From Bloomberg:
This Is How Leverage in the Financial System Lives On
Rumors of leverage's death have been greatly exaggerated.
In
the aftermath of the 2008 financial crisis an abundance of leverage
— borrowed money used to amplify returns — was blamed for exacerbating
losses on subprime mortgages and contaminating the banking system
with catastrophic results. Since then a host of new
Wednesday, August 31, 2016
Questions America Wants Answered: "Why Is Gold Not At $2,000/oz Yet?"
One scenario the analysts don't address is the possibility the decline that began in 2011 has not yet bottomed and we go lower than the $1047 December 2015 prints. That said, there is a lot of congestion around $1250 where shiny traded from February through June this year.
December futures $1311.50 down five bucks.
From Barron's Asia Stocks to Watch:
Gold came out of its slump this year,
December futures $1311.50 down five bucks.
From Barron's Asia Stocks to Watch:
Gold came out of its slump this year,
How Tech Sees Itself Versus Reality
From Mattermark's blog:
Editor’s Morning Note: If you peel back the clouds surrounding Spin Mountain, there is much in tech left to be undesired.
Stock image of Spin Mountain, taken in 1843 on a proto-iPhone.
While writing something short about the IPO market yesterday, I ran across an image that caught my eye. This, I thought, must be how venture capitalists imagine themselves.
Editor’s Morning Note: If you peel back the clouds surrounding Spin Mountain, there is much in tech left to be undesired.
Stock image of Spin Mountain, taken in 1843 on a proto-iPhone.
While writing something short about the IPO market yesterday, I ran across an image that caught my eye. This, I thought, must be how venture capitalists imagine themselves.
Crude Tumbles After Big Crude, Distillates Build
Front (Oct.) futures $44.98, down $1.37. Here's the last two week's price action:
FinViz
From ZeroHedge:
Having extended yesterday's losses on the back of API's unexpectedly large distillates inventory build,
DOE data confirmed an even bigger crude inventory build (+2.276mm vs
~1.3mm build exp.), which contrary to seasonal patterns was the second
build in a row, and 5 builds in the past
FinViz
From ZeroHedge:
Having extended yesterday's losses on the back of API's unexpectedly large distillates inventory build,
DOE data confirmed an even bigger crude inventory build (+2.276mm vs
~1.3mm build exp.), which contrary to seasonal patterns was the second
build in a row, and 5 builds in the past
The CIA’s Venture-Capital Firm, Like Its Sponsor, Operates in the Shadows
This is a pretty good look at the spook shop vehicle.
As a side note, back in the early years of this century, especially immediately after the mass murders of 9/11, it was thought that investing alongside In-Q-Tel was the cool thing to do.
It took a while for the realization to sink in that they weren't necessarily in it for the money return to the VC's.
From the Wall Street Journal:
In-Q-Tel
As a side note, back in the early years of this century, especially immediately after the mass murders of 9/11, it was thought that investing alongside In-Q-Tel was the cool thing to do.
It took a while for the realization to sink in that they weren't necessarily in it for the money return to the VC's.
From the Wall Street Journal:
In-Q-Tel
Alphaville Talks The Decline Of High End Swiss Watches, Savonarola Swings By
From FT Alphaville:
A bonfire of the Swiss watches
Ever since the Chinese government cracked down on “gift giving” as
part of its anti-corruption campaign, Swiss watch exports have taking a
beating.
Here’s the trend, courtesy of a UBS European luxury note out Wednesday:
As the analysts note, that slump follows a more than 100 per cent rise in the value of Swiss watch exports over 2010
A bonfire of the Swiss watches
Ever since the Chinese government cracked down on “gift giving” as
part of its anti-corruption campaign, Swiss watch exports have taking a
beating.
Here’s the trend, courtesy of a UBS European luxury note out Wednesday:
As the analysts note, that slump follows a more than 100 per cent rise in the value of Swiss watch exports over 2010
Brexit's Effect On Bacon Prices
The first rule of bacon ecology: everything is connected.
From Quartz:
A Chinese buying spree is jacking up the price of British bacon—and it’s all thanks to Brexit
Britons are learning the hard way that actions
have consequences—and those consequences are jeopardizing their beloved
relationship to bacon.
Two realities of post-Brexit Britain are taking a
toll on the price of British
From Quartz:
A Chinese buying spree is jacking up the price of British bacon—and it’s all thanks to Brexit
Britons are learning the hard way that actions
have consequences—and those consequences are jeopardizing their beloved
relationship to bacon.
