment will thus make it harder for Beijing to offer major concessions to Trump."

Publicly, at least, China is keeping the issues separate. On Thursday, commerce ministry spokesman Gao Feng told reporters that China is implementing agreements reached with the U.S. on agriculture, autos and energy. “In the next 90 days we will work in accordance with the clear timetable and road map” to negotiate in areas of mutual benefit, he said.

Then on Friday, foreign ministry spokesman Geng Shuang dismissed concerns that China would retaliate against U.S. companies.
"China always protects the legal rights and interests of foreigners in China, but they should also abide by all Chinese laws and regulations," Geng said.

In what's perhaps the clearest indication of China's outrage over the arrest, government-run media railed against Meng's arrest in editorials published on Friday.

"Obviously Washington is resorting to a despicable rogue’s approach as it cannot stop Huawei’s 5G advance in the market," the Communist Mouthpiece Global Times said in an editorial.

The upshot: If the US tries to use Whenzhou's arrest as leverage, they could wind up killing a promising deal.

https://www.zerohedge.com/news/2018...s-arrest-was-deeply-embarrassing-president-xi
 

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Naked Capitalism Links 12/07
https://www.nakedcapitalism.com/2018/12/links-12-7-18.html

TBP - 10 Friday AM Reads 12/07
https://ritholtz.com/2018/12/10-friday-am-reads-207/

SA - Market News Live Feed 12/07
https://seekingalpha.com/market-news

CWS Morning News: December 7, 2018
http://www.crossingwallstreet.com/archives/2018/12/morning-news-december-7-2018.html

CWS Market Review – December 7, 2018
http://www.crossingwallstreet.com/archives/2018/12/cws-market-review-december-7-2018.html

SA - Wall Street Breakfast: Nonfarm Payrolls Take Center Stage 12/07
https://seekingalpha.com/article/4226972-wall-street-breakfast-nonfarm-payrolls-take-center-stage

TCS - Low Volatility Stocks Take The Lead In 2018’s US Factor Race 12/07
http://www.capitalspectator.com/low-volatility-stocks-take-the-lead-in-2018s-us-factor-race/

MtM - A Couple More Events before Seeing the End of Difficult Week for Investors 12/07
http://www.marctomarket.com/#!/2018/12/a-couple-more-events-before-seeing-end.html
 

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Huawei’s Meng Snagged Due to US Bank Sanctions

Posted on December 7, 2018 by Yves Smith

The arrest of Huawei CFO Meng Wanzhou produced a market meltdown in the morning, with the Dow down over 700 points, with stock retracing to only small losses for the major indices by the end of the session. However, the US extradition request, which presumably will lead to her being prosecuted, will continue to be a flashpoint between the US and China.

Some tidbits:

US bank sanctions caught Huawei in their dragnet. Even though the Wall Street Journal and other reported that Meng’s executive and board roles in 2007 through 2009 with a Huawei operation that did business with Iran was one of the areas the Department of Justice had looked into.

But a South China Morning Post was leaked an internal Huawei memo from October 29 where Meng and her father, founder Ren Zhengfei, were discussing costs of compliance and setting limits on them. Key section:

Meng spoke of the different types of external regulatory compliance, dividing them into “red” and “yellow” lines. She did not specify any markets when describing the different scenarios…​
“Of course, beyond the yellow and red lines, there may still be another scenario, and that is where the external rules are clear-cut and there’s no contention, but the company is totally unable to comply with in actual operations. In such cases, after a reasonable decision-making process, one may accept the risk of temporary non-compliance,” she said….​
“We must not bind ourselves up just because the US is attacking us,” Ren said in response to a question. “If our hands and feet are bound, then we will not be able to continue producing, then what’s the point of compliance?”​
“The US has very strict compliance policies, but American companies are used to it,” Ren said. “Nobody dares to flout the law, it has become a habit, and they can still achieve high speeds. Our company has not yet formed this habit, that is why communication costs are too high.”​

That looks like a smoking gun. And if that is already in the public domain, what else is out there?

Now one might ask, how could the US establish that Huawei was violating US sanctions on Iran? It appears that the US has more current evidence that that of the subsidiary mentioned above. From the Financial Times:

The US justice department has been conducting an investigation for at least two years into whether Huawei breached sanctions against Iran and has requested information on the company from its bankers, according to people familiar with the investigation.​

A federally appointed monitor working inside HSBC, the UK-based bank, also flagged concerns that Huawei was breaching US sanctions on Iran, one person said, although the lender was also co-operating with federal prosecutors of its own accord.​

Between 2012 and 2017, HSBC operated under the supervision of Exiger, a London-based financial risk consultancy, which was appointed by US authorities to monitor the bank’s financial crime controls. The arrangement was put in place after HSBC was charged with breaching US sanctions on Iran and failing to stop Mexican drug cartels from laundering money, as part of a deal that saw the bank avoid prosecution.​

The justice department has concluded that HSBC’s controls were not at fault, and the lender is being treated as a witness or victim to any offence by Huawei. “HSBC is not under investigation and is co-operating with the Department of Justice,” said one person familiar with the matter. HSBC declined to comment.​
The arrest does appear to be opportunistic. The US had a sealed indictment against Meng (and one wonders who else at Huawei), so it is credible, as the press reported today, that her arrest in Canada for extradition was opportunistic. I hope Jerry Denim or other experts on airline operations will pipe up as to how the US would have been able to identify when she might be in countries that had extradition treaties with the US and could be relied on to cooperate (as in it’s altogether too easy to feign incompetence and let the target get away). Since executives are more likely to be no-shows on flights than mere mortals due to last minute changes in plans, even if the US somehow had a head’s up on her travel plans (but how?) they wouldn’t know for sure until they had the flight manifest.

