Baltic Dry Index. 968 -26 Brent Crude 43.36
LIR Gold Target in 2019: $30,000. Revised due to QE programs.
Chen Gaomin, 26, who started a new job at Baidu last month, said she’d be in favor of government intervention if it helps to recoup her losses. All her colleagues at the Chinese search-engine operator are losing money in the equity market.
“There is a super gloomy atmosphere talking about stocks,” she said. “I just want the performance to go back to normal soon, so I can get my money back.”
After margin call “Black Monday” in global stock markets, “turn around Tuesday?”
The panicked central bankster Plunge Protection Teams will be out in force
today. But even if they manage to get the algo traders HFT thieves back onside,
in the face of a Chinese and commodity emerging markets hard landing, will any
bounce be anything more than a mere respite in an unfolding stock market
reconnect back to real world harsh reality? Shipping indexes and the price of
crude oil are still falling, suggesting that global trade is still contracting.
The central banksters lost control weeks, if not months back.
Try as hard as they like, getting the toothpaste back in the tube is a
messy and thankless task. Though the central banksters can try flooding the
markets with buy orders today, next week, next month, next year? They’ll end up
the only buyer if they do, leaving a massive malinvestment long in the stock markets.
Who will want to invest knowing that Armageddon lies ahead once the central
banksters try unwinding their stock position as they must before they try
normalising interest rates next year?
Below, yesterday’s chapter in the end game of the Great Nixonian Error
of fiat money. Communist money that set off the Great Global Misallocation now
heading into the Great Deflation.
U.S. stocks end harrowing session with biggest drop in 4 years
Published: Aug 24, 2015 4:54 p.m. ET
Wall Street suffered one of its most volatile sessions in years Monday,
with the Dow industrials plunging more than 1,000 points in the opening
minutes, bouncing back to recover most of the losses and then fading into the
final bell to record the biggest drop in four years.
Meanwhile the main benchmark S&P 500 slipped into correction
territory, having fallen more than 10% from its peak reached on May 21.
“Short-term fear of the unknown is still in the driver’s seat, I would
expect more volatility in the coming weeks,” said Kate Warne, investment
strategist at Edward Jones.
Indeed, Monday’s trading session saw the main indexes plunge by more
than 5%. Nearly 14 billion shares changed hands on Monday, the largest volume
since August 10, 2011.
More
It's Back to 2008 for Europe Stocks as DAX Enters Bear Market
August 24, 2015 — 7:07 AM BST Updated on August 24, 2015 — 5:21 PM BST
- German stocks go from best to worst as selloff spreads
- 17 of 18 western-European markets have fallen 10% or more
European
stocks just had their worst day since 2008, with Germany’s benchmark gauge
entering a bear market.
All
but three shares in the Stoxx Europe 600 Index fell as the gauge deepened its
plunge after its worst week in four years. It slid 5.3 percent, earlier losing
as much as 8.1 percent, with miners leading the plunge in industry groups as
commodities headed for their lowest levels since 1999. Germany’s DAX Index sank
4.7 percent, down 22 percent from its peak.
More
Nerves Fray in Asia as Traders Tally Losses From Global Selloff
August 24, 2015 — 7:11 AM BST
On Mirabaud Asia Ltd.’s Hong Kong trading floor, stockbrokers sat in quiet
disbelief. In Baidu Inc.’s Beijing office, gloomy employees tallied their
losses. At Barclays Plc in Singapore, queries from nervous clients came in thick
and fast.“I would say we are in panic mode now,” said Andrew Clarke, director of trading at Mirabaud Asia.
As a three-week retreat in riskier assets plumbed new depths on Monday, investors across Asia rushed for the exits. The Shanghai Composite Index slumped 9 percent, while a gauge of stock-market momentum in Hong Kong showed the most extreme selling since the market crash of 1987. Commodities sank to a 16-year low and the currencies of Malaysia and Indonesia dropped to the weakest levels since the Asian financial crisis in 1998.
Trading on stock exchanges from Hong Kong to Mumbai surged, with brokers citing margin calls as one reason for the extent of the losses. After more than six years of largely uninterrupted gains in global equity markets, China’s economic slowdown and the prospect of higher U.S. interest rates are prompting investors to reassess their holdings.
The declines on Monday were most extreme in China, where the benchmark Shanghai Composite erased its gains for the year despite the government’s move to allow pension funds to buy shares for the first time. The announcement was the latest in a series of efforts to prop up equity prices amid a $4 trillion rout.
