You Asked For Market-Lifting Miracles Theo, I Give You Another NYSE Break

As John McClane might respond to Hans Gruber’s tortured paraphrase.. “The circuits that cannnot be cut are cut automatically in response to a terrorist incident. You asked for miracles, Theo, I give you the [A Broken NYSE]”

  • *NYSE EURONEXT EXPERIENCING INTERMITTENT MKT DATA ISSUES

Source: NYSE

So just as we requested yesterday…

Yippee ki-ay, motherfucker” to paraphrase the inimitable John McClane.




via Zero Hedge http://ift.tt/1xdwCVE Tyler Durden

EXCLUSIVE: Was Ebola Accidentally Released from a Bioweapons Lab In West Africa?

Accidents at Germ Labs Have Occurred Worldwide

Nations such as Russia, South Africa and the U.S. have long conducted research into how to make deadly germs even more deadly. And accidents at these research facilities have caused germs to escape, killing people and animals near the facilities.

For example, the Soviet research facility at Sverdlovsk conducted anthrax research during the Cold War. They isolated the most potent strain of anthrax culture and then dried it to produce a fine powder for use as an aerosol. In 1979, an accident at the facility released anthrax, killing 100.

The U.S. has had its share of accidents.  USA Today noted in August:

More than 1,100 laboratory incidents involving bacteria, viruses and toxins that pose significant or bioterror risks to people and agriculture were reported to federal regulators during 2008 through 2012, government reports obtained by USA TODAY show.

 

***

 

In two other incidents, animals were inadvertently infected with contagious diseases that would have posed significant threats to livestock industries if they had spread. One case involved the infection of two animals with hog cholera, a dangerous virus eradicated from the USA in 1978. In another incident, a cow in a disease-free herd next to a research facility studying the bacteria that cause brucellosis, became infected ….

 

The issue of lab safety and security has come under increased scrutiny by Congress in recent weeks after a series of high-profile lab blunders at prestigious government labs involving anthrax, bird flu and smallpox virus.

 

***

 

The new lab incident data indicate mishaps occur regularly at the more than 1,000 labs operated by 324 government, university and private organizations across the country ….

 

"More than 200 incidents of loss or release of bioweapons agents from U.S. laboratories are reported each year. This works out to more than four per week," said Richard Ebright, a biosafety expert at Rutgers university in New Jersey, who testified before Congress last month at a hearing about CDC's lab mistakes.

 

The only thing unusual about the CDC's recent anthrax and bird flu lab incidents, Ebright said, is that the public found out about them. "The 2014 CDC anthrax event became known to the public only because the number of persons requiring medical evaluation was too high to conceal," he said.

 

CDC officials were unavailable for interviews and officials with the select agent program declined to provide additional information. The USDA said in a statement Friday that "all of the information is protected under the Public Health Security and Bioterrorism Preparedness and Response Act of 2002."

 

Such secrecy is a barrier to improving lab safety ….

 

Gronvall notes that even with redundant systems in high-security labs, there have been lab incidents resulting in the spread of disease to people and animals outside the labs.

 

She said a lab accident is considered by many scientists to be the most likely source of the re-emergence in 1977 of an H1N1 flu strain that had disappeared in 1957 because the genetic makeup of the strain hadn't changed as it should have over those decades. A 2009 article in the New England Journal of Medicine noted the 1977 strain was so similar to the one that disappeared that it suggests it had been "preserved" and that the re-emergence was "probably an accidental release from a laboratory source."

 

***

 

In 2012, CDC staff published an article in the journal Applied Biosafety on select agent theft, loss and releases from 2004 through 2010, documenting 727 reported incidents, 11 lab-acquired infections and one loss of a specimen in transit among more than 3,400 approved shipments.

 

The article noted that the number of reports received by CDC likely underestimates the true number of suspected losses and releases.

