Daily Digest

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Daily Digest 8/23 - Everything That Went Wrong in Stocks, Wildfire Season Gets Worse

Sunday, August 23, 2015, 11:12 AM

Economy

The Dow Correction And Everything Else That Went Wrong in Stocks (jdargis)

The S&P 500 sank to 1,970.89 at 4 p.m. in New York, its lowest level since October. The index ended the week down 4.3 percent for the year and sank below the 2,000 level for the first time since February. The Dow lost more than 1,000 points for the week to 16,459.75 after a 530-point, or 3.1 percent, drop on Friday. The Nasdaq 100 Index slumped 4.3 percent to extend a two-day drop to almost 7 percent, its worst back-to-back decline since the financial crisis in 2008.

Introducing The Gigantic And Dangerous Wall Street Loophole You’ve Never Heard Of (Don R.)

This spring, traders and analysts working deep in the global swaps markets began picking up peculiar readings: Hundreds of billions of dollars of trades by U.S. banks had seemingly vanished.

The vanishing of the trades was little noted outside a circle of specialists. But the implications were big. The missing transactions reflected an effort by some of the largest U.S. banks — including Goldman Sachs, JP Morgan Chase, Citigroup, Bank of America, and Morgan Stanley — to get around new regulations on derivatives enacted in the wake of the financial crisis, say current and former financial regulators.

As suspect in French train attack is interrogated, questions mount on Europe’s security (jdargis)

Khazzani was said to deny any intent to perpetrate a terrorist attack, French media reported Sunday, citing anonymous security sources. Instead, he said, he had merely planned to rob passengers on the train after finding a bag containing an AK-47, nine clips of ammunition and a Luger pistol in a Brussels park where he had been sleeping on benches, according to his unidentified lawyer, speaking to the Liberation newspaper.

Greek bailout: Alexis Tsipras steps down to trigger new elections (jdargis)

The prime minister insisted in an address on public television that he was proud of his time in office and had got “a good deal for the country”, despite bringing it “close to the edge”. He added that he was “shortly going to submit my resignation, and the resignation of my government, to the president”. The prime minister will be replaced for the duration of the short campaign by the president of Greece’s supreme court, Vassiliki Thanou-Christophilou – a vocal bailout opponent – as head of a caretaker government.

Explosion Rips Through Chemical Plant in Eastern China (jdargis)

The cause of the Tianjin disaster is still under investigation, although state media reports say the warehouse — which was storing sodium cyanide and other dangerous chemicals — was located too close to residential areas and may have obtained falsified safety approvals.

From Russia to Iran, the consequences of the global oil bust (nervous nelly)

Nick Butler, former head of strategy for BP, told me, “We are in for a longer and more sustained period of low oil prices than in the late 1980s.” Why? He points to a perfect storm. Supply is up substantially because a decade of high oil prices encouraged producers throughout the world to invest vast amounts of money in finding new sources. Those investments are made and will keep supply flowing for years. Leonardo Maugeri, former head of strategy for the Italian energy giant Eni, says, “There is no way to stop this phenomenon.” He predicts that prices could actually drop to $35 per barrel next year, down from more than $105 last summer.

The West's Wildfire Season Gets Worse (jdargis)

Although some media outlets have focused on almonds, a much larger contributor to warming temperatures and drying landscapes is climate change. A study published in Geophysical Research Letters on Thursday estimated that climate change’s effects exacerbated the Western drought by an additional 15 to 20 percent. That same day, NOAA announced that July 2015 was the hottest month since recordkeeping began in January 1880. As climate change continues to worsen, longer and more intense droughts are likely.

Gold & Silver

Click to read the PM Daily Market Commentary: 8/21/15

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

7 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
10 charts show the face of a week of market panic colored in red
  1. 10 charts show the face of a week of market panic colored in red
  2. China gives pension funds access to stock market

 

I'm sure there will be a lot more headlines tomorrow. Probably too many:

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Stocks in China down over 7%

Shanghai Composite Index

3,253.11

Change

-254.63 -7.26%

Volume

126.78m

Aug 24, 2015 10:04 a.m

======================================

Update:

3,213.76

Change

-293.99 -8.38%

Volume

158.66m

Aug 24, 2015 10:15 a.m.

