Showing posts with label Wall Street. Show all posts
Showing posts with label Wall Street. Show all posts

Wednesday, August 26, 2015

[GUEST EDITORIAL] China, show your math


In the first frightening minutes of Wall Street trading Monday, the Dow Jones industrial average plummeted more than 1,000 points in reaction to another overnight stock sell-off in China. Then came a remarkable recovery — up about 500 points in one hour, 300 another — followed by a second collapse before the Dow finished down 588 points, or 3.6 percent.
Insane day, but at least you knew the numbers were real. In New York, anyway.

Questions about the future strength of the Chinese economy are at the center of the market’s extreme volatility, but China’s actual performance is as mystifying. No one observing China completely trusts the accuracy of the country’s official economic statistics or fully understands Beijing’s decision-making process. This adds to the risk of assessing what’s happening over there. On Monday, American investors paid the price, in portfolio values and stomach pain.
Going forward, the China question could affect the U.S. Federal Reserve’s anticipated decision to raise interest rates, potentially delaying the U.S. economy’s return to more normal footing. Oil prices are in retreat because China’s a major buyer. In other words, a lot rides on Beijing getting its house in order.
Big-picture wise, China is well understood. It is factory to the world and an incredible growing market for consumer goods like cars and iPhones because of its rising middle class. Whatever uncertainties China presents as a competing political and military power, we know China already has staked a claim in the global economy. Consider China to be the world’s fourth table leg, supporting world growth alongside the U.S., Europe and Japan. Which, to reiterate, means everything the Chinese government does to manage its economy matters.
Yet, as we were reminded again Monday, China plays by different rules. Among global economic powers, it is the only nondemocratic country, run by the collective leadership of the Communist Party, whose boss, President Xi Jinping, may be the most powerful figure in Chinese politics since Deng Xiaoping. But who knows? Maybe he isn’t. There is no free press or speech in China, no political opposition, and no way to double-check the government’s math. The place is hard to analyze. There is only what we observe: the slow, steady embrace of free market principles, contradicted by the practice of secret decision-making and the tradition of ruling through official propaganda rather than truth-telling.
And our 401(k)s are dependent on this?
China clearly is in a growth slowdown. All the signs, from industrial production to real estate values, indicate that.
Chinese leaders, eager to encourage their consumers to keep spending, made a series of critical mistakes this year, starting with a veiled promise through the party mouthpiece People’s Daily to keep frothy stock prices rising.
That upswing didn’t materialize, leading to another opaque decision: devaluing the currency, ostensibly to allow the yuan to trade more freely as part of the transition to a free market economy.
But few people believe that explanation. To outsiders, devaluation looks like a panicked effort to goose growth, because a weaker currency would help exports. There’s been no better explanation posited by the government, leading outsiders to hope policymakers there have a better handle on things than appears. The Wall Street Journal threw up its hands at analyzing the fiasco: “One reason markets have been so unnerved is that China’s economy remains something of a black box,” its Beijing correspondents wrote Monday. “For starters, analysts have long wondered about the accuracy of government economic statistics. And levers pulled by Chinese policy makers can be unconventional.”
Hence the collapse of stocks globally, China’s included. The Shanghai Composite Index fell 8.5 percent Monday.
The levers of government don’t, and shouldn’t, control markets. Government’s job is to set conditions for markets to operate efficiently. Most of the time in the West, though, policymakers find a way, through steady leadership, to manage expectations. It starts with providing trustworthy data.
The pace of transition in China is breathtaking. China has quickly matured into a world economic power. But its travails no longer represent an interesting, distant experiment. China owes its partners a transparent accounting of its economy’s performance, and a thorough explanation of its decision-making. It’s time for China to commit to the next steps in its evolution from communism to capitalism, and be clear about it.