Moreover, John Bolton is the sort who’d love to collect a high profile scalp like the arrest of Meng, so it’s credible that he would find a way to go ahead whether or not the China trade negotiation team was on board.

Meng has her bail hearing in Vancouver today, so we will probably learn more about the expected process and timetable.

This entry was posted in China, Globalization, Legal, Middle East, Politics, Surveillance state, Technology and innovation on December 7, 2018 by Yves Smith.

https://www.nakedcapitalism.com/2018/12/huaweis-meng-snagged-due-us-bank-sanctions.html
 

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Bernie Sanders: Concentrated Wealth is Concentrated Power
TheRealNews


Published on Dec 6, 2018
Sen. Sanders joins Paul Jay who asks if breaking up the big banks is enough to weaken the power of Wall St.

Visit https://therealnews.com for more stories and help support our work by donating at https://therealnews.com/donate.
 

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Hostess at New Jersey restaurant shames her 'unethical' boss who threatened to FIRE her if she attended funeral for friend killed by DUI driver

  • A restaurant hostess in New Jersey shared a shocking text thread between herself and her boss
  • The unnamed worker tried to arrange for someone to cover her shift so she could attend her late friend's funeral
  • Her boss, Katie Sanford, threatened to fire her if she attended the funeral and said 'just don't come back to work'
  • Social media pages for Café Seventy-Two in Ewing Township were deleted
  • The owners have received overwhelming hate mail and poor reviews as a result
  • Michael Sot, 20, was killed after an impaired driver smashed into his car Sunday
  • Sot was serving as a designated driver for students at The College of New Jersey

https://www.dailymail.co.uk/news/ar...man-attends-friends-funeral-instead-work.html
 

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Hamburg is building a test magnetic 'hyperloop' track to deliver parcels at up to 750mph (and it could send 4,000 lorryloads of post a day!)

  • Eventually authorities want to link the busy port to other German cities
  • It will transport freight in carbon fibre capsules whipped along using magnets
  • The pilot project in Hamburg is set to cost around €7 million (£6.2m)
  • The test route will run between the container terminal and container yards located 300 feet inland
https://www.dailymail.co.uk/science...c-hyperloop-track-deliver-parcels-750mph.html
 

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Stock Market Rocked Again: Gold & Silver React!
SalivateMetal


Published on Dec 7, 2018
 

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Ira Epstein's End of the Day Financial Video 12 7 2018
Ira Epstein


Published on Dec 7, 2018
 

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Ira Epstein's End of the Day Agriculture Video 12 7 2018
Ira Epstein


Published on Dec 7, 2018
 

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U.S. Yet to Finalize National Maritime Strategy Addressing Challenges to U.S.-Flag Fleet, GAO Says
December 7, 2018 by gCaptain


File photo

The U.S. Department of Transportation is yet to finalize national maritime strategies that were called were called for in two separate mandates by Congress in 2014, delaying providing decision-makers the information they needed to address challenges facing the U.S. flag fleet, the GAO said in a report.

The strategy, which was originally due to be completed in 2015, is intended to address how to make U.S.-flag vessels more competitive in the international market, as well as how to ensure the long-term viability of U.S.-flag vessels and U.S.-citizen mariners.

The Department of Defense (DOD) counts on U.S.-citizen mariners that work on U.S.-flag vessels to crew the government-owned reserve fleet during a crisis or military activation.

In an August 2018 report, GAO concluded that by not completing the strategy or establishing a timeline for completing it, Dept. of Transportation (DOT) had delayed providing decision-makers the necessary information to address challenges facing the U.S. flag fleet, and recommended that the DOT expeditiously finalize the mandated report.

Subsequently, with the passage of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Congress extended the deadline for the strategy to February 2020, which DOT have indicated they will be able to meet.

Stakeholders GAO spoke with for its August 2018 report identified two primary challenges to ensuring that the U.S.-flag fleet would continue to meet DOD’s national defense needs.

The first challenge identified by the GAO is maintaining the financial viability of the U.S.-flag fleet, which is threatened by the increasingly higher costs of operating U.S. vessels compared to foreign flag vessels and a decrease in government cargo being shipped internationally. The second challenge is the potential shortage of U.S. citizen mariners available to support defense needs, in part due to the declining numbers of U.S.-flag vessels that employ these mariners.

According to the GAO, DOT officials have identified some options address these challenges, but the GAO says DOT officials are not ready to assess their feasibility or formally propose these options.

For example, to address the challenge of maintaining the financial viability of U.S.-flag vessels, DOT has identified options such as changing regulations to decrease the costs of bringing a ship under the U.S. flag and requiring that certain energy export commodities, such as oil or liquefied natural gas, be carried on U.S.-flag vessels.

Additionally, in order to address the potential shortage of U.S.-citizen mariners, the DOT convened a working group to determine how many mariners would be needed to meet defense needs. The working group estimated a shortage of over 1,800 U.S.-citizen mariners in the event of a sustained military activation, although it also recommended data improvements to increase the accuracy of the count of available mariners.

