The fundamental risks to growth remain, and are actually getting worse, writes Nouriel Roubini

by

Owing to a recent easing of both Sino-American tensions and monetary policies, many investors seem to be betting on another era of expansion for the global economy. But they would do well to remember that the fundamental risks to growth remain, and are actually getting worse, writes Nouriel Roubini Risk-off to risk-on This past May and … Read more

Business owner breaks the law in China, defrauds investors, then flees to Vancouver to buy $24M in Real Estate. Classic.

by

Three investment companies want a B.C. Supreme Court judge to enforce a Chinese court’s decision against the owners of seven residential properties in the Lower Mainland. Shanghai Zhong Jia Xing Hua Chuang Ye Investment LLP, Yangzhou Jia Hua Chuang Ye Investment LLP and Nantong Jian Hua Chuang Ye Investment LLP claim in Nov. 13 filings … Read more

Anyone remember the rumor that the real reason Trump called Powell to the White House Monday morning was to warn him that the trade deal was falling apart and wanted to know what the Fed was going to do about it?

by

https://twitter.com/hks55/status/1197506822799839233 https://twitter.com/hks55/status/1197504995316391936 So a friendly reminder to American farmers: Don’t rush to buy more land or get bigger tractors. Wait until a China-US trade deal is truly signed and still valid six months after. It's safer by then. https://t.co/qxbFhEkfZN — Hu Xijin 胡锡进 (@HuXijin_GT) November 20, 2019 Anyone remember the rumor that the real reason … Read more

This (our financial system) is a massive bubble.

by

👇 This (our financial system) is a massive bubble. https://t.co/dvK3OD42eK — Tuomas Malinen (@mtmalinen) November 20, 2019 Fed’s fix for Repo turmoil may be helping the rally in stocks as Fed injects liquidity like crazy. https://t.co/Q8rML8Zmvm pic.twitter.com/aUKoyX7rDX — Holger Zschaepitz (@Schuldensuehner) November 20, 2019 More repo madness https://www.wsj.com/amp/articles/fed-adds-102-44-billion-to-financial-system-in-latest-repo-transactions-11574174981 https://twitter.com/GregMannarino/status/1197232552567656449 The 10 largest S&P 500 stocks … Read more

JPMORGAN: the slowdown in global employment “raises a material downside risk to the outlook. Households will feel the impact from slower hiring and adjust their spending. … we see global retail sales expanding just 2%ar this quarter.”

by

JPMORGAN: the slowdown in global employment “raises a material downside risk to the outlook. Households will feel the impact from slower hiring and adjust their spending. … we see global retail sales expanding just 2%ar this quarter.” pic.twitter.com/ojrjAT7rQ3 — Carl Quintanilla (@carlquintanilla) November 21, 2019 GDP Nowcast looks just awful. Worse than Q4 2015. To … Read more

Central banks are the enablers of the largest debt expansion in human history and insist on perpetuating in what Jay Powell has called an unsustainable path.

by

https://twitter.com/NorthmanTrader/status/1197503255376302081 Central banks policies enabled dual global Debt+Asset Bubbles. (330% global debt-to-GDP – IIF). B/C of it, the world can't grow w/o fake ultra-low rates, which destroy every citizens calculus to retire (live on savings income). The world grew at much higher rates historically👇🤔 pic.twitter.com/fhk8AyFN4J — M/1_LP (@MI_Investments) November 21, 2019 From our latest Global … Read more

[Chart] Percentage of Zombie Companies since 1994 – Companies Whose Earnings Don’t Even Cover There Interest Payments.

by

There was no further information, but I assume its all US only. Zombie companies don’t make enough money to cover their interest payments, they’re slowly bleeding money. They have to keep borrowing at low rates to stay afloat. If interest rates rose even slightly, for any reason, they’d start collapsing. More amazing when you consider … Read more

