BACKDOC: HEY FAMILY! HEY FRANK! HEY DELTA! WOW!
LETS’ ROCK AND ROLL ON SOME ACTIONS TONIGHT SHALL WE?
YOU SEE IT TIME FOR THE MARKET TO MAKE A DECISION ABOUT ITS VALUE!
WITH VIRTUALLY NO GROWTH IN WORLD MARKETS FINDING VALUE IS NOW A SERIOUS PROBLEM!
THE WAY THAT STOCKS ARE VALUED BASED ON EARNINGS HAS TO BE RECONSIDERED! WITH GLOBAL MARKETS SHOWING A DEFLATIONARY DEATH SPIRAL, VALUE HAS TO BE MEASURED DIFFERENTLY! HEE HEE
CHINA TRIED TO STOP THE GREAT REPRICING BY PUTTING SELLING RESTRICTIONS ON THEIR STOCKS WHICH ONLY MADE THE PROBLEM WORSE!
THIS CREATES DISTRUST IN MARKETS AND ELIMINATES A FAIR GAME! WELL, IT LOOKS LIKE THEY WOKE UP TO THAT FACT AND WILL NOW LET THE GLOBAL REALITY VALUE BE DISCOVERED!
SOME FOLKS HAVE NO IDEA WHY THIS IS IMPORTANT TO YOUR DINAR INVESTMENT BUT IT HAS EVERYTHING TO DO WITH IT!
WHAT IS IRAQS NUMBER 1 PRODUCT? RIGHT! THEIR CURRENCY!
BEFORE VALUE CAN HAVE REALITY THERE NEEDS TO BE A GLOBAL INTERNATIONAL STANDARD OF VALUE FOR SOMETHING! THAT CONCEPT WOULD BE EASY IF EVERYTHING WAS 100% GOLD BACKED BUT THATS NOT THE WAY IT IS!
THERE IS ONLY 25% GOLD BACKING PER DINAR! THIS IS HUGE COMPARED TO THE CURRENT MONOPOLY MONEY WE CURRENTLY USE BUT THE FACT REMAINS A BASIC CONCEPT OF VALUE NEEDS TO BE DISCOVERED!
IN PART, THE TOP RESERVE CURRENCY IN THE WORLD HELPS THAT REALITY TO BE DISCOVERED BUT WITH THE DOLLAR UNDER DE-DOLLARIZATION THAT NEW VALUE MAY BE MORE CHALLENGING TO DISCOVER!
SORRY IF I BORED YOU BUT WHAT IS ABOUT TO OCCUR IN THESE MARKETS ARE MAJORLY SIGNIFICANT! DOC IMO
Thunderhawk: Backdoc Alert
Why this could be a pivotal week for markets
The week ahead is stacked with events that could prove pivotal for markets, including a flurry of Fed speakers and the G-20 ministers meeting in China.
There’s also a batch of U.S. economic reports, including durable goods and trade, and some big retail earnings, including Home Depot, Target and Lowe’s. There should also be some important headlines for the oil market when Saudi Arabian Oil Minister Ali al-Naimi speaks at the CERAWeek energy conference in Houston on Tuesday, and OPEC General Secretary Abdalla Salem El-Badri speaks Monday.
The stock market closed out the past week on a mixed note, with the S&P 500 falling slightly to 1,917 on Friday, but up 2.9 percent for the week, its best weekly performance since November. The Dow dropped 21 points on Friday to 16,391, but was up 2.6 percent for the week, while the Nasdaq rose 16 to 4,504 for a gain of 3.8 percent for the week.
Bulls took heart in the fact that stocks held above recent lows, but some traders were hoping to see the S&P 500 push successfully through the technically important 1,950 level. Traders noted that China was not the negative for markets in the past week that it has been, and oil did not become a drag for stocks until late in the week.
West Texas Intermediate crude for March fell 3.7 percent Friday to $29.64 per barrel, ahead of Monday’s contract expiration, but it gained 0.7 percent for the week. The April contract was trading at close to $32 per barrel. Traders see $30 as an important level to hold, and staying above that would be considered a positive for stocks.
Markets are already keyed up ahead of the G-20 finance ministers meeting in Shanghai on Thursday and Friday, where there is some optimism that China and others could discuss stimulus to help the global economy. Other topics are expected to include Fed and other central banks’ policy and oil prices.
Read More Comparing the world’s central bank interest rates
“The hope is there’s more and more discussion about infrastructure spending and discussion about coordinated policy globally,” said Rick Rieder, chief investment officer of global fixed income at BlackRock.” I think there was more intensity around that.”
The management of China’s currency is also expected to be a topic of discussion, after the Asian nation first allowed the yuan to fall rapidly during the summer and subsequently raised concerns about further devaluation.
“The difference between this week and two weeks ago is China. This week has been pretty stable. The Chinese currency has been relatively stable. Much less talk about capital flight,” said Rieder.
Win Thin, senior currency strategist at Brown Brothers Harriman, said his expectations for the G-20 are low, but that he would also be watching for follow-up in Europe after U.K. Prime Minister David Cameron secured an EU renegotiation package late Friday that he said is enough to recommend that Britain remain a part of the European Union.
“We wouldn’t expect too much of the G-20. I’m pleased with how China has come back. They’re saying the right stuff and the market’s been pretty calm. We are in a nice, uneasy calm,” he said.
Thin said a new focus for markets may now be the surprise pickup in some U.S. economic indicators, including that inflation rose more than expected in the core CPI. Industrial production was also stronger than expected, as were retail sales and the January employment report.
“People are saying no tightening. But maybe the next shoe to drop is people are going to say the U.S. is doing well and the Fed is going to start tightening,” he said.
That could make the words of the more than half-dozen Fed speakers key in the week ahead. Fed Vice Chair Stanley Fischer speaks Tuesday evening, and he has recently said the central bank remains on its rate-hiking path but that it is data dependent. St. Louis Fed President James Bullard speaks Wednesday, and he has surprised markets with comments that the central bank maybe should hold off.
Read MoreThis is the S&P level traders are talking about now
Rieder said the Fed may in fact be forced to hold off, but because of developments outside the U.S.