Chen Gaomin, 26, who started a new job at Baidu last month, said she’d be in favor of government intervention if it helps to recoup her losses. All her colleagues at the Chinese search-engine operator are losing money in the equity market.
“There is a super gloomy atmosphere talking about stocks,” she said. “I just want the performance to go back to normal soon, so I can get my money back.”
In Singapore, where the local currency touched a five-year low on Monday, Barclays economist Wai Ho Leong said client requests were flooding in three times faster than normal. Investors are trying to gauge how vulnerable Asian economies are to capital outflows, he said. Malaysia’s ringgit weakened 1.3 percent, while Indonesia’s rupiah slipped 0.6 percent and the South African rand tumbled 3 percent as a Bloomberg gauge of emerging-market currencies slid to the lowest level on record.
More
Emerging Assets Dealt Violent Blow in Worst Stock Run Since 2011
August 24, 2015 — 4:56 AM BST Updated on August 25, 2015 — 12:00 AM BST
The panic gripping emerging-market investors took a turn for the worse
on Monday as Chinese equities fell the most since 2007, sending shockwaves
across developing countries from the Philippines to South Africa.
The Shanghai Composite Index slid 8.5 percent as concern mounted that
China’s economic slump is deepening and government measures to stop it will
fail. A further slowing of growth in the world’s second-largest economy would
undermine demand for commodities and curtail imports from countries including
Brazil, South Africa and Russia -- all of which count China as their biggest
trading partner.
As oil plunged toward $40 a barrel in London, Saudi Arabian stocks fell deeper into a bear market, the South African rand weakened to an all-time low and the ruble surpassed 70 to the dollar for the first time since February. Political turmoil in Turkey and Malaysia has added to the negative sentiment weighing on developing countries as investors assessed the prospect for higher U.S. interest rates.
“We are seeing a massive reaction all across emerging- and developed- countries,” said Quincy Krosby, a market strategist for Newark, New Jersey-based Prudential Financial Inc., which oversees more than $1 trillion. “When you have this global risk off, developing equities are the ones to suffer the most.”
Equities in Vietnam, India, the Philippines, Saudi Arabia and Poland dropped at least 5.3 percent, while Brazil’s Ibovespa lost 3 percent in Sao Paulo. The MSCI Emerging Markets Index fell 5 percent to 771.77 in New York, the most since September 2011 and bringing its seven-day retreat to 11 percent.
More
We end for today with continuing
commodity turmoil. In commodities, falling prices only stop production with a
very long lag.Rio Tinto to ship 20 percent more iron ore to China in 2015
August 21 2015
Expects to deliver 240 million T iron ore to China in 2015
* Rio's 2015 production costs down $2 from 2014 levels
* Keeping close eye on impact of China's currency devaluation
SHANGHAI, Aug 21 (Reuters) - Australian mining giant Rio Tinto expects
to deliver 240 million tonnes of iron ore to China this year, up from 200 million
tonnes in 2014, the company's China managing director told reporters on Friday.
The miner has driven down its production costs to $16.20 a tonne this
year, $2 lower than a year ago, enabling it to cope with falling prices of the
steelmaking raw material, Ren Binyan said at a press briefing.
Global iron ore prices have collapsed as a result of slowing demand growth
in top consumer China and a concerted output expansion by giant miners,
including Rio Tinto (LSE: RIO.L
- news) , its Australian
rival BHP Billiton (NYSE: BBL
- news) and Brazil's Vale.Spot iron ore prices have lost more than 20 percent in 2015 as an economic slowdown in China curtailed the country's use of steel. The outlook for the raw material remains grim for the rest of the year as well.
China's steel consumption is expected to fall further this year, after it dropped 3.4 percent in 2014 - the first decline since 1981. Also, the top global miners aim to further bring down costs and expand production to back their battle to maintain market share in China.
The efforts have enabled the big three to drive out higher-cost producers in China and elsewhere and expand their market share. Australia and Brazil accounted for 84.6 percent of China's total imports in July, data shows.
More
Oil settles below $39 a barrel for the first time since Feb. 2009
Published: Aug 24, 2015 3:16 p.m. ET
The plunge in oil prices accelerated Monday in line with the
selloff in global financial markets, with West Texas Intermediate crude futures
settling under $39 a barrel as investors remain shaken about prospects for
global economic growth.
WTI crude for delivery in October CLV5, +2.09% fell $2.21, or 5.5%, to settle at $38.24 a barrel on the New York Mercantile Exchange. That was the lowest level for a most-active contract since February 2009.
Nymex prices had tapped a low of $37.75.