The working group further identified two actions that could help increase the number of U.S.-citizen mariners, including developing a reserve program to identify and support qualified mariners willing to sail to support defense needs during an emergency, as well as expanding programs and requirements that support U.S.-citizen mariners, such as requirements that government agencies must ship certain cargo on U.S. flag vessels.

You can find the GAO’s latest statement on the National Maritime Strategy here.

https://gcaptain.com/u-s-yet-to-fin...essing-challenges-to-u-s-flag-fleet-gao-says/
 

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VLCC Exports Picking Up at Louisiana Offshore Oil Port
December 6, 2018 by Bloomberg

Anatoly Menzhiliy / Shutterstock

By Sheela Tobben (Bloomberg) — The Louisiana Offshore Oil Port is pushing out the most crude it’s shipped in any one month since the terminal began supertanker exports in February.

As the race to build new supertanker ports in the U.S. intensifies, LOOP this week is poised to send out three Very Large Crude Carriers, or VLCCs, carrying 6 million barrels of crude bound for overseas, according to a person familiar with the matter. And more VLCCs are set to load later this month.

The boost comes as the U.S. turns into a net oil exporter for the first time in 75 years, having shipped a record volume of American crude overseas last week, according to the Energy Information Administration.

While nine new deepwater terminals are planned for Texas and Louisiana, most won’t start up until at least the end of 2019. Until then, LOOP — the only terminal able to fully load the biggest ships — will dominate the field. LOOP’s ability to handle VLCCs could help the U.S. exceed 3 million barrels a day by this time next year, said Andy Lipow, president of Lipow Oil Associates.

Exports have reached that level only twice since the export ban ended in 2015.

Still, loading VLCCs is new for the terminal, which until recently only handled crude imports. LOOP has spent the past several months working out the details of sending barrels from its onshore storage caverns to awaiting tankers, according to Lipow. By now, exports are being driven not only by the facility’s owners — Marathon Pipeline LLC, Valero Terminalling & Distribution Co and Shell Oil Co — but also by third-party companies.

Learning Curve
To be sure, the dramatic rise in LOOP exports this month could be a fluke caused by fewer incoming tankers. “LOOP takes incoming cargoes. If there are fewer imports coming in, they can load up more outgoing tankers,” ESAI analyst Elisabeth Murphy said by phone from Boston.

LOOP exports may not be able to rise much higher as the majority of incremental American supply comes from the Eagle Ford and Permian Basin and those barrels leave from Texas.

But the terminal’s shipments could increase dramatically if plans to reverse the Marathon-operated Capline pipeline — which ships oil from the U.S. Gulf Coast to buyers in the north — proceeds, Lipow said. “With a reversed Capline, it would increase exports by 200,000-300,000 barrels a day out of the Louisiana.”

© 2018 Bloomberg L.P

https://gcaptain.com/vlcc-exports-picking-up-at-louisiana-offshore-oil-port/
 

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MSC Pays $630,000 in Penalties for California Air Quality Violations
December 7, 2018 by gCaptain


Photo credit: Port of Long Beach

MSC Mediterranean Shipping Company S.A. has paid $630,625 in penalties to the California Air Resources Board for violating the Ocean-Going Vessel At-Berth regulation.

The violations were discovered during a routine audit of the company’s 2014 visits to the Port of Oakland and the twin ports of Los Angeles and Long Beach.

CARB investigation revealed more than 2500 violations for both the Oakland and LA/LB fleets for failing to reduce auxiliary engine power generation by at least 50 percent and for exceeding limits for auxiliary engine run time as required by the At-Berth regulation.

Adopted in 2007, the At-Berth Regulation was designed to reduce emissions from diesel auxiliary engines on container ships, passenger ships and refrigerated-cargo ships while berthing at a California port. Vessel operators can either turn off auxiliary engines and connect to grid-based shore power, or use alternative technologies to achieve equivalent emission reductions while in port. The regulation ultimately requires a fleet operator to reduce at-berth oxides of nitrogen (NOX) and particulate matter (PM) emissions from its vessels’ auxiliary engines in port by at least 80 percent by 2020.

“Ocean-going vessels are significant contributors to air pollution,” said CARB Enforcement Division Chief Todd Sax. “Even in port, their auxiliary engines generate toxic diesel particulate pollution that impacts not only port-adjacent communities, but also entire inland regions. This regulation helps to protect all Californians and is necessary to ensure we meet our clean air goals.”

Based in Geneva, Switzerland, MSC is one of the largest worldwide container shipping companies. CARB says MSC cooperated with the investigation and subsequently converted its California fleets to include 100 percent shore power-equipped vessels, and has had no further violations of the At-Berth regulation.

The fine was paid to the California Air Pollution Control Fund to support air pollution research, and the company agreed to comply with all requirements of the regulation.

https://gcaptain.com/msc-pays-630000-in-penalties-for-california-air-quality-violations/
 

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Why Government and Bankers Love Fiat Money.
maneco64


Streamed live 3 hours ago
I will be talking about the nature of our current monetary system and why our political and financial elites are so enamored with it.
I will also be taking questions from the viewers.
 

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Financial Vet on Gold & Markets | Greg Weldon
SilverDoctors


Published on Dec 7, 2018
FREE SHIPPING over $99 USA https://SDBullion.com/deals
Podcast - http://www.SilverDoctors.com/precious...

With us this week, a new guest, Mr. Greg Weldon.

Greg takes us back in time to his beginning days in the 1980s COMEX NYMEX futures contract trading pits and back to today.