==========================================

Asia markets rattled to join in global equity rout

SAN FRANCISCO (MarketWatch) -- Asia markets opened under heavy pressure on Monday, following the steep retreat in the U.S. to end last week. The Shanghai Composite SHCOMP, -7.75% fell more than 5% to lead declines, after the index shed 11.5% last week. This even after word of China's move to allow pension funds managed by local governments to pour money in the stock market for the first time. The Nikkei NIK, -3.06% shed 2.1% while the Hang Seng HSI, -3.92% gave up 3.6%. Overall, the Asia Dow index ADOW, -3.80% lost 2.9%

 

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2768
Dow and S&P futures

As of 11:20pm ET:

Dow Futures down 450 points (-2.63%)

S&P 500 Futures down 50 points (-2.54%)

http://money.cnn.com/data/premarket/

 

 

 

Mark Cochrane's picture
Mark Cochrane
Status: Diamond Member (Offline)
Joined: May 24 2011
Posts: 1216
Not exactly news around here...

He's a little late to the party on notifying people but maybe the message is moving out from the tinfoil hat conspiracy realm into mainstream consciousness... I found the short video better than the article.

Nobel Prize-Winning Economist: We're Headed for Oligarchy

Robert Solow on powerful families’ threat to democratic institutions.

In a recent interview at the Economic Policy Institute, Nobel Prize-Winning economist and MIT professor Robert Solow riffed on the political effects of increasing inequality and concentration of wealth at the very top. "If that kind of concentration of wealth continues, then we get to be more and more an oligarchical country, a country that's run from the top," he said.

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2768
Wow

Dow is down just about 500 (-3.0%) in the pre-market, and is now below 16,000. S&P approaching 60 down (-3.0%).  If that sticks it's gonna hurt.

http://money.cnn.com/data/premarket/

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
"Growth has slowed"

Scrolling down through the headlines over on ZH I  swear I read that mantra again.  Growth, Growth, growth. Has the record stuck? What is it with these commentators?  Do we have to wait for them to die? 

Thinking about it I realize that they are Neotenic creatures.  But one would hope that they could grow up and realize they have been sold a bill of goods. 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
China's Black Monday

China's 'Black Monday' as stock market slides 8.5%

Fortune-4 hours ago
... Chinese stock markets remain mostly walled off to foreigners, the reverberations shouldn't have anywhere the same impact as the Black Monday of October, ...
 

China's Stock Market Suffers Biggest One-Day Fall Since 2007

New York Times-6 hours ago
The ruling party wants to use the markets to raise money for state companies to reduce debt loads and modernize. The party also wants to encourage stock ...

Global Stock Markets Suffer 'Black Monday'

Newsweek-32 minutes ago
The financial markets were off to a rough start on a morning already being dubbed Black Monday on social media. The poor performance is apparently tied at ...
  1. Credit Risk Surges for Europe's High-Yield Companies Amid Rout

    Bloomberg-27 seconds ago
    Chinese shares tumbled by the most since 2007 on Monday, stocks in Germany ... sending the yields on benchmark Treasuries to a four-month low and those on ...
     

    'Black Monday': £56bn wiped off FTSE 100 as China fears spark ...

    Telegraph.co.uk-40 minutes ago
    Global currency wars: what China's devaluation really mean .... Larry Summers, former US treasury secretary, has described a September lift-off as "extremely ...
     

    FTSE plunges below 6000 on China's 'Black Monday'

    Citywire.co.uk-6 hours ago
    Other major central banks also remain very supportive,' Goradia said. ... This in turn could throw the Federal Reserve and Bank of England's plans to raise ...
     