October Brent crude LCOV5, +1.62% on London’s ICE Futures exchange sank $2.77, or 6.1%, to $42.69 a barrel, dropping below $43 for the first time since March 2009. It is now trading nearly 59% below its one-year high of $103.19 reached in August last year.
These are “epic times in the oil market,” said Matt Smith, director of commodity research at ClipperData.
More
"When it becomes serious, you have to lie"
Jean-Claude Juncker. Failed Luxembourg Prime Minister and ex-president of the Euro Group of Finance Ministers. Confessed liar. EC President.
Jean-Claude Juncker. Failed Luxembourg Prime Minister and ex-president of the Euro Group of Finance Ministers. Confessed liar. EC President.
At the Comex silver depositories Monday
final figures were: Registered 55.88 Moz, Eligible 114.33 Moz, Total 170.21
Moz.
Crooks and Scoundrels Corner
The bent, the seriously bent, and the totally
doubled over.
Today, “this time it’s different.”
Commodity rout unlike 2008 recession, no China to the rescue: Russell
LAUNCESTON,
Australia, |
With the prices of many major commodities currently plumbing depths last
seen six years ago, what are the chances of a repeat of the China-led boom that
lifted resources out of the 2008 recession funk?
To answer the question it's worth looking at what is the same and what
is different about the weakness in commodity prices between 2008-09 and now,
and the answer is not much is the same.
The main similarity is simply that prices are weak and have fallen
precipitously in a relatively short period of time.
Brent crude fell by about 75 percent between the all-time high in July
2008 and the low in December that year.
So far it has dropped about 52 percent from the last year's peak in June
to the close of $45.46 a barrel on Aug. 21.
Benchmark London copper futures dropped about 67 percent between July
and December in 2008, and they have slumped 22 percent since July this year to
the close of $5,055 a tonne on Aug. 21.
The wider story for copper is that it has been trending lower since the
record high in February 2011, having lost about half its value since that time.
Spot iron ore prices in Asia only date back to November 2008, when, in
common with crude, copper, coal and many other commodities, they started
climbing rapidly as the global stimulus kicked in.
Iron ore more than tripled between November 2008 and the record high
$191.90 a tonne in February 2011, and have now given back all of that gain to
end at $55.60 on Aug. 21.
The rapid gains in commodity prices from the start of 2009 was largely
driven by China's stimulus spending, which sucked in huge amounts of raw
materials as the country went on a building frenzy just at the time that
domestic resource companies ran out capacity to meet the increased demand.
It was always likely that commodity prices would overshoot in such a
heated environment, and the 2011 peaks possibly can be ascribed to market
exuberance.
But the decline in prices for many commodities started accelerating in
2014, just as it became increasingly evident that China's economic growth was
slowing and changing composition.
This was largely an engineered process by Beijing, which wanted to end
the reliance on polluting heavy industries and export-led manufacturing and
build a more sustainable base of a consumer-driven economy.
The point of this is that China is unlikely, and most likely unable, to
repeat the stimulus efforts of 2009.
While some additional spending on infrastructure is already in the
pipeline, it won't nearly match the boom seen in the years following the 2008
global recession.
The need for new infrastructure isn't as great, local authorities are
still overburdened with debt from the last stimulus, pollution is a major
concern and there are question marks over whether global demand would be
sufficient to absorb much increase in manufacturing exports.
This makes it unlikely that a demand-led revival is on the cards for
commodities, even with the caveat that the Chinese economy is probably not in
as a bad shape as the current worst fears of investors.
The other reason for thinking commodity prices aren't on the verge of a
rebound is supply.
----
It's not a lack of demand that has contributed to plunging iron ore, crude and
coal prices, rather it's markets that have moved to a structural surplus and
the response of producers to continue oversupplying in the hope that their
rivals will go bankrupt before they do.
More
Solar & Related Update.
With events
happening fast in the development of solar power, I’ve added this new section.
Updates as they get reported. Is converting sunlight to usable cheap AC energy
mankind’s future from the 21st century onwards? DC? A quantum
computer next?
World's largest solar power station to come up in Madhya Pradesh
By PTI | 23 Aug,
2015, 03.05PM IST
BHOPAL:
Madhya Pradesh will house world's largest 750 Mega Watts(MW) solar power
station in Rewa district, state's energy minister Rajendra Shukla said today.
"Global tenders for commissioning the solar power station in an area over 1,500 hectares at Bandwar region in Gudh tehsil of Rewa, will be invited shortly," Shukla told PTI.
