As North Korea Moves ICBM To Launch Site In Wheelbarrow, Kospi Falls 4 Days In A Row
Ok, so following the latest news out of the Korean peninsula, where Kim is apparently using the cover of darkness to move an ICBM fitted to a wheelbarrow to a launch site in preparation for another provocation ahead of (or on) founding day, South Korean shares fell again.Â
Currency Havens For Millennials – And No, Not Bitcoin…
“Sure, they’re unlikely to seek shelter in Bitcoin and other cryptocurrencies just yet, not even Millennials. But they may well prefer a haven basket that includes more”…
Key Calls (Tuesday): Upgrades, Downgrades & Initiations
You need an upgrade.
North Korea Seen Moving ICBM Into Position For Launch
“North Korea started moving an ICBM-class missile produced from Pyongyang research center on Monday after the nuclear test on Sunday,” Asia Business Daily reports, citing an unidentified official.
Offshore Yuan Falls After Weaker-Than-Expected Fix, Snaps Back
As we’ve said repeatedly, with Chinese equities riding a hot streak, with capital flight seemingly under control, and with a rapidly appreciating yuan bound to weigh on the economy eventually, don’t be surprised if the PBoC takes the opportunity to push back – at least a little bit.Â
Is Gold Overbought Or Will Flying Missiles Make Shiny Doorstops Great Again?
But again, part of the story here is that gold could get some of the haven flows that would normally go to the yen. Because if this gets bad – and reports that Japan is preparing plans to evacuate 60,000 citizens living in or visiting South Korea suggest it might – then investors will likely shun the yen in favor of bullion and the franc (because as far as we know, Kim isn’t firing missiles at Switzerland).Â
Trump’s DACA Decision Could Be Political Suicide
Let’s just step back from the moral depravity for a second and think about this from a purely strategic perspective.
Yes, there’s a kinda, sorta deadline for this decision thanks to 10 states that have threatened to sue the government if it doesn’t stop protecting people brought into the country illegally as children. But obviously Trump isn’t obliged to heed that threat. He could take that risk in the interest of not igniting another racially-charged, political firestorm just weeks after he threw gasoline on the firestorm his bungled response to Charlottesville created by pardoning Joe Arpaio.Â
Japan Reportedly Readies Mass Evacuation Plan For 60,000 Citizens In South Korea
Ok, well this is interesting. Nikkei is out reporting that Japan is planning for a possible
Trump Pens Labor Day Op-Ed About ‘Turning Dreams Into Reality’ With ‘Our Own Two Hands’
“As we celebrate Labor Day, we are reminded of the inherent dignity of work and the American worker. In America, we honor grit. We honor determination. We honor craftsmanship. And we honor the men and women who turn dreams into reality with their own two hands.” “
Maeve Higgins Finds An Enemy And His Name Is Stephen Miller
I’m that first cat, getting tougher, more focused, maybe a bit immortal. “Miller,†I think, “where are you now? What are you doing? Are you using my litter box again?â€
Since 2001…
These concerns have found expression in cautious notes from Goldman and lengthy missives penned by the likes of Howard Marks, who in July implicitly compared the current environment to the “perpetual motion machine” that was at work just prior to the dot-com bust.
Draghi’s Worst Nightmare
“Trading has never been a straight line. Even for bitcoin, the cryptocurrency with an ever-impressive performance this year, the ups and downs in the short-term have surely created havoc for investors on a mark-to-market basis.”
Vol. On ‘Cheap Market With Fast Earnings Growth’ Just Spiked The Most Since ‘Fire And Fury’
So that’s all fine and good, but the thing is (and we’ve been warning about this for months), you’ve gotta wonder about an equity market that’s seen an avalanche of YTD inflows and until recently was sitting near record highs when, at least by proximity, the country it represents is the most dangerous place on earth (hyperbolic, but you get the idea).
