JEWISH KING JESUS IS COMING AT THE RAPTURE FOR US IN THE CLOUDS-DON'T MISS IT FOR THE WORLD.THE BIBLE TAKEN LITERALLY- WHEN THE PLAIN SENSE MAKES GOOD SENSE-SEEK NO OTHER SENSE-LEST YOU END UP IN NONSENSE.GET SAVED NOW- CALL ON JESUS TODAY.THE ONLY SAVIOR OF THE WHOLE EARTH - NO OTHER.
1 COR 15:23-JESUS THE FIRST FRUITS-CHRISTIANS RAPTURED TO JESUS-FIRST FRUITS OF THE SPIRIT-23 But every man in his own order: Christ the firstfruits; afterward they that are Christ’s at his coming.ROMANS 8:23 And not only they, but ourselves also, which have the firstfruits of the Spirit, even we ourselves groan within ourselves, waiting for the adoption, to wit, the redemption of our body.(THE PRE-TRIB RAPTURE)
HOARDING OF GOLD AND SILVER
JAMES 5:1-3
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.
REVELATION 18:10,17,19
10 Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.(IN 1 HR THE STOCK MARKETS WORLDWIDE WILL CRASH)
17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
19 And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.
EZEKIEL 7:19
19 They shall cast their silver in the streets, and their gold shall be removed:(CONFISCATED) their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.
LUKE 2:1-3
1 And it came to pass in those days, that there went out a decree from Caesar Augustus, that all the world should be taxed.
2 (And this taxing was first made when Cyrenius was governor of Syria.)
3 And all went to be taxed, every one into his own city.
REVELATION 13:16-18
16 And he(THE FALSE POPE WHO DEFECTED FROM THE CHRISTIAN FAITH) causeth all,(IN THE WORLD ) both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:(MICROCHIP IMPLANT)
17 And that no man might buy or sell, save he that had the mark,(MICROCHIP IMPLANT) or the name of the beast,(WORLD DICTATORS NAME INGRAVED ON YOUR SKIN OR TATTOOED ON YOU OR IN THE MICROCHIP IMPLANT) or the number of his name.(THE NUMBERS OF HIS NAME INGRAVED IN THE MICROCHIP IMLPLANT)-(ALL THESE WILL TELL THE WORLD DICTATOR THAT YOUR WITH HIM AND AGAINST KING JESUS-GOD)
18 Here is wisdom. Let him that hath understanding count the number of the beast:(WORLD LEADER) for it is the number of a man; and his number is Six hundred threescore and six.(6-6-6) A NUMBER SYSTEM (6006006)OR(60020202006)(SOME KIND OF NUMBER IMPLANTED IN THE MICROCHIP THAT TELLS THE WORLD DICTATOR AND THE NEW WORLD ORDER THAT YOU GIVE YOUR TOTAL ALLIGIENCE TO HIM AND NOT JESUS)(ITS AN ETERNAL DECISION YOU MAKE)(YOU CHOOSE YOUR OWN DESTINY)(YOU TAKE THE DICTATORS NAME OR NUMBER UNDER YOUR SKIN,YOUR DOOMED TO THE LAKE OF FIRE AND TORMENTS FOREVER,NEVER ENDING MEANT ONLY FOR SATAN AND HIS ANGELS,NOT HUMAN BEINGS).OR YOU REFUSE THE MICROCHIP IMPLANT AND GO ON THE SIDE OF KING JESUS AND RULE FOREVER WITH HIM ON EARTH.YOU CHOOSE,ITS YOUR DECISION.
REVELATION 6:5-6
5 And when he had opened the third seal, I heard the third beast say, Come and see. And I beheld, and lo a black horse; and he that sat on him had a pair of balances in his hand.
6 And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.(A DAYS WAGES FOR A LOAF OF BREAD)
DOCTOR DOCTORIAN FROM ANGEL OF GOD
then the angel said, Financial crisis will come to Asia. I will shake the world.
The Shemitah is coming true.Do people not get it? There is a economic crash every 7 years.
