Friday 7 December 2018

Perfidy Rules For Now. Industrial Scale Wealth Destruction.


Baltic Dry Index. 1339 +43   Brent Crude 59.47

“I loved my previous life. I had so many things going. This is more work than in my previous life. I thought it would be easier.”

Donald J. Trump. Reuters, 28/8/17

In our global gambling casinos aka stock markets, politics, trade wars, and Trump’s attempt to block China’s growing technologic economy, has set off a process of industrial scale wealth destruction. Yesterday’s come back in US stocks on alleged leaks to the Wall Street Journal that the Fed is giving up on next year interest rate increases, merely politicises the US central bank.

Like the Stuart Star Chamber, investing in America now, depends on the length of the Chancellors foot.  Nothing good will come from this change to uncertainty and market rigging.

Up first, yesterday’s wild US action. Bunker time. When elephants fight, America and China, it’s best to get out of the way.

 “No surprise that China was caught cheating in the Olympics. That's the Chinese M.O. - Lie, Cheat & Steal in all international dealings.”

Donald J. Trump. Twitter - Aug. 8, 2012

The Dow just slashed a 785-point plunge, marking its most stunning reversal since March

By Mark DeCambre  Published: Dec 6, 2018 8:43 p.m. ET
Think of it as a turnaround Thursday. The Dow Jones Industrial Average staged an epic intraday rally that wiped out 705 points of losses to cap a wild session.

The reversal was the blue-chip index’s most stunning — between the Dow’s DJIA, -0.32% 11:30 a.m. Eastern Time intraday nadir at 24,242, off 785 points, to its eventual close, off just 79.40 points lower, or 0.3% — since April 4, according to Dow Jones Market Data.

The embattled Nasdaq Composite Index COMP, +0.42% recorded a similarly massive rebound, ending Thursday with a respectable advance, up 0.4%, after sinking as much as 2.4%, or 174 points. It was also the technology-laden’s benchmark’s widest swing from an intraday peak to trough since early April.

The stomach-churning gyrations have become more commonplace in stocks, but Thursday’s move may leave more questions about whether equity benchmarks have put in a bottom after the day’s declines briefly erased the year-to-date gains from the S&P 500 index SPX, -0.15% and the Dow.

Early-session declines were attributed to news of the Dec. 1 arrest of Chinese telecommunications giant Huawei Technologies CFO Meng Wanzhou, which was seen as fresh sign of the intensification of tariff clashes between Beijing and Washington.

However, markets appeared to pare throughout the latter part of the session, with news from the Wall Street Journal perhaps providing some solace to bulls. The report indicated that the Federal Reserve were becoming less assured of its intent to aggressively increase interest rates. The Federal Open Market Committee is slated to convene at a Dec. 18-19 meeting, where it is expected to lift interest rates a fourth time in 2018.

Read: Fed still likely to raise interest rates in December, economists say — even as stock market gyrates

Worries that the Fed’s monetary policy is hurting the economy and the market, combined with fears about the impact of worsening relations between the U.S. and China, have been among the most significant sources of anxiety for Wall Street investors this year.

A looming death cross for the S&P 500 highlights a stock market in tatters

By Mark DeCambre  Published: Dec 6, 2018 8:42 p.m. ET

The S&P 500’s 50-day moving average was below its 200-day since April 22, 2016, says Dow Jones Market Data

The S&P 500 index is set to join the ranks of market benchmarks forming that dreaded Wall Street chart pattern: the death cross.

Read: Bearish death crosses keep popping up, this time in retail and technology stocks

A death cross is setting up in the S&P 500 SPX, -0.15% with the 50-day moving average at 2,763.56, on the brink of slipping below the 200-day moving average of 2,762.08, according to FactSet data.
A death cross is what chart watchers refer to as the point where the 50-day — a short-term trend tracker — crosses below the 200-day, which is used to define the longer-term trend. Many believe the cross marks the point where a shorter-term decline graduates to a longer-term downtrend.

