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Tyler Durden

Tyler Durden

Tyler Durden is a reference to the lead character in Fight Club. It's the pseudonym for Zero Hedge's key author(s) used to hide their identities.

Articles by Tyler Durden

Switzerland Opens Door To Bitcoin Asset-Management Business

9 days ago

Bitcoin and other cryptos have fallen sharply over the past month in a shakeout that saw some of the early longs decide to take their winnings and walk away. But a 20% drop from the all-time highs hasn’t done much to temper wealthy investors interest in bitcoin and other cryptocurrencies as alternative investments potentially worthy of diversification. And with the Greyscale Bitcoin Investment Trust still trading at a ridiculous premium, and the chances of the SEC approving a bitcoin ETF in the US looking increasingly remote, it’s unsurprising that “private wealth managers” and trying to scoop up wealthy customes who have expressed an interest in bitcoin.
But while regulators in the US and in many other part of the

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Bond Selloff Returns As EM Fears Rise; Oil Slides; BOJ Does Not Intervene

14 days ago

U.S. index futures point slightly lower open. Asian shares rose while stocks in Europe fell as energy producers got caught in a downdraft in oil prices and reversed an earlier gain after Goldman unexpectedly warned that WTI could slide below $40 absent “show and awe” from OPEC. The dollar rose, hitting a four-month high against …

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Sornette’s Supercomputer Is Betting On A Market Crash

14 days ago

Via FinancialSense.com, One of the world's most powerful supercomputers, retrofitted for trading the stock market, appears to be betting on a crash in the months ahead. The Financial Crisis Observatory (FCO) at ETH Zurich released its latest Global Bubble Status Report on July 1st. As we discussed with FCO’s director, Didier Sornette, on our podcast …

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Key Events In The Coming Busy Week: Fed, BOJ, BOE, SNB, US Inflation And Retail Sales

June 13, 2017

After a tumultous week in the world of politics, with non-stop Trump drama in the US, a disastrous for Theresa May general election in the UK, and pro-establishment results in France and Italy, this is shaping up as another busy week ahead with multiple CB meetings, a full data calendar and even another important Eurogroup meeting for Greece. Wednesday’s FOMC will be the main event, with the Fed expected to hike 25bp (see full Goldman preview here), while the BOJ, BOE and SNB all remain on hold.
Courtesy of BofA, here is the breakdown of key events:
FOMC the star in a G10 Central Bank week
After the eventful UK election, and less than eventful ECB meeting, the week ahead is a busy one, opening with the first round of

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Negative Rates: The New Gold Rush… For Gold Vaults

June 9, 2017

Negative interest rates and the populist uprising that spurred the UK to vote for Brexit and Americans to elect Trump has helped reignite a rush into physical safe haven assets like gold and silver, which however has led to a shortage of safe venues where to store the precious metals (unlike bitcoin, gold actually has a physical dimension). And now companies that operate storage facilities for precious metals and other valuables are ramping up their capacity to help cash in on the soaring demand for storage facilities.
Two firms told Bloomberg they’re planning to open vaults in Europe capable of holding more than 100 million euros ($112 million) in gold, offering customers lower costs than exchange-traded products

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The New Gold Rush… For Gold Vaults

June 8, 2017

Negative interest rates and the populist uprising that spurred the UK to vote for Brexit and Americans to elect Trump has helped reignite a rush into physical safe haven assets like gold and silver, which however has led to a shortage of safe venues where to store the precious metals (unlike bitcoin, gold actually has …

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The Internet Helped Kill Inflation In America, Says Credit Suisse

June 2, 2017

Whether or not San Francisco Fed President John Williams is right about US inflation and employment being about as close to the central bank’s targets as investors have seen – as he told CNBC two days ago – is irrelevant: The central bank is going to raise interest rates two more times this year no matter what happens to consumer prices, says Credit Suisse Chief Investment Officer for Switzerland Burkhard Varnholt.
That’s because it’s pointless waiting around for prices to rise when the real reason inflation is low – and will likely remain low – has nothing to do with the Fed, but with a structural shift in the US economy that’s being driven by technology giants like Amazon and Uber. Burkdard says these companies