We discuss current ongoings with the US dollar, the euro, crude oil prices, growing Federal and consumer debt levels, especially in relation to the recent inversion of shorter term US bonds vs longer duration IOUs.

We also hear his up and potential downsides for gold prices for the coming years. His commentary too on silver, platinum, and palladium are all worthwhile as well.

Full SHOW NOTES, Guest Info, and BACKLINKs
https://SDBullion.com/blog/on-gold-ma...
 

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WEEK AHEAD COMMODITY REPORT: 10-14, December 2018: Gold, Silver & Crude Oil Price Forecast
TheGoldAndSilverClub


Published on Dec 8, 2018
JOIN THE LIVE TRADING ROOM HERE ▶ http://www.jointhelivetradingroom.com/
▶ To Receive LIVE Trade Alerts, Mentorship & Expert Insights For Profitable Commodity Trading.

-------------------
The Gold & Silver Club is an international Commodities Trading, Research and Advisory Group specializing in the Metals, Energy and Agriculture markets.
Learn More ▶ https://www.thegoldandsilverclub.com/
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© 2018 The Gold & Silver Club Limited
 

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Are the Frogs Jumping Out of the Globalist Pot in France?
maneco64


Published on Dec 8, 2018

"Climate Change - A Back Door to World Government", says George Hunt: https://youtu.be/rQn-1hy6I0M

"Plan to Bring Economy Down in Order To Impose One World Government".: https://youtu.be/sGCbz76ZtWM

"We Need to Remain Eternally Vigilant Against the Globalists.": https://youtu.be/LVMC94lwC34

"President Trump Declares War On Globalists by Withdrawing from Paris Climate Accord.": https://youtu.be/JTpV4lx2BK8
 

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Confidence in the System is Collapsing
Silver Fortune


Published on Dec 8, 2018
What do the Yellow Vest protests, the Federal Reserve, and MbS have in common?

Support Silver Fortune, shop at SD Bullion! Free shipping over $99, and a 1 oz. round for new customers! sdbullion.com/sf
(I am compensated by SD Bullion when the at spot round is claimed by new customers)

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International Silver Syndicate poured silver, featuring various popular YouTube silver and gold channels, including your's truly: https://mkbarzandbullion.com/pages/in...
(MK Barz does offer a small share of profits to channels featured on the ISS bars)

Any content within this video or any other video by the Silver Fortune channel is merely one man's opinion, commentary, and analysis, or actual information obtained from elsewhere, and should not be constituted as legal, investment, or financial advice. Make your own financial decisions, or consult a professional if you'd prefer to go that route. The Silver Fortune channel disclaims any liability for legal, financial, or investment decisions made.
 

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Uber 'begins process of filing for an IPO' in race to beat rival Lyft onto Wall Street

  • Uber has filed confidential preliminary paperwork for selling stock to the public
  • Ride-hailing giant lost $1.07billion in the third quarter and has been unprofitable
  • It could be public within the first three months of next year
  • Smaller rival Lyft recently took the same action and could be public by March
  • Giving investors the chance to buy stakes could raise billions for the companies
https://www.dailymail.co.uk/news/ar...-public-race-beat-rival-Lyft-Wall-Street.html
 

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Maduro: All Venezuelan Oil Will Be Sold In Petro Cryptocurrency


by Tyler Durden
Sat, 12/08/2018 - 14:50


Authored by Tsvetana Paraskova via Oilprice.com,

Venezuela’s President Nicolas Maduro said on state television that Venezuela would put in place in 2019 a program to sell all its oil production in the Petro cryptocurrency, which the leader is touting as the first state-backed oil-backed digital currency.



Gradually, Venezuela will sell all its oil production in Petro, Maduro said during a visit to Russia. For 2019, Venezuela will have a timetable to sell all its oil production in the cryptocurrency, its president said.

In this way, Venezuela will free itself from the currency used by Washington “to create economic pain” to other countries, and to “persecute countries, as it does with Venezuela, Cuba, Iran, and Russia”, Maduro said.​
El Petro, however, is seen by analysts and experts as nothing but a scam and another effort by Venezuela to skirt sanctions and mask the inability to overhaul the ailing domestic economy.

According to the International Monetary Fund (IMF), Venezuela’s economy will collapse by 18 percent this year, while inflation is expected to be at 1,370,000 percent.

Over the past months, Maduro has been touting a new plan for economic recovery, which includes a new policy on gasoline pricing that would raise Venezuela’s ultra-cheap gas prices for the first time in two decades. The plan to ease the severe economic crisis also featured a devaluation of the currency and pegging the new bolivars to the Petro.

Maduro claims that the Petro is strengthening his recently announced economic overhaul plan and will “revolutionize” the global crypto economy with a new form of trade, finance, and monetary exchange.

Experts and analysts are skeptical that the Venezuelan cryptocurrency is really backed by oil assets and minerals.

“Reaction from the cryptocurrency community has been a mixture of dumbfoundedness and anger,” Alex Tapscott from the Blockchain Research Institute told the BBC.​
According to Tapscott, there isn’t any proof at all to back up Venezuela’s claim that each unit of the Petro is backed by oil.

https://www.zerohedge.com/news/2018...ezuelan-oil-will-be-sold-petro-cryptocurrency
 

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Beijing Threatens "Severe" Retaliation Against Canada If Huawei CFO Is Not Released


by Tyler Durden
Sat, 12/08/2018 - 14:25


Canada's extraordinary arrest one week ago of Huawei CFO Meng Wanzhou, the daughter of Huawei founder and billionaire executive Ren Zhengfei, and its decision to charge her with "multiple" counts of fraud - a preamble to her likely extradition to the US to face charges of knowingly violating US and EU sanctions on Iran - has elicited widespread anger in Beijing, which declared Meng's detention a "violation of human rights" during a bail hearing for the jailed executive on Friday.