1980: Recession
1987: Stock market crash
1994: Bond market crash
2001: 9/11, dot com, recession
2008: Housing crash
2015: See if something will happen-The central banks will be the death of us. Get ready and embrace yourself for the economic collapse.
BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On Two Consecutive Days
http://theeconomiccollapseblog.com/archives/black-monday-the-first-time-ever-the-dow-has-dropped-by-more-than-500-points-on-two-consecutive-days
UPDATE-AUGUST 26,2015-12:00AM
DOW MARKET WEDNESDAY-AUG 26,2015
09:30AM-396.20
09:45AM-290.32
10:00AM-312.34
10:15AM-227.36
10:30AM-290.43
10:45AM-270.92
11:00AM-248.60
11:15AM-232.77
11:30AM-252.81
11:45AM-189.94
12:00PM-198.81
12:15PM-178.12
12:30PM-158.47
12:45PM-129.20
01:00PM-220.24
01:15PM-214.73
01:30PM-292.13
01:45PM-330.45
02:00PM-347.92
02:15PM-355.67
02:30PM-297.11
02:45PM-350.34
03:00PM-409.08
03:15PM-540.34
03:30PM-540.90
03:45PM-539.06
04:00PM-619.07+ 16,285.51
HIGH TODAY +638 LOW +129 - DOWS 3RD HIGHEST POINT TOTAL IN HISTORY-AND THE HIGHEST TOTAL SINCE 2011.
TSX +223.61 13,374.60 - GOLD -15.30 $1,123.10 - OIL -0.34 $38.97
5 reasons why china is shaking the world markets
http://www.cnbc.com/2015/08/25/5-reasons-why-chinas-woes-are-shaking-the-global-markets.html
Market Pulse-U.S. stocks close with biggest gains in nearly 4 years-Published: Aug 26, 2015 4:05 p.m-By Anora Mahmudova Reporter
The Wall Street rally picked up steams in afternoon trade, as the main indexes closed with biggest gains in nearly four years, breaking a dramatic six-day slide that left them in correction territory. The main indexes traded within a wide range, with some analysts saying the price action indicates the market is going through a bottoming process. The Dow Jones Industrial Average DJIA, +3.95% jumped 619.07 points, or 4%, to 16,285.51, with all 30 members of the blue-chip index closing with gains. The S&P 500 SPX, +3.90% closed 72.90 points, or 3.9% higher at 1,940.51. The Nasdaq Composite COMP, +4.24% ended the day up 191.05 points, or 4.2% at 4,697.54.
Relief Descends on U.S. Stock Market With Best Rally Since 2011-Joseph Ciolli-Updated on August 26, 2015 — 4:02 PM EDT-bloomberg
Two things that have supported U.S. stocks in the past, dovish words from the Federal Reserve and improving economic data, triggered the biggest rally since 2011 and halted a plunge that erased $2.2 trillion from share values.The Standard & Poor’s 500 Index climbed 3.9 percent to 1,940.49 at 4:01 p.m. in New York, its biggest gain since November 2011.“This type of short-term rally shouldn’t be much surprise given recent weakness,” said Chad Morganlander, a money manager at Stifel, Nicolaus & Co. in Florham Park, New Jersey, which oversees about $170 billion. “Eventually the reality that valuations have come off so much will come into play.”-Fed’s Dudley-The recent turmoil in global stock markets sparked by growth concerns has reduced expectations for the Federal Reserve to increase interest rates as soon as next month. New York Fed Bank President William Dudley said Wednesday the upheaval has reduced the case for raising rates in September, while cautioning it’s important not to overreact to short-term developments.Traders are pricing in a one-in-four chance the central bank will act at its next meeting, down from almost even odds before China’s surprise currency devaluation earlier this month. Fed policy makers remain focused on economic data, which financial markets can influence, Dudley said, through the wealth effect on U.S. households. A report today showed orders for capital goods increased in July by the most in more than a year, indicating corporate spending was finding its footing prior to the turmoil in financial markets. Orders for all durable goods -- items meant to last at least three years -- rose 2 percent, exceeding all forecasts of economists surveyed by Bloomberg.More than $2 trillion had been erased from American equity values since the S&P 500 started its losing streak, breaking a calm in a stock market that had gone almost four years without a 10 percent correction. The measure plunged 11 percent in the six days through Tuesday, the most since the U.S. was stripped of its AAA credit rating by S&P in August 2011, and was 1 percent away from erasing its gains since the end of 2013.“This isn’t up and up and away, this is the process of finding a bottom,” said Julian Emanuel, executive director of U.S. equity and derivatives strategy at UBS Securities LLC in New York. “When you look at why this could be a bottoming process, the first reason is the notion that it’s not a bear market because every bear market of the last 25 years has been accompanied by a recession. Every time I get nervous I walk down the hall to our chief economist and he’s been as solid as a rock all year saying there is zero evidence of a recession looking out through 2016.”