Thursday, August 20, 2015

Wall Street set to sell off as oil holds near lows

U.S. stock index futures indicated a sharply lower open on Thursday, with Dow futures down as much as 160 points, as oil prices extended losses and investors digested Wednesday's Fed minutes and more volatility in Chinese markets.
Wednesday's Fed minutes left the markets wanting, with enough nuance to keep Wall Street divided over whether the first rate hike comes in September or later.
That means the scrutiny of each piece of data, and particularly job-related or inflation data, will be intense.
Initial claims data came in at 277,000, but remained consistent with an improving labor market trend that could support a rate hike this year.
The U.S. 2-year Treasury note yield near 0.66 percent, while the 10-year yield trimmed losses to trade near 2.11 percent.
The U.S. dollar traded slightly lower against major world currencies, with the euro above $1.11.
Existing home sales, the Philadelphia Fed survey and leading indicators are all released at 10 a.m. ET.
The Philly Fed survey will be key, after the Empire State survey earlier in the week plunged to a 2009 low.
In oil markets, Brent crude traded at just under $47, down more than 1 percent, while U.S. crude hovered near $41 a barrel, recovering from a fresh six-and-a-half-year low near $40. 
Traders were also keeping an eye on a range of U.S. jobs data and China's continuing rollercoaster ride, with the benchmark Shanghai Composite closing 3.4 percent lower, down 128.53 points. 
On the earnings front, Madison Square GardenSears Holdings and The Buckle were scheduled to report before the bell. 
Sears lost an adjusted 67 cents per share for its latest quarter, smaller than the loss of $2.50 estimated by the lone analyst providing an estimate. Profit margins improved at both the Sears and Kmart chains, but same-store sales declined.
Walt Disney—Bernstein downgraded Disney to "market perform" from "outperform," saying valuations for media stocks need to be adjusted because of an increased risk premium regarding affiliate fees.
Hewlett PackardGapIntuitMarvell TechRoss Stores,Salesforce.com and Fresh Market are all due after the bell.
In Europe, the pan-European Stoxx 600 index was 1.3 percent lower, with investors taking in the latest Fed minutes and concerns over Chinese growth continuing.

Friday, December 27, 2013

Be prepared: Wall Street advisor recommends guns, ammo for protection in collapse

A top financial advisor, worried that Obamacare, the NSA spying scandal and spiraling national debt is increasing the chances for a fiscal and social disaster, is recommending that Americans prepare a “bug-out bag” that includes food, a gun and ammo to help them stay alive.
David John Marotta, a Wall Street expert and financial advisor and Forbes contributor, said in a note to investors, “Firearms are the last item on the list, but they are on the list. There are some terrible people in this world. And you are safer when your trusted neighbors have firearms.”
His memo is part of a series addressing the potential for a “financial apocalypse.” His view, however, is that the problems plaguing the country won't result in armageddon. “There is the possibility of a precipitous decline, although a long and drawn out malaise is muh more likely,” said the Charlottesville, Va.-based president of Marotta Wealth Management.
Marotta said that many clients fear an end-of-the-world scenario. He doesn’t agree with that outcome, but does with much of what has people worried.
“I, along with many other economists, agree with many of the concerns expressed in these dire warnings. The growing debt and deficit spending is a tax on those holding dollars. The devaluation in the U.S. dollar risks the dollar's status as the reserve currency of the world. Obamacare was the worst legislation in the past 75 years. Socialism is on the rise and the NSA really is abrogating vast portions of the Constitution. I don't disagree with their concerns,” he wrote.
In his latest note, he said that Americans should have a survival kit to take in case of a financial or natural disaster. It should be filled with items that will help them stay alive for the first 72-hours of a crisis, including firearms.
“A bug-out bag is a good idea depending on where you live even if the emergency is just power outages, earthquakes and hurricanes. And with your preparedness you will be equipped to help others who might be in need,” he wrote. “Be prepared. Especially because it keeps you from being scared.”
He provided a list of items and even a link to bug-out bags on Amazon.

Friday, October 4, 2013

Obama to Wall Street: This time be worried

Wall Street needs to be genuinely worried about what is going on in Washington, President Barack Obama told CNBC in a White House interview Wednesday.
While gridlock in D.C. is nothing new, "this time I think Wall Street should be concerned," Obama said.
CNBC
CNBC's John Harwood speaks with President Barack Obama on the government shutdown and stalemate in Congress.
"When you have a situation in which a faction is willing to default on U.S. obligations, then we are in trouble," Obama said.
U.S. stock-index futures pointed to a lower open on Wall Street Thursday. Click here to get the latest futures action.
Late Wednesday, Obama met with Republican and Democratic leaders in Congress, including House Speaker John Boehner, House Minority Leader Nancy Pelosi, Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell.
McConnell told CNBC's "The Kudlow Report" that Washington is still far from resolving its differences over the fight to reopen the government. 
Boehner said Obama reiterated in the meeting with congressional leaders that he would not negotiate. The speaker said he hoped Obama and Democrats in the Senate would have a serious discussion about resolving their differences very soon.

