Tuesday, December 11, 2018

As Deadline Looms, WikiLeaks Reveals Corporate Demands from the European Union in the Trade...

Demands by the EU to Lock in Privatization of Public Services in Developing Countries; Financial Services Deregulation; and Antidevelopment Provisions Revealed; Secretive, Antidemocratic Deal Must Not Be Rushed to Conclusion Today, for the first time, WikiLeaks released demands by the EU to lock in a wide list of services sectors...

The Nation’s Biggest Banks Have Gotten a $130 Billion Boost from Trump Win

Biggest winner: Bank of America. Donald Trump and the big banks appears to be this year’s biggest story of unrequited love. While Trump has accused Wall Street of trying to ruin the country on the election trail, investors banking on the fact that the next president will be good for nation’s...

Bain Capital to Wind Down a Hedge Fund

The private equity giant Bain Capital is winding down its multibillion-dollar hedge fund that took bets on shifting macroeconomic trends, adding to the list of funds that have thrown in the towel this year. The Absolute Return Capital hedge fund, run by Jonathan J. Goodman and Jeff Woolbert, is closing...

How Central Banks Inverted the World

Murray Rothbard would be turning in his grave. The American economist wrote in his 1983 book 'The Mystery of Banking' that central bank intervention was often disastrous. Whether the latest round of stimulus, which has generated a slew of negative rates globally, will end badly is yet to be...

Pound plunges to 30-year low against dollar, yen surges as UK votes to Brexit

The pound plunged to a more-than-30-year low against the dollar on Friday and the safe-haven yen surged as results of the referendum on whether to stay in the European Union (EU) showed the U.K. was on course to leave. It was confirmed on Friday that Britain had voted to leave...

Why a forgotten 1930s critique of capitalism is back in fashion

Seventy years ago the thinkers and writers of the Frankfurt School warned of capitalism's drift towards a cultural apocalypse. Has it already happened, but we’ve been too uncritical to notice? In Jonathan Franzen’s 2001 novel The Corrections, Chip Lambert liquidates his library. He sells off his collection of Frankfurt School...

James Rickards: You Are Going to See World Money

Why a reform of the financial system is inevitable, with or without crisis. An introduction to lawyer, portfolio manager, government adviser, lecturer, and author James Rickards could easily be five pages long. Sifting through his CV, it’s easier to pick the things he doesn’t do rather than listing all the...

Seven big banks settle U.S. rate-rigging lawsuit for $324 million

Seven of the world's biggest banks have agreed to pay $324 million to settle a private U.S. lawsuit accusing them of rigging an interest rate benchmark used in the $553 trillion derivatives market. The settlement made public on Tuesday, which requires court approval, resolves antitrust claims against Bank of America...

Gold Prices Will Rise with Peak Mining Exploration

Unlike re-printable fiat currency, gold is money because there is a finite amount of it. The Fed can’t produce more gold whenever it wants. For this reason, gold has functioned as a barter and wealth preservation system for thousands of years. But how much gold is left in the...

UK’s out vote proves a game-changer for US stocks, oil and gold

The Dow Jones dropped 610 points as gold prices jumped to their highest levels since October 2013 following the results of the EU referendum. US markets fell sharply of Friday as American traders tried to reckon with a newly uncertain future in the wake of the shock “leave” result of...

Who owns America’s debt?

Donald Trump says he can "make a deal" on America's debt. Last week, he implied that he could negotiate with America's creditors to get them to accept a lower rate of repayment, such as 85 cents for every dollar. It sounds shrewd, until you think about who would get hurt under...

Why Wells Fargo’s Executives Will Keep Their Bonuses, Even After Fake Accounts Scandal

Last week, Wells Fargo CEO John Stumpf testified before the Senate Banking Committee after the bank paid fines for creating over 2 million fake customer accounts to boost their sales growth statistics. Stumpf, under fire from senators demanding that the bank claw back executive bonuses as punishment for the scandal,...

Wikileaks Says Secretive Trade Agreement Paves Way to Corporatization of Public Services

WikiLeaks has released a thousands of documents that critics of free trade said shows how officials negotiating the Trade in Services Agreement, or TiSA, could force privatization on public institutions around the world. The most surprising revelations in the WikiLeaks documents released this week involve state-owned enterprises, or SOEs —...

Equities tumble on oil drop, but finish well off lows

Global equity markets staged a late rebound along with oil prices on Wednesday to cut declines from 2-1/2 year lows, but remained on pace for one of the most dismal monthly performances on record. Oil prices tumbled once again after the International Energy Agency warned Tuesday the market could "drown...

When Donald Trump Needs a Loan, He Chooses Deutsche Bank

Despite some clashes, the Republican front-runner has been a regular client of the German lender. One of Donald Trump's closest allies on Wall Street is a now-struggling German bank. While many big banks have shunned him, Deutsche Bank AG has been a steadfast financial backer of the Republican presidential candidate’s business...