    Dwindling Reserves Force Southeast Asia to Escalate Currency War

    Bloomberg-9 hours ago
    Southeast Asia's dwindling foreign-exchange holdings are exacerbating the risk of a currency war as policy makers have little choice but to allow exchange rates ...
     
     

    Brazilian Real Leads Latin America Currency Rout Amid Sell-Off

    Bloomberg-1 hour ago

    The real plunged to a 12-year low, leading losses for Latin American currencies amid a global rout spurred by concern that the economic slowdown is worsening ..

    Stock Rout Spreads After China Plunge as Oil Tumbles, Yen Gains

    Bloomberg-10 hours ago
    Russia's ruble led a selloff in emerging-market currencies, while the yen strengthened and 10-year Treasury yields slid below 2 percent for the first time since ...
     

    New Zealand Central Bank: Rate Increases 'Off the Table' for Some ...

    Wall Street Journal-9 hours ago
    WELLINGTON, New Zealand—Reserve Bank of New Zealand Deputy Governor Grant Spencer said any interest rate increases in New Zealand are likely “off the ...
     

    India's Central Bank Pledges To Contain Stock Market, Rupee Losses

    International Business Times-6 hours ago

    India's central bank Governor Raghuram Rajan pledged to contain major losses in the country's stock market and currency. In this photo, Rajanlistens to a ..

    Indian Stocks Tumble Most in Six Years With Rupee Amid Selloff

    Bloomberg-4 hours ago
    The gauge touched a four-year low earlier after Reserve Bank of India Governor Raghuram Rajan said central banks should avoid giving “booster shots” to stock ...
     

    India to urge US Fed to defer rate hike plan

    Financial Express-18 hours ago
    India would urge the US Fed to defer its plan to raise interest rates when the G20 finance ministers and central bank governors meet on September 4-5 in ...

    Won Drops to Five-Year Low Amid Asia Stocks Rout, Korea Tensions

    Bloomberg-6 hours ago
    The Bank of Korea will prepare necessary measures to stabilize markets while closely monitoring North Korean risks, the central bank said in a statement after ...
     
    1. Denmark to Borrow 14% More in 2016 as Budget Deficit Widens

      Bloomberg-7 hours ago
      The bigger borrowing requirement comes as Denmark continues to exist without government bond auctions as part of the central bank's effort to defend the ...
       

      Ringgit Sinks With Shares as Oil Keeps Dropping Amid Stocks Rout

      Bloomberg-11 hours ago
      The Financial Markets Association of Malaysia said it's encouraged by assurances from the prime minister and the central bank governor that there are no plans ...
       

      Singapore Dollar Slides Vs USD as Risk Aversion Takes Hold

      Wall Street Journal-12 hours ago
      But there is speculation of China's central bank stepping in soon with fresh monetary policy easing measures, which could alleviate the stock market collapse.
       
      1. EMERGING MARKETS-Emerging assets hit new multi-year lows on ...

        Reuters-4 hours ago
        "When the central bank intervened in the past it was a Russia-specific move related to sanctions. Now, we are seeing the same story in Mexico, Malaysia, ...
       
       
       
       
     

     

    Turkish lira sapped by political uncertainty, central bank inaction

    Economic Times-2 hours ago
    Economists have said the central bank desperately needs to hike rates to defend the lira and complain that it is in thrall to President Tayyip Erdogan, who has ...
     

    Vietnam's bad debts rise to 3.72 pct of loans in June: central bank

    Thanh Nien Daily-9 hours ago
    Bad debts in Vietnam's banking system rose to 3.72 percent of loans in June from 3.15 percent in May, although lending has grown more quickly than previously ...

    Fed Likely to Hold Off on September Rate Increase: Business ...

    Wall Street Journal-8 hours ago
    Just 37% of the economists polled said the central bank will increase the federal-funds rate next month, according to a National Association for Business ...
     

    Rand's Record Plunge Seals Case for South African Rate Increases

    Bloomberg-3 hours ago
    The Reserve Bank raised its benchmark repurchase rate by 25 basis points to 6 ... The central bank targets inflation between 3 percent and 6 percent and will ...
     