He said that if all goes well, the plant will start generating solar energy by March 2017.
The project - Rewa Ultra Mega Solar - is a joint venture of Solar Energy Corporation of India and MP Urja Vikas Nigam, where in both parties have 50 per cent stake, he added.
According to him, the project will come up on barren government land and one MW power generation needs two hectares tract of land.
The minister said the cost of generating one MW solar energy comes to around Rs 7.6 crore.
At present, world's largest solar power project - Ivanpah Solar Power Facility of 392 MW - is at Mojave deserts in California, United States, the minister informed.
In February last year, Narendra Modi, as BJP's prime ministerial candidate, inaugurated Asia's largest solar power project at Neemuch.
As per reports, Welspun's solar power project in Neemuch, some 400 km from here, had come up at a cost of around Rs 1,100 crore on 305 hectares of land.
"Global tenders for commissioning the solar power station in an area over 1,500 hectares at Bandwar region in Gudh tehsil of Rewa, will be invited shortly," Shukla told PTI.
He said that if all goes well, the plant will start generating solar energy by March 2017.
The project - Rewa Ultra Mega Solar - is a joint venture of Solar Energy Corporation of India and MP Urja Vikas Nigam, where in both parties have 50 per cent stake, he added.
According to him, the project will come up on barren government land and one MW power generation needs two hectares tract of land.
The minister said the cost of generating one MW solar energy comes to around Rs 7.6 crore.
At present, world's largest solar power project - Ivanpah Solar Power Facility of 392 MW - is at Mojave deserts in California, United States, the minister informed.
In February last year, Narendra Modi, as BJP's prime ministerial candidate, inaugurated Asia's largest solar power project at Neemuch.
As per reports, Welspun's solar power project in Neemuch, some 400 km from here, had come up at a cost of around Rs 1,100 crore on 305 hectares of land.
But,
below a warning from California on why governments should stay out of
subsidising technology. Let scientists and private capital do what they
generally do best.
Ivanpah Solar Power Facility
The Ivanpah Solar Electric Generating System is a concentrated solar thermal plant in the California Mojave Desert, 64 km (40 miles) southwest of Las Vegas, with a gross capacity of 392 megawatts (MW).[5] It deploys 173,500 heliostats, each with two mirrors, focusing solar energy on boilers located on three centralized solar power towers.[5] Unit 1 of the project was connected to the grid in September 2013 in an initial sync testing.[6] The facility formally opened on February 13, 2014,[1] and it is currently the world's largest solar thermal power station.[7][8]The project was developed by BrightSource Energy and Bechtel.[9] It cost $2.2 billion; the largest investor in the project is NRG Energy, a power generating company based in Princeton, New Jersey, that has contributed $300 million. Google has contributed $168 million.;[10] the U.S. government provided a $1.6 billion loan guarantee.[11] In 2010, the project was scaled back from the original 440 MW design, to avoid building on the habitat of the desert tortoise.[12]
In November 2014, Associated Press reported that the plant was producing only "about half of its expected annual output". The California Energy Commission issued a statement blaming this on "clouds, jet contrails and weather"
---- The plant requires burning natural gas each morning to get the plant started. The Wall Street Journal reported: "Instead of ramping up the plant each day before sunrise by burning one hour’s worth of natural gas to generate steam, Ivanpah needs more than four times that much."[30] On August 27, 2014, the State of California approved Ivanpah to increase its annual natural gas consumption from 328 million cubic feet of natural gas, as previously approved, to 525 million cubic feet.[31]
---- In June 2015, the Wall Street Journal reported: "15 months after starting up, the plant is producing just 40% of [its expected more than a million megawatt-hours of electricity each year], according to data from the U.S. Energy Department.[37]"
---- During the trial of the plant in September 2013, 34 dead birds were found at the plant, 15 of which had heavily burned feathers, which staff at the plant referred to as "streamers" because they were burned in flight by the intense radiation from the heliostat mirrors.[50] From February through June 2014, a team of biologists monitoring the number of bird deaths reported a total of 290.[51] According to a USFWS report in April 2014, 141 birds were collected at Ivanpah in October 2013 and 47 of the deaths were attributed to solar flux.[52] According to a report by the Associated Press, "Ivanpah might act as a 'mega-trap' for wildlife, with the bright light of the plant attracting insects, which in turn attract insect-eating birds that fly to their death in the intensely focused light rays."
More
The monthly Coppock Indicators finished July
DJIA: +88 Down. NASDAQ:
+189 Down. SP500: +116 Down.
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