Post Archive

Октябрь 2015

It was almost exactly one year ago, on October 26, 2014, when the ECB concluded its latest European Stress Test. As had been pre-leaked, some 25 banks failed it, although the central bank promptly added that just €9.5 billion in net capital shortfall had been identified. What was more surprising is that to the ECB, the Greek banks — Alpha Bank, Eurobank Ergasias, National Bank of Greece, and PiraeusBank had entered Schrodinger bailout territory: they had both failed and passed the test at the same time. To wit: These banks have a shortfall on a static balance sheet projection, but

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China’s two largest refiners provide downbeat picture of demand in the world’s marginal consumer. China continues to keep the oil bulls at bay. The country’s two biggest oil companies offered a bleak picture of demand from the world’s marginal consumer of the commodity in its latest quarterly results, out Thursday. At Sinopec, the country’s biggest refiner, officially known as China Petroleum & Chemical, total sales of refined products in the third quarter dropped 3.4% in volume from a year before. That’s a marked change from their 5.3% rise during the first half of the year. Read More

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Yesterday we read with great amusement a piece in which Bloomberg explained how «Sweden has flirted on and off with deflation over the past five years. Governor Stefan Ingves and his colleagues have unleashed unprecedented stimulus to get price growth back toward the 2 percent target, cutting rates to negative and buying government bonds.» We found this funny because just a day prior profiling Sweden and its -0.35% interest rate, the same Bloomberg looked at fellow NIRPinian Denmark, which has an even more negative rate of -0.75%, where inflation is also supposedly negative, and yet where it found the following

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Wells Fargo, JPMorgan may need to add long-term debt Fed’s rule broadly matches parts of global regulators’ plan The largest U.S. banks would face a $120 billion total shortfall of long-term debt under a Federal Reserve proposal aimed at ensuring their failure wouldn’t hurt the broader financial system. Banks such as Wells Fargo & Co. and JPMorgan Chase & Co. will be required to hold enough debt that could be converted into equity if they were to falter, according to a Fed rule that was approved by a unanimous vote on Friday. The Fed’s proposal, which applies to eight of

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Sometimes there are announcements that send chills down Wall Street’s collective spine. Other times, it’s a well-defined trend portending disaster or threatening to upend the status quo that inspires fright. With Halloween just around the corner, we asked some of Wall Street’s brightest for the charts that are more terrifying than Freddy Krueger. This is what we got back. Deutsche Bank’s chief U.S. economist, Joseph LaVorgna. «Take a chart of the ISM-adjusted Philly Fed survey and show it vs. the ISM. Tells us we’re going into the mid-40s very soon on the latter. If that doesn’t scare you, I’m not

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U.S. oil output up 1.6% as drilling rigs decline 62% Rystad Energy sees U.S. onshore production dropping in 4Q A year after the bear market in crude began, oil companies have cut workers, are using fewer rigs and have less money to spend. But they’re still pumping more oil. BP Plc, Royal Dutch Shell Corp. and Hess Corp. are among the companies producing more crude than a year ago. In the U.S., shale explorers have focused on the most productive parts of their land, drilled faster and better wells there and negotiated lower prices from oilfield service companies. It’s helped

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