“I thought the Fed should have gone a while ago, and I think it’s going to be very difficult, where the global economy is slowing. I think it’s hard for the Fed to tighten in that environment,” Rieder said.
The improving data, if they continue, may also reduce some of the talk about a U.S. recession. JPMorgan said its model showed recession risks ticked down to 31 percent from 32 percent in the past week.
Daniel Suzuki, Bank of America Merrill Lynch equity strategist, said improving U.S. data could be a catalyst for a rally if they continue. BofA cut its 2016 expectation for the S&P 500 to 2,000 from 2,200 last week.
“In our view the market started to price in a global recession and our estimate at the market low was it was pricing in a recession probability of 50 percent. Some of that’s been priced out, and we’re probably pricing in 30 to 35 percent,” said Suzuki. He said a negative, however, has been a tightening of credit conditions, and high-yield debt could continue to struggle.
Suzuki said durable goods could be important in the week ahead. “I think an improvement in the orders would give some support to the idea that you’re seeing improving trends within the manufacturing economy … I think the more (positive) indicators you get, the more the market will price out a recession and the trend continues,” he said, adding there are still issues. “Particularly with ISM under 50, there’s still reason for concern.”
Read MoreEl-Erian: I expect volatility to return in weeks ahead
Suzuki said a positive sign for the rally was the large equity outflows in the past several months, but a negative is that the earnings estimates trend continues to be for reduced expectations.
Suzuki said one positive sign may be coming from the behavior of small caps, which he said are trading in line with large caps for the first time since 2003.
“Small-cap underperformance peaked in 2011 and during that time period they underperformed by 30 percentage points,” he said, noting they are now trading in line on a forward price to earnings basis. He said the historical average premium of small caps relative to large caps was 5 percent since 2011.
“Now that premium is zero. They went from a premium of 27 percent or more in 2011. Now they’re both at 15.8 percent. At the record difference, small caps were trading at 17.7 percent times while large caps were trading at less than 14 times,” he said.
What to Watch
Monday
Earnings: Fitbit, Motorola Solutions, BHP Billiton, Dean Foods, Anglogold Ashanti, Alliant Energy
9:45 a.m. Manufacturing PMI
3 p.m. OPEC Secretary General Abdalla Salem El-Badri speaks at CERAWeek
Tuesday
Earnings: Home Depot, Macy’s, Norwegian Cruise Line, Scripps Networks, Caesars Entertainment, First Solar, Dreamworks Animation, Toll Brothers, Cracker Barrel, Bank of Montreal, Wolverine Worldwide, Etsy, Healthsouth, Papa John’s
8:30 a.m. Minneapolis Fed President Neel Kashkari
8:50 a.m. Dallas Fed President Rob Kaplan
9 a.m. S&P/Case-Shiller home prices
9:50 a.m. Saudi Oil Minister Ali al-Naimi speaks at CERAWeek
10 a.m. Existing home sales; consumer confidence
1 p.m. $26 billion two-year note auction
8:30 p.m. Fed Vice Chairman Stanley Fischer
Wednesday
Earnings: Lowe’s, Target, TJX, Sunoco Logistics, LaQuinta, Royal Bank of Canada, Steve Madden, Eaton Vance, Chemours, Imax, Salesforce.com, L Brands, HP, Newfield Exploration, Royal Bank of Canada
8 a.m. Richmond Fed President Jeffrey Lacker
9:45 a.m. Services PMI
10 a.m. New home sales
1 p.m. $34 billion five-year notes
7 p.m. St. Louis Fed President James Bullard
Thursday
G-20 finance ministers meet in Shanghai
Earnings: A-B InBev, Axa, Domino’s Pizza, Best Buy, Campbell Soup, Kohl’s, AMCNetworks, Fortress Investments, Chico’s FAS, SeaWorld, Sears Holdings, Apache,Windstream, Pinnacle Foods, Ensco, Seadrill, Baidu, Weight Watchers, KraftHeinz, Intuit, Splunk, Herbalife, Noodles and Co, Monster Beverage, Gap
8:15 a.m. Atlanta Fed President Dennis Lockhart
8:30 a.m. Initial claims; durable goods
9 a.m. FHFA home prices
12 p.m. San Francisco Fed President John Williams
1 p.m. $28 billion seven-year notes
Friday
G-20 meets in Shanghai
Earnings: J.C. Penney, Foot Locker, Sotheby’s, Sempra Energy, AmericanTower, Centerpoint, Liberty Media, Telefonica, Rowan Cos
8:30 a.m. Real GDP Q4 (second reading); international trade
10 a.m. Personal income; consumer sentiment
Saturday
Earnings: Berkshire Hathaway
http://www.cnbc.com/2016/02/19/why-this … rkets.html
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BACKDOC: FAMILY, YESTERDAY I TOLD YOU TO WATCH IRAN AND CHINA! THIS IS A GAME CHANGER TONIGHT FOLKS!
REMOVING THE RESTRICTION OF SALES AND CIRCUIT BREAKER FROM CHINESE STOCKS IS NOW GOING TO TAKE US TO THE “NEW GLOBAL REALITY VALUE” I’VE BEEN TRYING TO TEACH YOU ABOUT!
THIS IS HUGE FOLKS!
LOOK FOR A MAJOR EVENT IN MARKETS!
THIS WILL BECOME A MAJOR NEWS DISTRACTION AWAY FROM ANYTHING THE IMF WANTS TO DO NOW!
LOOK OUT BELOW! DOC IMO
Thunderhawk Backdoc Alert
China’s top securities regulator stepping down
SHANGHAI– China has removed Xiao Gang, the head of its securities regulator, from his post, and appointed Liu Shiyu to take on the role, the official Xinhua news agency reported on Saturday.
Liu, who had been chairman of the Agricultural Bank of China Ltd. (AgBank) and a former deputy governor of the People’s Bank of China, will succeed Xiao as chairman of the China Securities Regulatory Commission (CSRC).
The move caps a turbulent period for China’s financial markets, which fell sharply last summer, leading to close scrutiny of the CSRC and Xiao’s handling of the crisis.
The Shanghai and Shenzhen bourses rose steeply until mid-June of last year and then crashed, losing as much as 40 percent of their value before top leadership intervened.
