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Daily Digest 8/26 - China Cuts Interest Rates, Gulf Bonds Lose Safe-Haven Status

Wednesday, August 26, 2015, 9:02 AM

Economy

Saudi Arabia Is Seeking Advice on Cutting Billions From Its Budget in the Wake of the Oil Crash

The government is working with advisers on a review of capital spending plans and may delay or shrink some infrastructure projects to save money, the people said, asking not to be identified as the information is private. The government is in the early stages of the review and could look at cutting investment spending, estimated to be about 382 billion riyals ($102 billion) this year, by about 10 percent or more, the people said.

BHP Cuts China Steel Forecast to 1 Billion Tons

Mining companies are confronting a commodities slump that’s hurting profits and shares amid concern that China’s deepening slowdown will undermine demand and exacerbate supply gluts from crude oil to iron ore. Chinese steel production declined 1.3 percent in the first half for this year, triggered largely by a slowing construction sector, BHP said.

Peak Gold Is Looming And It Might Not Change a Thing for Bullion

With prices at about $1,100, production probably will plunge 18 percent by the end of the decade, Metals Focus estimates. That’s because the industry, on average, needs about $1,200 to break even when all costs are considered, according to James Sutton, a portfolio manager at JPMorgan Chase & Co.’s $2 billion Natural Resources Fund.

Worst Junk-Bond Bet Wipes Out Junior Lenders of KKR's Samson

Samson will join at least 10 companies in the sector to file for Chapter 11 this year. The oil plunge has already sent Hercules Offshore Inc., Sabine Oil & Gas Corp. and Quicksilver Resources Inc. to bankruptcy court.

CBO: US could reach $18.1 trillion debt limit in mid-November

The Treasury Department has had to rely on so-called “extraordinary measures” to avoid default. Congress last raised the debt ceiling in February 2014.

Haircut of 20 percent seen in Ukraine debt deal - WSJ

Ukraine and a group of its largest creditors are close to agreeing a restructuring deal that will include a 20-percent writedown on the principal of about $19 billion of debt, the Wall Street Journal (WSJ) quoted sources as saying on Monday.

Rupiah slides past 14,000 per dollar (Indonesia)

However, State-Owned Enterprises Minister Rini Soemarno was reported to have told state companies to buy back part of their shares to prop up falling prices. The Finance Ministry also announced earlier in the day its plan to buy back treasury notes in an effort to calm investors amid the current financial turmoil.

For South Korean Shipbuilders, the Risks Grow

New ship orders have plunged as trade has slowed globally, with China’s shipbuilders alone reporting a nearly 70% drop in orders during the first seven months of the year compared with the year-earlier period

From Venezuela to Iraq to Russia, Oil Price Drops Raise Fears of Unrest

Mr. Ortiz estimated that all major oil exporting countries had lost a total of $1 trillion in oil sales because of the price decline over the last year.

China said to halt stock support amid intervention debate

China has halted intervention in the stock market so far this week as policymakers debate the merits of an unprecedented government campaign to prop up share prices, according to people familiar with the situation.

Korea's household credit grows at record pace in Q2

Household credit in South Korea increased at the fastest clip ever in the second quarter, data showed Tuesday, further adding to concerns that borrowers will take a blow from a much-awaited rate hike in the United States.

Bank of Japan bondholdings break 300 trillion yen

Japan's central bank now holds over 300 trillion yen ($2.44 trillion) in Japanese government bonds as a result of long-term monetary easing measures -- a development that is raising fears of market volatility.

Gulf bonds partly lose safe-haven status in cheap oil era

But as oil hits new six-year lows, most of those surpluses have vanished. A Reuters poll last week found economists expect all GCC states to post fiscal deficits this year, and half of them to post current account deficits.

Malaysian sukuk curve steepens as inflation adds to outflow risk

The country's foreign-exchange reserves dropped 19 per cent this year to US$94.5 billion as of Aug 14, the least since 2010. The cost to insure government debt has climbed this year above that for Thailand and the Philippines and reached the highest since 2011, CMA prices show.

BOJ should debate acting if yen rises: Abe adviser (Japan)

A close adviser to Prime Minister Shinzo Abe said Tuesday that the Bank of Japan should consider additional monetary easing if the yen rises sharply, threatening the "Abenomics" growth plan.

Emerging central banks step in to curb currency falls

Central bankers across emerging markets are being forced into action to stem falls in their currencies, especially after China allowed its yuan to weaken to four-year lows. A JPMorgan index tracking 22 emerging market currencies has hit successive record lows and losses have spiralled this week, forcing currencies to fresh multi-year and record lows,

China cuts interest rates, reserve requirement

The country's central bank said in a statement on Tuesday that it cut interest rates by one-quarter of a percentage point and reduced bank-reserve requirements by one-half of a percentage point. The reserve-rate cut effectively adds 678 billion yuan (about $105.7 billion) to the Chinese economy.

