$ES_F MOC SELL $650mil $$
$ES_F SPX moc implied imbal $1.3B for SALE $$
$ES_F 02:34:26 TRADINGDATA2: (bshepard) ESM moving the the favored direction of the imbalalce meter ... down $$
$ES_F 81% sell side $$
John_Monaco (13:41:50): 75% sell side on the close
We were told we needed to bail out Wall Street in order to save Main Street. Well the results are in…
Wall Street has never done better, and Main Street has never done worse.
From the Huffington Post:
Low-income workers and their families do not earn enough to live in even the least expensive metropolitan American communities, according to a new analysis of families’ living costs published Wednesday.
The analysis, released by the left-leaning Economic Policy Institute, is an annual update of the think tank’s Family Budget Calculator that reflects new 2014 data. The Family Budget Calculator is a formula designed to determine the income “required for families to attain a secure yet modest standard of living” in 618 different communities across the country that the U.S. Census Bureau defines as metropolitan areas. The formula uses data collected by the government and some nonprofit groups to measure costs of housing, food, child care, transportation, health care, “other necessities” like clothing, and taxes for families of 10 different compositions in these specific locales.
The updated Family Budget Calculator shows that even the most affordable metropolitan areas in the country are beyond the reach of millions of American families with incomes above the official federal poverty level. The official federal poverty level for a family of two parents and two children in 2014 was $24,008, according to the EPI. But the least expensive metropolitan area in the country for this family type is Morristown, Tennessee, where a family needs an income of $49,114, according to the Economic Policy Institute’s budget calculator.
The Economic Policy Institute also estimates that minimum-wage workers — who almost universally earn less than the federal poverty level — lack the income needed to make an adequate living in any of the communities surveyed, even if they are single and childless. The think tank notes that this includes minimum-wage workers living in cities or states with a higher minimum wage than the federal minimum of $7.25 an hour, or $15,080 a year for a full-time worker.
Even families with incomes closer to the middle of the earnings spectrum lack the means to maintain an adequate standard of living. The nation’s median household income was $51,939 in 2013 — the most recent year in which data were available — not much higher than the cost of living in the relatively inexpensive Morristown.
Where’s our hero when you need him?
While military direct intervention by US, Turkish, and Gulf forces over Syrian soil escalates with every passing day, even as Islamic State forces capture increasingly more sovereign territory, in the central part of the country, the Nusra Front dominant in the northwestern region province of Idlib and the official "rebel" forces in close proximity to Damascus, the biggest question on everyone's lips has been one: would Putin abandon his protege, Syria's president Assad, to western "liberators" in the process ceding control over Syrian territory which for years had been a Russian national interest as it prevented the passage of regional pipelines from Qatar and Saudi Arabia into Europe, in the process eliminating Gazprom's - and Russia's - influence over the continent.
As recently as a month ago, the surprising answer appeared to be an unexpected "yes", as we described in detail in "The End Draws Near For Syria's Assad As Putin's Patience "Wears Thin." Which would make no sense: why would Putin abdicate a carefully cultivated relationship, one which served both sides (Russia exported weapons, provides military support, and in exchange got a right of first and only refusal on any traversing pipelines through Syria) for years, just to take a gamble on an unknown future when the only aggressor was a jihadist spinoff which had been created as byproduct of US intervention in the region with the specific intention of achieving precisely this outcome: overthrowing Assad (see "Secret Pentagon Report Reveals US "Created" ISIS As A "Tool" To Overthrow Syria's President Assad").
As it turns out, it may all have been just a ruse. Because as Ynet reports, not only has Putin not turned his back on Assad, or Syria, but the Russian reinforcements are well on their way. Reinforcements for what? Why to fight the evil Islamic jihadists from ISIS of course, the same artificially created group of bogeyman that the US, Turkey, and Saudis are all all fighting. In fact, this may be the first world war in which everyone is "fighting" an opponent that everyone knows is a proxy for something else.
According to Ynet, Russian fighter pilots are expected to begin arriving in Syria in the coming days, and will fly their Russian air force fighter jets and attack helicopters against ISIS and rebel-aligned targets within the failing state.
And just like the US and Turkish air forces are supposedly in the region to "eradicate the ISIS threat", there can't be any possible complaints that Russia has also decided to take its fight to the jihadists - even if it is doing so from the territory of what the real goal of US and Turkish intervention is - Syria. After all, it is a free for all against ISIS, right?
According to Western diplomats, a Russian expeditionary force has already arrived in Syria and set up camp in an Assad-controlled airbase. The base is said to be in area surrounding Damascus, and will serve, for all intents and purposes, as a Russian forward operating base.
In the coming weeks thousands of Russian military personnel are set to touch down in Syria, including advisors, instructors, logistics personnel, technical personnel, members of the aerial protection division, and the pilots who will operate the aircraft.
