Angry Chinese CFO Kicks Out Analyst Who Rated Company A “Sell”

China’s government is well-known for taking… radical measures when confronted with disagreement or criticism. It appears Chinese companies are no different.  Case in point, during a Wednesday earnings briefing by Hong Kong-based Pax Global Technology, a maker of point-of-sale terminals, the CFO refused to continue with his presentation and kicked out a Macquarie analyst whose only crime was having a Sell rating on the company.

As the clip below shows, PAX (which should probably consider changing its name to Bellum) CFO Chris Lee can be seen standing over a seated Timothy Lam and ordering him to leave the conference room. Lam initiated coverage on PAX Global’s stock in April with an underweight rating, which made him the only analyst out of 17 tracked by Bloomberg to have a bearish recommendation at the time.

Cited by Bloomberg, Lee said that the analyst was asked to leave because Pax Global disputes parts of his report, not because of the rating. Lam wasn’t invited to the briefing, Lee said. Macquarie spokeswoman Ida Cheung declined to comment. All analysts should be able to attend the briefing, regardless of their view on the company, Macquarie’s Lam wrote in a note, in which he maintained his underweight rating yet ironically raised his target price by 10 H.K. cents.

On Thursday, the CFO, who didn’t realize his action was being televised, said he regretted his behavior, which was a “one-off” that didn’t reflect the management’s position and he welcomes “diverse points of view,” according to an e-mailed statement.

The reactions to the incident were amusing, as the following quotes by analysts – who don’t mind risking being kicked out too – reveal: “If someone with that temperament is leading up the finance department, which is arguably one of the most important, perhaps it raises questions how that department is run,” said Ryan Roberts, a Hong Kong-based analyst at MCM Partners, who attended the briefing.

Even worse, Nomura cut its rating on the company from Neutral to Reduce, in a report that was titled “CFO conduct disrupts shareholder value.” in which it wrote that “before the analysts briefing meeting started, the company’s CFO asked a sell-side analyst to leave the conference room,” Nomura analysts led by Leping Huang wrote in the note. “While we do not judge this dispute, we think this may hurt PAX Global’s shareholder value.

PAX Global reported on Tuesday its first-half net income climbed to HK$310.6 million ($40 million) from HK$309 million a year earlier. Among the 19 analyst recommendations currently tracked by Bloomberg, 15 have a buy rating, two have neutral, while as of today, Macquarie and Nomura have bearish ratings. Lam’s 12-month target price implies a 5.6 percent drop for the stock from Wednesday’s close.

Meanwhile, in a move that is sure to infuriate the CFO, traders boosted bets against the company with short interest rising to a record 10.3% of its outstanding shares on Aug. 3, up from 1.6 % a year ago. For now at least, the CFO has no direct ability to kick out sellers and shorts.

For those wondering, Shares in the company dropped 2.1% at the close on Wednesday, their biggest loss in a month, after rallying 5.6% the previous day.

via http://ift.tt/2b1mhtJ Tyler Durden

Modern Slavery, More Important than Who Built the White House

Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke.

When Michelle Obama delivered her address at the Democratic National Convention (DNC) in Philadelphia, she created a stir when she cried out that America’s story was “the story that has brought me to this stage tonight, the story of generations of people who felt the lash of bondage, the shame of servitude, the sting of segregation, but who kept on striving and hoping and doing what needed to be done so that today I wake up every morning in a house that was built by slaves.”

That last line, “…I wake up every morning in a house that was built by slaves.”, was the focus of much attention, with some conservative critics calling the claim false or misleading. The record was set straight in a New York Times article of July 26th, “Yes, Slaves Did Help Build the White House”.

While it might be well and good to address sins of the past, it is always wise to focus on today’s indiscretions. Yes, a forward-looking perspective is always prudent. The slavery problem that is pressing today is modern slavery, and it’s a shockingly huge problem.

In 2013, the Walk Free Foundation, founded by Australian mining magnate Andrew Forrest, created the Global Slavery Index (GSI) to track and report modern slavery worldwide. The GSI defines modern slavery as “situations of exploitation that a person cannot refuse or leave because of threats, violence, coercion, abuse of power or deception, with treatment akin to a farm animal.” With data on 167 countries, the Global Slavery Index estimates that over 45.8 million people find themselves in some form of modern slavery today.