Indeed, there have been many accidents involving germ research. For example, the New York Times noted in 2005:

In 2002, the discovery of lethal anthrax outside a high-security laboratory at the military's premier biodefense laboratory, the Army Medical Research Institute of Infectious Diseases at Fort Detrick in Maryland, led to sampling throughout the institute.

And the Los Angeles Times reported in 1988:

The Senate report noted that accidents have occurred in the handling of potentially deadly biological material. Vials of biological warfare agents have been misplaced or spilled, it said, employees have been exposed to deadly toxins and a fire once broke out in the high-containment laboratory of the Army's leading germ warfare facility at Ft. Detrick, Md.

Researchers are creating some very dangerous bugs. The Frederick News Post – an excellent local newspaper for the community surrounding the U.S. Army Medical Research Institute for Infectious Diseases at Fort Detrick – reported in 2010 that the facility would eventually aerosolize Ebola:

Ludwig said researchers at the facility will likely start out working on vaccines for filoviruses such as Ebola and Marburg, as well as new anthrax vaccines.

 

***

 

The facility will have the capability to produce viruses in aerosolized form that would simulate a potential biological attack on the test animals. Ludwig said aerosol is the means of exposure researchers are most concerned with given its implications to battlefield and homeland defense.

A University of Wisconsin-Madison scientist has re-created the 1918 Spanish flu in the lab. The Guardian noted in June:

In an article published last month, [Marc Lipsitch, professor of epidemiology at Harvard School of Public Health] argued that experiments like Kawaoka's could unleash a catastrophic pandemic if a virus escaped or was intentionally released from a high-security laboratory.

 

***

 

Many of the groups that create dangerous viruses to understand their workings are funded by the US National Institutes of Health (NIH). Lord May [the former president of the Royal Society and one time chief science adviser to the UK government] said he suspected the NIH supported the work because officials there were "incompetent" and believed the justifications that scientists told them. "This is work that shouldn't be done. It's as simple as that," he said.

 

***

 

The study identifies particular mutations that made the virus spread so easily. But that is not much use for surveillance, said Lipsitch, because there are scores of other mutations that could have the same effect.

 

***

 

Simon Wain-Hobson, a virologist at the Pasteur Institute in Paris, said he feared that governments and funding bodies would only take the risks seriously once an accident had happened. "It's madness, folly. It shows profound lack of respect for the collective decision-making process we've always shown in fighting infections. If society, the intelligent layperson, understood what was going on, they would say 'What the F are you doing?'"

Obama Now Claims that He's Shutting Down Domestic Germ Program

The New York Times reported last week that President Obama is so concerned about these accidental releases that he's clamping down on germ research:

Prompted by controversy over dangerous research and recent laboratory accidents, the White House announced Friday that it would temporarily halt all new funding for experiments that seek to study certain infectious agents by making them more dangerous.

 

It also encouraged scientists involved in such research on the influenza, SARS and MERS viruses to voluntarily pause their work while its risks were reassessed.

 

***

 

The announcement, which was made by the White House Office of Science and Technology Policy and the Department of Health and Human Services, did not say how long the moratorium would last. It said a “deliberative process to assess the potential risks and benefits” would begin this month and stretch at least into next year.

 

The move appeared to be a sudden change of heart by the Obama administration, which last month issued regulations calling for more stringent federal oversight of such research and requiring scientists and universities to disclose that their work might be risky, rather than expecting federal agencies to notice.

 

***

 

The moratorium is only on research on influenza virus and the coronaviruses that cause SARS and MERS.

 

***

 

The debate over the wisdom of “gain of function” research erupted in 2011 when the labs of Ron Fouchier of Erasmus University in the Netherlands, and Yoshihiro Kawaoka of the University of Wisconsin-Madison, separately announced that they had succeeded in making the lethal H5N1 avian flu easily transmissible between ferrets, which are a model for human susceptibility to flu.

 

The debate heated up further this year when the Centers for Disease Control and Prevention admitted it had suffered laboratory accidents that exposed dozens of workers to anthrax and shipped deadly avian flu virus to another federal lab that had asked for a more benign flu strain.

