Odd tidings .....
Submitted by Tyler Durden on 12/11/2014 - 18:43
With memorandum S-7258, titled "Implementation of New NYMEX/COMEX Rule Regarding Special Price Fluctuation Limits for Certain NYMEX and COMEX Metals Futures and Options Contracts" released moments ago by the CME Group, and set to become effective on December 21, 2014, and which seeks a 5 minute trading halt when "price movements in lead-month primary futures contracts result in triggering events"... "as a measure that is consistent with promoting price discovery and cash-futures price convergence" in order to "deter sharp price movements that may, for example, be driven by illiquid central limit order books prevailing from time to time in otherwise liquid markets", one wonders why now, and what does the CME know about upcoming volatility, or lack of liquidity, in the precious metals space that nobody else does (and does any of this have to do with the "berserk" algo test from November 25?)?
Submitted by Tyler Durden on 12/11/2014 - 17:46
UPDATE: WTI just traded with a $58 handle
Zee overnight stabilitee (and brief dead-cat-bounce this morning) has turned into a renewed bout of selling pressure and for the first time since July 2009, WTI has broken below the $60 level. Canada Heavy is trading $42.10 (down almst $4 today!), its lowest since April 2009. As Deutsche Bank warned last month, a drop in the oil price to $60 a barrel "is likely to push the whole HY energy sector into distress," and sure enough - Energy credit spreads are wider once again, now at +952bps.
Submitted by Tyler Durden on 12/11/2014 - 09:19
New oil projects are being scrapped in Norway amid falling production and low oil prices. The governor of Norway’s central bank says western Europe’s biggest oil producer is facing a major economic slowdown as crude prices continue to plunge. As Bloomberg reports, Oeystein Olsen said today after unexpectedly cutting rates and shocking markets to a new 5 year low in NOKEUR, "our job now is that we need to prevent a severe downturn in the economy... that is presently the major concern of the board."
Submitted by Tyler Durden on 12/11/2014 - 08:14
Just 2 short months ago we noted S&P's warning that Greece will default again within 15 monthsand following comments by Prime Minister Samaras that the market's drop is due to fear that Syriza will win an early election and seek a Greek exit from the Euro. Pressuring parliamentarians and the public alike, he stated "the choice is simple," warning that Greek financing needs are only covered through the end of February without further aid from the EU (but we thought they were 'recovered'). Greek stocks have crashed further, Greek default risk has spiked, and 3Y bond yields are now well north of 10% (138bps inverted to 10Y).
Submitted by Tyler Durden on 12/10/2014 - 15:32
The Department of Treasury is spending $200,000 on survival kits for all of its employees who oversee the federal banking system, according to a new solicitation. As FreeBeacon reports, survival kits will be delivered to every major bank in the United States and includes a solar blanket, food bar, water-purification tablets, and dust mask (among other things). The question, obviously, is just what do they know that the rest of us don't ?
Submitted by Tyler Durden on 12/10/2014 - 17:05
In reality, bureaucrats and politicians who produce nothing of value parasitically choke off the productive class through onerous taxation and regulation. This cannot last forever, because at some point they will have no hosts left to feed off of. Ukraine is the perfect example of this right now. In a leaked version of a new budget proposal (in Ukrainian), we are seeing the drastic extent to which bankrupt governments feed on their hosts.
Submitted by Tyler Durden on 12/10/2014 - 15:06
With OPEC slashing demand expectations to 12 year lows, oil prices have re-cratered today putting further pressure on socialist-utopia Venezuala which needs $121/bbl to break-even. Credit risk for the South American nation has exploded today to record highs - implying a 93% probability of default and President Maduro has taken to the airwaves to calm a benefit-needy nation... tensions are mounting...
Submitted by Tyler Durden on 12/10/2014 - 11:06
Today things for the former Goldman banker went from bad to worse, when as the FT reports, the ECB lost its "normal political cover" to make a bold decision, in fact the boldest decision in the ECB's history: one which could lead to a political and legal retaliation by Germany itself. The reason, as FT's Peter Spiegel explains, is that unlike previously when EU summits resulted in "greenlighting" blueprints which, if only on paper, enabled Draghi to proceed unconstrained, this time there was no such blank checkcompact. The bottom line, as Spiegel concludes, is that "Draghi won’t have the normal political cover he needs to make a bold decision early next year – a problem only compounded by the European Commission’s decision last month to put off the day of reckoning for France and Italy over whether they will face sanctions for failing to live up to the EU’s crisis-era budget rules."
http://www.blacklistednews.com/Ukraine_Needs 15_Billion_to_Avert_Financial_Collapse _Report
Watch: Former CIA Officer Michael Scheuer aggressively defends torture programme he designed @SkyNewsTonight
Supermarket blackouts: Business losses due to emergency power outages across #Ukraine http://www.capital.ua/en/publication/36426-biznes-neset-ubytki-iz-za-avariynogo-otklyucheniya-osvescheniya-po-vsey-strane …
The prospects of coal supplies from the breakaway DPR and LPR are becoming more realistic http://www.capital.ua/en/publication/36543-perspektivy-postavok-uglya-s-territorii-samoprovozglashenykh-dnr-i-lnr-stanovitsya-vse-realnee#.VIjd45NRTmM.twitter … via @capitalua
Cs-134/137 detected double as food safety limit from water purification plant soil in Saitama: Photo : Piled r... http://bit.ly/1IBc4xR
Refueling machine of Reactor 5 malfunctioned: The refueling machine of Reactor 5 malfunctioned on 12/4/2014. T... http://bit.ly/1IqMHik
Iron-oxidizing bacterium forming microbial population in contaminated groundwater: Following up this article..... http://bit.ly/1G4f2ab
Tepco failed in shutting up retained water even with cement / Water level becomes back only within 2.5 hours: ... http://bit.ly/1z85cnn