According to the Global Slavery Index, over 58 percent of slaves today live in just five countries. India’s embrace of slavery is astounding, with over 18 million Indians enslaved today – over 4.5 times more than the U.S. had during its peak decade of the 1860s.1  China, Pakistan, Bangladesh, and Uzbekistan round out the top five offenders. Seventeen countries have at least one percent of their populations living in modern slavery, with North Korea leading the pack, as the accompanying table shows.

 

While it might be politically correct to exclusively spend time gazing into the rearview mirror and speaking only about the history of slavery in the U.S., it would be wise to speak of the 45.8 million who are enslaved today. It’s time to shine a light on today’s slave trade and the countries where slaves reside.

via http://ift.tt/2bicQpk Steve H. Hanke

This Trend Tells You Everything You Need To Know About America’s Future

Submitted by Simon Black via SovereignMan.com,

Long ago in the Land of the Free, if you wanted to start a saloon, you rented a space and started serving booze.

You didn’t have to go through years of petitioning a bunch of bureaucrats for permits and licenses.

If you weren’t qualified or good enough at your job, your reputation would suffer and you’d go out of business.

This is the way it used to be for just about every industry and profession.

It wasn’t until 1889 that the US Supreme Court ruled in Dent v. West Virginia that states had the right to impose “reasonable” certifications or licenses for various professions.

At first, most states only licensed physicians, dentists, and lawyers.

In fact, by 1920, only about 30 occupations in the US required any sort of licensing.

By the 1950s, about 5% of US workers required a license to perform his/her job.

Today that number has risen to 30%, and climbing.

Some of our modern examples are completely insane.

According to the Brookings Institute, the state of Nevada requires 733 days of training and a $1,500 fee for a license… just to become a tour guide.

Over in Michigan, it takes 1,460 days of education to become an athletic trainer.

45 other states have license or certification requirements for athletic trainers. All fifty states have licenses for barbers and cosmetologists.

36 states require licenses for make-up artists. 34 states license milk samplers. And a mere 33 states license auctioneers.

These license requirements continue to grow, along with the overall level of rules and regulations in the Land of the Free.

Just this morning the US government published an extra 227 pages of rules, regulations, and proposals.

This happens every single business day in America.

Last week the government published over 2,000 pages of new rules, many of which border on absurdity.

To give you an idea, USDA’s Agricultural Marketing Service proposed a rule about minimum and maximum diameters of potatoes that are sold in the State of Colorado.

Yes I’m serious.

This is the sort of madness that government bureaucrats churn out on a daily basis: more rules, more licenses.

Needless to say, the more of these rules they create, the more difficult it becomes for people and businesses to produce.

So it wasn’t exactly a big surprise when the US Labor Department released statistics a few days ago showing that, for the third straight quarter in a row, productivity in the Land of the Free declined.

In other words, US workers are producing less than they did before.

We haven’t seen this trend since 1979. And it’s the exact opposite of what’s supposed to happen.

As workers get more experienced and technologically advanced, productivity should grow.

But it’s not. US production is buried under countless pages of regulations and licensing requirements. And the trend has been negative for quite some time.

From 2000 through 2007, US productivity was about 2.6%.

Between 2007 and 2015, it shrank by half to about 1.3%, barely keeping up with population growth.

Now productivity is actually shrinking. America is going backward.

But there’s another side to this story.

Because while US economic growth has practically halted and productivity is shrinking, DEBT CONSUMPTION is up. Way up.

Americans are once again indebting themselves, often to buy useless things they don’t really need.

Auto loans and credit card debt are just two categories registering significant upticks.

(Not to be left out, the US government is leading with way with an absolute explosion in federal debt…)

So what we’re basically seeing now in the Land of the Free is people going into debt to consume more, while simultaneously producing less.

This is a pretty dangerous trend.

Human beings realized 10,000 years ago that if they wanted to survive, they had to produce more than they consumed.

During the Agricultural Revolution our early ancestors learned that, instead of constantly hunting for game, they could plant seeds in the ground and produce more food than they could possibly eat.

You and I wouldn’t be here if they hadn’t figured out this simple principle.

I call it the Universal Law of Prosperity, and it applies to governments, businesses, and individuals alike.

Any nation that fails to produce more than it consumes is in for serious trouble. And the government’s own data is showing that this is happening.

They create countless rules, regulations, and licensing requirements to make it more difficult to produce… and we can already see the results with (lack of) GDP growth.

Meanwhile they’ve slashed interest rates down to zero to incentivize people to consume.