Reuters reported in January that Xiao, 57, had offered to resign following the sudden withdrawal of a “circuit-breaker” mechanism launched at the start of this year.
That mechanism had been intended to limit any market sell-off, but many investors blamed it for contributing to a series of falls in the first days of trading this year, which contributed to global market jitters.
Liu, 54, has spent most of his career at China’s central bank, the People’s Bank of China, rising to the position of vice governor and holding that post from 2006 until he left in late 2014 to head up AgBank.
http://www.cnbc.com/2016/02/19/chinas-t … -down.html
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BACKDOC: AS THIS YEAR PROGRESSES WITH MORE AND MORE DEFLATION THE PRESSURE WILL MOUNT AS TO WHERE NEW CAPITAL WILL COME FROM TO ISSUE NEW SECURITIZED LOANS?
AS THE INVESTMENT MONEY POOL SHRINKS WHILE GLOBAL GROWTH DROPS WITH MORE AND MORE DEFAULTS ON THE RISE, A SOLUTION TO THESE PROBLEMS MAY BE THE GCR!
THE MAIN POINT FOR US IS BEING SURE WE STAY SECURITIZED!
DON’T LEAVE SECURITIZED FOR UNSECURITIZED! DOC IMO
Thunderhawk: Backdoc Alert
Online lenders see cash crunch
The online lending industry has tougher hurdles to clear in 2016, with a tighter ABS market and other capital constraints.
A cash crunch is impeding the online lending industry’s growth as the cost of borrowing grows, funds become increasingly scarce and ratings agencies maintain a cautious outlook toward the space.
Next, start-ups that have grown into unicorns originating billions of dollars’ worth of loans may find themselves doing less lending or, conversely, putting more of their loans onto their own books.
The asset-backed securities market is slowing and issued a meager $40 billion in January — the lowest total since at least 2012, according to Dealogic data — and generated a paltry $10 billion in ABS loans in February. In terms of deal volume, ABS deals in 2016 have also dropped to lows the market has not seen for years.
“We want to tap into the ABS market,” said Suk Shah, CFO of lender Avant. “We think the market will be there for our product, it’s just a matter of what cost.”
Shah said he’s expecting an increase in the cost of capital for online lenders. But the start-up, which hit a valuation of $2 billion in late 2015, has other avenues it can use to fund operations. Avant has access to more than $1 billion in existing debt financing and operates a high-net worth lending platform for clients looking to take bigger blocks of peer-to-peer loans. So it’s not dependent on ABS deals to issue loans.
But some online lenders are facing skeptical analysts.
Loans originated by online lender Prosper last year were put on watch for a possible downgrade by Moody’s earlier this month, citing the likelihood of greater losses than was initially anticipated by the ratings agency.
“The reviews for downgrade of the Class C Notes were prompted by a faster buildup of delinquencies and charge-offs than expected in transactions backed by Prosper-originated loans,” Moody’s researchers wrote in their Feb. 11 report.
A representative for Prosper said Moody’s revision more closely matches projections that had been set by the lending originator’s underwriting.
The online lending industry began as the peer-to-peer lending business, although the peers (who, three or more years ago, often consisted of a group of individuals managing small loan portfolios on a personal basis) were increasingly challenged by hedge funds eager to score single-digit yield on consumer paper widely perceived as low risk.
Credit data company TransUnion projected in a survey released earlier this year that the 60-day-plus secured loan delinquency rate will rise to 3.72 percent by the end of this year. This coincides with an expected increase of about 7 percent in the average secured loan balance per consumer, comparing 2014 numbers to projected numbers for this year, TransUnion research said.
A silver lining is the industry’s growth attracting bigger investors over the last several years.
Lending Club CEO Renaud Laplanche said on the company’s earnings call this month that pension funds, insurers and other asset managers contributed 21 percent of more than $8 billion that was invested through his company’s platform in 2015. And, he says, thanks to online lenders building up a longer track record institutional buyers can trust, he expects that source of capital to grow.
“When they get in, they do so at large numbers,” he said.
Both Lending Club and On Deck Capital, an online lender focusing on small businesses, have seen stocks struggle after their respective IPOs; as of midday trading on Friday the shares of each were down more than 18 percent on the year. On Deck Capital entered into a partnership with JPMorgan Chase late last year to develop an origination platform with the help of the bank.
Virtually all the companies in the online lending arena emerged in the wake of the financial crisis, and haven’t yet had to sail with proverbial economic headwinds in their faces.
“We built our business thinking about what would happen in a recession,” Shah said.
http://www.cnbc.com/2016/02/19/online-l … runch.html
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BACKDOC: THIS GUY IS THE MAIN KEYNOTE SPEAKER ON TEACHING THE SECURITIZATION PROCESS TO THE BIG COMPANIES!
HE WAS ALSO THE CO CEO OF PIMCO BONDS FUNDS!!
DO YOU WANT TO GUESS WHY HE BAILED ON THE BOND MARKET OVER A YEAR AGO? HEE HEE
THIS GUY IS BRILLIANT! DOC IMO
Thunderhawk: Backdoc Alert
El-Erian: ‘Perfect storm’ for volatility not over
A strong week for markets will not quash the volatility seen this year, Mohamed El-Erian contended Friday.
“As much as I would like to say the volatility is behind us, I expect that the volatility will return in the weeks ahead,” Allianz’s chief economic advisor told CNBC’s “Closing Bell.”
The S&P 500 has fallen more than 6 percent this year, while the CBOE Volatility Index has climbed nearly 13 percent. However, stocks ended Friday with their best week of the year, as major U.S. averages rose more than 2.5 percent each.
But El-Erian believes the factors that created a “perfect storm” this year have not yet dissipated, making more volatility possible. He cited factors like weakness in the global economy, concerns about the effectiveness of central banks and a lack of so-called patient, long-term capital.
Speculation has surrounded whether global developments and market weakness could force the Federal Reserve to slow its interest rate-hiking path. So far, the U.S. central bank has signaled it will still tighten slowly, though top policymakers have acknowledged they are watching trends abroad.