That anger has apparently only intensified after the hearing adjourned without a decision (it will resume on Monday, allowing Meng's defense team to argue for why she should be released on bail, contrary to the wishes of government attorneys who are prosecuting the case).



And with Canada insisting that it will prosecute Meng to the full extent of the law over allegations that she mislead banks about the true relationship of a Huawei subsidiary called Skycom, angry Chinese officials have decided to issue an ultimatum directly to the Canadian ambassador, who was summoned to a meeting in Beijing on Saturday and told in no uncertain terms that Canada will face "severe consequences" if Meng isn't released, according to the Wall Street Journal.

China's foreign ministry publicized the warning in a statement (though Canadian officials have yet to comment):

Chinese Vice Foreign Minister Le Yucheng summoned Canada’s ambassador to Beijing, John McCallum, on Saturday to deliver the warning, according to a statement from the Chinese Foreign Ministry.

The statement doesn’t mention the name of Huawei’s chief financial officer, Meng Wanzhou, though it refers to a Huawei "principal" taken into custody at U.S. request while changing planes in Vancouver, as was Ms. Meng. The statement accuses Canada of "severely violating the legal, legitimate rights of a Chinese citizen" and demands the person’s release.​

"Otherwise there will be severe consequences, and Canada must bear the full responsibility," said the statement, which was posted online late Saturday.​

Phone calls to the Canadian Embassy rang unanswered while the Canadian government’s global affairs media office didn’t immediately respond to an email request for comment.​

The warning marks an escalation in Beijing's rhetoric as investors worry that the arrest could cause the shaky trade detente between the US and China to devolve into acrimony. A federal judge issued a warrant for Meng's arrest back in August. Though after she was made aware of the warrant, Meng avoided travel to the US. She was arrested in Vancouver last Saturday while traveling to Mexico.

Aside from breaking off trade talks, some are worried that Beijing could seek to retaliate in kind by arresting a notable US executive. While the threats of Chinese bureaucrats might not amount to much in the eyes of US prosecutors, threatening a US executive with long-term detention in a Chinese "reeducation camp" just might.

https://www.zerohedge.com/news/2018...ion-against-canada-if-huawei-cfo-not-released
 

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Weekly Forex Review - 10th to the 14th of December
Forex Reviews


Published on Dec 8, 2018
The Engulfing Trader - https://www.forexreviews.info/the-eng...
The 5 Day Trend Training Series - https://www.forexreviews.info/5-day-t...
The Candlestick Training Series - https://www.forexreviews.info/the-can...
The Zone Trader Training Series - https://www.forexreviews.info/the-zon...

To watch a video overview of what each of the Forex Training Series available on the website covers visit - https://www.forexreviews.info/forex-t...

Weekly Forex Outlook and Review:

Weekly Forex Outlook and Review for the 10th to the 14th of December Forex Market.

Aspects covered in the review include evaluating how price action moved last week on the markets covered this week in the review as well as highlighting potential trading areas and target areas to be aware of this week on multiple markets.

Pairs and Markets Analysed this Week: EURUSD, GBPUSD, USDCHF, AUDUSD, AUDCAD, NZDUSD, NZDCAD, EURAUD, Gold and GBPCHF.

10 markets analysed this week in the review including many popular Forex Pairs.

Topic page for this week's review - https://www.forexreviews.info/weekly-...

The Zone Trader Training Series is Available:

The Zone Trader Training Series launched on Forex Reviews on the 23rd of October 2018.

If you have not checked out this training series yet, you can find out all about it by visiting here - https://www.forexreviews.info/the-zon...

Thanks for watching and Happy Trading! If you appreciate the video consider clicking the like button. If you have any comments comment below the video.

Comment "Happy Trading" below the video to let me know you read the bio.

I appreciate you all...

Have a great trading week!

► Website:

Forex Reviews Homepage - https://www.forexreviews.info/
Forex Training - https://www.forexreviews.info/forex-t...
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China summons US ambassador to Beijing to protest detention of Huawei heiress accused of trying to evade American sanctions on Iran

  • China's Vice Foreign Minister Le Yucheng issued the warning on Saturday
  • Meng Wanzhou, heiress to the Huawei empire, arrested in Canada last week
  • She is wanted in America for violating sanctions against Iran, sources say
  • Both countries have denied there is a political motivation behind the arrest
  • But China has accused the US of trying to curtail its booming technology sector
https://www.dailymail.co.uk/news/ar...consequences-Huawei-heiress-not-released.html
 

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Currencies, They Are All Sinking!
maneco64


Published on Dec 10, 2018
 

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Japanese prosecutors charge Ex-Nissan boss with under-reporting his income by £34.5MILLION over five years

  • Carlos Ghosn joined Nissan in 1999 and turned the ailing car-maker around
  • He stepped down as CEO last year and was then arrested in Tokyo last month
  • Prosecutors say he underreported £34.5million in income from 2010 to 2015
  • He and fellow Nissan executive Greg Kelly are then jointly charged with underreporting another £28million from 2015 until 2018

https://www.dailymail.co.uk/news/ar...s-charge-Ex-Nissan-boss-reporting-income.html
 

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World Markets "In World Of Pain" As Nothing Can Stop Relentless Stock Selling


by Tyler Durden
Mon, 12/10/2018 - 07:16


After another painful week for bulls, it's again a sea of red this morning with the selling extending on Monday as U.S. equity futures slide but off their worst sessions while European stocks follow Asian shares lower as traders focused on the latest dismal trade and inflation data from China over the weekend and the sharp drop in Japan's GDP, renewing concerns for slowing global growth while the escalation of tensions between Washington and Beijing continues. The dollar was mixed while the euro advanced, and 10Y TSY yields rebounded from session lows.