It’s not hard to see where this trend is going.

via http://ift.tt/2aE07zk Tyler Durden

US Consumer Comfort Crashes To 3-Month Lows Led By Young, Black, Democrats

Dear Janet… it’s not working!!

While US equities soar to record highs, Americans are as pissed off as they have been in 3 months

 

In fact, Americans’ comfort is near its lowest since 2015 as Black hope fades from 44.5 to 42.4, Democratic confidence slides (50.8 to 48.9) and the young (18-34) lose faith (43.8 to 41.8).

So Hillary Clinton’s poll numbers soar, stocks rise, but Americans’ confidence tumbles (led by Young, Black, Democrats)??

via http://ift.tt/2aNPBUZ Tyler Durden

Oil Tops $42 As OPEC Headlines Seeks To Start Another Short Squeeze

Having plunged yesterday on 'real' excess supply data, WTI crude is rallying this morning – back above $42, NYMEX close dump levels – on the heels of the latest OPEC/NOPEC headline farce on output freezes (the day after Saudis announce record output!!)

Just a day after Saudis announce record output, the following headlines hit…

  • *SAUDI ENERGY MIN. TO MEET OPEC, NON-OPEC PRODUCERS NEXT MNTH:DJ
  • *SAUDI MINISTER: TALKS COULD COVER STABILIZATION ACTION: DJ
  • *SAUDI ENERGY MINISTER: GLOBAL DEMAND FOR OIL STILL STRONG: DJ
  • SAUDI OIL MINISTER SAYS EXPECTS DE-STOCKING TO ACCELERATE IN ALL PARTS OF THE WORLD PROVIDING SUPPORT FOR OIL PRICES – STATEMENT

And so… oil rallies… (though we wonder if this is just another stop run to that NYMEX close dump ledge)

Simply out, there is only one reason to utter such nonsense. One trader put it well…

"If you look at the amount of short interest in WTI and Brent, these flurries of speculation from OPEC, coming from the weaker members, tend to be when you see a run up in short interest," Priddy said.

 

"It's kind of opportune of them to start a short covering rally. I think in the next couple of months, we're going to see repeated attempts to keep some of this chatter alive."

via http://ift.tt/2aDWLMO Tyler Durden

Obamacare On “Verge Of Collapse” As Premiums Set To Soar Again In 2017

If Obamacare enrollments continue their current trend and insurers continue to hike premiums at alarming rates then Republicans may not have to worry about "repealing and replacing Obamacare" as it might just work itself out "naturally".  The 4th open enrollment period for Obamacare begins on November 1, 2016 and industry experts are warning that another year of tepid demand from "young and healthy" Americans could force more insurers out of the exchanges effectively marking the end of Obamacare as we know it.  According to a story published by The Hill, 11 million people bought health insurance through the exchanges for 2016 which was drastically below the Congressional Budget Office's initial projection of 21 million. 

Well we're shocked!  Turns out that whole "adverse selection bias" was a real thing.  So you're telling us that young, healthy people don't want to pay for insurance they know they'll never use?  We guess America's youth can actually do basic math, after all.  Apparently they were able to figure out they would rather take the lower tax associated with Obamacare penalties than the larger tax associated with buying a healthcare policy they'll never use.  We guess Millennials are a little less enthusiastic about embracing socialism when the costs are coming out of their pockets.

With America's youth continuing to shun health insurance, insurers are all racking up massive losses on the exchanges.  For many insurers the losses will simply result in massive premium hikes but others have decided to withdraw from the exchanges all together.  In fact, UnitedHealthCare recently announced plans to exit most state exchanges by 2017 (see our post entitled "Largest US Health Insurer Exits California, Illinois Obamacare Markets")  Per The Hill:

In the last month, two major insurers – Aetna and Anthem – both reversed course on their plans to expand in the marketplace. Now, all five of the nation’s largest insurers say they are losing money on the exchanges.

 

“From a policy point of view, we’re basically seeing the exchanges unravel,” said Michael Abrams, a healthcare strategist with Numerof & Associates who consults for insurers including UnitedHealthGroup.

2016 average premiums were up substantially in most states (see map below) and, with no one making money, 2017 seems no better.  According to The Hill:

Already, many insurers this year are proposing substantial rate hikes with the hopes of making up for higher recent medical costs. The average premium increase next year is about 9 percent, according to an analysis of 19 cities by Kaiser Family Foundation. But some hikes are far higher: Blue Cross Blue Shield has proposed increases of 40 percent in Alabama and 60 percent in Texas.