Swamp or no swamp, Goldman swims on

The investment bank’s network reaches the White House, again. Consider just this very partial list: Henry Fowler, Robert Rubin, and Hank Paulson, former US Treasury secretaries. Mark Carney, governor of the Bank of England. Mario Draghi, European Central Bank president. Malcolm Turnbull, prime minister of Australia. Bill Dudley, president of...

VW Sued for $3.7 Billion in Germany Over Diesel Scandal

Volkswagen AG was sued for 3.3 billion euros ($3.7 billion) over how the company informed markets about devices used to hide pollution in diesel engines, its biggest legal challenge in Germany to date after a wave of lawsuits in the U.S. on the scandal. The case was filed Monday in...

HSBC: Gold will explode if Britain votes for a Brexit

Gold prices are likely to explode if Britons vote to leave the European Union when they go to the polls next Thursday, gaining as much as 10% in a short space of time. Gold is seen as a haven for cash. It does not pay a coupon like a bond,...

Sorry, gold and silver lovers, the party’s almost over

The precious metals may be in a bear market for another 10 to 15 years. Precious metals have been one of the best places to be in the market in 2016. As of July 8, gold had surged 31% from its December 2015 lows, while silver had skyrocketed by 50%. During...

Is This How The Smart Money Is Betting On A Market Crash?

Instead of allocating capital to expensive tail risk bets on direct asset class collapse (in equities, credit, and commodities), it appears, just as we detailed previously, the 'smartest money in the room' is "betting" indirectly on a stock market crash through eurodollar options. As we previously detailed, the costs of...

European Corporate Bonds Are Clear Winners After ECB Move

Credit markets soar after European Central Bank said it will begin buying corporate debt. On a day of wild market gyrations, there was one clear winner from a new round of European Central Bank policy announcements: European corporate bonds. Credit markets in Europe soared after the ECB surprised investors by saying...

Stock Buybacks Are Driving Companies Into Debt

The bond market should be concerned about stock buybacks, but not because of their bullish effect on share prices. Instead, bondholders should be anxious about where the cash to pay for them comes from. It isn’t widely appreciated that the money has been borrowed in the credit markets, and...
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Special Drawing Right (SDR)

The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. As of March 2016, 204.1 billion SDRs (equivalent to about $285 billion) had been created and allocated to members. SDRs can be exchanged for freely usable currencies. The value...

How the ECB Woke Up to Banks’ Profits Nightmare

Bank stocks rose sharply as the implications of the ECB's policy moves became clear. Mario Draghi is worried about eurozone bank profits after all. The European Central Bank president said in January that it wasn't his job to protect banks and on Thursday insisted that loose policy had so far helped not hindered...

BRICS Under Attack: The Empire Strikes Back In Brazil

Despite all the fancy anti-corruption rhetoric, the assault on President Rousseff’s leftist government is the result of a coordinated campaign by business interests tied to Washington and Wall Street. NEW YORK — (Analysis) The last decade has seen a remarkable coalescing of non-Western nations in both economic and political partnerships....

Deutsche Bank: The US May Now Be In A Recession

Three months ago, we presented an analysis which showed something disturbing: according to Deutsche, the "current business cycle is already the fourth longest in the post- WWII period, and the corporate debt-to-GDP ratio suggests that imbalances are building", and that worse, as a result of soaring corporate debt and...

Soros Says Brexit Has Unleashed a Financial-Markets Crisis

Britain’s decision to leave the European Union has “unleashed” a crisis in financial markets similar to the global financial crisis of 2007 and 2008, George Soros told the European Parliament in Brussels. “This has been unfolding in slow motion, but Brexit will accelerate it. It is likely to reinforce the...

Panama Papers: Massive Tax Haven Document Leak Exposes Corruption and Crime on Global Scale

A trove of files obtained by German journalists reveals how a global industry of law firms and large banks sell financial secrecy services to politicians, crooks and drug dealers as well as billionaires, celebrities and sports stars. A massive leak of millions of documents has revealed that heads of state,...

Death, drugs, and HSBC

Fraudulent blood money makes the world go round. Recent reporting on illegal tax evasion by the world’s second largest bank, HSBC, opens a window onto the pivotal role of Western banks in facilitating organised crime, drug-trafficking and Islamist terrorism. Governments know this, but they are powerless to act, not just...

Global debt climbs towards fresh high as companies and countries keep on borrowing

Global debt issuance is on course to hit a record high in 2016 as figures showed sales this year topped $5 trillion (£3.9 trillion) at the end of September. Debt issuance rose to $5.02 trillion in the nine months to September 22, according to Dealogic, putting 2016 on course to...

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