Gold & Silver

Click to read the PM Daily Market Commentary: 8/25/15

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."

9 Comments

saxplayer00o1's picture
saxplayer00o1
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Joined: Jul 30 2009
Posts: 4064
Central Bankers to Confront Stock-Market Turmoil at Fed's Annual

 

Central Bankers to Confront Stock-Market Turmoil at Fed's Annual ...

Wall Street Journal-17 hours ago
If central banks in places such as Brazil, South Africa or Russia try to stimulate their economies by cutting interest rates, they risk capital flight and potentially ...

With QE Barely Under Way, Pressure Mounts on European Central ...

Wall Street Journal-18 hours ago
FRANKFURT—The European Central Bank is less than one-third of the way into a program to pump more than $1 trillion into the eurozone economy, but it ...

Pressure mounts on European Central Bank to act
In-Depth-MarketWatch-7 hours ago

 

Dudley cools September rate rise talk

Influential central banker is important swing voter on the FOMC

China's Stocks Slump as Rate Cut Fails to Stop $5 Trillion Rout

Bloomberg-3 hours ago
China's margin debt has plunged by 1 trillion yuan ($156 billion) from its June peak as stock traders close out bets using borrowed money. Outstanding margin ...
 

Renminbi looms behind China easing

Aim of moves may have been to offset currency intervention costs

A warning on China, specifically about its debt, now seems prescient

TODAYonline-18 hours ago
The country's debt load rose from US$7 trillion (S$9.78 trillion) in 2007 to US$28 trillion by mid-2014, according to a report published earlier this year by the ...

Japan fiscal 2016 budget requests to hit record ¥102 trillion

The Japan Times-7 hours ago
Budget requests by Japan's central government offices for the new fiscal year from next April are set to total a record ¥102 trillion ($853 billion), due primarily to ...
 

Thailand to speed up investment in 17 projects worth 1.66 trillion baht

Economic Times-11 hours ago
BANGKOK: Thailand plans to speed up investment in 17 mega projects worth about 1.66 trillion baht ($46.56 billion) in fiscal years 2015 and 2016, ...

GM Moves to Cut Jobs at Brazil Factory Amid Economic Turmoil

Bloomberg - ‎17 hours ago‎
General Motors Co. plans to cut 800 jobs in Brazil, after announcing less than a month ago that it will invest another $1.9 billion in the South American nation. The automaker reached an agreement with a union at a plant near Sao Paulo to put the ...
 

Daimler to cut another 1500 jobs at Brazil truck plant

Economic Times - ‎Aug 24, 2015‎
Brazil's truck market has been on the slide since early 2013, as a weak economy, high inflation and tough financing conditions have curbed investments in commercial vehicles. Daimler has cut about 3,000 jobs in Brazil in that time, shrinking its ...

 

Brazil real weakens to 3.6 per dollar for 1st time in 12 years

Reuters-18 hours ago
... worried about a growing political crisis in Latin America's largest economy. The Brazilian currency extended losses even as other emerging market currencies ...

 

Brazil loan defaults rise in July to highest this year

Reuters-50 minutes ago
BRASILIA Aug 26 Loans delinquent for at least 90 days in Brazil rose to the highest level this year, the central bank said on Wednesday, a sign that a ...

 

Brazil Jobless Rate Climbs to 8.3%

Latin American Herald Tribune-12 hours ago
RIO DE JANEIRO – Brazil's unemployment rate rose to 8.3 percent in the second ... Brazil's economy is expected to shrink by 2 percent this year, while inflation ...

China's money rates fall after central bank cuts rates, reserves

Reuters-12 hours ago
SHANGHAI, Aug 26 China's primary money rates fell on Wednesday after an aggressive monetary easing announcement by the central bank on Tuesday ...

 

Nigeria's Currency Needs Devaluation, Guaranty Trust Bank Says

Bloomberg-21 hours ago
The central bank of Africa's biggest economy and oil producer introduced curbs on currency trading after the naira fell to a record low of 206.32 per dollar on Feb ...

Indonesia moves to protect equity, forex markets

The Star Online-15 hours ago
The broader market found support from state-owned firms, which launched a government-backed plan to buy back at least 10 trillion rupiah (US$710.48mil) of ...

South Africa's Economy Contracts Unexpectedly in Second Quarter

Wall Street Journal-13 hours ago
The poor growth figures make the conundrum facing South Africa's central bank even more confounding. The bank wants to raise interest rates to prop up the ...

