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[SnoopDD]

Bitcoin, Bitcoin, Bitcoin

 

What is Snoop 2 DO?

 

 

 

 

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[SnoopDD]

BOJ Now Owns 75% of Japanese ETF's

 

 

lol and we all told don't put all your eggs in 1 basket

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Edited by SnoopDD, 12 September 2017 - 08:36 AM.

[SnoopDD]

US Debt Hits $20 Trillion

 

http://www.usdebtclock.org/

 

Hip Hip Hooray

[SnoopDD]

If u wanted to know how to Profit from the storms hitting the USA, Florida have a look at Orange Juice Futures

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[SnoopDD]

China's August producer inflation jumps to four-month high

 

BEIJING (Reuters) - China's producer price inflation accelerated more than expected to a four-month high in August, fueled by strong gains in raw materials prices and pointing to strong, sustained growth for both factory profits and the economy.

 

The producer price index (PPI) rose 6.3 percent in August from a year earlier, from 5.5 percent in July, the National Bureau of Statistics said on Saturday.

 

Analysts polled by Reuters had expected the August producer price inflation rate would edge up to 5.6 percent, its first pickup in six months.

 

On a month-on-month basis, the PPI rose 0.9 percent in August.

 

China's industrial firms have been posting their strongest profits in years thanks to a government-led construction boom which has fueled demand and prices for everything from cement to steel.

 

The country's strong appetite for resources such as iron ore has helped fuel a reflationary pulse in the manufacturing sector worldwide.

 

But analysts continue to maintain that factory-gate prices will lose steam eventually as the government continues to clamp down on riskier types of financing, which is slowly pushing consumer and corporate borrowing costs higher.

 

China's commodities futures markets have rallied hard this year and continued to surge through in August. Strong restocking demand and government pledges to shut inefficient and highly polluting mines and plants have underscored concerns over tight supply heading into winter.

 

Activity in China's steel industry expanded in August at the fastest pace since April 2016, reflecting high levels of production and low inventory.

 

With the industrial sector in high gear, China's economy grew by a faster-than-expected 6.9 percent in the first half of this year, turbo-charged by heavy government spending and massive bank lending last year.

 

That momentum plus strong August readings so far should allow Beijing to easily meet or beat its full-year growth target of 6.5 percent.

 

Indeed, relatively steady growth through the rest of the year would see the world's second-largest economy accelerate for the first time in seven years. Last's years pace of 6.7 percent was the slowest in 26 years.

 

China's consumer inflation rate also rose more than expected to a seven-month high of 1.8 percent in August, the bureau said, the first time it has accelerated in three months.

 

The consumer price index (CPI) had been expected to rise 1.6 percent on-year compared with an increase of 1.4 percent in July.

 

Food prices, the biggest component of the consumer price index (CPI), fell 0.2 percent from a year earlier.

 

Non-food price inflation quickened to 2.3 percent in August from 2 percent in July.

 

Analysts had expected the CPI to rise 1.6 percent from 1.4 percent in July but remain well within the central bank's comfort zone.

 

https://www.investin...orecasts-527087

[SnoopDD]

PBOC to Remove Reserve Requirement on FX Forward Trading

 

China’s central bank will effectively remove a reserve requirement for trading foreign currency forwards -- a move that may slow the pace of yuan appreciation after its biggest two-week surge in at least a decade -- according to people familiar with the matter.

 

Effective Sept. 11, the People’s Bank of China will stop requiring financial institutions to set aside cash when buying dollars for clients through currency forwards, the people said, asking not to be identified because they aren’t authorized to speak on the matter in public. The ratio is currently set at 20 percent. The PBOC didn’t immediately reply to a fax seeking comment after usual working hours.

 

Chinese authorities put the rule in place in October 2015 in a move seen as an effort to restrict dollar purchases when the yuan was weakening. A removal would make it easier for traders to buy the U.S. currency, reducing pressure for yuan appreciation. The Chinese exchange rate has rallied close to 5 percent over the past three months amid speculation policy makers will buoy the exchange rate in the run-up to a key Communist Party meeting on Oct. 18. That Asia-beating surge has now prompted talk the PBOC may try and slow the advance.

 

The potential move to do away with the reserve requirement “is a good way to signal discomfort with the pace of appreciation and shake out the market,” said Sacha Tihanyi, a strategist at TD Securities.

 

The time is becoming appropriate for China to scrap the requirement, China Merchants Bank Co. analyst Wan Zhao wrote in a note earlier in the week. With the dollar trending lower and the daily fixing regime having incorporated a counter-cyclical factor, greenback sales are driving the yuan stronger and it’s time to treat clients’ dollar buying and selling equally, according to the note.

 

The rally in the yuan had started to fuel speculation that policy makers were loosening their grip on the currency. The offshore yuan weakened past 6.50 to the dollar Friday amid the report of the planned PBOC rule change. The onshore yuan erased an intraday advance of as much as 0.8 percent to close 0.06 percent in the red.

 

This step “is actually a better way of approaching the situation than simply intervening in the foreign-exchange market,” said Robert Minikin, a foreign-exchange strategist at Standard Chartered Bank. “This is quite an important signal here, suggesting the authorities feel that the currency may be strong enough to damage exports.”

 

https://www.bloomber...forward-trading

 

and damage jobs

Edited by SnoopDD, 09 September 2017 - 10:42 AM.

[SnoopDD]

welcome back. Will be following your posts

 

Thanks, Snoop appreciates that very much

[CE0]

😀welcome back. Will be following your posts👍

[SnoopDD]

Investor Who Lost Millions Finally Gives Up on His China Bet

 

Mark Hart spent seven years and $240 million waiting on a crash in China’s currency.