Obamacare Premium Map

For her part, Hillary Clinton has vowed to stick with Obamacare insisting that taxpayers just need to spend more money on advertising to drive higher enrollments:

Clinton has already laid out plans to help boost enrollment by making coverage more affordable for people who are still priced out of ObamaCare.

 

Like Obama, she vowed to invest in advertising and in-person outreach to help more people enroll. Clinton would also increase ObamaCare subsidies so that customers spend no more than 8.5 percent of their income on premiums – down from 9.5 percent under current law.

 

She has also proposed a tax credit of up to $5,000 per family specifically to offset rising out-of-pocket costs – a side effect of cheaper plans offered under ObamaCare.

Right, more advertising should fix it because no one in the country is familiar with Obamacare.  As Obama likes to say when things don't go as planned, it's not that Obamacare is bad it's just that we've failed to explain it properly.  No, we think people get and they just don't like it.   

We also find it hard to understand how a Clinton administration could make healthcare cheaper than "free?"  Perhaps we should start paying people to take taxpayer subsidized healthcare?  If at first you don't succeed, throw more taxpayer money at it…

via http://ift.tt/2bl6MeT Tyler Durden

A Nation Of Sheep, Afraid Of Words: Lies, Damn Lies, & Hillary Clinton Lies

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

I want to start this post off by taking a closer look at what Donald Trump actually said in his now infamous “2nd Amendment speech” yesterday. Here’s the part that generated all the controversy:

If she gets to pick her judges, nothing you can do, folks. Although the Second Amendment people, maybe there is. I don’t know. But — but I’ll tell you what. That will be a horrible day. If — if Hillary gets to put her judges — right now, we’re tied. You see what’s going on.

First of all, I agree that this is an incredibly stupid and dangerous thing for a Presidential candidate to say. So while I don’t think he should’ve said it, I also don’t think it’s the biggest deal in the world. Moreover, mainstream media and pundits across the land are unanimously interpreting it as a call for the assassination of Hillary Clinton. I didn’t read it that way at all.

For instance, he starts off his thought by creating a hypothetical scenario “if she gets to pick her judges.” So at that moment he seems to be thinking about a post-Clinton presidency; a time after which she has already picked the judges. If the judges are already in place, what would an assassination of Clinton accomplish? Absolutely nothing.

As such, I interpreted Trump’s subsequent words to reflect his opinion that “2nd Amendment people” might resort to armed resistance in the face of gun control measures implemented under a Hillary Clinton administration. While I don’t think this is a wise thing for him to publicly ponder, it’s not a remotely outlandish scenario. For example, should “assault weapons” be banned during a Clinton presidency, there remains that lingering issue of the millions upon millions of such weapons already in the public domain. Thus, if legislation is eventually passed to confiscate these weapons, I have no doubt that armed resistance to confiscation would be widespread. This isn’t a call to arms, it’s just stating what I believe to be an obvious fact.

However, if that was the point he was trying to make, he chose a really stupid way of doing it. If you’re going to use that type of language you’d better be really smart about clarifying exactly what you’re trying to express. Nevertheless, I still think it’s significant that Trump’s comments appear to be him blabbing about what response might be considered by “2nd Amendment people,” in a world after which aggressive gun control has already been passed and signed off on by the Supreme Court.

Further evidence to back up my interpretation can be found a few moments later when he says the following:

You know, when the bad guys burst into your house, they’re not looking about into Second Amendments, and, do I have the right to do this? OK, the bad guys aren’t going to be giving up their weapons.

 

But the good people will say, “oh, well, that’s the law.” No, no, not going to happen, we can’t let it happen. We can’t let it happen.

As you can see, he’s clearly thinking about a hypothetical post-2nd Amendment world. This is clear when he says “the bad guys aren’t going to be giving up their weapons.” Trump’s mind seemingly wandered into an imagined future world where gun confiscation is a reality, and he muses that only 2nd Amendment people can stop it. Personally, I don’t think a Hillary assassination ever crossed his mind, he was just being flippant about a potential future confrontation.