On Friday, Cleveland Fed President Loretta Mester said labor market and income data “suggest that underlying U.S. economic fundamentals remain sound.” El-Erian said the economy “is doing relatively well, not great.”
“If the Fed was making the decision based on the U.S. as a stand-alone, it would continue to normalize very carefully and very slowly,” El-Erian said.
He contended that the Fed “still seems inclined to hike this year” as long as financial trends around the world do not lead to “contamination” in the U.S.
http://www.cnbc.com/2016/02/19/el-erian … ahead.html
Mountainman: WELL,WELL,WELL,…..SO WHY???……Do you Think PAKISTAN decided to “LIFT” Sanctions On IRAN at this POINT in TIME ???………
Could it Be they just don’t WANT to Miss Out on The “GRAVY TRAIN”…….Oh Yes …….Wouldn’t “THAT” be a Shame!!!!!!!! Blessings,Mountainman
Thunderhawk: Pakistan lifts sanctions against Iran
Pakistan has decided to lift sanctions against Iran and has devised a strategy to promote trade ties with the oil rich country, a ministerial meeting decided on Friday.
According to a notification issued by the Ministry of Foreign Affairs, Islamabad will revive all economic and commercial relations with Tehran, including the areas of trade, investment, technology, banking, finance, energy, Pakistani media reported today.
All the previous notifications giving effect to sanctions imposed on Iran by UN Security Council stand repealed with the issuance of this new notification by the foreign ministry, in keeping with the Security Council resolution 2231.
The meeting chaired by Minister of Finance Ishaq Dar ruled that Pakistan had welcomed the Joint Comprehensive Plan of Action (JCPOA) agreed between Iran and world powers and it appreciates the steps taken by Iran for the implementation of the JCPOA.
With the lifting of restrictions, economic and trade relations between the two neighborly countries will receive a new boost.
It will enable the two countries to fully reinvigorate various bilateral and multilateral arrangements for promoting investments and cooperation in across all sectors including banking, finance, industry and energy.
http://www3.irna.ir/en/News/81970782/
BACKDOC: WHEN A DEAL IS NOT REALLY A DEAL!
THE LAST STATEMENTS REALLY SAY IT ALL.
THE BRITS WILL NEVER JOIN THE EURO! THEY WILL NEVER GIVE A BAILOUT! MMMM CAN’T IMAGINE WHY? HEE HEE
THEY WILL NEVER ALLOW PASSPORT FREE TRAVEL!
THEY WILL NEVER BE PART OF A EUROPEAN SUPER STATE! MMMM
I SEE THIS AS A TERRIBLE LOSS FOR THE EURO! MASSIVE!
THE MIGRANT FREE LUNCH PROGRAM GETS NEUTERED AS WELL!
DOC IMO
Thunderhawk: European Union Leaders Agree ‘Brexit’ Deal
The United Kingdom has reached a deal with the EU to help ensure that Britain will remain in the 28-nation bloc.
The agreement was first announced by Lithuanian President Dalia Grybauskaite. European Council President Donald Tusk has also confirmed “unanimous support” for the deal aimed at keeping Britain in the EU.
Czech Prime Minister Bohuslav Sobotka called the agreement a “decent compromise.”
The new arrangement includes:
an “emergency brake” on EU migrants claiming work benefits that will last for seven years; it will apply to an individual for no more than four years;
an exemption for Britain from further political integration and elements of an accord to ensure fair treatment of financial and economic arrangements between euro-zone and non-euro-zone states;
an EU-wide indexation system for payments of child benefit for workers whose children live in another EU state;
the right for Britain to supervise financial institutions and markets to preserve stability.
Leaders met in Brussels to address the ongoing migrant crisis and its effects on the European Union. Prime Minister Cameron had threatened to rescind the UK’s membership in the EU if conditions were not met to satisfy Euroskeptics. The Visegrad bloc, including the Czech Republic, Hungary, Slovakia, and Poland, had fiercely opposed the UK’s terms.
Now that Cameron has reached a deal with European leaders, he will have to sell it to the British public.
“Tomorrow I will present this agreement to Cabinet and on Monday I will make a statement to Parliament,” Cameron said at a newsconference after the Friday Brussels working dinner, saying he would announce the date of the Brexit (Britain staying or exiting the EU) referendum soon.
He also stressed that the agreement does not prevent the possibility of future reforms.
“There is absolutely nothing in this agreement that stops further reform taking place,” he said, reiterating that “reform does not end today.”
“The EU is not perfect. There is a need for further and continuing reform. But the UK is the best place to do that from the inside. Our plan for Europe gives us the best of both worlds. It underlines our special status through which we will be in the parts of Europe that work for us…but we’ll be out of the parts of Europe that don’t work for us,” he said.
Now that an agreement has been reached, Cameron has vowed to campaign in favor of Britain remaining in the EU.
“I believe we are stronger, safer and beter off inside a reformed European Union. And that is why I will be campaigning with all my heart and soul to persuade the British people to remain in the reformed European Union that we have secured today,” he said.
Still, the deal allows the UK to be exempt from the principle of an “ever closer union.”
“We will never join the Euro. We will never be part of Eurozone bailouts, never part of the passport free area, a European army or a European superstate.”
http://en.trend.az/world/other/2497031.html
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BACKDOC: I GUESS GENERAL ELECTRIC AND NOW BOEING COULDN’T TAKE IT ANYMORE!
WITH SEEMINGLY THE WHOLE WORLD GETTING CONTRACTS WITH IRAN,THE BIG BOY CAN’T TAKE IT ANYMORE!
IT’S TIME TO MAKE THE DONUTS AND QUIT CRYING! HEE HEE
https://www.youtube.com/watch?feature=player_embedded&v=V9AbeALNVkk#t=0
Thunderhawk: Boeing secures Iran license
Boeing Co. said Friday that it received a license from the U.S. government to begin commercial discussions with Iranian airlines, opening the door to what could be the first U.S. jet deliveries to the Islamic Republic since the 1970s
Iranian carriers are among the oldest fleets in global aviation following decades of sanctions that have left them unable to leverage an advantageous geographical location and a domestic market of nearly 80 million people, reports WSJ. Rapidly growing Persian Gulf neighbors in Qatar, the United Arab Emirates and Turkey have exploited their position and new-technology jets to fuel rapid expansion in commercial aviation, the paper said.