 

He lost sleep. He lost clients. He damn near lost his sanity.

 

And now he’s lost his conviction: Hart, who called for a more than 50 percent yuan devaluation last year, has turned bullish on China and its currency.

 

His reversal hasn’t come easily. From his base in Fort Worth, Texas, the hedge fund manager spent countless nights on the line to Hong Kong, parsing market news and exchange rates. At times, the stress took a toll on Hart personally and left his employees demoralized.

 

“I always thought we had a good risk-reward trade on, but we made a number of mistakes, including being way too early,” Hart, who started the yuan bet after predicting both the U.S. subprime mortgage bust and the European debt crisis, said in a telephone interview. “And now the world has changed.”

 

In cool hindsight, the 45-year-old founder of Corriente Advisors sees last year’s Group of 20 summit in Shanghai as a key turning point. Like many investors, Hart suspects the meeting resulted in a tacit agreement among world leaders to prevent the yuan from tumbling. He calls it China’s “whatever it takes” moment -- when policy makers resolved to prop up the currency at any cost.

 

“China now has the breathing room it needs to either temporarily stave off a slowdown with fiscal and monetary stimulus, or reform, grow and upgrade itself into the world’s largest developed economy,” Hart said.

 

Whether or not China got help from other G-20 nations, the government has clearly succeeded in stabilizing the exchange rate. The yuan ended a three-year slide in late December and has rallied almost 7 percent in 2017, including a 0.5 percent increase on Thursday. It’s now trading at the strongest level in more than a year versus the greenback.

 

Even at its weakest point, the yuan never dropped enough to move the needle on Hart’s wager, which started in 2009. His dedicated China funds, which had fixed lifespans, bought options that were designed to deliver one of two outcomes: a massive payoff in the event of a currency crash, or a near total wipeout if a major devaluation failed to occur.

 

The trade went against him almost from the beginning. After holding steady for the first six months of 2010, the yuan strengthened for the next three and a half years. It eventually reversed course, but the sharp devaluation that Hart had anticipated never materialized. His second China fund shut in December. All told, he lost between $240 million and $250 million.

 

In an interview with Bloomberg Markets last year, Hart said his biggest mistake was believing that China’s leaders would find it in the country’s best interest to let the yuan slide (a one-off devaluation, Hart argued, would remove an incentive for capital outflows). Instead, policy makers went to extreme lengths to prop up the currency, tightening capital controls and burning through more than $800 billion of foreign-exchange reserves over the past two years.

 

Even at its weakest point, the yuan never dropped enough to move the needle on Hart’s wager, which started in 2009. His dedicated China funds, which had fixed lifespans, bought options that were designed to deliver one of two outcomes: a massive payoff in the event of a currency crash, or a near total wipeout if a major devaluation failed to occur.

 

The trade went against him almost from the beginning. After holding steady for the first six months of 2010, the yuan strengthened for the next three and a half years. It eventually reversed course, but the sharp devaluation that Hart had anticipated never materialized. His second China fund shut in December. All told, he lost between $240 million and $250 million.

 

In an interview with Bloomberg Markets last year, Hart said his biggest mistake was believing that China’s leaders would find it in the country’s best interest to let the yuan slide (a one-off devaluation, Hart argued, would remove an incentive for capital outflows). Instead, policy makers went to extreme lengths to prop up the currency, tightening capital controls and burning through more than $800 billion of foreign-exchange reserves over the past two years.

 

Read more: A QuickTake explainer on China’s managed markets

 

For Hart, it was a rare miscalculation. His macro hedge fund had returned an annualized 30 percent from 2001 through 2006, while his wagers against the U.S. mortgage market gained six-fold during the global financial crisis. Hart then doubled some of his investors’ money by predicting the European sovereign debt crisis that ensued.

 

He wasn’t the only hedge fund manager to forecast a yuan crash. Hayman Capital Management’s Kyle Bass, who worked with Hart on the subprime mortgage bet, called for a 30 percent devaluation in February 2016, while Passport Capital’s John Burbank said three months later that he expected a “major” slump within a year. Managers from David Tepper to Crispin Odey made similar predictions in 2015.

 

While some hedge funds have stuck with their bearish wagers, Hart says the tide has turned in China’s favor. Foreign central banks and institutional investors are adding to their yuan holdings as the country steadily integrates itself with the global financial system, while President Xi Jinping’s “One Belt, One Road” initiative has allowed China to strengthen ties with trading partners across Asia, Europe, the Middle East and Africa.

 

Hart says Beijing’s capital controls, including a clampdown on overseas acquisitions, have proven very effective.

 

“I don’t expect to see many big soccer club purchases by wealthy Chinese,” he said, adding that outbound investments will generally be directed toward the technology industry and the “One Belt, One Road” project.

 

Record corporate debt levels are still a challenge, but Hart says China is starting to reap the benefits from its “world class” infrastructure and burgeoning tech sector. He’s optimistic about stocks in both of those industries, as well as other emerging Asian nations, Japan and southern Europe, though he declined to talk about specific investments and his fund.

 

As for the yuan, Hart says he’s not trading the currency -- at least for now.

 

https://www.bloomber...a-bear-gives-in

 

He should also give up Trading. He wasted so much other trading opportunities such as Brexit, Swiss removing their CHF Pegg. Not to mention all the NFP for 7 years or the rise of AMAZON

Edited by SnoopDD, 08 September 2017 - 08:49 PM.