 

***

 

The White House said the moratorium decision had been made “following recent biosafety incidents at federal research facilities.”

 

***

 

Many scientists were furious that such work had been permitted and even supported with American tax dollars. But others argued that it was necessary to learn which genetic mutations make viruses more dangerous. If those mutations began appearing naturally as the viruses circulated in animals and people, warnings could be issued and vaccines designed, they said.

 

***

 

Richard H. Ebright, a molecular biologist and bioweapons expert at Rutgers University, argued that the long history of accidental releases of infectious agents from research labs made such work extremely risky and unwise to perform in the first place.

Germs Abroad

The U.S. conducts germ research worldwide.  As the Los Angeles Times pointed out in the 1988 article:

The Army conducts or contracts for germ warfare work at 120 sites worldwide ….

The National Journal's Global Security Newswire reported in 2011 that such sites include bioweapon germs such as Anthrax and Ebola in Africa:

The Obama administration has requested $260 million in fiscal 2012 funding to bolster protective measures at African research sites that house lethal disease agents, the Examiner reported on Sunday (see GSN, April 14).

 

The Defense Department funding would be used to safeguard against extremist infiltration facilities in Kenya, Uganda and elsewhere that hold potential biological-weapon agents such as anthrax, Ebola and Rift Valley fever.

The heads of germ research for the Russian and South African governments both say that they intentionally created more lethal forms of deadly germs such as Ebola.

Specifically, the former head of Russia's biological weapons program told PBS:

In the 70s and beginning of 80s the Soviet Union started developing new biological weapons–Marburg infection biological weapon, Ebola infection biological weapon, Machupo infection, [or] Bolivian hemorrhagic biological weapon, and some others.

The head of South Africa's Apartheid-era biological weapons program also worked on weaponizing Ebola. The New Yorker noted in 2011:

Dr. Wouter Basson, and the various apartheid-era clandestine weapons programs he oversaw as leader of Project Coast…

 

South Africans call him Dr. Death. He is regularly compared by the local press, never very persuasively, to Josef Mengele. . .

 

***

 

There were revelations of research into a race-specific bacterial weapon; a project to find ways to sterilize the country’s black population ….

 

***

 

Basson’s scientists were working with anthrax, cholera, salmonella, botulinum, thallium, E. coli, ricin, organophosphates, necrotizing fasciitis, hepatitis A, and H.I.V., as well as nerve gases (Sarin, VX) and the Ebola, Marburg, and Rift Valley hemorrhagic-fever viruses. They were producing crude toxins (and some strange delivery systems) for use by the military and police, and they were genetically engineering extremely dangerous new organisms—creating, that is, biological weapons.

And see this.

Dr. Basson alleges that the UK and U.S. helped South Africa with its biowarfare research:

The U.S. has – in the past – intentionally deployed germ warfare abroad. For example, the Senate's Church Committee found that the CIA decided to bump off the heads of Congo and Cuba using lethal germs.  And the United States sold anthrax to Saddam Hussein in 1985, for the express purpose of using it against Iran. (CIA files also prove that the U.S. supported Saddam Hussein’s use of chemical weapons against Iran.)

Top Bioweapons Expert Speaks Out on Ebola

Washington's Blog spoke with one of America's leading experts on the dangers of research into deadly germs, Dr. Francis Boyle.

Dr. Boyle wrote the Biological Weapons Anti-Terrorism Act of 1989, the American implementing legislation for the 1972 Biological Weapons Convention.

Dr. Boyle served on the Board of Directors of Amnesty International (1988-1992), and is a professor of international law at the University of Illinois, Champaign.

WASHINGTON'S BLOG: You said recently that laboratories in West Africa run by the Centers for Disease Control and Tulane University are doing bioweapons research.  What documentary evidence do you have of that?

You mentioned that a map produced by the CDC shows where the laboratories are located on the West Coast of Africa?