Iran is seeking to quickly catch up and refresh its airlines with new aircraft, with leasing industry officials forecasting the country could support 300 to 600 new planes.
“The license permits us to engage approved airlines to determine their actual fleet requirements,” a Boeing spokesman said.
Airbus Group SE in January signed a cooperation agreement with Iranian officials for the purchase of 127 new aircraft that range in size from single-aisle jets all the way to its double-deck A380. Earlier this month, a joint venture between Airbus and Italy’s Finmeccanica SpA said Iran Air was purchasing as many as 40 small turboprop aircraft.
Boeing, which last year provided maintenance manuals to Iranian airlines, will be looking for government cues on how to cultivate long-dormant commercial ties in the potentially fertile market.
“We understand that the situation in the region is complicated and ever changing and we will continue to follow the U.S. government’s guidance as it relates to conducting business with Iran,” the Boeing spokesman said.
General Electric Co. said it, too, has submitted an application for a license to sell engines and spare parts to Iranian airlines, but has not yet been granted approval, according to a company spokeswoman.
http://www3.irna.ir/en/News/81970929/
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BACKDOC: IT SEEMS GREECE AND AT LEAST PART OF SPAIN WILL ULTIMATELY GO WITH THE SILK ROAD TRADING PACT THAT CHINA IS PROMOTING! DOC IMO
Thunderhawk: Iran, Spain keen to broaden bilateral ties
Iranian Deputy Foreign Minister Majid Takht-Ravanchi in a meeting with his Spanish counterpart Ignacio Ybáñez here discussed bilateral ties and regional developments.
During the meeting on Friday night, Takht-Ravanchi pointed to the two countries’ age-old relations and the positive image of Spain before the Iranian officials and people, and underlined the need for the broadening of ties between the two countries in political, economic and cultural fields.
The Spanish deputy foreign minister, for his part, said that his country is pursuing the constructive dialogue with Iran in all areas, especially in economic cooperation.
Takht-Ravanchi arrived in Spain on Thursday for a periodic diplomatic dialogue with Spanish officials on ways of consolidating bilateral ties.
Iranian and Spanish foreign ministry officials meet and confer with each other every six months to hold diplomatic talks.
Diplomat said periodic talks between Iranian and Spanish political officials indicates interest of the Spanish policy makers to boost ties with Tehran after the Vienna nuclear
In a relevant development earlier today, Takht-Ravanchi met with the Spanish Foreign Minister José Manuel García-Margallo, during which the two sides exchanged viewpoints on bilateral ties, regional and international developments.
Ravanchi reiterated that the two countries’ relations are as deep as history, adding that the Spanish government and nation enjoy a special status in the Iranian public opinion.
He welcomed the Spanish companies’ broad presence in the post JCPOA atmosphere Iran in which the presence of three Spanish ministers in Iran has marked a turning point in bilateral ties and signaled the two sides’ merchants, industrialists and businesspeople positively.
The two sides meanwhile were agreed that the fields of bilateral cooperation include infrastructures, transportations especially in rail field, express trains, agriculture, mining and energy fields.
On the Syrian crisis, he referred to the ongoing human catastrophe there and expressed hope that all regional and trans-regional players involved in it will both contribute to the implementation of the ceasefire and facilitate the humanitarian contributions.
‘Such an approach will pave the path for the beginning of the political talks and decision making on the future of Syria by the Syrian people themselves,’ he said.
The deputy foreign minister meanwhile noted that the continuation of massacring the innocent Yemeni people is occurring amid the silence of the international society.
‘The situation is very awe-inspiring there and it is a grave mistake made by certain countries that have assumed the elimination of a huge portion of the Yemeni people is possible, as that is a hallucination which will never be materialized in the real world,’ he emphasized.
The Spanish top diplomat, too, in the meeting remembered the good memories of his memorable and very successful recent visit of Iran and expressed delight over Iran’s investment in Spain’s refinery industry section.
‘The Spanish government supports the private and industrial sectors involved in that process,’ he said.
José Manuel García-Margallo meanwhile called the international agreement on need for forwarding humanitarian aids for the war-stricken Syrian nation and expressed hope that relying on both sides’ cooperation, as well as the other regional countries’ assistance peace and stability will once again return to Syria and the terrorists will be uprooted there.
He also expressed deep regret over the lingering human catastrophe in Yemen, reiterating that Madrid has done all its best through both the European and the international channels aimed at progressing with the political process in Yemen.
http://www3.irna.ir/en/News/81970827/
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BACKDOC: YOU CAN DE-PEG THE DOLLAR FROM OIL BUT YOU CAN’T DEPEG EVERY CURRENCY IN THE WORLD!
THE UNIVERSAL CURRENCY AFFECTS EVERY ASPECT OF OUR ECONOMIES WORLD WIDE AND NO MATTER WHO WANTS TO STOP DEFLATION THEY WILL NEVER DO IT UNTIL OIL PRODUCTION BECOMES CONTROLLED! THIS PROBLEM HAS ONLY ONE CONCLUSION WITHOUT A DEAL AND THAT IS A CURRENCY CRISIS!
I PRAY THAT CAN BE AVOIDED BUT ITS NOT LOOKING GOOD AT THE MOMENT! DOC IMO
Mountainman: SCRAP the “NONSENSE” in this ARTICLE and The “HIGHLIGHTED” SENTENCE is The MAIN VALUED POINT….IMO…..”THEY” want a CARBON TAX in the NEW REALITY…….Plain and Simple w/ These Folks!!!!!!!! Blessings,Mountainman
Thunderhawk: US Has ‘Energy Gluttony’ Bringing About Petroleum Collapse
The United States shows greed for energy exploration by promoting new oil and gas deals that are moving the world closer to a petroleum collapse, nonprofit organization Sustainable Energy Institute Founder Jan Lundberg said.
Anastasia Levchenko — On Thursday, US Bureau of Ocean Energy Management (BOEM) announced the Obama administration intends to offer about 45 million acres in the Gulf of Mexico for oil and gas development in two lease sales in March.