India VIX Soars Most Since U.S. Election As Investors Awake From ‘State Of Complacency’
Tomorrow, we’ll get to see if the U.S. dip-buyers, still hungover from Labor Day, are ready to “face reality” or whether the Target managers-turned hedge fund titans will be on hand to deploy the capital they raised from their neighbors in XIV.
This Has Never Happened Before: Offshore Yuan Cements Record Rally
Meanwhile, you already know the story with the offshore yuan. And that story hasn’t changed. In fact, the offshore yuan rose against the dollar for a 14th consecutive session on Monday – that’s the longest streak on record.
Asian Shares Tumble, Gold Rises As North Korea Said Planning New Missile Launch
“Though considered a tail risk, a military confrontation on the Korean peninsula could see Asian currencies falling 5% to 10% and the region’s equities plunging 20%,” UBS Wealth Management Global CIO Mark Haefele and head of Asia Pacific investment Min Lan Tan write in a new note.
South Korean Stocks, Won Tumble As Traders Weigh Risks
The oil issue has been contentious for its potential to spark a humanitarian crisis. “Eyes are on whether countries will push for an oil embargo on North Korea, which in the past, has served as a trigger for physical conflict,” Takahashi adds.
‘Nuclear Reaction’: S&P, Nikkei Futs Fall, Gold Rises As Markets Warily Eye Pyongyang
These things have a way of reversing themselves in the overnight as investors have been conditioned to fade the initial reaction to North Korea news, but that will be tested given the severity of the provocation.Â
‘Good Luck, We’re All Counting On You’: Full Week Ahead Preview
To be sure, whatever you thought was going to dominate the news flow in the week ahead is probably going to take a backseat to North Korea, for obvious reasons.Â
But North Korea isn’t the only thing on traders’ minds this week. Not by a long shot.
Rangappa: How States’ Rights Became Trump’s Achilles Heel
“Either way, Trump may soon learn that the “states’ rights†ostensibly represented by the monuments and flags he reveres includes the power to bring his campaign team — and even him — to justice.”
USDJPY Dives In Early Trading In First Reaction To North Korea Nuclear Test
Despite the fact that Japan is in the firing line, the yen will of course retail its safe haven status right up to and until traders begin to think the threat emanating from Pyongyang has gone from hyperbole to real, which means this should come as no surprise…
Trump Says U.S. May ‘Stop All Trade’ With Nations That Support North Korea
Earlier today, in the course of documenting the latest out of North Korea, where Kim is apparently busy trying to figure out if he can jerry-rig one of his homemade H-bombs to one of his homemade ICBMs with masking tape and Elmer’s glue, we noted that the last resort (short of war) may be to simply cut off the North’s oil supply.
Well, sure enough…
Here Is The Letter Barack Obama Wrote To Donald Trump
“That makes us guardians of those democratic institutions and traditions — like rule of law, separation of powers, equal protection and civil liberties — that our forebears fought and bled for. Regardless of the push and pull of daily politics, it’s up to us to leave those instruments of our democracy at least as strong as we found them.”
As Mnuchin Warns On Debt Ceiling, Let’s Compare Harvey To Katrina – Because That’s Fun
If you’re not in Texas or if you’re just a cold-hearted, trader cynic who only worries about your P&L, then that’s probably all you care about here, because the sooner the debt ceiling gets raised, the sooner you can cross “technical U.S. default” off your “tail risk” list.
Of course as is usually the case with catastrophic natural disasters, it’s not all good news.Â
Trump Says North Korea ‘Only Understands One Thing’ And He Wishes You’d Let Him Get On With It
Listen, if Pyongyang launches an H-bomb-tipped ICBM and turns San Francisco into a pile of smoldering
After North Korea Nuclear Test, ‘Risk Of Weapon Being Used Is Highest Since Cuban Missile Crisis’
“I think that the risk of a nuclear weapon being used somewhere in the world today is higher than it has been in a very very long time, arguably going back to the Cuban Missile crisis.”
Guess Which Country’s Stock Market Just Fell For The First Time Since The Election…
So for all the talk of how risk assets have largely ignored the threat of nuclear war, we would note that not everything was in fact immune…
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