DR. FRANCIS BOYLE:  Yes. They've got one in Monrovia [the capital of Ebola-stricken Liberia] … one in Kenema, Sierra Leone [the third largest city in the Ebola-hotzone nation], which was shut down this summer because the government there believed that it was the Tulane vaccines which had set this whole thing off.

And then they have another one in Guinea, where the first case [of Ebola] was reported.

All of these are labs which do this offensive/defensive biowarfare work.

And Fort Detrick's USAMRIID [the U.S. Army Medical Research Institute for Infectious Diseases] has also been over there. So it's clear what's been going on there.

CDC has a long history of doing biowarfare work. I have them doing biowarfare work for the Pentagon in Sierra Leone as early 1988.

WASHINGTON'S BLOG:   And how do you know that? Have you seen official documents?

DR. FRANCIS BOYLE:  An official government document: the Biological Defense Research Program, May 1988.  I analyzed it in my book, Biowarfare and Terrorism.

It's clear that [the U.S. bioweapons researchers] were using Liberia to try to circumvent the Biological Weapons Convention.  And CDC – for years – has been up to its eyeballs in biowarfare work.

They always try to justify the development of offensive biological weapons by claiming it's being done for "defensive" purposes.  That's just a lie … and it's always been a lie.

It's been the case on Ebola and just about every other biowarfare agent you can think of.

WASHINGTON'S BLOG:  Does that type of research violate the Biological Weapons Convention?

DR. FRANCIS BOYLE: Well, of course! It also violates the Biological Weapons Anti-Terrorism Act [which Boyle drafted], which was passed unanimously by both houses of the United States Congress and signed into law by President Bush, Senior.

That Act creates life in prison for this type of "Dr. Menegle" type work.

WASHINGTON'S BLOG:  And Obama recently said – as quoted in the New York Times article – that he's "curtailing" this type of defensive research, or putting it on hold.

Do you believe him?

DR. FRANCIS BOYLE:  That's the smoking gun, right there. Read that article [the New York Times article quoted above, which notes "a sudden change of heart by the Obama administration" about labs creating ever-deadlier versions of germs which are already lethal]. 

The reason they've stopped it is to cover themselves, I think, because they know that this type of work was behind the outbreak of the [Ebola] pandemic in West Africa.

But that's an admission right there, de facto.

_ _ _

Dr. Boyle made it clear that he is not suggesting – as some others are – that Ebola was intentionally released into the African population. He says he has seen no evidence of intentional release.  He's speaking about an accidental release of germs from a biowarfare research lab.

He's convinced, in fact, that this Ebola epidemic in Africa started with the release from a U.S. bioweapons lab in West Africa.   One of the reasons for his conviction that the outbreak started with the release from a bioweapon lab is that this Ebola strain seems to be much worse than those previously seen in the wild.

As Dr. Boyle told us:

It seems to me that [the Ebola epidemic in West Africa] has U.S. biowarfare programs written all over it.




via Zero Hedge http://ift.tt/1xdwzt2 George Washington

Trannies Up Over 10% From Bullard Lows, Shorts Squeezed Most In 3 Years

The last few days have seen stocks explode higher, led by Dow Transports (up 10.3%) following Bullard’s QE4 jawboning. The Dow Industrials is back in the green for 2014. While the catalyst may have been Bullard (and/or Williams and Gartman), the “tool” is the “most shorted” stocks – which have seen their best run (biggest squeeze) in 3 years

Shorts squeezed most in 3 years…

 

sending Trannies and Nasdaq soaring…

 

and The Russell 2000 back to unchanged for October…

 

Charts: Bloomberg




via Zero Hedge http://ift.tt/1xdwwxh Tyler Durden

“Warning Signs” & The Fed’s Grand Illusion

Via Scotiabank’s Guy Haselmann,

Ever since Bullard’s agoraphobic performance last week on Bloomberg TV, it should be crystal clear to the FOMC and investors just how powerfully markets will react to any shifts in Fed policy or attempts at policy normalization.  An equity market freefall abruptly took an about-face, resuming its ‘melt-up’ trade, after a worried Bullard merely hinted at the possibility of more QE stimulants.