Two realities of post-Brexit Britain are taking a
toll on the price of British
Evans-Pritchard: ...the central pillar of global order is in danger of collapse...
I truncated the original headline because it seemed too narrowly focused.
From the Telegraph, Aug. 30:
Trade wars: Why the central pillar of global order is in danger of collapse as TTIP disintegrates
The Transatlantic pact intended
to unite Europe and North America in a vast free trade zone is close to
collapse after France called for a complete suspension of talks,
accusing the US of
From the Telegraph, Aug. 30:
Trade wars: Why the central pillar of global order is in danger of collapse as TTIP disintegrates
The Transatlantic pact intended
to unite Europe and North America in a vast free trade zone is close to
collapse after France called for a complete suspension of talks,
accusing the US of
Ag Futures: Today the Bears Switch the Brunt of Selling Onto Soybeans, Cotton
Last
Chg
Corn
315-4-0-2
Soybeans
944-0-6-6
Wheat
392-4+0-2
From Agrimoney:
Soybeans seem to have taken over as the price target for ag market bulls.
Not even a $1.8bn
purchase order of the oilseed could prevent November soybean futures falling in
early deals in Chicago, coming close to a four-month low.
A delegation of
Chinese soybean buyers overnight signed agreements to
Tuesday, August 30, 2016
Yield Search: Park Your Money In Parking Lots
What hath Fed wrought.
I know the business can be profitable. In New York/New Jersey the Gottesman clan has parlayed their parking lot biz into four or five billion and in Britain Donald Gosling scored a knighthood and lends his yacht to the Queen (no freebie for Charles however, we noted in 2008 that Sir Donald charged HRH for a charter)
Still however, it is not the easiest business to be
I know the business can be profitable. In New York/New Jersey the Gottesman clan has parlayed their parking lot biz into four or five billion and in Britain Donald Gosling scored a knighthood and lends his yacht to the Queen (no freebie for Charles however, we noted in 2008 that Sir Donald charged HRH for a charter)
Still however, it is not the easiest business to be
"Twin Major Hurricanes Menace Hawaii; Little Change to Atlantic's TD 8 and TD 9"
Well this looks rather evil.
We don't do much with the Pacific hurricanes because we come to all this from the insurance/reinsurance angle but from time to time we try to point out extraordinary phenomena. Last year's Patricia with 200 mph winds being an example.
Here's another.
From Wunderblog:
Powerful Hurricane Madeline
continues edging toward Hawaii’s Big Island, where a Hurricane Watch
We don't do much with the Pacific hurricanes because we come to all this from the insurance/reinsurance angle but from time to time we try to point out extraordinary phenomena. Last year's Patricia with 200 mph winds being an example.
Here's another.
From Wunderblog:
Powerful Hurricane Madeline
continues edging toward Hawaii’s Big Island, where a Hurricane Watch
"Oil Tumbles As Market Questions Whether An OPEC Production Freeze Is Even Remotely Possible?"
Front month October futures $46.53 down 0.45 after trading up to $47.49.
From ZeroHedge:
Oil prices enjoyed a bump last week, thanks in part to a weakened dollar and some geopolitical tensions in the Persian Gulf. But a large factor in the recent rally has been the return of a possible OPEC production freeze, a subject that was last tossed around before the organization’s much-publicized, and
Vladimir Putin Arrested In Florida
From CBS12, West Palm Beach:
Vladimir Putin arrested at Publix
Vladimir Putin is facing trespassing charges.
Vladimir Putin is facing trespassing and resist/obstruction charges for screaming at employees at Publix. Image Courtesy: PBSO.
Not Vladimir Putin, the President of Russia. But Vladimir Putin of West Palm Beach.
Police responded to a Publix supermarket in downtown West Palm
Vladimir Putin arrested at Publix
Vladimir Putin is facing trespassing charges.
Vladimir Putin is facing trespassing and resist/obstruction charges for screaming at employees at Publix. Image Courtesy: PBSO.
Not Vladimir Putin, the President of Russia. But Vladimir Putin of West Palm Beach.
Police responded to a Publix supermarket in downtown West Palm
Central Banks: "Natural Rates and Terminal Fed Funds"
From Marc to Market:
The market recognizes that the indication by the FOMC at the end of last year that four rates hikes in 2016 may be appropriate was far from the mark. At the same time, investors are coming around to the prospects that the Fed is not one and done either.