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Man Convicted For “Liking” Apparently Slanderous Facebook Comments

June 1, 2017

Authored by Carey Wedler via TheAntiMedia.org, In the United States, a crazed racist is currently facing murder charges for stabbing multiple men who attempted to stop him from harassing two teenage girls. In a court appearance, he justified his murder of two Americans, one a military veteran, by citing “free speech.” On the other end …

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SocGen: Beware The Ghost Of 1993

May 12, 2017

With Monday’s financial media blasting reports about the VIX collapse to levels not seen in 24 years, going all the way back to 1993, it is worth remembering that the near record low volatility collapse of 1993 did not end well either for stocks, or for bonds, with the great 1994 bond tantrum.  Reminding us of that, and of broader implications for the cross-asset space, is SocGen’s Kit Juckes with his overnight note, “The ghost of 1993”

The ghost of 1993
First things first: Collapsing vol is bad for the yen (and possibly worse for the Swiss franc, in this context) and good for yieldier currencies generally. It’s an invitation to add risk and yield to a portfolio if volatility-adjusted returns are expected to be higher as a result of the low vol. We’re happy to stay short JPY vs EUR, SEK, or indeed HUF and PLN. And SEK, HUF and PLN are all likely to remain supported for a while longer against the Swiss franc as the SNB finally gets the relief they crave, albeit with the caveat that it wouldn’t be at all surprising if the SNB were to use the rise in EUR/CHF to reduce its FX reserve mountain a bit.
Beyond the immediate reaction though, too little vol is too much of a good thing. Is it evidence of a quiet, news-free world? Not really.

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How The US Government Let A Giant Bank Pin A Scandal On A Former Employee

May 12, 2017

The following is an excerpt from David Enrich’s nonfiction financial and legal thriller The Spider Network: The Wild Story of a Math Genius, a Gang of Backstabbing Bankers, and One of the Greatest Scams in Financial History.  (Read part of the prologue here; another excerpt can be found here) This excerpt takes place shortly after the accused mastermind of the Libor scandal, Tom Hayes, is fired from his job at Citigroup, kicking government investigations into interest-rate-rigging into a higher gear.
– Click to enlarge
How The US Government Let A Giant Bank Pin A Scandal On A Former Employee
Chris Cecere handed in his resignation from Citigroup shortly after his subordinate Tom Hayes was fired for manipulating Libor in September 2010. Cecere’s departure was voluntary, but Citigroup had told him he might be fired if he didn’t step down on his own. His cell phone and e-mail were quickly disconnected. Always the salesman, Cecere described his resignation to Hayes as an act of protest — he said he did it “in disgust.” Cecere wasn’t terribly worried about the future: He was already in talks to join a huge international hedge fund, Brevan Howard, as a trader in its Geneva headquarters.

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A Problem Emerges: Central Banks Injected A Record $1 Trillion In 2017… It’s Not Enough

May 11, 2017

Two weeks ago Bank of America caused a stir when it calculated that central banks (mostly the ECB & BoJ) have bought $1 trillion of financial assets just in the first four months of 2017, which amounts to $3.6 trillion annualized, “the largest CB buying on record.” 

Aggregate Balance Sheet Of Large Central Banks, 2000 – 2017 – Click to enlarge
BofA’s Michael Hartnett noted that supersized central bank intervention which he dubbed a “liquidity supernova” is “the best explanation why global stocks & bonds both annualizing double-digit gains YTD despite Trump, Le Pen, China, macro…”

Central Bank Balance Sheet, 2006 – 2017 – Click to enlarge
To be sure, Hartnett’s “discovery” did not come as a surprise to regular readers: back in October 2014, Citi’s Matt King calculated that it costs central banks $200 billion per quarter to avoid a market crash, or as he put it:

For over a year now, central banks have quietly being reducing their support. As Figure 7 shows, much of this is down to the Fed, but the contraction in the ECB’s balance sheet has also been significant.