The biggest surprise may be that Monday is not more in the red, with the following non-exhaustive list of potential risk-off drivers hanging over Monday's open (as succinctly summarized by Bloomberg's Garfield Reynolds):

  • China summons U.S. Ambassador over the Huawei case
  • Trump Chief of Staff Kelly to leave, amid a welter of fresh Mueller developments
  • China reports weaker trade and inflation data
  • May pushes ahead on Brexit vote despite Cabinet, DUP opposition
  • Soggy U.S. payrolls, though not soggy enough to stop a December Fed hike
  • France protests intensify, raising concern of economic damage

"Another day, another reason to sell risk. Equity markets remain in a world of pain with everyone in search of a very elusive silver lining," said Stephen Innes at brokerage OANDA

MSCI’s all-country index has spent four weeks in the red, despite intermittent rallies fueled by hopes of trade war detente, and was set to start the 5th week in the red. The pessimism has been exacerbated by data showing the world’s largest economies — the United States, China, Japan and Germany — are all headed for slower growth. That pushed the index another 0.5% lower, while Europe's Stoxx 600 fell almost one percent in early trading led by a retreat in chemical, media and auto companies, and U.S. equity futures were down 0.4%, if rebounding from losses as much as 1%, suggesting more pressure on Wall Street later in the session.

Last week’s arrest of Huawei's CFO for extradition to the United States was seen putting up another hurdle to the resolution of a trade war between the world’s two biggest economies. U.S. trade rep Robert Lighthizer said Sunday there was a “hard deadline” to the 90-day trade ceasefire and without a successful end to talks by March 1, Washington would impose new tariffs on Chinese goods.

“The trade theme will preoccupy the markets through the 90-day truce period between the United States and China, waiting for any signs of concession between the parties,” said Soichiro Monji, senior economist at Daiwa SB Investments in Tokyo.

Economic data has disappointed, too, underscoring the impact of the trade wars on the world economy. Following weak trade and inflation data on the weekend, China posted far weaker-than-expected November exports and imports...



... reinforcing expectations Beijing will roll out more stimulus to prevent the economy cooling too fast, which in turn depressed the yuan to a one-week low after the weak data.

“(The data) would suggest China woes go well beyond U.S. tariffs, given that China trade surplus to the U.S. was at a record level. One can only imagine the impact on China terms of trade if the U.S. follows through with a 25 percent tariff,” Innes of OANDA said.

Meanwhile, China's neighbor Japan posted the worst contraction in over four years in the third quarter...



... as uncertainty over global demand and trade saw companies slashing capital spending the most since the financial crisis.



As a result, MSCI's index of Asian equities ex Japan slid 1.5% to a near three-week low, Shanghai shares retreated 0.8% and Japan's Nikkei shed 2.1 percent. EM stocks dropped 1.3 percent.

Asia’s latest weak data came after below-forecast industrial output numbers in Germany and U.S. jobs data showing employers hired fewer workers than expected in November. The U.S. jobs data weakened the dollar by convincing many that U.S. growth has peaked and the Federal Reserve will pause its rate tightening sooner than previously thought, with even Goldman now capitulating and pulling its forecast for a March rate hike. Last week, the dollar posted its worst performance since August against a basket of currencies.

The dollar was a touch firmer on Monday but stayed near two-week lows. The euro rose 0.3 percent at $1.1418 on upbeat German trade data, while the dollar drifted. Treasuries and European sovereign bonds were mixed. The yen was unchanged after earlier climbing toward a six-week high as concern about worsening U.S.-China relations and a slide in Asian stocks boosted demand for havens. Meanwhile, the pound tumbled to 2018 lows as Prime Minister Theresa May was said to delay the "meaningful" Brexit vote to avoid a "huge defeat ."



While that raises fears of a chaotic exit in March, those hoping for a no-Brexit outcome were encouraged by a ruling from the EU’s top court that Britain can revoke its decision to leave the bloc without the consent of other EU members.

France, meanwhile, suffered a fourth weekend of anti-government riots, which the finance minister said could curb economic growth by 0.1 percentage point. French hotel, transport and retail stocks fell amid concerns for French tourism, while the yield premium investors demand to hold French bonds over German peers rose to the highest since May. President Emmanuel Macron, already forced to row back on fuel tax increases, will make a televised address at 1900 GMT.

Elsewhere, India’s rupee fell with stocks and bonds as exit polls showed Prime Minister Narendra Modi’s party is set for tight electoral contests in key states before general elections next year.

“Concern about a bit of political and fiscal capitulation is rarely good for a bond market,” said Chris Bailey, European strategist at Raymond James.

Treasuries steadied and equities fell across the board. Italy’s debt rallied as the ruling League and Five Star Movement are considering making concessions to avoid possible sanctions as their budget wrangling continues. German bond futures snap lower, curve bear flattens along with USTs after US 10Y yields find support at ~2.82%. Gilts curve flattens, long-dated yields lower by ~4bps.