A key issue for investors and policymakers is what is the terminal rate for Fed funds. This terminal rate is what
Agriculture: "Grain markets' lurch lower catches hedge funds off guard"
Last
Chg
Corn
320-4-0-2
Soybeans
962-4-1-6
Wheat
399-4+2-4
From Agrimoney:
The extent of the latest lurch lower in grain prices appears
to have taken by surprise even hedge funds, which had cut their bearish bets on
the complex – raising questions over whether fresh selling lies in wait.
Managed money, a proxy for speculators, raised its net long
position in futures and options in
Reinsurance: “Steep Decline” in Operating Results in H1 2016--Fitch
From Artemis:
Reinsurance company operating results suffered a “steep decline” in the
first-half of 2016, according to Fitch Ratings, as return on average
common equity (ROAE) plummeted by 36% compared to the same period in the
prior year.
Reinsurers remain under pressure and, as ever at this time of year
with the key industry meetings of the Monte Carlo Reinsurance Rendezvous
and
Reinsurance company operating results suffered a “steep decline” in the
first-half of 2016, according to Fitch Ratings, as return on average
common equity (ROAE) plummeted by 36% compared to the same period in the
prior year.
Reinsurers remain under pressure and, as ever at this time of year
with the key industry meetings of the Monte Carlo Reinsurance Rendezvous
and
Oil: Norway's Statoil Expects 'Loads of' M&A Deals Coming Up, Strategy Chief Says
From Reuters:
John Knight, Statoil's (STL.OL)
executive vice-president for global strategy and business development,
told Reuters on the sidelines of the ONS oil conference in Stavanger,
Norway on Monday:
** "Absolutely, I think there are loads of deals out there," he said when asked whether he expects more deals coming up
**
Says: "If you look at the acquisition and divestment markets
John Knight, Statoil's (STL.OL)
executive vice-president for global strategy and business development,
told Reuters on the sidelines of the ONS oil conference in Stavanger,
Norway on Monday:
** "Absolutely, I think there are loads of deals out there," he said when asked whether he expects more deals coming up
**
Says: "If you look at the acquisition and divestment markets
Monday, August 29, 2016
Why We Still Don't Have Better Batteries
We've had a lot of posts on batteries over the years, here's the Google search of the blog:
site:climateerinvest.blogspot.com batteries
It got to the point there were so many 'breakthroughs' that didn't pan out that we stopped posting on them rather than waste our reader's time.
From MIT's Technology Review:
Startups with novel chemistries tend to falter before they reach full production.
site:climateerinvest.blogspot.com batteries
It got to the point there were so many 'breakthroughs' that didn't pan out that we stopped posting on them rather than waste our reader's time.
From MIT's Technology Review:
Startups with novel chemistries tend to falter before they reach full production.
Devonshire Research Group's Short Tesla Thesis, Part II (TSLA)
How can you not love it?
(See disclaimer at bottom)
The stock is at $216.56 down $3.43 on a generally up day for equities.
From Devonshire Research Group, LLC, May 2016:
Notice of investment interests
As of the publication date of this report, the Devonshire Research Group LLC has a net
short position in the stock, put options, bonds, and credit swaps of Tesla Motors, Inc.
(“TSLA” or “Tesla”
(See disclaimer at bottom)
The stock is at $216.56 down $3.43 on a generally up day for equities.
From Devonshire Research Group, LLC, May 2016:
Notice of investment interests
As of the publication date of this report, the Devonshire Research Group LLC has a net
short position in the stock, put options, bonds, and credit swaps of Tesla Motors, Inc.
(“TSLA” or “Tesla”
"How Should We Read Investor Letters?"
From the New Yorker:
Cover Letter
The New Yorker
by John Lanchester
11:00 pm
Considering the correspondence between C.E.O.s and shareholders as a literary genre.
In 1926, Benjamin Graham, a professional investor in his
early thirties, was working in the Washington, D.C., record room of the
Interstate Commerce Commission when
Cover Letter
The New Yorker
by John Lanchester
11:00 pm
Considering the correspondence between C.E.O.s and shareholders as a literary genre.
In 1926, Benjamin Graham, a professional investor in his
early thirties, was working in the Washington, D.C., record room of the
Interstate Commerce Commission when
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