“Do we really need all this energy? The United States has energy gluttony,” Lundberg said on Friday. “Energy sphere is corrupt…common people know that things will go wrong, oil accidents will happen spoiling water and there will be release of carbon dioxide killing our planet.”
According to BOEM Director Abigail Ross Hopper, Gulf of Mexico lease sales reflect the US administration’s commitment to facilitate the orderly development of offshore energy resources while protecting the human, marine and coastal environments.
“Without a raw conservation ethics, without a nature-oriented culture, the destruction and waist is going to go on until we have a petrol collapse.”
The only solution that can avert the upcoming environmental catastrophe is a world-wide law for a carbon fee, or a carbon tax, he added.
The area lease sales are scheduled to take place on March 23 in New Orleans, Louisiana. The two offshore sales in March are the ninth and tenth ones under the Obama administration’s Outer Continental Shelf Oil and Gas Leasing Program for 2012-2017.
The Sustainable Energy Institute was established in 1988 to to reduce dependency on oil while lessening pollution. In 2000, Lundberg also founded Sail Transport Network started that seeks to resurrect renewable-energy travel and freight.
http://www.ooyuz.com/geturl?aid=10481000
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JamJam: Hmmmm. Riddle me this Batman.
We have a full Brexit. We have Boeing and GE (RECIEVING) YOU HEAR THAT..? RECIEVING A LICENSE TO DO BUSINESS IN IRAN. HMMMM. REALLY?
WOW. CHINAS HEAD OF SEC REMOVED? HAHAAHAHA
IMF SAYS HALL ASSETS..LOL G20 MEETING THIS COMMING WEEK? I THINK WE WE ARE BOILING LAVA RIGHT NOW.
I dont know bout u guys but suttin happened..lmao. WOW. ME LIKEY.
BACKDOC: BINGO!!! ACTIONS MEAN THINGS!
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Mountainman: Sheesh……These IRANIANS Must have MAPS/BLUEPRINTS and PROGRAM after Program……That has UNLOCKED and TAKEN OFF w/ROCKET FUEL…..because THEY are RUNNING their ECONOMY….”AS IF IT NEVER STOPPED”!!!!!!!!……IMO Blessings,Mountainman
Thunderhawk: Rosatom: Construction of Bushehr II, III N. power plants to start
Head of Russia’s Rosatom State Atomic Energy Corporation Sergey Kiriyenko announced on Friday that his company will start building two more nuclear powers plants in Bushehr province in Southern Iran in the coming weeks
‘We have set the date for construction of two new nuclear plants in Bushehr with our Iranian partners,’ Kiriyenko said on Friday.
He underlined that Russia and Iran have signed an important agreement on construction of three nuclear power plants in Bushehr province.
‘We have also signed an agreement for construction of eight nuclear power plants for Iran,’ Kiriyenko added.
In March 2014, Rosatom and the Atomic Energy Organization of Iran (AEOI) reached an agreement to construct at least two more nuclear power plants in Bushehr.
On November 11, 2014, Iran and Russia signed a deal to build up two new nuclear reactors on the site of the Bushehr Nuclear Power Plant.
In December, AEOI Deputy Chief and Spokesman Behrouz Kamalvandi announced that Iran has started building two new nuclear power plants in the Southern province of Bushehr.
‘We have entered the executive phase of the construction of these two nuclear power plants based on the contract signed between Tehran and Moscow in March to construct the plants,’ Kamalvandi said.
Judging the information released by the two sides so far, it seems that Russia will be in charge of building two more reactors for the development of Bushehr power plant, and Iran will build the needed facilities.
Salehi has on different occasions announced that Iran is ready to continue its mutual cooperation with Russia in peaceful nuclear energy.
The Islamic Republic signed the Bushehr contract with Russia in 1995 and the nuclear power plant reached its full capacity by August 2012. It is located about 18 kilometers South of the provincial capital.
The original plan of the Bushehr Nuclear Power Plant included three phases of development. According to the plan Bushehr should have three power plants each with a 1000MW power-generation capacity.
According to Iran’s 20-year vision plan, the country should have enough nuclear plants to produce 20,000MW of nuclear-generated power by 2025.
http://www3.irna.ir/en/News/81970820/
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BACKDOC: THE DECISION WILL BE TO DEAL WITH DEBT AND BECOME SECURITIZED OR GO BANKRUPT!
Thunderhawk: Backdoc Alert
Corporate defaults are on the rise, with 3 more this week
Less than two months into 2016, and corporate defaults are on the rise.
Three U.S.-based oil and gas companies defaulted this week, lifting the global tally for 2016 to 19, according to Standard & Poor’s.
Not surprising given the pressure on oil prices, the energy sector continues to account for the bulk of the defaults at six, followed by metals and mining at four, said Diane Vazza, head of global fixed income research. “Volatile oil and commodity prices have led to higher levels of both downgrades and defaults in these sectors since late 2014,” Vazza said.
The remaining defaults span a range of sectors from media to banking to consumer goods.
S&P lowered its ratings on Paragon Offshore PLC PGNPF, -2.27% to D, or default, from CC, after the company said it was filing for Chapter 11 bankruptcy protection, and had entered talks with its bondholders and other creditors.
The agency lowered its ratings on Energy XXI Ltd. and its unit EPL Oil & Gas Inc. to D from CCC-plus, after that issuer missed an interest payment on senior notes. “We believe the company will not make this payment before the 30-day grace period ends and that it will likely reorganize under Chapter 11,” said S&P.
The agency lowered ratings on Venoco Inc. and its parent Denver Parent Corp. to D from CCC-plus, after that company missed an interest payment on senior notes. S&P isn’t expecting the payment to be made within the 30-day grace period.
Junk-rated bonds are showing negative returns for the year so far, based on the Bank of America Merrill Lynch U.S. High Yield Index. The index is showing a negative return of 2.9% for the year so far, and is down about 8% in the last six months. The option adjusted spread over Treasurys has widened to 817 points as of Thursday from 695 basis points at year-end.
By comparison, the investment-grade index is showing a positive return of 0.6% for the year so far, and 0.2% for the last six months. Treasurys are showing a positive return of 3.1% for the year and 2.9% for the last six months.