The FOMC should take this as a warning sign.  It would be irrational for the Fed to believe that after QE purposefully elevated asset prices and generated a one-way moral hazard spectacle, that there is not going to be some-type of reversal (reaction) when QE is withdrawn and the first hike nears.

The new flaw in Fed communication that has arisen recently, and that was amplified by Bullard’s interview, is how Fed policymakers fundamentally assess and mollify the trade-off between attempts at stimulating real economic activity and financial stability risks.

For several years, the FOMC has been confronted with the delicate balance between removing accommodation too slowly and removing it too quickly. Since the Fed is basically out of effective bullets and its balance sheet has ballooned to the practical limits of prudence, the Fed is therefore trying to err on the side of not removing accommodation too quickly. In this regard, the Fed has allowed the fog to roll in, by repeatedly and cunningly changing the markets’ focus in order to ‘buy time’. (As a case in point, the first hike never arrived when the unemployment rate hit 6.5% as the Fed initially said it would.)

Yet, how far can this asymmetrical leaning go before negative second-order effects and risks to financial stability via asset bubbles make this stance a (ever-growing) poor trade-off.  It seems to me that if the Fed were truly data dependent then it would have ended QE a long time ago and even hiked rates already.

The Unemployment Rate is currently 5.9%; not far from the 5.5% level that is widely considered full-employment. It could be argued that technological advancements or demographic shifts alone could have structurally lifted the level considered full-employment. Given this, and the plenty of other economic indicators that look quite strong, I find it astonishing that the Fed is still providing depression-like policies, let alone not already hiking.

  • No wonder why financial markets are (temporarily) in ‘melt-up’ mode’: the appearance of an accommodative Fed, maintains the relative-peer-performance race that is driving so many portfolio managers.

Last week’s wild trade was a precursor of the unwind trade that will occur when the one-way bets have to find a two-way equilibrium clearing price.   Dreadful market liquidity due to regulatory constraints have been evident recently and will cause a down-side overshoot during the unwind process.  I suspect that barring some negative global event, the Fed will want to hike in March (if not sooner to regain some credibility).   However, the chance of 6 months passing without encountering a problem is probably small; thus the Fed could be confronted with losing its ideal window to do so.

The FOMC’s dialog needs to change immediately.   The current trade-off is not the contemporaneous one between more versus less policy stimulus today, but is an intertemporal trade-off between more stimulus today at the expense of more challenging and disruptive policy exit (and disruptive markets) in the future. 

Another factor that has magnified market stresses and helped to keep a bid in the Treasury market recently has been the release by the Fed and other regulators of the final version of the liquidity coverage rule (LCR). LCR-mandates have led to large bank hoarding of ‘level-one’ risk-free highly-liquid securities (e.g., Treasuries) at the expense of riskier less-liquid securities.  Volatility has increased partially due to those risks migrating to less well-capitalized institutions.  This factor is not going away any time soon.

  • I still expect long-dated Treasuries to maintain an underlying bid and grind to lower yields over time.
  • I expect the pace toward lower yields to quicken once the Fed’s policy pivot leads to unwinds of the QE-generated asset bubbles that have been created; and which were chased by so many who were fearful of missing the upside or of underperforming peers.  This circumstance is a Hobson’s choice which now has a shortening ‘half-life’.

“Someday soon we’ll stop to ponder what on Earth’s this spell we’re under” – Styx




via Zero Hedge http://ift.tt/1ypKb5F Tyler Durden

Where Fun Goes to Die: Town Retains Ban on Kids Playing Ball in the Street

LeashNorth Attleboro, Massachusetts, sounds like a
really great place to live—if sitting motionless indoors is your
thing. Town representatives decided to keep a strict ban on playing
ball in the street because doing otherwise would send the message
that town condones a “dangerous” practice.