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Europe, US Futures Slip Despite Brent Bouncing Back To $51

May 11, 2017

Asian stocks rose lifted by commodity names; European equities trade mostly lower but with little in the way of conviction or firm direction while the Italian banking index is at the highest level in a year following domestic earnings; S&P index futures are modestly in the red after the cash market closed at a record high Wednesday and investors prepared for earnings from retailers; we expect the now general vol selling program to promptly lift the S&P into new all time highs minutes after today’s open.
Global sentiment was boosted for the second day by a rebound in energy shares as oil prices rose, with Brent regaining the $51 level and reverse all of last week’s losses, after U.S. fuel inventories declined and Saudi Arabia cut supplies of crude to Asia more than expected.
The MSCI’s gauge of global stock markets was up 0.1 percent, bringing their gains for the year to nearly 10 percent, and into fresh record territory. After starting off deep in the red, the Shanghai Composite managed to recover and close green, despite another tumble in iron ore on SGX AsiaClear in Singapore, where it fell as much as 4.5% to $59 a ton, the lowest since October amid a clampdown on leverage in China, the top consumer, and expanding global supply.

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“Mystery” Central Bank Buyer Revealed, Goes On Q1 Buying Spree

May 8, 2017

In the first few months of the year, a trading desk rumor emerged that even as institutional traders dumped stocks and retail investors piled into ETFs, a “mystery” central bank was quietly bidding up risk assets by aggressively buying stocks. And no, it was not the BOJ: while the Japanese Central Bank’s interventions in the stock market are familiar to all by now, and as we reported last night on sessions when the “the BoJ comes in big, the average return on the [Nikkei] is about 14 basis points higher” with Nomura calculating that “the BoJ has provided a cumulative boost to the Nikkei of about 1,400 points”…

Nikkei 225 vs. BoJ ETF Holdings 2011-2017 – Click to enlarge
… the one thing about the BOJ is that it keeps its interventions local, and tends to mostly prop up Japanese stocks, whether the Nikkei 225 or the Topix.
The answer was revealed on Friday when the hedge fund known as the “Swiss National Bank” posted its latest 13-F holdings. What it showed is that, as rumored, the Swiss National Bank had gone on a record buying spree in the first quarter, boosting its total equity holdings to an all time high $80.4 billion, up $17 billion from the $63.4 billion at the end of 2016, the biggest quarterly increase in “AUM” in history.

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How The US Government Let A Giant Bank Pin A Scandal On A Former Employee

May 6, 2017

The following is an excerpt from David Enrich’s nonfiction financial and legal thriller The Spider Network: The Wild Story of a Math Genius, a Gang of Backstabbing Bankers, and One of the Greatest Scams in Financial History.  (Read part of the prologue here; another excerpt can be found here) This excerpt takes place shortly after the accused mastermind of the Libor scandal, Tom Hayes, is fired from his job at Citigroup, kicking government investigations into interest-rate-rigging into a higher gear.
How The US Government Let A Giant Bank Pin A Scandal On A Former Employee
Chris Cecere handed in his resignation from Citigroup shortly after his subordinate Tom Hayes was fired for manipulating Libor in September 2010. Cecere’s departure was voluntary, but Citigroup had told him he might be fired if he didn’t step down on his own. His cell phone and e-mail were quickly disconnected. Always the salesman, Cecere described his resignation to Hayes as an act of protest — he said he did it “in disgust.” Cecere wasn’t terribly worried about the future: He was already in talks to join a huge international hedge fund, Brevan Howard, as a trader in its Geneva headquarters.
Before leaving Tokyo, Cecere had one last thing he wanted to do: take a shot at Mike Pieri, a UBS manager who had previously been Hayes’s boss.

