While the rest of the world was preparing to celebrate Christmas, China was busy easing its economy into growth, and its stock market into low earth orbit, by lowering non-bank deposit reserve rates to zero as reported previously, while Japan was enjoying the consequences of the BOJ monetizing 100% of all gross JGB issuance, when…
The 45% collapse in oil prices since mid-June means one thing for certain… The oil industry will adjust its capital spending plans downward to match the current oil climate – particularly for higher-cost projects like the Canadian oil sands. Even for a powerhouse like ExxonMobil (XOM), oil at $65 per barrel means a cash shortfall of $15…
Foreign investors in China should not have any high hopes for the near future. Two years into the leadership of President Xi Jinping, there’s scant indication that the country is opening investment opportunities or rebalancing the economy as foreigners expected. According to analysts, it is unlikely that 2015 will be a better year for economic opportunities. It…
Note from dshort: I’ve updated the accompanying charts with the latest Personal Consumption Expenditures price index from the Bureau of Economic Analysis. The annualized rate of change is calculated to two decimal places for more precision in the side-by-side comparison with the Consumer Price Index. The BEA’s Personal Consumption Expenditures Chain-type Price Index for November shows core inflation…
Since the Russian Ruble troughed at almost 80 RUB/USD, it has rallied an impressive 34% erasing most of the dramatic devaluation of December. However, as The CBR just announced, this ‘strength’ came at a price. Russia burned through $15.7 billion of reserves in the week ending Dec 19th – the biggest percentage weekly drop in reserves since Jan…
1. To make US shale production economical, it required a high price of oil and access to cheap credit. The latter was predicated on the former. From the exploration and production to the transportation and housing markets in Texas and North Dakota, the whole shale ecosystem is highly leveraged. Therein lies the Achilles’ Heel. Mr Crude…
Photo Credit: Shutterstock/ A pile of stacked wads of indian rupee banknotes on an isolated background Billion dollar deals and everything below that marked a stellar year for Indian startups 2014 was a record year for Indian startups when it comes to venture capital funding. Flipkart had a billion dollar funding round, which was matched…
2014 has been an acceptable year for the stock market in the sense that the long-awaited big correction never really happened. It was the central banks that mostly decided the sentiment on the markets this year, although by the end of the year uncertainty grew again. After a long bull run the financial markets are…
I have made 3 Radio Free Wall Street videos from September 30-October 20. They’re still relevant. 1. Why The US Stock Market Really Sold Off – October 20, 2014 Video Length: 00:22:27 2. Real Time Withholding Tax Collections Fell With Market in October – October 13, 2014 Video Length: 00:19:59 3. US Treasury Drains Reserves In Lieu of…
The Dow Jones Industrial Average broke through another record high yesterday, closing at about 18,030. A record high in United States dollar value, that is. When valued in ounces of gold, the Dow is nowhere near its historical high, which we saw in 1999. Take a look at this chart, showing the Dow to gold…