Recent hedge fund heavyweight closures-

by

Louis Bacon’s Moore Leon Cooperman‘s Omega Michael Platt’s BlueCrest Philippe Jabre’s Jabre Capital Jon Jacobson’s Highfields Richard Perry’s namesake fund Eric Mindich’s Eton Park John Griffin’s Blue Ridge Did modern AI do them all in?   Recent hedge fund heavyweight closures- Louis Bacon's MooreLeon Cooperman‘s OmegaMichael Platt’s BlueCrestPhilippe Jabre's Jabre CapitalJon Jacobson’s HighfieldsRichard Perry’s namesake … Read more

Don’t Look for Investing Advice in the Media

by

By Jared Dillian When I was a trader at Lehman Brothers, I was told not to talk to the media under any circumstances. If a reporter calls and says, “I’m so-and-so, and I’m from The Wall Street Journal,” you hang up. Click. There doesn’t seem to be a good relationship between the traders and the reporters who … Read more

Saudi Aramco chairman enraged after Bankers tell him the oil group is not worth $2tn. World’s Top Investment Bankers forced to wait 5 hours to speak to him 10 minutes

by

by Puzzleheaded_Match Some of the world’s top investment bankers gathered at a Riyadh palace on Saturday to deliver their final recommendations on a project that had consumed the government of Saudi Arabia for the past few years: the initial public offering of Saudi Aramco. The financiers were there to meet Yasir al-Rumayyan, the state oil … Read more

China Is Out of Economic Ammo Against the U.S: It has maxed out tariffs and other trade barriers, and selling Treasuries is ineffective.

by

The Chinese government has issued vague but stern-sounding warnings that it will retaliate for a bill passed by Congress that would require the White House to protect human rights and ensure the territory’s autonomy. But China’s options for economic retaliation are limited. And most of these options have already been exercised amid President Donald Trump’s trade war. China’s … Read more

Moody’s: Germany Banking Outlook Changes to Negative from Stable

by

Frankfurt am Main, November 21, 2019 — The outlook for Germany’s banking system has changed to negative from stable Moody’s expects the banks’ profitability and overall creditworthiness to weaken in a low interest rate environment The outlook for Germany’s banking system has changed to negative from stable as the profitability and overall creditworthiness of the … Read more

Institutional Inflow Spurring Growth in the Digital Asset Services Sector

by

As institutions increasingly expand their portfolios into the digital asset markets, it seems that mergers and partnerships are on the rise. Existing players in the cryptocurrency space are seeking to broaden their appeal to institutional clients by increasing the scope of their offerings. The move marks a further shift of the cryptocurrency markets towards mirroring … Read more

The Fed Slaps Down Negative Interest Rates

by

Wolf Richter wolfstreet.com, http://www.amazon.com/author/wolfrichter A serious rejection in its first major discussion of negative interest rates recounted in the FOMC minutes. The minutes for the FOMC meeting on October 29-30, released today, shed some light on the laundry list of discussions arising out of the Fed’s current review of monetary policy strategy, where it tries … Read more

Fed Switches from Mid-Cycle “Adjustment” to Wait-and-See, Pending “Material Reassessment” of its Economic Outlook

by

Wolf Richter wolfstreet.com, http://www.amazon.com/author/wolfrichter My Fancy-Schmancy “Fed Hawk-o-Meter” The Fed has now moved into wait-and-see mode after cutting its policy rate for the third time in this cycle, this time to a range between 1.5% and 1.75%, while praising the “strong” labor market, which supports “strong” consumer spending, which is 70% of the economy. This … Read more

Global Collapse Incoming? The Total Breakdown Of Relations With China Could Throw Our Planet Into Utter Turmoil

by

by Michael Snyder We just witnessed one of the most monumental events of the entire decade, and yet most Americans still don’t understand what has happened.  In recent months, the global economy and stock markets around the world have been buoyed by the hope that the U.S. and China would soon sign a new trade … Read more