Tuesday, 28 November 2017

Another Wobble Or More?

Baltic Dry Index. 1458 +13 Brent Crude 63.62
Today, another stock market wobble or the start of something more? I suspect something more, but it all depends on whether you’re in the business to make your money by peddling stocks to greater fools, or analysing stocks for investment rather than gambling speculation.
But on the Great Nixonian Error of fiat money, communist money, August 15, 1971, insane leveraged derivatives gambling, asset stripping, and debt driven stock buyback manipulation, and central bankster rigged markets long ago trumped everything else. Central bankster corporate socialism, long ago replaced capitalism, with not altogether happy results. Is 2018 the year financial Armageddon arrives? Sadly, I suspect that the answer is yes.
Normal service resumes tomorrow, if Microsoft ever get my Office 365 suite to work again. On to day 6 using LibreOffice. There is nothing like a work around challenge.

Asian shares fall from decade peak as China falters

November 28, 2017 / 12:54 AM .
SYDNEY (Reuters) - Asian shares stepped back from decade highs on Tuesday as Chinese stocks stumbled for a second straight session, while the U.S. dollar trod water ahead of a crucial Senate vote on tax reform.
Investor confidence in China has been dented by rising bond yields as Beijing steps up its crackdown on shadow banking and other risky forms of financing. Higher borrowing costs threaten to squeeze corporate profits.

Mainland stocks have jumped 22 percent in 2017, with the gains concentrated in a handful of large index-weighted stocks. The index was down 0.3 percent while Shanghai’s SSE Composite index slipped 0.2 percent at 0221 GMT.

“The aspect of poor breadth and participation was actually the point for Chinese authorities who have been concerned with the equity market continually heading higher on very low participation,” said Chris Weston, Melbourne-based chief strategist at IG Markets.

“The question is whether further downside in Chinese mainland equities continues in the session ahead and will there be a spillover into Hong Kong and potentially even Japan, Korea and Australia?”
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.3 percent from last week’s high of 570.21 points. It was on track to end November in the black.

The index has been on an uptrend most of this year, posting a monthly loss only once in 2017.
Australian shares were flat while Japan’s Nikkei rose 0.2 percent.

Wall Street had been mixed on Monday, with the S&P 500 off a touch, the Nasdaq losing 0.1 percent and the Dow up 0.1 percent.
More

Market's Numbness to Risk Reminds of Calm Before Storm: Axioma

By Andrew Janes
November 28, 2017, 3:18 AM GMT
There’s “somewhat of a numbness” to risk among investors right now that’s reminiscent of pre-crisis periods in the past, according to Olivier d’Assier, head of applied research for Asia Pacific at Axioma Inc.

Singapore-based d’Assier, who develops stress tests around various scenarios for clients of the investment risk-management firm, points to the lack of reaction to the recent jump in the Chicago Board Options Exchange’s SPX Volatility Index. The gauge, known as the VIX index, surged from 10.18 percent at the end of October to as high as 14.51 percent on Nov. 15, a three-month intraday high.

“A couple of years ago, when there was a 6, 9, 10 percent increase in the VIX Index, everybody panicked,” he said. But “nobody cared, everybody jumped in” when the measure shot up this month, d’Assier said.

D’Assier shared his views in an interview last week:

Why is the market so risk-tolerant right now?

  • “We started the year with a very, very heavy geopolitical agenda” including elections in France, Holland, Germany. “All of these things were on the agenda and all of these things had the possibility to go wrong,” because the market got Brexit and Trump’s election wrong. “Volumes kept going down until after the French elections when, suddenly, it’s OK, it’s not as bad as it could have been”
  • “Now, everybody is risk-tolerant. There’s hardly any risk-averse people in the market.” Cash positions are at 3, 4, 5 percent, compared with 20 percent at the start of the year
more
Back in the EUSSR, situation normal. Rules optional, political interference in judicial matters, unstable government. In Brexit, it’s become starkly obvious to all, Juncker and Barnier are simply not up to the job. What’s not to dislike about the unreformed, unreformable, wealth and jobs destroying EUSSR.

November 27, 2017 / 12:32 PM .

EU Council says ECB does not have mandate for its bad loan measures.

BRUSSELS (Reuters) - The European Central Bank does not have the mandate for its plan to ask euro area banks to set aside more cash to cover bad loans, the European Union Council said in a legal opinion, in a further blow to the ECB proposal.
 
To prevent a pile-up of new bad debt on top of an existing stock of sour loans worth nearly 850 billion euros (£760.01 trillion), the ECB wants to introduce new guidelines including a two-year deadline for lenders to raise provisions from January for any newly classified non-performing unsecured debt.

The draft plan is out for public consultation until next week and has run into opposition from various quarters including the European parliament and now the EU Council, the bloc’s other legislative body which represents its members’ governments.

The council’s non-binding document, seen by Reuters and dated Nov. 23, said the law governing the ECB’s supervisory powers over euro zone banks “prevents the ECB from adopting instruments of soft law, such as the draft addendum to the ECB guidance to banks on non-performing loans.”