The S&P 500 index is set to join the ranks of market benchmarks forming that dreaded Wall Street chart pattern: the death cross.

Read: Bearish death crosses keep popping up, this time in retail and technology stocks

A death cross is setting up in the S&P 500 SPX, -0.15% with the 50-day moving average at 2,763.56, on the brink of slipping below the 200-day moving average of 2,762.08, according to FactSet data.

----Read: How a looming S&P 500 death cross could chase away the stock market’s Santa rally

Given the S&P 500’s Thursday action— falling in tandem with the Dow Jones Industrial Average DJIA, -0.32% ( and briefly with the Nasdaq Composite COMP, +0.42% )— a breach of the large-cap index’s short-term trend line beneath the 200-day seems likely to take hold as early as Friday.
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Asia shares struggle to rally, oil skids further

December 7, 2018 / 12:40 AM / Updated 3 hours ago
SYDNEY (Reuters) - Asian shares fought to sustain the slimmest of recoveries on Friday amid speculation the Federal Reserve might be “one-and-done” with U.S. rate hikes, while oil fell anew as producers bickered over the details of an output cut.

MSCI’s broadest index of Asia-Pacific shares outside Japan nudged up 0.4 percent, though that followed a 1.8 percent drubbing on Thursday.

Japan’s Nikkei added 0.2 percent and Chinese blue chips 0.3 percent. E-Mini futures for the S&P 500 started firmer but were last down 0.1 percent. 

There was no escaping concerns over Sino-U.S. relations after the arrest of smartphone maker Huawei Technologies Co Ltd Chief Financial Officer Meng Wanzhou threatened to chill talks on some form of trade truce.

Markets also face a test from U.S. payrolls data later in the session amid speculation the economy was heading for a tough patch after years of solid growth.

Federal Reserve Chairman Jerome Powell emphasized the strength of the labor market in remarks made late Thursday.

Economists polled by Reuters forecast jobs rose by 200,000 in November after surging 250,000 in October.

“A view has developed of U.S. growth normalizing a little faster than expected from the fiscal ‘sugar rush’, while inflationary pressures remain contained given the sharp fall in the oil price,” said National Australia Bank economist Tapa Strickland.

“Payrolls will be very important in helping to validate whether the economy is indeed slowing faster than expected.”

The mood in risk-asset markets brightened a little after the Wall Street Journal reported Fed officials are considering whether to signal a new wait-and-see mentality after a likely rate increase at their meeting in December.
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Finally, in politics news, Canada and America put in an official denial of dirty tricks. But they would say that wouldn’t they. Both denials are likely to carry little weight in Beijing or the rest of the world. When a few years ago, an Israeli general was at risk of arrest at London airport from an international warrant for alleged war crimes, the GB Foreign Office tipped off Israel and his travel arrangements were altered. This sort of thing happens all the time. Canada chose not to do so, making Prime Minister Trudeau’s innocent plea a nonsense.

President Trump’s denial of knowledge is equally incredible. “White House National Security Adviser John Bolton, who sat at the table with Trump and Xi, knew in advance of the U.S. request that Canadian authorities arrest Huawei CFO Wanzhou Meng, he told National Public Radio Thursday.”

President Xi was set up to be a patsy and face international disgrace. I doubt President Xi and China are just going to rollover and play President Trump’s doormat. I suspect that this will have repercussions for years to come. For now, China will play by the legal rules, but not for too long I suspect.

"I think if this country gets any kinder or gentler, it's literally going to cease to exist."

Donald J. Trump.

White House, Trudeau seek to distance themselves from Huawei move

Roberta Rampton, David Ljunggren December 7, 2018 / 1:24 AM / Updated 3 hours ago
WASHINGTON/OTTAWA (Reuters) - President Donald Trump did not know about plans to arrest a top executive at Chinese telecoms giant Huawei in Canada, two U.S. officials said on Thursday, in an apparent attempt to stop the incident from impeding crucial trade talks with Beijing.