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These Are The Most Expensive (And Best) Cities Around The World

May 6, 2017

Every year Deutsche Bank releases its fascinating index of real-time prices around the world which looks at the cost of goods and services from a purchase-price parity basis, to determine the most expensive – and in this year’s edition, best – cities. As have done on several occasions in the past, we traditionally focus on one specific subindex: the cost of “cheap dates” in the world’s top cities.
The index consists of i) cab rides, ii) dinner/lunch for two at a pub or diner, iii) soft drinks, iv) two movie tickets and a v) couple of beers. Deutsche Bank’s advice to those in Zurich is either to marry young or choose your blind dates carefully as its “cheap date” index continues to see Zurich as the most expensive place for courtship. Tokyo climbs to second and Oslo, Copenhagen and Stockholm make up the top 5. Indeed these 5 cities are also the most expensive for a haircut so the pre-date investment costs are also high!
If you’re in the Philippines, Indonesia, Malaysia, India and Mexico a date is around a quarter of the cost of that in Zurich and a haircut about a tenth of the price. So if you’re young, free and single in Zurich, depending on how much you date it might be profitable to migrate to parts of Asia even after the salary sacrifice, the German bank suggests.

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These Are The Most Expensive (And Best) Cities Around The World

May 5, 2017

Every year Deutsche Bank releases its fascinating index of real-time prices around the world which looks at the cost of goods and services from a purchase-price parity basis, to determine the most expensive – and in this year’s edition, best – cities. As have done on several occasions in the past, we traditionally focus on one specific subindex: the cost of "cheap dates" in the world’s top cities.
The index consists of i) cab rides, ii) dinner/lunch for two at a pub or diner, iii) soft drinks, iv) two movie tickets and a v) couple of beers. Deutsche Bank’s advice to those in Zurich is either to marry young or choose your blind dates carefully as its "cheap date" index continues to see Zurich as the most expensive place for courtship. Tokyo climbs to second and Oslo, Copenhagen and Stockholm make up the top 5. Indeed these 5 cities are also the most expensive for a haircut so the pre-date investment costs are also high!
If you’re in the Philippines, Indonesia, Malaysia, India and Mexico a date is around a quarter of the cost of that in Zurich and a haircut about a tenth of the price. So if you’re young, free and single in Zurich, depending on how much you date it might be profitable to migrate to parts of Asia even after the salary sacrifice, the German bank suggests.

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Where There’s Smoke…

April 25, 2017

Central banks around the world have colluded, if not conspired, to elevate and prop up financial asset prices.  Here we’ll present the data and evidence that they’ve not only done so, but gone too far.
When we discuss elevated financial asset prices we really are talking about everything; we’re talking not just about the sky-high prices of stocks and bonds, but also of the trillions of dollars’ worth of derivatives that are linked to them, as well as real estate in dozens of countries and locations.  All are intricately linked together. For instance, stocks are elevated, in part, because bond yields are so low.  Sam for real estate.
Here are three questions most alert investors are asking:
Question #1: When will financial assets ever ‘correct’ and fall in price?
Question #2: How much does overt propping by the central banks have to do with today’s elevated prices?
Question #3: How much does covert propping by central banks play a role in these inflated markets?
These are important questions to consider because if central banks have been too involved and gotten themselves mixed up in trying to ‘wag the dog’ by using elevated financial asset prices as a means to drive economic expansion — then the risk is a big implosion in financial asset prices if their efforts fail.

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Life Expectancy Indicates A Nation’s Overall Well Being – So Why Is America’s Dropping?