The Israeli outlet needless adds that while the current makeup of the Russian expeditionary force is still unknown, "there is no doubt that Russian pilots flying combat missions in Syrian skies will definitely change the existing dynamics in the Middle East."
Why certainly: because in one move Putin, who until this moment had been curiously non-commital over Syria's various internal and exteranl wars, just made the one move the puts everyone else in check: with Russian forces in Damascus implicitly supporting and guarding Assad, the western plan instantly falls apart.
It gets better: if what Ynet reports is accurate, Iran's brief tenure as Obama's BFF in the middle east is about to expire:
Western diplomatic sources recently reported that a series of negotiations had been held between the Russians and the Iranians, mainly focusing on ISIS and the threat it poses to the Assad regime. The infamous Iranian Quds Force commander Major General Qasem Soleimani recently visited Moscow in the framework of these talks. As a result the Russians and the Iranians reached a strategic decision: Make any effort necessary to preserve Assad's seat of power, so that Syria may act as a barrier, and prevent the spread of ISIS and Islamist backed militias into the former Soviet Islamic republics.
See: the red herring that is ISIS can be used just as effectively for defensive purposes as for offensive ones. And since the US can't possibly admit the whole situation is one made up farce, it is quite possible that the world will witness its first regional war when everyone is fighting a dummy, proxy enemy which doesn't really exist, when in reality everyone is fighting everyone else!
That said, we look forward to Obama explaining the American people how the US is collaborating with the one mid-east entity that is supporting not only Syria, but now is explicitly backing Putin as well.
It gets better: Ynet adds that "Western diplomatic sources have emphasized that the Obama administration is fully aware of the Russian intent to intervene directly in Syria, but has yet to issue any reaction... The Iranians and the Russians- with the US well aware- have begun the struggle to reequip the Syrian army, which has been left in tatters by the civil war. They intend not only to train Assad's army, but to also equip it. During the entire duration of the civil war, the Russians have consistently sent a weapons supply ship to the Russian held port of Tartus in Syria on a weekly basis. The ships would bring missiles, replacement parts, and different types of ammunition for the Syrian army."
Finally, it appears not only the US military-industrial complex is set to profit from the upcoming war: Russian dockbuilders will also be rewarded:
Arab media outlets have recently published reports that Syria and Russia were looking for an additional port on the Syrian coast, which will serve the Russians in their mission to hasten the pace of the Syrian rearmament.
If all of the above is correct, the situation in the middle-east is set to escalate very rapidly over the next few months, and is likely set to return to the face-off last seen in the summer of 2013 when the US and Russian navies were within earshot of each other, just off the coast of Syria, and only a last minute bungled intervention by Kerry avoided the escalation into all out war. Let's hope Kerry has it in him to make the same mistake twice.
China Strengthens Yuan Most Since Nov 2014 After PMI Hits 3-Year Low, PBOC Offers "Hope" As A Strategy For Stocks
Having exposed the culprit for all of its economic and market woes, China is likely going to have problems explaining why its economic plague is still spreading (with South Korean exports collapsing and Japanese Capex growth slowing) and China's official manufacturing PMI slipped into contraction for the first time in 6 months (to 3 year lows). Amid the face-saving clean-air of Parade Week, the appearance of awesomeness must prevail and following the worst quarter since Lehman, stocks are indicated lower despite having received some 'help' into last night's close. PBOC proxies push 'hope' as a strategy for stock stability (even as US markets and oil are re-collapsing) as margin debt drops to an 8-month low - still double YoY though. PBOC fixes Yuan 0.22% stronger- the biggest jump since Nov 2014 - as it injects another CNY150bn via 7-day rev.repo.
China's bubonic economic plague is spreading...
- S. KOREA EXPORTS DROP BY MOST SINCE 2009, FALLING FOR 8TH MONTH
So guess who wil lbe next to devalue!
* * *
But having arrested the culprit for all of China's market and economic woes, following the worst 3-month slide in stocks since Lehman...
And with Parade Week under way, the propaganda continues...
- *PBOC ACADEMIC URGES ATTENTION ON STOCK MKT STABILITY: SEC TIMES
Which, he writes, means market expectations should be optimistic about the economy as they were during the bull market... even though there seems to disconnect between economic fundamentals and the stock market, while the gap between the link, it is the reflection of the policy.
Which roughly translated means - In China, hope is a strategy.. and if you are anything but hopeful you are arrested.
But then China PMI hit...
- *CHINA MANUFACTURING PMI AT 49.7 IN AUG. - 3 Year Low - The Official PMI in contraction for first time in 6 months.
- *CHINA NON-MANUFACTURING PMI AT 53.4 IN AUG.
"Both domestic and external demand are weak," said Tommy Xie, an economist at Oversea-Chinese Banking Corp. in Singapore. "Market sentiment is bad and it’s too early to say the Chinese economy is bottoming out."