Libertarians will not be moving there en masse.
From
The Sun Chronicle
:

Representative Town Meeting members rejected aproposal
from Selectman Patrick Reynolds
 that would have eliminated
the town’s ban on playing ball in the street.

Reynolds brought the matter forward after hearing from friends
who said they had a game broken up by police after a neighbor
complained.


Police Chief John Reilly was opposed
 to the regulation
change, saying it would give the impression that North Attleboro is
OK with the dangerous practice of allowing children to play the
street.

He also said in a public hearing about the proposal that police
use their discretion when applying the regulation. Just as they
don’t pull over drivers who are going 1 mph over the speed limit,
games are broken up only if a safety issue arises or a neighbor
complains.

Yeah, sure. How gullible do you have to be to believe a police
chief who says “keep it illegal, we won’t actually arrest anybody
for it though…”?

It seems the busybodies on the North Attleboro council have
bought into fears
shared by an unfortunately large number of Americans
: that kids
playing outdoors are incessantly in danger of being abducted by
rapists, or run over by cars, or gunned down in the street. What
they don’t understand is that kids are safer today than they have
ever been. Accidents happen, but legislating against absurdly
unlikely worst-case scenarios doesn’t help anyone—it just makes it
harder to be a fun-loving kid.

For more on the subject, Reason’s Lenore Skenazy
chronicles instance after instance of misplaced concern over
harmless fun. Watch an interview with her below.

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Torture May Not Be So Bad When You’re Using the Bamboo Splinters, Obama Administration Decides

TortureLike so many other things
Barack Obama thought were so terrible about his predecessor in
office—war in Iraq, executive orders, lack of transparency—he may
have decided that torture isn’t so bad when you’re on the
delivering end. Having inherited the collector’s edition bamboo
splinter set (with user’s manual!), the administration, reports the
New York Times, sees no reason to let it gather dust. So
it’s considering airing out the old regime’s legal justifications
for extracting information under duress.

Writes Charlie Savage
for the Times
:

WASHINGTON — When the Bush administration revealed in 2005 that
it was secretly interpreting a treaty ban on “cruel, inhuman or
degrading treatment” as not applying to C.I.A. and military prisons
overseas, Barack Obama, then a newly elected Democratic senator
from Illinois, joined in a bipartisan protest.

Mr. Obama supported legislation to make it clear that American
officials were legally barred from using cruelty anywhere in the
world. And in a Senate speech, he said enacting such a statute
“acknowledges and confirms existing obligations” under the treaty,
the United Nations Convention Against Torture.

But the Obama administration has never officially declared its
position on the treaty, and now, President Obama’s legal team is
debating whether to back away from his earlier view. It is
considering reaffirming the Bush administration’s position that the
treaty imposes no legal obligation on the United States to bar
cruelty outside its borders, according to officials who discussed
the deliberations on the condition of anonymity.

Well, at least they’ll have the good grace to fly you across the
border to the cooperative folks of Shitholeistan before breaking
out the electrodes and water buckets. Now that’s legal
niceties!

Note that the president issued an
executive order
in 2009 formally banning the use of torture.
Then, in August, he shrugged his shoulders and admitted,
“we tortured some folks” in what was taken as a suggestion that
this nasty stuff was no more on his watch.

But after the State Department proposed at this half-way point
through the second term of an administration nominally opposed to
torture to formally repudiate the Bush administration’s legal
rationale for the practice, it apparently occurred to
administration officials that doing so would mean they’d really
have to stop.

Which is awfully commitment-y for a White House that has settled
so comfortably into many policies it once opposed.

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The Parrot Is Finally Dead: The Economist Does It Again

With its latest “coverage” of the European economy, the Economist may have finally jumped the parrot.

Hm, where else have we heard the “it’s only resting” excuse? Oh yes, Mr Panos of course.