Moving along, what bothers me so much regarding the media uproar about his statements is not just that what he said seems to have been intentionally misinterpreted, but that we are focusing on words as opposed to actions. All the while, there are plenty of things Trump has actually done that make him a highly offensive candidate who isn’t really as anti-status quo as people think. I’ll give you two examples. First, let’s look at the man who Trump picked to head his campaign finance team: Steve Mnuchin.

Here are a few snippets about the man from an article published in the New Republic titled, Donald Trump’s Finance Chair Is the Anti-Populist From Hell:

Donald Trump’s first major staff selection since securing the Republican nomination, national finance chairman Steven Mnuchin, co-founded and manages the hedge fund Dune Capital. Not only did he make partner at Goldman Sachs, so did his father in the 1960s. With over 30 years of experience at the top levels of finance, Mnuchin was present for every recent major banking innovation, including those that brought the country to the brink of economic collapse.

 

Mnuchin’s presence in the campaign reveals how the qualities Trump loyalists projected on their hero don’t measure up to the truth. They have venerated him throughout the Republican primary for rejecting the dirty business of pay-to-play politics, and for populist vows to protect the ordinary worker. But in selecting Mnuchin, not only has Trump submitted to the realities of presidential campaign finance; he’s chosen one of the most notorious bankers in America to carry it out.

 

When I heard Mnuchin’s name last week, I immediately remembered the front lawn of his mansion. Back in 2011, local housing activists and the Occupy movement in Los Angeles camped out on that lawn to save the home of Rose Mary Gudiel, a La Puente, California, resident who faced eviction after being just two weeks late on one mortgage payment. The activists threatened to move all of Gudiel’s furniture into Mnuchin’s $26 million Bel Air estate if the eviction wasn’t stopped. Twenty police officers and a helicopter met the protesters.

 

Why was Mnuchin’s front lawn the focal point for the protest? Because years after forming Dune Capital in 2004, Mnuchin’s hedge fund purchased the failed lender IndyMac, one of America’s largest home lenders and a leading distributor of Alt-A mortgages, a subprime hybrid which did not require borrowers to accurately state their incomes. After IndyMac failed, Dune led the investment group that purchased it from the Federal Deposit Insurance Corporation (FDIC) in 2009, renaming it OneWest Bank. Mnuchin became OneWest’s principal owner and chairman.

 

OneWest accomplished these foreclosures through fraud. Erica Johnson-Seck, a vice president of foreclosure and bankruptcy for OneWest, explained in a July 2009 deposition that she “robo-signed” 6,000 foreclosure-related documents per week, spending just 30 seconds on each sworn affidavit that attested to the veracity of all relevant information in the case. Johnson-Seck admitted to not reading the documents before signing them, to not knowing how the records were generated, and to not signing in the presence of a notary, all of which made the affidavits she signed false evidence in court.

 

The OneWest subsidiary Financial Freedom executed 39 percent of all foreclosures on reverse mortgages between 2009 and 2015, despite servicing only 17 percent of the market, according to data from the Department of Housing and Urban Development (HUD) obtained by the California Reinvestment Coalition. OneWest disclosed in its most recent annual report that it’s under investigation for this disproportionate share of “widow foreclosures” by HUD’s Inspector General. The victims include 103 year-old Myrtle Lewis of North Texas, who OneWest put into foreclosure after her insurance coverage lapsed; Karen Hunziker, who got a foreclosure notice from OneWest ten days after her husband passed away in 2014; and a host of others.

 

Trump’s loyal fans aren’t likely to scrutinize Mnuchin’s record, but they should. You can measure political candidates in part by who they associate with. The foreclosure history in Mnuchin’s past reflects an extreme mentality of profit at all costs, and hardly a viewpoint of standing up for the little guy. Trump as populist was always something of a pose, covering for a deep nationalism and antipathy to immigrants. The Mnuchin pick just brings that into sharper relief.

 

Trump’s main money-chaser has profited off the suffering of ordinary Americans for years. There’s no reason to believe Trump will offer a better deal to the working class.

A President Trump isn’t going to lay a finger on Wall Street. Not a finger.

So what about foreign policy? He talks a good anti-interventionist game, but look at who he just named to play a senior role in his transition team: Mike Rogers.

So who is Mike Rogers? Let’s turn to the Wall Street Journal:

WASHINGTON—Former House Intelligence Committee Chairman Mike Rogers (R., Mich.) will play a senior role on Donald Trump’s presidential transition team, advising on national-security matters, several people familiar with the process said.