April 14, 2017

‘Exceptional’ America is seriously lagging behind in global life expectancy…
Via: MesoTreatmentCenters.org
Some additional details…
Life Expectancy Indicates a Country’s Overall Well Being—So Why Is Ours Dropping?
The last time U.S. life expectancy declined at birth
1992-1993: 75.8 to 75.5 years
Resulting from high death rates from AIDS, flu epidemic, homicide, and accidental deaths

After years of life expectancy gains, there is decline all across the board
2014-2015: 78.9 to 78.8 years
Death rates rose for 8 out of 10 leading causes of death
Heart disease causes more than 4X as many deaths as the rest of the leading causes
Prescription opioid painkillers and heroin abuse are probably fueling increases in unintentional injuries
In 2014, the CDC reported 28,000 died due to opioid overdoses

In 2015, Obesity Related Problems Caused 10% of US Deaths
Obesity increases the likelihood of heart disease, stroke, type 2 diabetes, and some cancers
6 million or ? of Americans are obese
Being 40 lbs overweight cuts about 3 years off life expectancy
Being 100 lbs overweight reduces lifespan by about 10 years

The US has higher obesity rates than countries with longer lifespans
Japan 3.3%
Switzerland4%
Germany 20.1%
Spain 23.7%
United Kingdom 28.1%
Australia 28.6%
USA 33.

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Life Expectancy Indicates A Nation’s Overall Well Being – So Why Is America’s Dropping?

April 14, 2017

‘Exceptional’ America is seriously lagging behind in global life expectancy…
Via: MesoTreatmentCenters.org
Some additional details…
Life Expectancy Indicates a Country’s Overall Well Being—So Why Is Ours Dropping?
The last time U.S. life expectancy declined at birth
1992-1993: 75.8 to 75.5 years
Resulting from high death rates from AIDS, flu epidemic, homicide, and accidental deaths

After years of life expectancy gains, there is decline all across the board
2014-2015: 78.9 to 78.8 years
Death rates rose for 8 out of 10 leading causes of death
Heart disease causes more than 4X as many deaths as the rest of the leading causes
Prescription opioid painkillers and heroin abuse are probably fueling increases in unintentional injuries
In 2014, the CDC reported 28,000 died due to opioid overdoses

In 2015, Obesity Related Problems Caused 10% of US Deaths
Obesity increases the likelihood of heart disease, stroke, type 2 diabetes, and some cancers
6 million or ? of Americans are obese
Being 40 lbs overweight cuts about 3 years off life expectancy
Being 100 lbs overweight reduces lifespan by about 10 years

The US has higher obesity rates than countries with longer lifespans
Japan 3.3%
Switzerland4%
Germany 20.1%
Spain 23.7%
United Kingdom 28.1%
Australia 28.6%
USA 33.

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Saxo Warns Reflation Trade Ends In Q2 With “Healthy Correction”

April 11, 2017

The reflation trade that started before Donald Trump’s victory in the US presidential elections accelerated in Q1 as global economic data improved and surprised against expectations. Global equities are up 6.5% in dollar terms with markets such as Hong Kong, emerging markets, and Brazil the clear outperformers.
In its Q2 2017 Outlook report, Saxo Bank warns that the reflation trade will end in Q2 with a healthy correction in global equities.

 
The biggest perception-versus-reality gap remains this risk of recession. While the market at large sees less than a 10% chance of recession, we at Saxo –together with our friends at South Africa’s Nedbank – see more than a 60% chance.
No, we are not “predicting a recession”, but our economic model does indicate a significant slowdown as the large credit impulse from China and Europe in the early part of 2016 has not reversed to negative, which should make the market conservative and risk averse (and certainly long US fixed income).
Along with Q2, spring is now upon us, so we will enjoy both the season and the “fake” economic spring we see now as a slowdown is coming. In this slowdown, Europe will do better than the US, EUR will do better than USD, and Asia will be under pressure to reform its way away from debt as the main driver of growth.