Huawei Technologies Co Ltd’s chief financial officer, Meng Wanzhou, the 46-year-old daughter of the company’s founder, was detained in Canada on Dec. 1, the same day Trump and Chinese President Xi Jinping dined together at the G20 summit in Buenos Aires. 

A White House official told Reuters Trump did not know about a U.S. request for her extradition from Canada before he met Xi and agreed to a 90-day truce in the brewing trade war.

Meng’s arrest during a stopover in Vancouver, announced by the Canadian authorities on Wednesday, pummeled stock markets already nervous about tensions between the world’s two largest economies on fears the move could derail the planned trade talks.

The arrest was made at Washington’s request as part of a U.S. investigation of an alleged scheme to use the global banking system to evade U.S. sanctions against Iran, according to people familiar with the probe.

Another U.S. official told Reuters that while it was a Justice Department matter and not orchestrated in advance by the White House, the case could send a message that Washington is serious about what it sees as Beijing’s violations of international trade norms.

The official, speaking on condition of anonymity, acknowledged that the arrest could complicate efforts to reach a broader U.S.-China trade deal but would not necessarily damage the process.

Meng’s detention also raised concerns about potential retaliation from Beijing in Canada, where Prime Minister Justin Trudeau sought to distance himself from the arrest.

“The appropriate authorities took the decisions in this case without any political involvement or interference ... we were advised by them with a few days’ notice that this was in the works,” Trudeau told reporters in Montreal in televised remarks.
More

U.S. Pursued Huawei CFO’s Arrest Despite Risk to Trade Talks With Xi

By Jennifer Epstein
Updated on 7 December 2018, 01:42 GMT
The Trump administration arranged the arrest of Huawei Technologies Co.’s chief financial officer aware of potential blow-back in trade talks with Beijing but intent on showing resolve to crack down on Chinese companies accused of violating U.S. law.

The arrest happened about the same time that President Donald Trump dined with Chinese President Xi Jinping in Buenos Aires to discuss the trade war between the countries.

White House National Security Adviser John Bolton, who sat at the table with Trump and Xi, knew in advance of the U.S. request that Canadian authorities arrest Huawei CFO Wanzhou Meng, he told National Public Radio Thursday. After Bolton’s interview, a White House official said that Trump was not aware of the arrest in advance, distancing the president from the provocative move.

But planning for the arrest was well underway as Trump prepared for a dinner that he said later resulted in “an incredible” deal with Xi -- an agreement that may be in danger of unraveling after Chinese officials learned of Meng’s capture and pending extradition to the U.S.

Trump signaled continued optimism in trade talks in a tweet late Thursday, citing an earlier Chinese statement that Beijing was “full of confidence that an agreement can be reached within the next 90 days.” “I agree!” Trump said.

The U.S-orchestrated detention of a leading figure in the Chinese technology industry -- Meng is the daughter of Huawei founder Ren Zhengfei and a possible heir to his company -- undercuts a key goal for Xi in the U.S. talks: to show relations between the U.S. and China returning to a more normal footing. The Chinese president has sought to prevent the economic conflict from spilling into other sensitive areas such as Taiwan or the disputed shipping lanes of the South China Sea.


Canadian authorities detained Meng as she was changing planes in Vancouver at the request of the U.S., which alleges that Huawei violated U.S. sanctions on Iran. The same day, Trump and Xi were meeting for the first time in more than a year.
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China calls for release of Huawei CFO after arrest in Canada

By MA SI/CHENG YU | China Daily | Updated: 2018-12-07 07:01
China called for the immediate release of Meng Wanzhou, chief financial officer of Huawei Technologies Co, on Thursday after Canadian authorities arrested her at the request of the United States.

Foreign Ministry spokesman Geng Shuang said China has made solemn representations to Canada and the United States, demanding they clarify the reason for the arrest and immediately release Meng in order to effectively protect her rights and interests.