 

Mr. Rogers’s involvement in the transition team was described as preliminary and not finalized. He is close friends with New Jersey Gov. Chris Christie, who is leading Mr. Trump’s transition team, and he could lead the national-security group within the transition team or play another top role, these people said.

 

Mr. Rogers is in some ways not an obvious choice for the Trump campaign. During his 14 years in Congress, Mr. Rogers was seen as a member of the GOP’s interventionist wing. In 2014, he called for sending ground troops to fight Islamic State in Iraq and Syria.

 

Mr. Rogers was also one of Congress’ leading critics of Russian President Vladimir Putin, a foreign leader with whom Mr. Trump has suggested he could repair relations.

 

After leaving Congress, Mr. Rogers launched an organization, Americans for Peace, Prosperity and Security, that hosted a series of town-hall events with GOP presidential candidates in Iowa. The goal, according to the group’s website, was to “enhance the knowledge base of citizens in the early states to help elect a president who supports American engagement and a strong foreign policy.”

All of this makes me further doubt the honesty of Trump’s Wall Street critiques and his supposed anti-interventionist foreign policy. Moreover, the bigger point is that there are plenty of genuinely troubling things about Trump, yet the media chooses to focus obsessively on his gaffes and stupid statements. It’s essentially the whole “social justice warrior” mindset gone wild, and it takes the political debate down to a 3rd grade level, which is exactly where much of the media prefers it.

For example, by focusing in on the things that Trump says, as opposed to the things that Trump does, the media gets to do the same for Hillary. As such, American political coverage degenerates into a analysis of gaffes, counter-gaffes and witty tweets composed by staffers. This serves to give Hillary Clinton a free pass on all the horrible things she actually has done over the decades. Moreover, this obsession with gaffes and gossip ensures that her current scandals, which should be at the top of the news cycle, are replaced with the latest idiotic thing that Trump said.

As an example, what about the latest revelations related to her email scandal. We learned the following from today’s New York Times article, Emails Renew Questions About Clinton Foundation and State Dept. Overlap:

WASHINGTON — A new batch of State Department emails released Tuesday showed the close and sometimes overlapping interests between the Clinton Foundation and the State Department when Hillary Clinton served as secretary of state.

 

The documents raised new questions about whether the charitable foundation worked to reward its donors with access and influence at the State Department, a charge that Mrs. Clinton has faced in the past and has always denied.

 

In one email exchange, for instance, an executive at the Clinton Foundation in 2009 sought to put a billionaire donor in touch with the United States ambassador to Lebanon because of the donor’s interests there.

 

In another email, the foundation appeared to push aides to Mrs. Clinton to help find a job for a foundation associate. Her aides indicated that the department was working on the request.

 

The State Department turned the new emails over to a conservative advocacy group, Judicial Watch, as part of a lawsuit that the group brought under the Freedom of Information Act.

 

The documents included 44 emails that were not among some 55,000 pages of emails that Mrs. Clinton had previously given to the State Department, which she said represented all her “work-related” emails. The document release centers on discussions between Mrs. Clinton’s aides and Clinton Foundation executives about a number of donors and associates with interests before the State Department.

None of Hillary Clinton‘s work-related emails discovered by the FBI after being deleted from her private server have been released, raising questions about whether any will be seen in public before Election Day.

 

The FBI says it found “several thousand” work-related emails Clinton deleted, but the State Department has not committed to a schedule for their release, and it will be up to a federal judge to determine when they could be made public.

 

“As we have just received this material from the FBI we are still assessing what our process will look like,” State spokeswoman Elizabeth Trudeau said in a statement to The Hill on Tuesday.Multiple Freedom of Information Act (FOIA) requests and lawsuits have been filed to recover the emails. Litigants include conservative watchdog group Judicial Watch and Vice News journalist Jason Leopold.

 

Last Friday, the FBI sent the final batch of emails it had recovered to the State Department, which is responsible for going through them to redact any information that is classified or otherwise exempt from public disclosure.

 

“Just as we appropriately processed the material turned over to the Department by former Secretary Clinton, we will appropriately and with due diligence process any additional material we receive from the FBI to identify work-related agency records and make them available to the public consistent with our legal obligations,” Trudeau said.

Notice she says, consistent with “legal obligations,” not consistent with the public interest.

The ongoing delay complicates the odds that Clinton’s deleted emails are made public before the election in November

 

The first opportunity for a judge to weigh in on the deleted emails is Aug. 22, when Judge James Boasberg is scheduled to oversee a hearing as part of a Judicial Watch case. 