Of the 19 defaults in the year so far, seven were missed interest payments, five were distressed exchanges, four came after bankruptcy filings, two because of de facto restructuring and one because of a missed principal and interest payment, said S&P.
The latter default was by brokerage RCS Capital Corp., which has since filed for Chapter 11. Other defaults outside of the energy sector include Slap Shot Holdings Corp., the owner of Sports Authority Inc., which missed an interest payment in January.
Forest products company Verso Paper Holdings LLC missed an interest payment in January, while Constellation Enterprises LLC had a distressed exchange in early February.
S&P said the U.S. distress ratio, a measure of how many non-investment-grade issues are trading at more than 1,000 basis points above comparable Treasurys, started the year at 29.6%, the highest level since mid-2009. The distress ratio has been elevated since December of 2014, a signal that companies need more capital.
The number of global weakest links—or issuers rated at CCC or lower, placing them close to default—rose to 218 as of Jan. 27, from 195 as of Dec. 14. That is also the highest level since December 2009.
http://www.marketwatch.com/story/corpor … 2016-02-19
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BACKDOC: THERE IS STRONG SUSPICION THAT CHINA IS DUMPING US TREASURY BONDS.
WITH THE YIELD CURVE HEADED TO ZERO, IT SEEMS MORE LIKE A TRAP FOR INVESTORS!
THE FED IS ON RECORD THAT THEY MAY CHARGE EXIT FEES ON BONDS PROHIBITING INVESTORS FROM FLEEING! DOC IMO
Thunderhawk: Backdoc Alert
Some say China is behind the dollar’s weakness
China may be rebalancing its foreign currency reserves—driving the dollar lower in the process
The dollar’s weakness against the euro and yen over the last two months has frustrated traders as well as central bankers in Europe and Japan who’ve watched their currencies strengthen despite looser monetary policy.
Many market strategists have blamed the currencies’ resilience on investors seeking safe harbor from turbulent global markets. But others believe it’s an inadvertent consequence of a mysterious policy shift by one of the U.S.’s largest economic rivals: China.
In recent months, the People’s Bank of China has been rebalancing its massive foreign currency reserves, which were worth $3.231 trillion at the end of January. To do this, the PBOC, the Chinese central bank, has likely sold dollars and dollar-denominated assets like U.S. Treasurys in favor of government debt from eurozone countries and Japan, said Douglas Borthwick, head of currency trading at Chapdelaine & Co.
The necessary purchase of euros EURUSD, +0.1980% yen USDJPY, -0.56% needed to fund these transactions has supported both currencies against the dollar, even as the U.S. currency strengthened against other rivals in the G-10, Borthwick said.
Since mid-December, the euro has risen 1.1% against the dollar and the yen has gained 6.7%. Meanwhile, the dollar has strengthened by 1% against the yuan USDCNY, +0.1013% in China’s onshore market.
China’s rebalancing follows a decision in mid-December to begin measuring the yuan’s value against a trade-weighted basket. Previously, the yuan was primarily viewed against the dollar.
Borthwick said recent communiqués from China suggest the central bank is increasingly concerned with managing the value of the yuan, also known as the renminbi, against the basket, and not against the dollar, which necessitated the shifting reserves.
A long time coming
Chinese officials have been advocating for such as shift for at least five years.
On June 19, 2010, Yu Yongding, a former adviser to the People’s Bank of China, suggested in the China Securities Journal the country should reduce its dollar holdings to protect itself from a sharp depreciation in the U.S. currency.
But Chinese officials have been more concerned with the recent surge in the dollar’s value since 2011, which has dragged the yuan higher, weighing on the competitiveness of Chinese exporters.
“Over the last five years, they’ve been seeking to diversify their reserves in a more prudent manner, Borthwick said. “Either they would base their reserves on the SDR or on a trade weighting. And by the looks of it, they’ve gone with the trade weighting.”
According to China’s foreign-exchange authority, the largest constituents of the index are the U.S. dollar, at 26.4%, the euro at 21.4% and the yen at 14.7%.
It also includes the British pound, Hong Kong dollar, Australian dollar, New Zealand dollar, Singapore dollar, Swiss franc, Canadian dollar, Malaysian ringgit, Russian ruble and Thai baht.
China doesn’t publish details about the composition of its foreign reserves, and its process for managing the value of the yuan remains opaque. But China’s reserves declined by a total of more than $200 billion in January and December, according to official data, which Borthwick said supports the idea that China has been swapping Treasurys for assets denominated in other currencies.
Read: SocGen claims China is only months away from burning through its currency reserves
Don’t believe the hype
Investors are worried that capital flight and China’s efforts to fend off speculators will drain reserves, possibly forcing the country to allow its currency to depreciate sharply. But a report published earlier this month by Gavekal Dragonomics argued that claims of capital flight from the Chinese economy have been overexaggerated.
The report, published earlier this month, showed that domestic renminbi deposits actually rose in 2015. Household deposits rose by 10% and corporate deposits rose by 14%.
“There are few signs that people are withdrawing renminbi and switching into dollars on a large scale,” said Chen Long, the China economist at Gavekal and the report’s author.
Buying by the PBOC helped turn the yield on the 10-year Japanese government bond negative earlier this month, and it’s also one of the reasons why the yen has remained buoyant, despite the Bank of Japan’s efforts to weaken it, Borthwick said.
Indeed, speculation that China has been selling Treasurys en masse has intensified as of late.
The dollar has been relatively stable against most of its G-10 rivals over the last two months, as the chart below shows. It illustrates the buck’s value versus the Canadian dollar, New Zealand dollar, Australian dollar, Swedish krona, Norwegian krone, Swiss franc, British pound, euro and yen.
Large investors and market strategists alike believe the yuan will depreciate against the dollar as China struggles with slowing economic growth and the fallout from nonperforming loans.
Kyle Bass, founder of hedge fund Hayman Capital Management, said he’s placed a massive bet against the yuan on the expectation that China will need to choose between deleveraging its financial system and defending its currency from speculators.
But Borthwick believes the yuan’s value relative to the buck will be more or less stable this year as policy makers shift their focus to the trade-weighted basket.