The remarks came after Canadian police, at the request of the US, reportedly arrested Meng in Vancouver on Saturday. Meng, who is also deputy chairwoman of Huawei and the daughter of its founder, faces extradition to the US.

Huawei, the world's second-largest smartphone vendor and a leading maker of telecom equipment, said in a statement that it has been given very little information regarding the charges and is not aware of any wrongdoing by Meng.

"The company believes the Canadian and US legal systems will ultimately reach a just conclusion," Huawei said in the statement, adding that it complies with all applicable laws and regulations where it operates, including export controls, sanctions and regulations of the United Nations, the US and the European Union.

The arrest sent shares of Huawei's suppliers sharply lower on Thursday, and triggered concerns about slowing the global development of fifth-generation technology, given Huawei's leading position in the mobile communication network.

The company's products and services are available in more than 170 countries and regions, with operations spanning Africa, Europe and Asia.

James Yan, research director at Counterpoint Technology Market Research, said any damage to Huawei will have a broader negative impact on the global electronics industry, given its sprawling presence in the sector.

Huawei has more than 2,000 component and service suppliers, a significant part of which are US companies, including Qualcomm and Intel, two analysts at Guosen Security, Cheng Cheng and Li Yajun, said in a research note.

On Thursday, Huawei suppliers AAC Technologies, Yangtze Optical Fibre and Cable, and BYD Electronic International Co were all down 5 to 8 percent in Hong Kong.

Nicole Peng, senior director of market research company Canalys, said, "The arrest will increase uncertainty and stoke concerns among foreign telecom carriers."

"Our country is in serious trouble. We don't have victories any more. We used to have victories but [now] we don't have them. When was the last time anybody saw us beating, let's say, China, in a trade deal? They kill us. I beat China all the time. All the time."

Donald J. Trump. Campaign launch rally, 15/6/15

Crooks and Scoundrels Corner

The bent, the seriously bent, and the totally doubled over.  

Today hotel hacking. Blame it on the usual suspects. No, no, no, not Putin and the Russians! Xi and the Chinese security services! Now what would they want with 500 million Starwood hotel bookings and details?

Of course, it might be a “five eyes” false flag attack, or even just a NSA “outside contractor” training exercise. How to stay at Starwood’s for free. Probably even Edward Snowden and Wikileaks doesn’t know.

Below, it was all so easy and undetected for so long, was there any group that didn’t hack Starwood hotels? Shame on them.

Exclusive: Clues in Marriott hack implicate China - sources

December 6, 2018 / 1:03 AM
(Reuters) - Hackers behind a massive breach at hotel group Marriott International Inc (MAR.O) left clues suggesting they were working for a Chinese government intelligence gathering operation, according to sources familiar with the matter.

Marriott said last week that a hack that began four years ago had exposed the records of up to 500 million customers in its Starwood hotels reservation system. 

Private investigators looking into the breach have found hacking tools, techniques and procedures previously used in attacks attributed to Chinese hackers, said three sources who were not authorized to discuss the company’s private probe into the attack.

That suggests that Chinese hackers may have been behind a campaign designed to collect information for use in Beijing’s espionage efforts and not for financial gain, two of the sources said.

While China has emerged as the lead suspect in the case, the sources cautioned it was possible somebody else was behind the hack because other parties had access to the same hacking tools, some of which have previously been posted online.

Identifying the culprit is further complicated by the fact that investigators suspect multiple hacking groups may have simultaneously been inside Starwood’s computer networks since 2014, said one of the sources.

Speaking in Beijing, Chinese Foreign Ministry spokesman Geng Shuang declined to comment directly on the issue, but said China strongly opposed any form of hacking.

“If the relevant side has any evidence, they can provide it to the Chinese side, and relevant authorities will investigate in accordance with the law,” he told a daily news briefing.