UPDATE 2-South Africa's economy contracts, risk of recession grows
Reuters-22 hours ago

 

Russia Weekly Inflation Picks Up as Ruble Depreciates

Nasdaq - ‎1 hour ago‎
An unexpected pick up in weekly inflation on the back of a rapid depreciation in the ruble makes it more difficult for the Bank of Russia to trim interest rates in a bid to revive the economy. The Bank of Russia is set to hold its next board meeting on ...

 

Emerging Debt Health Worsens Most Since 2009 as Record Comes ...

Bloomberg-8 hours ago
Emerging-market downgrades are 4 times the amount of upgrades at S&P -- the worst ratio since 2009 - as a record $5.2 trillion of bonds comes due for the ...
 

Southeast Asian companies grapple with foreign debt worries

Reuters-11 hours ago
This puts pressure on firms with foreign debts. * 40 pct of top firms have half their debt in foreign currencies. * Banks expect increase in discounted rights issues.
 

New Jersey Penalized in Biggest Muni Bond Sale Since 2013

Bloomberg-18 hours ago
The 10-year securities were priced at 4.37 percent, compared with 2.21 percent yield on comparable top-rated debt. The $401.9 million in taxable bonds carried ...
 

Puerto Rico Delays Bond Sale

Wall Street Journal-17 hours ago
Delaying the bond sale will give investors a chance to review a restructuring plan currently under development for the island, which has about $72 billion in debt ...

Puerto Rico Turmoil Sinks Sewer Bond
In-Depth-New York Times-13 hours ago

 

CPS mulls bankruptcy amid budget woes

WGN-TV - ‎17 hours ago‎
Chicago Public Schools faces a $1 billion dollar deficit, junk bond status and a pension crisis. Experts say many of these problems were brought on by a cycle of borrowing, spending and delaying. There is no easy solution. Governor Rauner has suggested ...
 

Ringgit Slumps Most in Asia After Report Doubts 1MDB Debt Plan

Bloomberg - ‎12 hours ago‎
Abu Dhabi's International Petroleum Investment Co. may pull out of a plan to help restructure 1Malaysia Development Bhd.'s $3.5 billion of debt, Singapore's Business Times reported Wednesday citing an unidentified person. 1MDB said it remains engaged ...

 

 

 

sand_puppy's picture
sand_puppy
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Hillary Email Scandal--The Scandals Behind the Scandal

THE HILLARY EMAIL SCANDAL - THE SCANDALS BEHIND THE SCANDAL

There is a term of craft in Propaganda called a "Limited Hangout." This refers to admitting to a smaller scandal as a distraction from the larger scandal that must remain hidden.  One example can be seen in Kenneth Starr's investigation into the Clintons' Whitewater affair, which publicly focused obsessively on the Oval Office tryst between Bill Clinton and Monica Lewinsky.

Michael Rivero has been following the dark and dirty connections and misdeeds of insiders in the US political and intelligence apparatus for several decades.  It takes a great deal of persistence and intelligence to piece together a coherent story from fragments, sift through distraction and reject false stories that don't make sense in order to develop a big picture.  And of course, there is no guarantee that the gestalt is completely correct.  But when links are abundantly provided, an interested observer can confirm the general thrust of the story.  It seems to me that Rivero does a pretty good job.

In this article, Rivero reviews the sordid multi-decade trail of the Clintons from their logistical hub in Mena, Arkansas where they coordinated the CIA's Iran-Contra drug and arms smuggling operation, the use of real estate transactions like Whitewater to launder drug and arms profits, the use of official "investigations" run by insiders, like Ken Starr, to prevent any real investigation, and the long chain of witnesses to all of the above who have departed the Earthly Plain prematurely.  He touches briefly on the creation and arming of the terrorist organizations, Al Qaida and ISIS, (the Rat Line) so essential to the western oligarchy's income stream and their "global war on terror" approach to international relations.

Finally he comes to the current scandal-- Hilary Clinton's use of an unsecured email server to conduct top secret state business.  The company, Platt River Networks was located in a small loft in this building in New Jersey and the severs were in a bathroom closet.  The company was never vetted by the Defense Security Service.

This is an ideal "drop" mechanism for sale of state secrets to foreigners.  All of the emails were of course visible to company employees and anyone else that they might choose to share them with.

Clinton's campaign donor include many foreign citizens and great creativeness was demonstrated by all to slip their money past the legal prohibition of foreign donations to US elections.

One of the more famous was Johnny Chung, who brought $366,000 to the Democratic party, some of which Chung admitted was from the Chinese intelligence services.  Bill Clinton responded by loosening restrictions on sale of sensitive military technologies to China.  Technologies were transferred to improve the accuracy of their nuclear missiles.