    African Assets Tumble as Commodity Slump Hurts Bonds, Currencies

    Bloomberg-1 hour ago
    Eight of the world's 10 worst performing currencies as of 12:27 p.m. in London were African, with Zambia's kwacha and South Africa's rand falling to new lows ...
     

    Rand's Slump Adds to Nene's Troubles as Debt-Service Costs Rise

    Bloomberg-8 hours ago
    Debt-service costs would consume 10.1 percent of expenditure, compared with 9.6 percent the previous year, he said. Net debt was projected to rise to 42.5 ...

    Australian dollar drops as 'fear takes over' global markets

    Sydney Morning Herald-6 hours ago
    The Australian dollar's resilience may be over after it fell to a six-year low on Monday after a Chinese sharemarket rout tipped emerging market currencies into ...

     

    Vladimir Putin Pressures Russian Exporters to Sell Foreign Currency

    Chiang Rai Times-Aug 23, 2015
    MOSCOW – Vladimir Putin's government has resumed pressure on exporters to sell foreign currency in an effort to prevent global market turbulence from ...
     
    1. MarketsRouble set for new record low amid EM storm

      Financial Times-5 hours ago
      The rouble is on track to close at a new record low as it leads the plunge in emerging market currencies. The dollar has climbed 3 per cent against the rouble ...
       

      Russia's ruble falls to all time low on China's 'Black Monday'

      Ukraine Today-1 hour ago
      Fears of a Chinese economic slowdown pushed the Russian ruble into freefall on Monday (August 24) approaching all-time lows. The ruble slipped 3% to 71.32 ...
    1. Official rate of Belarussian rouble falls 5 pct vs the dollar - Central bank

      Reuters-4 hours ago
      ... around 5 percent on Monday to 17.601 to the dollar, according to central bank data, coming under pressure from currency volatility in Russia and elsewhere.
     
  1. Taiwan Stocks Sink to 2012 Low on China Slowdown 'Panic'

    Bloomberg-7 hours ago
    Taiwan equities entered a bear market last week amid concern China's slowdown and currency devaluation will further dent exports, which has already dragged ...
  1. Chile peso slips to new 12-year low, breaks 700 per dollar barrier

    Reuters-2 hours ago
    SANTIAGO Aug 24 Chile's peso currency zipped past the 700 per U.S. dollar level Monday morning, to a new 12-year low, pressured by tumbling prices for ...

Daimler Cutting 1500 Brazil Truck Jobs as Demand Plunges

Bloomberg-1 hour ago
Daimler AG is eliminating 1,500 jobs at its Brazilian truckmaking division as demand for commercial vehicles in the country shows no sign of recovery. Cutting ...
 

Economists cut Brazil's outlook for 2015, 2016

MarketWatch-10 minutes ago
SAO PAULO--Economists reduced their view for Brazil's economic performance for this ... Brazil's gross domestic product is expected to contract 2.06% this year, ...
 
  1. Brazil Bovespa index slumps to 6-year lows following China

    Reuters-40 minutes ago
    Brazil's benchmark Bovespa stock index last traded 5.7 percent lower at 43,121, its lowest level since early 2009. Shares of state-run oil company Petroleo ...
  1. Brazil Leads Latin America Currency Rout as Stocks Join Selloff

    Bloomberg-12 minutes ago
    Brazil's real and its stocks led declines in Latin America on speculation that an economic contraction will deepen as growth in the nation's top trading partner ...
  1. Illinois Towns Drowning in Pension Debt From Hundreds of Funds

    Bloomberg-2 hours ago
    The pension-funding crisis undermining the stability of Illinois and Chicago is rippling through hundreds of smaller governments, squeezing budgets as officials ...
     
    1. Christie's Recovery Elusive as Bond Market Penalizes New Jersey

      Bloomberg-6 hours ago
      Bond prices suggest otherwise. The extra yield investors demand to buy New Jersey bonds instead of top-rated debt is holding close to the highest since at least ...

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