“But we resolutely oppose gratuitous accusations when it comes to internet security,” he added.

If investigators confirm that China was behind the attack, that could complicate already tense relations between Washington and Beijing, amid an ongoing tariff dispute and U.S. accusations of Chinese espionage and the theft of trade secrets.

---- Compromised customer data included names, passport numbers, addresses, phone numbers, birth dates and email addresses. A small percentage of accounts included scrambled payment card data, said Kim.

Marriott acquired Starwood in 2016 for $13.6 billion, including the Sheraton, Westin, W Hotels, St. Regis, Aloft, Le Meridien, Tribute, Four Points and Luxury Collection hotel brands, forming the world’s largest hotel operator.

The hack began in 2014, shortly after an attack on the U.S. government’s Office of Personnel Management (OPM) compromised sensitive data on tens of millions of employees, including application forms for security clearances.
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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?

California clears final hurdle for state's landmark solar panel mandate for new homes

  • A requirement for new homes built in California starting in 2020 to include solar electric systems is now formally part of the state's building code.
  • It follows approval Tuesday by the California Building Standards Commission of a plan endorsed in May by a state energy panel.
  • California is the first state in the nation to mandate solar-energy installations on most single-family homes as well as multi-family residential buildings.
December 5 2018
A requirement for new homes built in California starting in 2020 to include solar rooftop panels is now formally part of the state's building code. It follows approval Tuesday by the California Building Standards Commission of a plan endorsed in May by a state energy panel.

The action by the state building standards commission came in a unanimous 8-0 vote and makes California the first state in the nation to mandate solar-energy installations on most single-family homes as well as multi-family residential buildings up to three stories, including condos and apartment complexes. However, the solar rule has raised concerns the cost to build new homes will soar and further erode home affordability statewide.

The solar requirement is expected to add on average about $9,500 to the cost of new houses but is projected to be offset by about $19,000 in energy savings over a 30-year period, according to the California Energy Commission. Back in May, the energy policy and planning agency approved the requirement for solar panels for most new California homes built starting in 2020.

"Today's unanimous vote was the culmination of more than two years of work by SEIA, it's partner organizations and of course policy makers in the Golden State," said Sean Gallagher, vice president of state affairs for the Solar Energy Industries Association, a trade association of the solar energy industry. "We hope other states will look at what California has done and consider similar policies to encourage clean and low cost solar energy."

The state has estimated that solar standards applying to most homes and many commercial structures could save California residents and businesses millions in energy costs. The new standards require solar photovoltaics on new residential single-family buildings and multifamily buildings up to three stories high.

"While per capita electricity consumption in the U.S. has increased steadily over the last 40 years, California's per capita consumption has remained flat, due in large measure to building and appliance efficiency standards," California Energy Commission Executive Director Drew Bohan said in remarks Tuesday before the building standards panel in support of the new solar mandate. "The new standards presented today will guide the construction of buildings that will continue to keep costs down, better withstand the impacts of climate change, and reduce greenhouse gas emissions."

The approved standards still allow new home construction to continue with some natural gas but the state is pushing to reduce gas need over time and facilitate a shift to high-efficiency electric appliances, such as heat pump water heaters.
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Another weekend and waiting for China’s response to President Trump’s perceived perfidy. President Xi will not like being publicly played for a fool, although President Trump seems happy enough by Turkish President Erdogan. Trade war truce over, waterboarding next I suppose. Have a great weekend everyone.
"I'm the most successful person ever to run for the presidency, by far. Nobody's ever been more successful than me. I'm the most successful person ever to run. Ross Perot isn't successful like me. Romney - I have a Gucci store that's worth more than Romney."
Donald J. Trump. Des Moines Register, 2/6/15

The monthly Coppock Indicators finished November.

DJIA: 25,538 +157 Down. NASDAQ: 7,331 +205 Down. SP500: 2,760 +129 Down. 
It’s all high stakes politics now.

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