 

Under the guise of being a charitable non-profit, the Clinton Foundation can legally accept foreign donations, and quite a bit of cash poured in from foreign sources. It did not take too long before people noticed that these donations came from nations and individuals who benefited handsomely from policy changes made in Hillary Clinton's State Department! ... Governments prohibited from buying US weapons suddenly were granted permission ... after making donations to the Clinton Foundation.

[Rivero theorizes:]  A foreign interest makes a donation to the Clinton Foundation, then "hacks" Clinton's email server for all the classified goodies they want! A far better delivery system than taping packages underneath bridges, the method that brought down Robert Hanssen!  After all, she didn't know her server could be hacked ....
 

 

 

 

Doug's picture
Doug
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omg
Quote:

In this article, Rivero reviews the sordid multi-decade trail of the Clintons from their logistical hub in Mena, Arkansas where they coordinated the CIA's Iran-Contra drug and arms smuggling operation,...

This takes conspiracy theorism a bridge too far.  Iran-Contra was solely a Reagan administration operation, while Bill Clinton was still a governor of Arkansas and nowhere near the levers of US power.  This kind of blatant over-the-top Clinton hatred should have no place on a blog that pretends to prize objectivity, evidence and nonpartisanship.  If you're going to give credibility to wild speculations, at least get the eras right.

(edited to delete regional offense)

sand_puppy's picture
sand_puppy
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Posts: 1757
I have been noted to engage in a bit of conspiracy theorizing...

.... but there are a fair amount of supporting indicators pointing towards the validity of Michael Rivaro's basic story line. 

One good starting point would be the the article "The Crimes of Mena."  Originally scheduled to be printed in the Washington Post, it was yanked at the last moment.  It was published in Penthouse (with good photos-- though unrelated to the story....).  The sage of how this story went through a vetting process, approval, then an unexpected final rejection,is itself a study in the hidden forces involved in the press.   The London Sunday Telegraph carried and essay in 1995 on the story of how the Washington Post came to NOT carry The Crimes of Mena story.  ARKANSAS DRUG EXPOSE MISSES THE POST, by Ambrose Evans-Pritchard (bottom of this page).

The Wikipedia page on allegations of CIA drug smuggling mentions the Mena connection.  The most academic study is the work of UC Berkeley professor, Peter Dale Scott, Cocaine Politics:  Drugs, Armies and the CIA in Central America.  He includes Mena, Arkansas, and the office of then-Governor Bill Clinton, as the distribution hub.  Michael Ruppert's "From the Wilderness" blog includes a discussion of Gary Webb's pieces called, The Dark Alliance, in the San Jose Mercury News.  Here is an interview with Gary Webb about the piece.  Barry and the Boys is another story of the people involved in the smuggling operations.

But I understand that this is not the focus of PP and also know that very bright people can look at the same subject yet see it very differently.

And accepting this type of story is a profound paradigm shift that will not be right for many.  And they should just walk away from the topic and forget it.

Arthur Robey's picture
Arthur Robey
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Link please S.P.

As soon as I see the words "Conspiracy theory" I am drawn. The naiveté of our overloads to think that they can drape a little piece of cloth over the interesting bits and our eyes would be modestly averted! 

S.P. left out the link to the Penthouse story.  I think he owes us an apology. 

Time2help's picture
Time2help
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Posts: 2766
"Conspiracy theorists" are nuts

Yeah, those conspiracy theorists are all a bunch of quacks.

Pandabonium's picture
Pandabonium
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Posts: 87
Call me a conspiracy theorist

Excellent vdieo, Time2help.  

To those who tell me I'm a conspiracy theorist I always say,  "you can call me a conspiracy theorist as long as  you allow me to call you a coincidence theorist."

jonesb.mta's picture
jonesb.mta
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Posts: 126
Clinton Scandals

Doug should be glad that you didn't include all the people who died from tainted blood collected from prisoners in Arkansas. They are the lowest form of life on this planet and yet people idolize them. I don't get it, they make Wall Street banksters look good.

reflector's picture
reflector
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Posts: 267
thanks for the links, SP

michael rivero does good work, he's a strong voice speaking out against the power-hungry tyrants and oligarchs that have taken over the country and most of the western world, and who rule with impunity and unaccountability.

you mention gary webb, a san jose mercury news reporter who had exposed the involvement of the CIA in cocaine-running operations to fund their black budget - james corbett of corbett report, among others, has researched surrounding the suspicious nature of gary webb's death:

https://www.corbettreport.com/episode-117-requiem-for-the-suicided-gary-...

Episode 117 – Requiem for the Suicided: Gary Webb

 

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