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Credit Suisse Offices Raided In Multiple Tax Probes: Gold Bars, Paintings, Jewelry Seized

April 1, 2017

Credit Suisse has confirmed that the Swiss bank, some of its employees and hundreds of account holders are the subjects of a major tax evasion probe launched in UK, France, Australia, Germany and the Netherlands, setting back Swiss attempts to clean up its image as a haven for tax evaders.
According to Bloomberg, Dutch investigators seized jewellery, paintings and even gold bars as part of a sweeping investigation into tax evasion and money laundering in the Netherlands. They added that the sums involved amounted to “many millions” of lost tax revenue.
Doorzoekingen tijdens internationale actiedag in verband met onderzoek naar #zwartsparen bij een #Zwitsersebank: https://t.co/dhymVvlyHr. pic.twitter.com/VRha4rlTHb — FIOD (@FIOD) March 31, 2017

Two individuals who were arrested on Thursday in connection with the raids were accused of concealing millions of euros from authorities by placing them, where else, in Swiss bank accounts, the Fiscal Information and Investigation Service said in a statement Friday. Criminal investigations are also underway in Australia, Germany, the U.K. and France.

The Swiss bank also said Friday that its offices in London, Paris and Amsterdam were raided Thursday by authorities in connection with client tax matters.
In a statement by the U.K.

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Credit Suisse Offices Raided In Multiple Tax Probes: Gold Bars, Paintings, Jewelry Seized

March 31, 2017

Credit Suisse has confirmed that the Swiss bank, some of its employees and hundreds of account holders are the subjects of a major tax evasion probe launched in UK, France, Australia, Germany and the Netherlands, setting back Swiss attempts to clean up its image as a haven for tax evaders.
According to Bloomberg, Dutch investigators seized jewellery, paintings and even gold bars as part of a sweeping investigation into tax evasion and money laundering in the Netherlands. They added that the sums involved amounted to “many millions” of lost tax revenue.
Doorzoekingen tijdens internationale actiedag in verband met onderzoek naar #zwartsparen bij een #Zwitsersebank: https://t.co/dhymVvlyHr. pic.twitter.com/VRha4rlTHb
— FIOD (@FIOD) March 31, 2017
Two individuals who were arrested on Thursday in connection with the raids were accused of concealing millions of euros from authorities by placing them, where else, in Swiss bank accounts, the Fiscal Information and Investigation Service said in a statement Friday. Criminal investigations are also underway in Australia, Germany, the U.K. and France.
The Swiss bank also said Friday that its offices in London, Paris and Amsterdam were raided Thursday by authorities in connection with client tax matters.
In a statement by the U.K. tax authority, it said it was investigating "senior employees" at a global financial institution.

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100 Years Ago, Russian Stocks Had A Very Bad Day

March 28, 2017

In recent months, Ray Dalio seems to be undergoing a deep midlife and identity crisis, which has not only led to dramatic recent management changes at the world’s largest hedge fund, Bridgewater, but also resulted in some fairly spectacular cognitive dissonance, as Dalio first praised, then slammed, president Trump. Yesterday. in the latest expression of his building anti-Trumpian sentiment, Bridgewater released a 61-page report looking at “Populism: the Phenomenon“, which describes what Bridgewater sees as the “archetypical populist template,” which the fund built out through studying 14 past populist leaders in 10 different countries.
The unspoken message in the report is that the US is the 15 example of the “populist leader”, and since all 14 cases presented by Dalio had less than happy endings, the implication is that Bridgewater is hardly optimistic or excited about the near-term future for the US.
Dalio’s politics aside, however, the report, among other notable historical observations, has a fascinating aside into what happened some 100 years ago in post-World War I and Tsarist Russia under Vladiir Lenin and the Russian Revolution.

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Global Stocks Slide, S&P Futures Tumble Below 50DMA As “Trump Trade” Collapses

March 27, 2017

Global stocks are lower across the board to start the week, as concerns about Trump’s administration to pull off a material tax reform plan finally emerge, pressuring S&P futures some 20 points lower this morning, following European and Asian shares lower, while crude oil prices fall unable to find support in this weekend’s OPEC meeting in Kuwait where a committee recommended to extend oil production cuts by another 6 months. Safe havens including the yen and bonds climbed as did gold, which continued its advance above the key resistance level of $1,250, while industrial commodities dropped.
So-called "Trumpflation trades" – bets that Trump’s pro-business policies would stoke growth and inflation in the U.S. and global economies, boosting assets such as commodities – came under heavy selling pressure.  The dollar, whose index had surged more than 6 percent in the aftermath of Trump’s election to hit 14-year highs at the start of 2017, slipped to its lowest since Nov. 11, two days after the results of the presidential vote.
"Investors are viewing this setback as a broader loss of faith in the Trump administration’s ability to deliver on other campaign pledges – namely tax and spending policies, which have underpinned asset prices since the U.S. elections," said ING currency strategist Viraj Patel, in London.
U.S.