 

“Should the State Department prevail in that argument or otherwise obtain delays beyond Election Day in Plaintiff’s and in other similar cases, it would leave Plaintiff and the public without information guaranteed to them under the FOIA,” Leopold, the journalist, argued in a Monday evening court filing.

The best tweet summarizing all of this was composed by Michael Tracey earlier today. He noted:

Finally, I want to end this post with a quote from the only genuine anti-establishemnt candidate (with ballot access) still in the race: Dr. Jill Stein. In a recent interview with MSNBC she stated:

I don’t think what Donald Trump says is worse than actually what Hillary Clinton in fact has done.

They’re both terrible, and I’m glad somebody isn’t afraid to say it. I suggest watching the following interview.

via http://ift.tt/2bjoOSO Tyler Durden

Import Prices Dip For 24 Consecutive Months As China Exports Most Deflation In 6 Years

Following May’s 1.4% MoM spike – the highest since 2011 on the back of rising energy prices – June’s import prices rose an upward revised 0.6% MoM, while moments ago we learned courtesy of the BLS that in July import prices barely stayed positive, rising just 0.1% sequentially, and down 3.7% compared to last July. This is the 24rd month in a row of year-over-year import price declines with China’s exported deflation at 2010 lows.

Unlike last month, when impots excluding food and fuels declined sequentially, in July, the core import price category posted a 0.5% rebound driven by metals prices which spiked by 5.9% in the month.

Whatever the reason, the May “energy” spike has now all but disappeared.

 

YoY import prices have dropped for a near record 24th straight month:

 

The breakdown shows a modest increase in ex-petroleum products:

  • Import prices ex-fuels rose 0.3% after falling 0.2% in June
  • Import prices ex-petroleum rose 0.5% after falling 0.3% in June
  • Industrial supplies prices unchanged after rising 3.3% in June
  • Capital goods prices fell 0.1% after falling 0.2% in June
  • Auto prices fell 0.3% after no change in June
  • Consumer goods prices fell 0.1% after falling 0.2% in June
  • Export prices rose 0.2% after rising 0.8% in June
  • Export prices ex-agriculture rose 0.3% after rising 0.5% in June
  • Import prices fell 3.7% y/y in July
  • Import prices ex-food and fuel fell 1.4% y/y in July

Finally, expectations that China will finally commence exporting inflation instead of deflation continue to be disappointed, as indexed import prices from China dropped to a new 6 year low: at 100.9, this was the lowest print since October 2010.

via http://ift.tt/2bjorrB Tyler Durden

The Shifting Zeitgeist

By Chris at http://ift.tt/12YmHT5

Market dislocations occur when financial markets, operating under stressful conditions, experience large widespread asset mispricing.

Welcome to this week’s edition of “World Out Of Whack” where every Wednesday we take time out of our day to laugh, poke fun at and present to you absurdity in global financial markets in all it’s glorious insanity.

kramer

While we enjoy a good laugh, the truth is that the first step to protecting ourselves from losses is to protect ourselves from ignorance. Think of the “World Out Of Whack” as your double thick armour plated side impact protection system in a financial world littered with drunk drivers.

Selfishly we also know that the biggest (and often the fastest) returns come from asymmetric market moves. But, in order to identify these moves we must first identify where they live.

Occasionally we find opportunities where we can buy (or sell) assets for mere cents on the dollar – because, after all, I’m a capitalist.

In this week’s edition of the WOW we’re covering the shifting global zeitgeist

Talking with old people is a “helluva” lot of fun. I mean really old people – those closer to having a lid over their heads. People who grew up watching the advent of cars, TVs, and who still marvel that we have shaving cream in a can and chicken in packaging.

You realise how damn lucky we are today on so many fronts. Women very rarely die in childbirth, we can reasonably expect that our kids won’t die from some horrific disease before making it to adulthood, and we take for granted food and wine from the other side of the world and sundry other goods which we find in our local supermarkets and shopping malls. Foods and goods that a generation ago either simply didn’t exist or were available only to people with bow ties and butlers.

Most people living in advanced economies used to take for granted the idea that tomorrow would likely be better than today. Real positive incomes have been the norm since World War II. Sure, there have been very brief periods, one notably during the 70’s where inflation was high and this wasn’t the case, but the trend has been positive and steady. Up until around 1993 when it all ended.