The Stock Market Hasn't Had a Selloff Like This One in Over 75 Years-This is how wild the last few days have been.-Luke Kawa-August 26, 2015 — 11:10 AM EDT-bloomberg
By one metric, investors would have to go back 75 years to find the last time the S&P 500's losses were this abrupt.Bespoke Investment Group observed that the S&P 500 has closed more than four standard deviations below its 50-day moving average for the third consecutive session. That's only the second time this has happened in the history of the index. May 15, 1940, marked the end of the last three-session period in which this occurred:-Bespoke Investment Group-This string of sizable deviations from the 50-day moving average is a testament to just how severe recent losses have been compared to the index's recent range."Not even the crash of 1987 got this oversold relative to trend," writes Bespoke.The money management and research firm produced a pair of analogue charts showing what's in store if the S&P 500 mimics the price action seen in mid-1940. Overlaying the axes gives the impression that the worst of the pain is behind us, and a market bottom isn't too far off:Bespoke Investment Group-However, indexing the S&P 500 to five sessions prior to the tumult shows that a replication of the mid-1940 plunge could see equities run much further to the downside and into a bear market:If it tracked the 1940 trajectory, the S&P 500 would hit a low of 1,556 in relatively short order. But Bespoke doesn't think stocks are fated to repeat that selloff."There is nothing, nothing, we have seen - Chinese fears, positioning, valuation, or any other factor - suggests to us that we are headed to 1556," the analysts write. "More likely, in our view, is something along the lines of the top analogue; we doubt the bottom is in, but see it unlikely we enter a bear market and a true stock market crash."
China’s Stocks Slump as Rate Cut Fails to Stop $5 Trillion Rout-Kyoungwha Kim-Updated on August 26, 2015 — 4:32 AM EDT-bloomberg
China’s stocks extended the steepest five-day drop since 1996 in volatile trading as lower interest rates failed to halt a $5 trillion rout.The Shanghai Composite Index fell 1.3 percent to 2,927.29 at the close, after rising as much as 4.3 percent and declining 3.9 percent. The cuts in borrowing costs and lenders’ reserve ratios were announced hours after the benchmark measure closed with a 7.6 percent drop on Tuesday.Chinese equities have lost half their value since mid-June, as margin traders closed out bullish bets and concern deepened that valuations are unjustified by the weak economic outlook. The government has halted intervention in the equity market this week as policy makers debate the merits of an unprecedented rescue, according to people familiar with the situation.“The prevailing sentiment is still that investors want to cash out, whatever the government does,” said Ronald Wan, chief executive at Partners Capital International in Hong Kong. “Confidence is already damaged. Doubts over the effectiveness of policies are getting bigger. The market will remain under selling pressure for a while.”The People’s Bank of China said it will cut the one-year lending rate by 25 basis points to 4.6 percent and lower the required reserve ratio by 50 basis points for all banks. The move, which follows the biggest devaluation of the yuan in two decades earlier this month, comes amid signs of decelerating growth for the world’s second-biggest economy. A rate cut failed to boost the market for a second straight time as stocks ended lower after the last reduction in June.-Intervention Cost-“The PBOC’s reserve-requirement ratio cut cannot make up for the loss of liquidity resulting from the yuan’s depreciation,” Chia Woon Khien, Singapore-based portfolio manager at Nikko Asset Management Asia Ltd., said in an interview in Bloomberg’s office in Shanghai. “If we’re lucky, China’s economy will start to recover from the fourth quarter.”The Hang Seng China Enterprises Index dropped for a ninth day, losing 0.9 percent at the close in Hong Kong, The Hang Seng Index slid 1.5 percent to a two-year low. The CSI 300 index fell 0.6 percent as losses for technology companies overshadowed gains for financial shares.Some Chinese officials argue that falling stocks will have a limited economic impact and the costs of supporting the market are too high, said one of the people, who asked not to be identified because deliberations are private. Officials who back intervention say tumbling shares pose a risk to the banking system, the people said.