Oil erased some of Friday’s rally triggered by OPEC and its allies agreeing on production cuts. Brent (-1.0%) and WTI (-1.3%) retreated somewhat from gains seen after Friday’s agreement by OPEC+ to cut output by 1.2mln BPD from October levels for 6 months, with the deal to be reviewed in April. Russian Energy Minister Novak stated that Russia is to cut production by 228,000 BPD as part of this agreement. Separately, sources have commented that congress is increasingly likely to vote on the NOPEC bill, which will allow the DoJ to sue OPEC on anti-trust violations.

Gold has remained steady following Friday’s NFP miss which led to some speculation that the Fed may halt interest rates hikes sooner than was previously expected. Elsewhere, a Chinese government consultancy expects 2018 crude steel output to hit an annual record of 923mln tonnes.
Scheduled data include job openings, while Casey’s and Stitch Fix are set to report earnings

Market Snapshot
  • S&P 500 futures down 0.4% to 2,626.00
  • STOXX Europe 600 down 0.8% to 342.58
  • MXAP down 1.7% to 148.66
  • MXAPJ down 1.5% to 477.60
  • Nikkei down 2.1% to 21,219.50
  • Topix down 1.9% to 1,589.81
  • Hang Seng Index down 1.2% to 25,752.38
  • Shanghai Composite down 0.8% to 2,584.58
  • Sensex down 2% to 34,979.01
  • Australia S&P/ASX 200 down 2.3% to 5,552.50
  • Kospi down 1.1% to 2,053.79
  • German 10Y yield unchanged at 0.249%
  • Euro up 0.3% to $1.1416
  • Italian 10Y yield fell 6.9 bps to 2.766%
  • Spanish 10Y yield fell 0.7 bps to 1.444%
  • Brent futures down 1.3% to $60.86/bbl
  • Gold spot down 0.2% to $1,246.70
  • U.S. Dollar Index up 0.1% to 96.60
Top Overnight News
  • President Donald Trump’s trade team sought to insulate talks with China from a growing dispute over the U.S. pursuit of a Huawei executive on Sunday, but struggled to address financial markets’ fears that a fragile truce with Beijing was at risk
  • U.K. Prime Minister May must decide Monday whether to put her Brexit deal to a vote in Parliament this week and risk a defeat that could plunge the U.K. into more political chaos.
  • The U.K. can unilaterally reverse Brexit, the European Union’s top court said in a ruling that will fuel the campaign to thwart the divorce on the eve of a make-or-break vote in the British Parliament
  • China’s Vice Foreign Minister Le Yucheng has summoned the U.S. Ambassador to China in a protest over the arrest of Huawei’s Chief Financial Officer Meng Wanzhou, and said it will take “further action” if needed
  • President Trump’s trade team sought to insulate talks with China from a growing dispute over the U.S. pursuit of a Huawei executive on Sunday, but struggled to address financial markets’ fears that a fragile truce with Beijing was at risk
  • Australian central bank Assistant Governor Christopher Kent reiterated the next interest-rate move would likely be a hike, “but not anytime soon”
  • Escalating trade tensions between the U.S. and China risk derailing the global economy by undermining business confidence and increasing the cost of living, IMF’s Managing Director Christine Lagarde said
  • Japan’s economy shrank more than initially projected, driven by the biggest drop in business spending in nine years amid a series of natural disasters
  • Italy’s government will discuss the results of a highly-awaited cost analysis of its 2019 budget proposals this week, just as the country’s populist leadership’s standoff with the European Union comes to a head with the threat of sanctions
  • French President Emmanuel Macron is due to address the nation on Monday, with everyone from Yellow Vest protesters to his dwindling band of supporters awaiting a solution to end the downward spiral of Europe’s second-largest economy
Asian equity markets began the week lower following last Friday's sell-off on Wall St and Non-Farm Payrolls miss, with
sentiment also dampened by disappointing Japanese GDP and Chinese trade data, as well as uncertainty regarding US-China
trade relations. As such, ASX 200 (-2.3%) was led lower by tech and financials to print lows last seen in around 2 years, while
Nikkei 225 (-2.1%) was pressured by a firmer JPY and larger than expected downward revision to Q3 GDP which had already
been in contraction territory. Hang Seng (-1.2%) and Shanghai Comp. (-0.8%) were also negative after Chinese Exports and
Imports data fell short of estimates and amid concerns regarding US-China trade tensions. This was after USTR Lighthizer
declared the 90-days was a 'hard deadline' for China, while there were also reports China’s Vice Foreign Minister summoned the
US and Canadian Ambassadors to China regarding the arrest of Huawei’s CFO and warned of consequences if she is not
immediately released. Finally, 10yr JGBs were underpinned by safe-haven demand and with the BoJ also present in the market for
a respectable JPY 1.2tln of JGBs with 1yr-10yr maturities.