So… Europe is not not Greece?

h/t @Insidegame




via Zero Hedge http://ift.tt/1scQKmk Tyler Durden

Biotechs Hit Record High, +11.5% From Yellen’s “Stretched Valuations” Warning

“Don’t fight the Fed,” unless of course the Fed says “sell.” Since Janet Yellen’s July 15th “Biotechs.. valuations are stretched” warning, investors have fought tooth-and-nail with the Fed to prove her wrong… Biotechs are now up 11.5% from that day at all-time record highs. And as a reminder bonds are in a bubble…

 

 




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Somone Really Needs To Explain To Europe What “Austerity” Means

Remember Europe’s “austerity”, or rather as we dubbed it, fauxterity?

Of course, how could you forget: after all everything that is wrong with Europe is blamed not on government corruption and the complete lack of reform, enabled so gloriously by Goldman’s custodian of Europe’s money printer who would do “whatever it takes” to mask Europe’s sad reality that without reform the continent is doomed, but on the intolerable, insufferable imposition of hated, loathed austerity on Europe’s insolvent nations. After all, how on earth are they all supposed to get out of their debt-induced depressions if they have to, gasp, cut their debt!

So yeah, we get the propaganda. What we don’t get is whether everyone in Europe is completely incapable of reading simple numbers, is atrocious at math, or simply doesn’t understand the definition of austerity.

According to the just released government debt data for Q2 2014 where we find that, in a very peculiar definition of what austerity supposedly means in Europe, total debt to GDP for the Euro Area rose once again, from 91.9%, to a new all time high of 92.7%, or in absolute terms from €9.15 trillion in government debt to €9.26 trillion.

 

Here is what Europe’s debt breakdown looks like on a chart:

It wasn’t all European states that were confused about the definition of austerity, however: only most of them.

“Compared with the first quarter of 2014, twelve Member States registered an increase in their debt to GDP ratio at the end of the second quarter of 2014, six a decrease and Estonia no change. The highest increases in the ratio were recorded in Italy (+3.1 percentage points – pp), Malta (+2.7 pp) and Latvia (+2.4 pp).”

Congartulations are due to Ireland (-5.2%) and Portugal (-2.2%), which do have a permission to bash evil austerity. All the others better shut up.

But wait, it gets better. Because juuuuuust when you think Europe’s worst debt offender, i.e., Italy, is about to get it… it loses it again.

Here is what the Bank of Italy released moments ago:

The ratio of debt to GDP is expected to rise to 133.4 per cent in 2015; it is projected to start decreasing in 2016, one year later than forecast in April, and to reach 124.6 per cent in 2018.

Next year, it will be projected to start decreasing in 2017, and the year after that, in 2018: always the year just after.

And now, let’s all blame “austerity” for Europe’s triple-dip recession aka ongoing depression.

Source: Eurostat




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US Manufacturing PMI Tumbles, Biggest Miss In 14 Months

But the world has been printing such great PMIs? And the US is the new engine of global growth? So how did US Manufacturing PMI just print 56.2, 3 month lows, and its biggest miss since August 2013? Following China and Europe’s lead, US is latest PMI print with collapsing New Orders (57.1, down from 59.8, lowest since January), Output, and New Export Orders. This is the biggest 2-month drop in US PMI since May 2013.

 

 

As Markit explains…

“The flash PMI provides the first available glimpse into how manufacturing is faring at the national level at the start of the fourth quarter, and presents a mixed picture. The data will no doubt add to the view that policymakers should be in no rush to raise interest rates, with output and order book growth slowing and price pressures easing.

 

A concern is that growth of new orders weakened sharply, which may translate into a further slowdown in coming months. The source of the slowdown appears to be weaker economic growth in key markets such as the Eurozone, China and other emerging markets, which has hit export performance. Many companies reported that domestic demand remains reassuringly strong.”

So the narrative is alive – moar stimulus needed stat!!!!

*  *  *

Did it snow in October?




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