Hard hitting global and local news
The ECB’s stubborn mule, a Downbeat Draghi, is Ready to Beef Up Quantitative Easing Package . The euro and eurozone government bond yields plunged on Thursday after the ECB president indicated it stood ready to extend the “size, composition and duration†of its €1.1tn bond-buying programme.“We are observing a weakening of the prospects of the Chinese economy,†Mr Draghi said.
Continue reading here: Interest Rates and Bond Yields: Where are They Headed? September Hike Ideal? Is the Bond Bull Market…
China manufacturing and services are both in contraction at the fastest rate since early 2009. The Caixin China General Manufacturing PMI shows operating conditions deteriorate at fastest rate since March 2009.
Read the original: Dallas Fed Region Activity Plunges Well Below Any Forecast
This Bloomberg headline " If the Options Market Is Right, China’s Stock Rescue Is Doomed " reads like something one would find in a tabloid, but the reverse is now true. Options traders have never been so pessimistic on China’s stock market, betting the government’s renewed effort to prop up share prices is doomed to fail. The cost of bearish contracts on the China 50 exchange-traded fund surged to the highest level versus bullish ones since they started trading in Shanghai six months ago
Hall of Mirrors: Jim Grant on the "Paper Moon", No Price Discovery Economy; Psychology of Bubbles Reason TV had an excellent interview with Jim Grant, editor of Grant’s Interest Rate Observer on the recent stock market turmoil. Grant says The Fed Turned the Stock Market Into a ‘Hall of Mirrors’ .“Confoundingly to me, people have come to be quite accepting of the value attached by fiat to these pieces of paper we call currency,†says Jim Grant, who’s the editor of Grant’s Interest Rate Observer and the author of The Forgotten Depression: The Crash That Cured Itself.“Are prices meant to be imposed from on high, or discovered by individuals acting spontaneously in markets?
Via translation, please consider Unidentified Investors Lent Belgium €50 Million for 100 Years at 2.5% Interest .
Continue Reading: New Home Sales Rise From July Downdraft; Surprise Softness in Home Prices
View post: El-Erian: "This Will Not Derail the Economy"; Contradictions and Friendly Disagreements; Six Points El-Erian Misses
Chinese Stocks Extend Slide, Down Another 6%; S&P Futures +38 Points, Nasdaq Futures +71 Following a day in which only 6 out of 500 S&P 500 stocks rose, a snap back of some sort was in order.