Top Asian News
  • Investors in ‘Get-Me-Out-of-Here Mood’ as Asian Stocks Spiral
  • SoftBank Sticks to IPO Price Despite Market Drop, Network Outage
  • Ali Pictures Surges on HK$1.25b Share Sale to Alibaba
  • Alibaba Is Said to Discuss Joining Megvii Funding of Over $500M
  • China’s Bond Rally Is Turning Into a Bubble, Guotai Junan Says
Major European bourses are red across the board (Euro Stoxx 50 -0.3%) with the FTSE 100 (unch.) outperforming its peers amid currency effects (with the ongoing Brexit turmoil) and a boost by BAE Systems (+0.8%) following the Co. being shortlisted to build the next Royal Navy frigates. Over in Germany, DAX (-0.5%) is hampered by shares in heavyweight BASF (-4.9%) after the Co. significantly lowered their 2018 EBIT forecasts. Major sectors are largely in the red, with underperformance seen in materials in the wake of softer-than-expected Chinese CPI alongside further strain on US-China trade relations after the Huawei CFO is to face prosecution in the US for fraud charges as China demands her release. Other notable movers include technology names such as Dialog Semiconductor (-2.5%) who are in the red in sympathy with poor performance in tech names overnight in Asia, while Standard Chartered (-1.5%) declined amid reports that the Co. was amongst the banks who have been misled by Huawei.

Top European News
  • Bruised Euro-Zone Economy Stumbles On After Its 2018 Beating
  • Will Merkel Leave Germany Fit for the Future? Probably Not
  • Yellow Vests Protests Put a Dent in French Economic Growth
  • Italy Banks Face $273 Billion Headache Replacing Cheap ECB Funds
  • Italy, EU Stage Sideshow Fight As Recession Risk Looms
In FX, the DXY is still on the backfoot, albeit off worst levels, in a continuation of the move following Friday’s NFP miss with the index and broad dollar closer to the top of a 96.684-358 range and awaiting more impetus data in the form of JOLTS and employment trends.
  • AUD, NZD – Antipodeans deriving support from their softer US counterpart having initially wobbled on weaker Chinese trade data overnight. Kiwi hovers just below 0.6900 as the AUD/NZD remains capped ahead of 1.0500 and AUD/USD struggles to hold above 0.7200.
  • GBP,EUR – More volatile trade for the Pound amidst ongoing Brexit uncertainty with all eyes on the 11.30GMT Cabinet conference call where Minister are now assuming PM May will delay the meaningful vote due to wide anticipation that the deal will be rejected in Parliament. GBP/USD currently languishing below 1.2700 ahead of the recently-made YTD low of 1.2657 having seen some reprieve following the ECJ ruling that the UK can unilaterally reverse Brexit without consulting the EU27 members. However, the upside was short-lived ahead of UK data which was weaker overall, with industrial productions considerably weaker than forecasts. Meanwhile, EUR benefits from the softer buck and pound with EUR/GBP near the top of a 0.8988-57 range.
  • NOK, SEK – Stronger than expected Norwegian inflation data just ahead of Thursday’s Norges Bank interest rate decision, weighed on EUR/NOK with the pair making a substantial move sub-9.7000 post-data with a low print of around 9.6500, before paring back a fraction of the move to stabilise around 9.6700. Conversely, further political angst in Sweden after the Centre party leader Loof noted that talks with Social Democrats have failed, adding they will not support their leader Leader Lofven as PM. This subsequently (alongside the NOK/SEK spillover) pushed EUR/SEK to session highs north of 10.3350 vs. a low print of 10.2973.
  • JPY – Moving in tandem with swings in risk sentiment more so than the wider-than-expected contraction in Japanese Q3 GDP, with USD/JPY currently nearer the highs of a 112.75-25 range with the downside contained by big options (1.13bln at 112.40-50) and a fib at 112.46.
  • EMs – USD/CNY rose to just shy of 6.9150 in the wake of lower-than-expected inflation data alongside continuous US pressure after US Trade Representative Lightizer solidified the 90-day negotiating period as “a hard deadline” with new tariffs imposed by March 1st should the parties not reach an agreement. Meanwhile, TRY has largely recovered from the miss in Turkish GDP with USD/TRY clipping 5.3000 post-data before edging lower to around 5.2800. Elsewhere, ZAR is on the backfoot on a more technical note as traders cite the USD/ZAR breach above 14.2000 as the catalyst
In commodities, Brent (-1.0%) and WTI (-1.3%) have retreated somewhat from gains seen after Friday’s agreement by OPEC+ to cut output by 1.2mln BPD from October levels for 6 months, with the deal to be reviewed in April. Russian Energy Minister Novak stated that Russia is to cut production by 228,000 BPD as part of this agreement. Separately, sources have commented that congress is increasingly likely to vote on the NOPEC bill, which will allow the DoJ to sue OPEC on anti-trust violations. Elsewhere, Libya’s NOC has declared a force majeure following a production suspension at the Sharara oil field due to safety concerns because of protestors at the oil field; which will result in a 315k BPD production cut, while Zawiya refinery is also at risk due to its dependence on the Sharara field. Gold (Unch) has remained steady following Friday’s NFP miss which led to some speculation that the Fed may halt interest rates hikes sooner than was previously expected. Elsewhere, a Chinese government consultancy expects 2018 crude steel output to hit an annual record of 923mln tonnes Iraq oil Minister Ghadhban says that the county's oil exports have improved after November's drop in exports due to bad weather.

US Event Calendar
  • 10am: JOLTS Job Openings, est. 7,100, prior 7,009

https://www.zerohedge.com/news/2018...ain-nothing-can-stop-relentless-stock-selling
 

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How to Collect a Judgment - Lehto's Law Ep. 5.34
Steve Lehto


Published on Dec 10, 2018
I get asked about collecting on a judgment. You won the case; how do you get them to pay? My advice is based on Michigan law. The laws may vary in your state.

http://www.lehtoslaw.com
 

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