The ECB cannot adopt measures “intended to ensure compliance by banks of criteria for minimum provisioning which are not, or not yet, the object of harmonisation by the EU legislator,” it said.
 
This echoes the stance of the European Parliament’s legal services that the ECB would be overstepping its authority with its proposed guidelines.

EU rules say supervisors can impose binding capital measures on specific banks but not on the entire banking system.

The chair of the ECB supervisory body, Daniele Nouy, said guidelines do not equate with laws. She has defended her plan but hinted at the possibility of postponing its entry into force.

The document will be discussed by EU states’ economic envoys on Tuesday when they meet to prepare the monthly gathering of EU finance ministers, EU officials said.
More

November 27, 2017 / 11:00 AM .

Ireland on the verge of snap election as crisis deepens

DUBLIN (Reuters) - Ireland was on the verge of a snap election on Monday after the opposition party propping up the minority government said the deputy prime minister’s refusal to quit would force the country to the polls next month.

The political crisis that deepened dramatically late on Monday has left the country’s two main parties with less than 24 hours to head off a general election in a dispute that cast a shadow over a key Brexit summit next month.

Ireland will play a major role at the meeting, telling EU leaders whether it believes sufficient progress has been made on the future of the border between EU-member Ireland and the British province of Northern Ireland.

The pressure on Deputy Prime Minister Frances Fitzgerald of Varadkar’s Fine Gael party mounted on Monday following the release of fresh documents about her disputed handling of a police whistleblower who alleged corruption in the force.

Fianna Fail, whose backing Varadkar requires from the opposition benches to keep his government functioning, has said it will move a motion of no confidence in Fitzgerald at 2000 GMT on Tuesday unless she quits, a position that hardened on Monday.

----Varadkar has insisted that if the motion is not withdrawn, he will be forced to hold an election before Christmas, a prospect EU officials say would complicate the EU Brexit summit on Dec. 14-15.

A compromise had appeared possible earlier in the day when senior members of both parties struck a more conciliatory tone, but the momentum shifted instantly upon the release of the new documents.

----However some Fine Gael members who spoke on condition of anonymity were livid, and local media reported that a number of the party’s ministers privately said she must step down.

The headline on the front page of Tuesday’s Irish Examiner newspaper read, “Ministers desert Fitzgerald as pressure rises.”
More

SocGen to Take Fourth-Quarter Charges of as Much as $678 Million

By Fabio Benedetti Valentini
November 27, 2017, 9:18 PM GMT Updated on November 27, 2017, 9:57 PM GMT
Societe Generale SA expects to book exceptional charges of about 570 million euros ($678 million) in the fourth quarter, related to tax changes and a plan to cut additional jobs in France.

As many as 900 job cuts may take place at its domestic retail banking business, resulting in a charge of about 400 million euros, Societe Generale said in a statement late on Monday. That’s on the top of the 2,550 positions the bank has already said it will eliminate. SocGen will take another exceptional expense related to three tax changes.

The bank announced the surprise charges as SocGen Chief Executive Officer Frederic Oudea presents his third set of financial targets since the global credit crisis to investors in Paris on Tuesday. He’s betting that a push in tech investments and mobile banking will bolster revenue and profitability. The new targets envisage progressive growth of the dividend and improved profitability with “strictly managed” market risks, according to a separate statement.

“ In a European banking sector undergoing radical industrial change, the group is ready to enter into a new phase of its development and transformation,” Oudea, 54, said.

The bank’s new targets include the goal to generate 3.6 billion euros of additional revenue within three years as it prioritizes key clients. It also plans to close or sell some businesses and reduce by about 15 percent its banking branch network in France.
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Norway Wants Michel Barnier to Recognize the Special Status of Britain’s Top Gas Supplier

By Sveinung Sleire
November 27, 2017, 2:20 PM GMT Updated on November 27, 2017, 11:01 PM GMT
As it girds for the possibility that Britain and the EU won’t reach a Brexit deal before the end of the year, Norway wants Europe’s chief negotiator, Michel Barnier, to acknowledge the special status of the U.K.’s biggest gas supplier.

“Things are time-critical and it’s important to secure real agreements over the days and weeks we have up to the EU summit in the middle of December,” Marit Berger Rosland, Norway’s EU and EEA Affairs Minister, said in an interview at the Foreign Ministry in Oslo. But comments by Barnier also suggest “we have to be prepared for a no-deal scenario.”

Scandinavia’s richest country and western Europe’s biggest oil and gas exporter is working hard to ensure it doesn’t lose out in any transitional accord struck between the EU and Britain once it leaves the bloc. Norway provides about 40 percent of the U.K.’s energy needs, and is keen to defend its access to the EU’s single market as a member of the European Economic Area.

Our core message to Barnier is that Norway isn’t just any ordinary third-party country,” she said.
Reiterating a position held by her predecessor, Rosland said there was an understanding in Oslo that “any transition solutions will also be applied to Norway.” The 39-year-old minister says her message to the U.K. government is that it should work to “safeguard its interests with key partners, including Norway.”