Don't forget - Hope fills the gap.
So having switched its focus to more economic-growth-focused measures than stock-levitation, $100s of billions later, the economy keeps sliding.
Of course, there is always the unofficial Caixin print at 2145ET to baffle everyone with bullshit.
* * *
There is some good news... The delveraging continues:
- *SHANGHAI MARGIN DEBT BALANCE FALLS TO LOWEST IN EIGHT MONTHS
- Outstanding balance of Shanghai margin lending fell to 673.1b yuan on Monday, lowest level since Dec. 25.
- Balance dropped by 1.5%, or 10b yuan, from previous day, in a 10th straight decline
But then again, we are not sure if we are allowed to mention that. And in any case - just to screw things up completely, China is goping full subprime in the real estate market...
China may strengthen property loosening and reduce down payment ratio on commercial mortgage loans if property investment remains weak, analysts led by Ning Jingbian write in note.
Move to boost mkt confidence in short term, though real policy effect may be impaired due to caps on housing provident fund loans
Yeah - because loosening standards and lowering upfronts worked out so well for America's already inflated housing market.!!
Asian equity markets are not happy...
- *JAPAN'S NIKKEI 225 MAINTAINS LOSS AFTER CHINA PMI; DOWN 1.5%
- *CHINA FTSE A50 STOCK-INDEX FUTURES FALL 1% AT OPEN
- *CHINA SHANGHAI COMPOSITE SET TO OPEN DOWN 1.5% TO 3,157.83
- *CHINA'S CSI 300 INDEX SET TO OPEN DOWN 2.1% TO 3,296.53
After two days of stronger Yuan fixes, PBOC goes crazy and drastically strengthens Yuan...
- *CHINA SETS YUAN REFERENCE RATE AT 6.3752 AGAINST U.S. DOLLAR
- That is the biggest single-day strengthening since Nov 2014...
We are not sure of the implications yet but it seems like a tightening of financial conditions:
- *PBOC SAID TO MAKE BANKS TRADING FX FORWARDS HOLD RESERVES: RTRS
- *PBOC FX FORWARD RESERVE RATIO SAID TO BE 20% FOR NOW: REUTERS
If Chinese authorities are to be believed, we finally know the cause of the country’s stock market woes: a single reporter. In a video segment aired by China’s state television broadcaster, journalist Wang Xiaolu confessed to fabricating a “sensationalized” story about the stock market and claimed responsibility for having “caused panic and disorder” among China’s investors.
At issue is a story Wang wrote for Caijing on July 20, in which he reported that China Securities Regulatory Commission was looking to end interventions designed to prop up share prices. CSRC denied the report, which was removed from Caijing’s website last week. CSRC blamed Wang’s piece for a massive drop in the stock market in late July, which sparked market woes that continue today.
Caijing, a financial and business newspaper in China, often pushes the envelope of state-sanctioned media coverage. It has been particularly active in publishing investigations into the finances and business connections of officials suspected of corruption.
Wang was arrested on August 25 for “fabricating and spreading false information about securities and futures trading.” A Xinhua report said that Wang had confessed to writing a false report on China’s stock market. According to Xinhua, Wang admitted that his story “caused panics and disorder at stock market, seriously undermined the market confidence, and inflicted huge losses on the country and investors [sic].”
On Monday, CCTV aired a video confession from Wang, in which he said he was “deeply sorry” for his actions. “At such a sensitive time, I should not have published a report that negatively affected the market,” Wang said, saying he had “caused great losses to the country and to investors” all for the sake of “sensationalism.”
Reporters Without Borders condemned Wang’s arrest in a statement issued on August 28. “Suggesting that a business journalist was responsible for the spectacular fall in share prices is a denial of reality,” the international non-profit’s secretary general Christophe Deloire said in the statement. “Blaming the stock market crisis on a lone reporter is beyond absurd.”
Chinese authorities have warned media outlets not to speculate on (or devote too much coverage to) the stock market troubles. The high-profile scapegoating of Wang is likely designed to send a stern message to other journalists thinking about following in his footsteps. And journalists aren’t the only ones being encouraged to keep quiet: China’s Ministry of Public Security also said that it had punished 197 people for spreading online rumors about the stock market crash, the deadly explosions in Tianjin, and China’s upcoming military parade.
Meanwhile, Xinhua also reported that a CSRC official, Liu Shufan, is under investigation for insider trading and accepting bribes. Four senior executives at Citic Securities, China’s largest brokerage firm, are also under investigation for insider trading. All five men have confessed, Xinhua said.
Chinese markets endured another roller-coaster-ride of a day on Monday, with both the CSI300 index and the Shanghai Composite Index dropped more than four percent before rising again in the afternoon. Both indexes fell by around 12 percent over the month of August, Reuters reported, and have lost almost 40 percent of their value compared to mid-June 2015.
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