Friday, October 26, 2012

Obama: Don’t “Underestimate” The Damage I Will Do In A Second Term…


In a Rolling Stone interview previewed in Politico’s “Playbook” morning email, President Barack Obama reportedly told the Rolling Stone’s Douglas Brinkley that people shouldn’t “underestimate” what he can and will accomplish in a second term if elected.
“We’re going to have a full agenda in the second four years, but people shouldn’t underestimate how much we can get done,” Obama said.
In the Oct. 11 interview for the upcoming cover of Rolling Stone Obama pointed out that despite “the gridlock and the ugliness of the process here in Washington” his administration was able to get the healthcare reform bill passed, crack down on Wall Street (Dodd-Frank bill) and establish an entire new regulatory agency (Consumer Finance Protection Bureau, although either Obama or the Rolling Stone mistakenly called it the Consumer Finance Protection Agency in the preview).
“We passed health care – something that presidents have tried to do for 100 years, and we will implement it,” Obama said.
Obama’s incorrect comment about the history of healthcare reform in America notwithstanding (the first President to attempt to reform the healthcare system was FDR, and that was not until 1933), his assertion that he has a “full agenda” for the next four years undoubtedly comes as a surprise to nearly everyone who’s not working for the Obama campaign or swimming in the “Hope and Change” Kool-Aid.
Tuesday, President Obama released a 20 page glossy booklet with his ‘plan’ for a second-term. Or as Rep. Paul Ryan called it: “a slick comic book.” However, even liberals have criticized his new plan of being devoid of any new information.
And what was Obama’s agenda for a second term before he released his glossy ‘new’ plan?

Sunday, August 19, 2012

Rasmussen: Voters Say Ryan More Qualified To Be President Than Biden


A new poll shows voters giving Rep. Paul Ryan (R-Wis.) a slight edge when asked which VP candidate is better qualified to serve as president. 
The new survey from conservative-leaning outlet Rasmussen shows that 42 percent say the House Budget Chairman and Mitt Romney running mate would be more qualified to be commander-in-chief. Forty percent pick Vice President Joe Biden, with 18 percent undecided. 
Ryan’s two-point edge, however, is within the poll’s 3-percent margin of error.
The survey comes after a difficult week for the vice president.
On Tuesday, he told a racially mixed audience at a campaign rally in Virginia that Republican policies toward Wall Street would "put y'all back in chains," a comment that brought swift condemnation from Republicans. 
The Obama campaign defended Biden and said that his remark was taken out of context.
Yet the latest in a series of gaffes from the vice president, led to media speculation that he might be forced off the ticket, despite the Obama administration’s repeated statements that Biden would run with the president in 2012.
On Thursday, White House press secretary Jay Carney said Republicans were trying to "distract attention" and said Obama had no intention of getting rid of Biden as his running mate. 

Monday, January 16, 2012

OBAMA MUST GO

In the past couple of weeks I have been called out by a number the readers on the topic of my weekly blog postings. Their main concern was that my reporting on the presidential primary season has been conspicuously absent. The only response I have is “Guilty as Charged”.  And with that said I would like to explain my logic. The subjects that I have been concentrating on are the happenings within the Obama Administration and the destruction they are serving up on a daily basis.


I have discussed Obamacare, jobs, ACORN and many others. This has been a well-planned out strategy to address the issues that are facing this country and meet them head on.  We can talk about the presidential primary season at length if needed but we already know that we want Obama out of the White House. Anything that I can say about the primary process pales on comparison to the information that Americans need to know about the subjects that they will not read in the main stream media.


I am doing what I feel is necessary to dethrone Obama from his imperial Presidency in any way that I can.  You could say that I am a one man army capable of anything, but this is not the case.  I am counting on all the people to fight the cause as hard as I am. During the Bush presidency the press did not have any trouble blasting him at every corner no matter what he did good, bad, or indifferent.  The liberal press is not following the same logic when it comes to Obama and his band of merry men and women.  They have ignored his American killing policies at every turn.  They have turned him into a hero of the people which is the farthest from the truth that you can get.


His latest antics have caused many of us anguish and concern with his usurping of Congress and the Constitution. He has named four more of his radical friends to positions in the Consumer Financial Protection Bureau and the NLRB all in the name of expediency, total control and politics to further his “I can do anything I want and who’s going to stop me” campaign. But in the name of fairness I have to give him credit for his asking Congress to consolidate six agencies into one, eliminate the Department of Commerce and save us $300 Billion over 10 years.  This equates to savings of about 1/400 of the $1.2 trillion increase in the debt limit that the president is seeking from Congress.  This is perfect timing as it gives him another blank check to spend until after the November election. And by the way the 1000 to 2000 jobs that this consolidation will eliminate through attrition are small potatoes compared to the 200,000 plus jobs he has added since taking office.  It’s up to you to decide if this is an election ploy or he is doing this for the good of “We the People”.


This past week has seen him replace his Chief-of-Staff again (This is number 3).  He has picked none other than Jack Lew, another Wall Street insider who reaped millions in benefits from his past employers by betting against the collapse of the housing market.  If that weren’t enough to handle, he has promoted Cecilia Munoz as Director of the Domestic Policy Council.  She came to the White House in 2009 from The National Council for La Raza which has strong ties to ACORN, SEIU, and George Soros.  It is any wonder that this president has used “We need four more years to finish what we started” in his never ending campaign. 


I have done my best to keep people informed of the little things that the White House has done and kept below the radar by the liberal press.  Now it is your job to pass this information to others and do what is right for this country by electing a Republican as next President of the United States.  It is up to us to do the right thing and win this country back from those that are intent on destroying us.
© Nick Steven – Politics are Real

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