Norway is also doing what it can to prepare for the possibility that Brexit talks won’t end in an agreement.
More

Crooks and Scoundrels Corner

The bent, the seriously bent, and the totally doubled over.
Presented without need for comment, still just imagine if a US company was caught employing 800 illegals in the EUSSR.

Chicago Immigration Raid Leaves Swiss Baker Scrambling to Restaff

By Thomas Mulier
November 27, 2017, 11:02 AM GMT Updated on November 27, 2017, 12:02 PM GMT
A Swiss maker of hamburger buns for McDonald’s Corp. said it’s struggling to run a Chicago bakery after it lost a third of its workers in a clampdown on 800 immigrants without sufficient documentation.
About 35 percent of the workers at Cloverhill Bakery had to be replaced, according to Zurich-based Aryzta AG. The company, which makes baked goods for fast-food chains and supermarkets, said the employees were supplied by a job-placement agency that faced federal audits earlier this year.

“It’s proceeding very, very slowly because it’s like having a brand new factory and a brand new workforce,” Chief Executive Officer Kevin Toland said on a call with analysts. “That’s presenting a lot of challenges, as you can imagine.”
The raid on workers at Cloverhill is one of the biggest U.S. employment headaches reported by a European company so far as President Donald Trump has made curbing undocumented immigration a centerpiece of his presidency. Aryzta said it faces challenges in retaining staff in the U.S. and pressure to raise wages.
The Cloverhill issues led to a 7 percent decline in Aryzta’s sales from North America in the three months through October. The increase in employment costs -- which is affecting retailers and restaurants nationwide -- will eventually lead to higher consumer prices, Toland said.

Aryzta wasn’t able to verify that the workers had the necessary documents to work because they were brought in by a staffing agency, interim Chief Financial Officer David Wilkinson said in September. He also said the board wasn’t aware of the extent of the risk that existed to the business. The company first reported the loss of 800 workers at that time.

The Swiss company didn’t name the staffing company.

Technology Update.

With events happening fast in the development of solar power and graphene, I’ve added this section. Updates as they get reported. Is converting sunlight to usable cheap AC or DC energy mankind’s future from the 21st century onwards? DC? A quantum computer next?

Shooting electrons at diamonds can introduce quantum sensors into them

Date: November 22, 2017
 
Source: The Hebrew University of Jerusalem
 
Summary: Researchers have discovered that dense ensembles of quantum spins can be created in diamond with high resolution using an electron microscopes, paving the way for enhanced sensors and resources for quantum technologies. This work demonstrates an improvement in the densities of Nitrogen-Vacancy (NV) centers in a variety of diamond types, foreshadowing future improvements in the sensitivity of diamond magnetic measurements, as well as promising directions in the study of solid state physics and quantum information theory.
Researchers have discovered that dense ensembles of quantum spins can be created in diamond with high resolution using an electron microscopes, paving the way for enhanced sensors and resources for quantum technologies.

Diamonds are made of carbon atoms in a crystalline structure, but if a carbon atom is replaced with another type of atom, this will result in a lattice defect. One such defect is the Nitrogen-Vacancy (NV), where one carbon atom is replaced by a nitrogen atom, and its neighbor is missing (an empty space remains in its place).

If this defect is illuminated with a green laser, in response it will emit red light (fluoresce) with an interesting feature: its intensity varies depending on the magnetic properties in the environment. This unique feature makes the NV center particularly useful for measuring magnetic fields, magnetic imaging (MRI), and quantum computing and information.

In order to produce optimal magnetic detectors, the density of these defects should be increased without increasing environmental noise and damaging the diamond properties.

Now, scientists from the research group of Nir Bar-Gill at the Hebrew University of Jerusalem's Racah Institute of Physics and Department of Applied Physics, in cooperation with Prof. Eyal Buks of the Technion -- Israel Institute of Technology, have shown that ultra-high densities of NV centers can be obtained by a simple process of using electron beams to kick carbon atoms out of the lattice.

This work, published in the scientific journal Applied Physics Letters, is a continuation of previous work in the field, and demonstrates an improvement in the densities of NV centers in a variety of diamond types. The irradiation is performed using an electron beam microscope (Transmission Electron Microscope or TEM), which has been specifically converted for this purpose. The availability of this device in nanotechnology centers in many universities in Israel and around the world enables this process with high spatial accuracy, quickly and simply.
 
----"This work is an important stepping stone toward utilizing NV centers in diamond as resources for quantum technologies, such as enhanced sensing, quantum simulation and potentially quantum information processing," said Bar-Gill, an Assistant Professor in the Dept. of Applied Physics and Racah Institute of Physics at the Hebrew University, where he founded the Quantum Information, Simulation and Sensing lab.
"What is special about our approach is that it's very simple and straightforward," said Hebrew University researcher Dima Farfurnik. "You get sufficiently high NV concentrations that are appropriate for many applications with a simple procedure that can be done in-house."

The monthly Coppock Indicators finished October

DJIA: 23,277 +233 Up. NASDAQ:  6,728 +284 Up. SP500: 2,575 +183 Up.

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