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SNB Spent $68 Billion On Currency Manipulation In 2016

March 24, 2017

While Donald Trump has repeatedly expressed his displeasure with China for manipulating its currency, he appears to have recently figured out that over the past 2 years Beijing has been spending hundreds of billions in dollar to strengthen, not weaken, the Yuan and to halt the ~$1 trillion in capital flight from China. But while everyone knows that the biggest currency manipulation in the world, and perhaps the Milky Way galaxy is Japan, which now owns 40% of all JGBs in its ongoing attempt to pressure the Yen lower and explains why Abe was trembling when he met with Trump, terrified the US president would tell him to stop, one place where Trump may want to look is Europe’s famously “neutral” country, which however continues to be quite bellicose when it comes to currency warfare. Overnight, the SNB announced that in 2016 it spent 67.1 billion Swiss francs, or $67.6 billion, to purchase foreign currencies in an effort to weaken its currency.

The amount, published in the central bank’s annual report on Thursday, was roughly CHF20 billion lower than the 2015 total of 86.1 billion francs and a record of 188 billion spent in 2012. What is notable is that in 2015, the Swiss National Bank ended its 1.20 EURCHF peg, which ended up costing the SNB tens of billions in FX losses.

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CS and UBS Tell Wealthy Retail Clients To Buy Stocks…”Here, Can You Please Hold This Bag”

March 17, 2017

Warren Buffett has frequently advised aspiring investors to take a contrarian view on markets and “be fearful when others are greedy and be greedy when others are fearful.”  In fact, being dismissive of the wall street ‘herd mentality’ has resulted in some of Buffett’s most successful trades over the years including his decision to load up on bank stocks during the ‘great recession’.
But the market wizards at Credit Suisse and UBS are apparently advising their wealthy retail clients to ignore Buffett’s sage advice and instead follow a strategy that can loosely be summarized as “Buy The Fucking Dip.”  It’s a genius plan, if we understand it correctly.  Per Bloomberg:

Credit Suisse Group AG and UBS Group AG have a message for their wealthy clients: it’s not too late to buy equities.
Political risk is keeping many rich individuals on the sidelines of a rally that’s sent global stocks surging to records amid a recovering world economy. Now’s the time for them to jump back in and take advantage of the gains still to be made, say the people looking after their cash.

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CS and UBS Tell Wealthy Retail Clients To Buy Stocks…”Here, Can You Please Hold This Bag”

March 16, 2017

Warren Buffett has frequently advised aspiring investors to take a contrarian view on markets and "be fearful when others are greedy and be greedy when others are fearful."  In fact, being dismissive of the wall street ‘herd mentality’ has resulted in some of Buffett’s most successful trades over the years including his decision to load up on bank stocks during the ‘great recession’.
But the market wizards at Credit Suisse and UBS are apparently advising their wealthy retail clients to ignore Buffett’s sage advice and instead follow a strategy that can loosely be summarized as "Buy The Fucking Dip."  It’s a genius plan, if we understand it correctly.  Per Bloomberg:

Credit Suisse Group AG and UBS Group AG have a message for their wealthy clients: it’s not too late to buy equities.
 
Political risk is keeping many rich individuals on the sidelines of a rally that’s sent global stocks surging to records amid a recovering world economy. Now’s the time for them to jump back in and take advantage of the gains still to be made, say the people looking after their cash.
 