A recent McKinsey & Co report provides us the unfortunate reality.

Talking of the advanced economies, the report mentions that:

“Between 65 and 70 percent of households in 25 advanced economies, the equivalent of 540 million to 580 million people, were in segments of the income distribution whose real market incomes—their wages and income from capital—were at or had fallen in 2014 compared with 2005. This compared with less than 2 percent, or fewer than ten million people, who experienced this phenomenon between 1993 and 2005.”

flat-or-falling-incomes

Well-fed people have little incentive to disturb the status quo, even if they don’t agree with it. They have too much to lose and so, while they’ll sit down with Johnny at the bar and grumble about this and that, they won’t actually DO ANYTHING about it.

Today an expectation that tomorrow should be better than today is no longer a reality and the repercussions are coming fast and furious. Increasingly the discussion with Johnny at the bar is taking a step further.

As we near the end of the debt super-cycle and central bankers flaunt 30 years of bubble finance, we find ourselves with not only the largest and most unsustainable debt levels the world has ever seen but also large and rising wealth inequality. Ironically, it is this inequality which is driving political change, and these political changes may well accelerate the end of some pretty awful ideas. Ideas such as the Euro, Quantitive easing, ZIRP, NIRP and myriad other policies which have led to global financial imbalances we sit with today.

Just over a month ago, the Brits voted to rid themselves of their mandarins in Brussels. As I’ve mentioned repeatedly, the votes cast are much more “against” the establishment than for any particular party.

In Europe we have not only the monumentally stupid idea of importing young men of fighting age from countries where the customs and belief systems are at complete odds with a secular Europe, but we also have an arrogant undemocratic elite whose disastrous policies preside over the greatest income gap since World War II.

Like homing pigeons, the ramifications of this phenomenon are now coming home to roost. They are both economic and social.

Just like a good bikini, the below graphic is quite revealing. It shows the breakdown for Americans, though I suspect it’s not significantly different for Europeans (hat tip to Todd Harrison for the chart).

costs

The reason why we see such rising anger in both Europe and the US is because of a simple fact: people are worse off than a decade ago and they are looking for answers.

When the FED “saved” the world from a collapse in 2008 they in fact sowed the seeds for the political change coming. Brexit was simply “hors d’oeuvre”.

Consider that not a single banker or mortgage broker involved in the housing bubble has been put behind bars and realise that the populace, while ignorant of how financial markets operate, know that they’ve been screwed as they watch the ruling elite take home bonuses they could only dream of.

This is all they need to know.

It is why the “Trump phenomenon” exists. And in fact, every time Trump says something crazy like, “the second amendment people could deal with Clinton,” he further distances himself from the establishment.

The establishment would never be caught dead saying such a thing in public. They’ll gladly carry out any amount of lying, cheating, stealing, and murder but would never be caught mentioning it. Doing so is considered absurd. The mainstream media for their part are in shock, completely unsure of how to deal with such apolitical statements.

When we survey the crime scene, we find a shrinking middle class and an openly arrogant and criminal political class. A recipe – if ever there was one – for a rapid and radical shift in the zeitgeist.

When  economic prospects of citizens do not advance they lose faith in the system under which they are living in. Topics such as free trade and immigration become hot topics. Free trade and globalisation are increasingly seen as a bad thing for people who feel that they are not a beneficiary of this. And immigration is seen as “them taking our jobs”.

The McKinsey report mentions something else which is very important to understand:

Income in Western countries

This, folks, is a burgeoning groundswell of disaffected angry people. You can’t have over 50% of income groups with fewer chickens in the pot and not expect a backlash.

Question

Regardless of the country you live in, or what political views you have, I’m curious to know the following:

Wow 9 - poll

Cast your vote here and also see what others think

I’m interested in the ramifications of this and how it plays out in the financial markets. As a capitalist, my job is to protect my capital and profit from the unfolding events.

Investing and protecting our capital in a world which is enjoying the most severe distortions of any period in mans recorded history means that a different approach is required. And traditional portfolio management fails miserably to accomplish this.

And so our goal here is simple: protecting the majority of our wealth from the inevitable consequences of absurdity, while finding the most asymmetric investment opportunities for our capital. Ironically, such opportunities are a result of the actions which have landed the world in such trouble to begin with.

– Chris

“Politicians are like sperm. One in a million turns out to be an actual human being.”

Kyle Bass Gold

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