“The idea that there’s immense capital flight leaving China is misplaced,” Borthwick said.
http://www.marketwatch.com/story/story? … b552c42c6f
BACKDOC: THE PROBLEM WITH DEBT IS IT BECOMES WORSE WHEN YOU HAVE DEFLATION!
WITH CHINA TRYING TO DEFEND ITS CURRENCY MARKETS HAVE HELD UP SOMEWHAT BUT WITH THE TRADING RESTRICTIONS LIFTED TODAY, I PREDICT A SIGNIFICANT DROP WILL OCCUR BY CHINA!
A MASSIVE DROP MAY FORCE THEM TO DUMP THE REMAINING TREASURY BONDS THEY HAVE TO DEFEND THEIR CURRENCY OR POSSIBLY DEVALUE THEIR CURRENCY INSTEAD!
EITHER WAY WE ARE IN A TENUOUS SITUATION! DOC
Thunderhawk: Opinion: Chilling ways the global economy echoes 1930s Great Depression era
Protectionism, shaky debt, and weak banking systems have consequences
One view of what caused the Great Depression in the 1930s is that the Federal Reserve failed to prevent a collapse in the money supply.
This is the famous thesis of Milton Friedman’s and Anna Schwartz’s A Monetary History of the United States, 1867-1960, and it was, more or less, the view of Ben Bernanke when he was chairman of the Federal Reserve.
The global economy today resembles that of the 1930s in several ominous ways.
Financial author Edward Chancellor recently called attention to a paper written by Caludio Borio, head economist at the Bank of International Settlements, that provides a fuller picture of the causes of the Great Depression. The paper also draws parallels between global economic conditions that led to the rise of protectionism in the 1930s and our situation now.
The paper’s thesis is that “financial elasticity” characterizes both the pre-Depression global economy and today’s global economy. Elasticity refers to the buildup of capital imbalances such as money flows into emerging markets because of low rates in developed markets.
Free flowing capital to emerging markets
As Chancellor tells it, the gold exchange standard established in the 1920s allowed U.S. and U.K. bonds to be used together with gold in exchange transactions among central banks. This arrangement encouraged growth in foreign lending.
Specifically, the U.S. lent money to emerging markets in Latin America and Central Europe. Investors in the U.S. enjoyed higher returns for seemingly little extra risk as defaults were initially low.
However, lending standards began to loosen, and American investors brought their dollars home after the Fed hiked rates in 1928. Money flowed into U.S. stocks, among other things, which, of course were poised for a crash.
Capital flow reversal
This reversal of capital flows, combined with a drop in commodity prices, destabilized the emerging markets by 1929, sending their commodity producers into bankruptcy. In 1930, several South American countries devalued their currencies and defaulted on their debt.
The crisis spread to Austria, Germany, and eventually to Britain, a heavy lender to Central Europe. Britain eventually devalued its currency, but in the U.S. the Fed actually raised rates in late 1931 to stem gold outflows. A banking panic ensued, as the U.S. finally “felt the full force of the world depression,” according to Chancellor.
The result of these debt problems was the institution of capital controls. Capital no longer flowed freely among countries. International trade slowed due to tariffs, and foreign debts were not repaid. Economist John Maynard Keynes himself favored the move away from globalization, and Chancellor quotes him as writing, “Let goods be homespun, and, above all, let finance be primarily national.”
Today’s similarities with the 1930s
Now, as in the 1930s, the global economy is stretched. A low interest-rate regime in the developed world has encouraged lending to emerging markets. Additionally, China’s and Europe’s banking systems are burdened with bad debts.
Moreover, last year, as Chancellor reports, emerging markets experienced their first capital outflows in nearly three decades, and that movement of capital appears to be continuing in 2016. Ratings agencies have downgraded South Africa and Brazil sovereign debt, while commodity prices continue to plunge.
Protectionism is in the air with the European Union and the U.S. imposing tariffs on Chinese steel. Also, anti-immigration sentiment is rising.
Although the additional restrictions imposed by a gold standard don’t exist today, the peg of Chinese yuan to the U.S. dollar DXY, -0.26% is unsustainable in Chancellor’s opinion, as may be the euro EURUSD, +0.1980%
So much elasticity or the buildup of imbalances can be painful during the process of restoring balance. Therefore, regarding monetary policy, it’s important, according to Borio, to lean “against the build-up of financial imbalances even if near-term inflation remains low and stable.”
Borio’s paper was written in August 2014, so it’s difficult to know what advice he’d have for the Federal Reserve today. But in his paper, he notes that the imbalances that low rates and elasticity produce may “return us to the modern-day equivalent of the divisive competitive devaluations of the interwar years; and, ultimately, [trigger] an epoch-defining seismic rupture in policy regimes, back to an era of trade and financial protectionism and, possibly, stagnation combined with inflation.”
http://www.marketwatch.com/story/story? … 55df223586
Mountainman: Just a “RECAP DATE”……..NO…..NOT DINAR RECAPS……A RECAP DATE of AUGUST 8,1927…….Some May Not REMEMBER my Post from the Past where I Brought Forward the “FACT” that the 12 Pulled “THEIR” MONEY OUT “Before” the MARKET CRASH of 1929……..
So the MAIN POINT is……as SOLOMON said……”THERE IS “NOTHING” NEW UNDER THE SUN”………HISTORY repeats itself AGAIN….
WHY???……. to PROGRESSIVELY “TRANSFER” CONTROL in this CURRENT MARKET….(REPRICING,CORRECTION,DEBT SELL OFF)etc……. You get the Point…..
So SINCE it Worked in the PAST…..”THEY” say…..Let’s TWEAK IT for The “NEXT” MONEY MADE to ORDER”……=for The WORLD MARKETS……but The “SUBSTANCE” of OUR OBJECTIVE…..”REMAINS the Same”….
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IMO……REMEMBER to “START” the NEW REALITY…..”THEY” have to “DEFLATE”….So to Speak the OLD REALITY……..(8)…….. !!!!!!!! Blessings,Mountainman
BACDOC: NITE ALL!!!
Mountainman: Night HAWK/DOC…..And KTFA ……….Blessings, MM