“Whenever it feels really difficult and challenging to put money at work, ultimately those are often the better investments,” Burkhard Varnholt, deputy chief investment officer of Credit Suisse, said at a roundtable discussion at Bloomberg’s Zurich office on Feb. 27.

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Turkey Vows “Harsh Retaliation” After Dutch PM Says “Not Apologizing, Are You Nuts”

March 12, 2017

The diplomatic scandal between Turkey and the Netherlands deteriorated overnight, when Prime Minister Binali Yildirim warned on Sunday that Turkey would retaliate in the "harshest ways" after Turkish ministers were barred from speaking in Rotterdam, leading to a major protest in front of the Turkish consulate in Rotterdam, while the Dutch embassy in Istanbul was closed off due to "safety concerns."
"This situation has been protested in the strongest manner by our side, and it has been conveyed to Dutch authorities that there will be retaliation in the harshest ways … We will respond in kind to this unacceptable behavior," Yildirim said in a statement.
Turkey’s Prime Minister Binali Yildirim
At the same time, continuing his ongoing tirade in which he has compared virtually all of his political foes to Hitler or Nazis, president Tayyip Erdogan said "Nazism is still widespread in the West" after the Netherlands joined other European countries worried about political tensions inside Turkey spilling beyond its borders that have prevented Turkish politicians from holding rallies.
As reported on Saturday, the Dutch government first barred Turkish Foreign Minister Mevlut Cavusoglu from flying to Rotterdam and later stopped Family Minister Fatma Betul Sayan Kaya from entering the Turkish consulate in the port city, before escorting her out of the country to Germany.

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The Oscars – Gold Plated And Debased Like The Dollar

February 26, 2017

Submitted by Jan Skoyles via GoldCore.com,
The Oscars – Worth Their Weight in Gold?

89th Oscars to air this weekend
Oscars have been dipped in 24 karat gold since 1929
If the Oscars were made of solid gold they would weigh 330 ounces
330 ounces of gold is worth $408,210 at today’s prices (nearly €400k & £330k)
Only some $630 worth of gold in Oscar statue
Oscars cannot be sold due to regulations
Steven Spielberg keeps his gold Oscar with the Academy for ‘safe-keeping’
Shows importance of owning gold in safest ways
Price of gold has climbed from $20.67 since the first Oscars ceremony to over $1,237 today

‘We All Dream In Gold’ read the strap line for last year’s Academy Awards. This is no doubt still the case for the nominees of the 24 awards set to be given out at this Sunday’s 89th Oscars.
Since the first awards in 1929 nearly 3,000 oscar statues have been awarded to the lucky darlings of the film industry. After the teary speeches, after-parties and press junkets following their win, what is left for those who have achieved the highest-level of recognition in the film industry?

Winning an Oscar is an expensive business, studios spend millions trying to get their hands on at least one, each year. But film and celebrity is a fickle trade and few people can remember who received Oscars last year, let alone when they were first launched in 1929.

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Here Are The Best Hedges Against A Le Pen Victory

February 13, 2017

On Friday, after it emerged that as part of Marine Le Pen’s strategic vision for France, should she win, is a return to the French franc as well as redenomination of some €1.7 billion in French (non-international law) bonds, both rating agencies and economists sounded the alarm, warning it would “amount to the largest sovereign default on record, nearly 10 times larger than the €200bn Greek debt restructuring in 2012, threatening chaos to the world financial system on top of the collapse of the single currency.”
This morning, Bank of France Governor Francois Villeroy de Galhau doubled down on the warning and cautioned French voters about the costs of withdrawing from the euro, noting that local interest rates are already rising on concerns about this year’s presidential election. “The recent increase in French rates – which I believe is temporary – corresponds to a certain worry about the exit from the euro,” Villeroy de Galhau said Monday on France Inter radio.
As of Monday, Le Pen has the support of about 26% of the electorate for the first round of voting in April, compared with 20.5% for independent Emmanuel Macron and 17.5 percent for Republican Francois Fillon, according to the latest Ifop daily rolling poll.

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