-Technical Indicators-Tom DeMark, who predicted this month’s selloff in Chinese stocks, said the Shanghai Composite Index may extend its decline by 13 percent should it stay below a critical technical level on Wednesday.A failure to close above 3,200, or almost 8 percent higher than Tuesday’s level, may open the way for a move to 2,590, which would be the lowest since November, according to DeMark, founder of DeMark Analytics. An advance above that level, however, would signal the stock rout may be over, he said.China’s margin debt has plunged by 1 trillion yuan ($156 billion) from its June peak as stock traders close out bets using borrowed money. Outstanding margin loans on the Shanghai and Shenzhen exchanges fell to about 1.25 trillion yuan on Monday from a record high of 2.27 trillion yuan on June 18.A gauge of technology companies in the CSI 300 fell 6.1 percent, the biggest loss among 10 industry groups. Hundsun Technologies Inc., which has a financial investment platform known as HOMS that allows trust firms and online lenders to provide leveraged trading facilities to clients, tumbled 10 percent. China Construction Bank Corp. paced gains for lenders, rallying 5.2 percent. Bank of Beijing Co. surged 9 percent.Littery Sentiment-“The struggle between gains and losses suggests that the market doesn’t really know what to make of the policy move yet,” said Bernard Aw, a strategist at IG Asia Pte. in Singapore. “There might be a chance we could see some consolidation in the markets before investors are confident enough to push higher.”Deutsche Bank AG recommended investors buy so-called H-shares on attractive valuations and an improving economic outlook. The Hang Seng China Enterprises gauge of mainland companies listed in Hong Kong will rally 37 percent by year-end, according to the analysts’ forecast.The central bank’s move “reaffirmed that the leadership’s policy priority is growth support,” strategists led by Yuliang Chang at Deutsche Bank wrote in a note on Tuesday. An above-average risk premium in H shares suggests “investors may have priced in some pretty bad scenarios. The market dipped and appeared oversold amid jittery sentiment.”
Greek president expected to formally call election on Friday-Reuters By Lefteris Papadimas-aug 26,15-yahoonews
ATHENS (Reuters) - Greek President Prokopis Pavlopoulos is expected on Friday to call a snap election for next month, an official at the presidency told Reuters, ending fruitless coalition efforts among parties deeply divided over the country's new bailout.Following last week's resignation of leftist Prime Minister Alexis Tsipras, Pavlopoulos asked a conservative and a radical left leader to try to form a new government and thereby avoid another election just seven months after the previous poll.The official stressed on Wednesday that the timetable could still change, but said Pavlopoulos intended to appoint a caretaker premier, Supreme Court judge Vassiliki Thanou, on Friday. Thanou would become Greece's first female prime minister, albeit briefly."The same day the president will announce the election date and it will probably be Sept. 20. The president wants the process to be fast and have elections as soon as possible," the official said.Tsipras, who during his seven months in office took Greece to the brink of financial collapse and exit from the euro, resigned in the hope of crushing a far-left rebellion in his Syriza party and strengthening his grip on power through a snap election.Syriza says it is aiming for an outright majority, although the strength of its support is unclear due to a lack of surveys by leading pollsters in the past month. Last week, 25 out of Syriza's 149 lawmakers walked out to form a new anti-bailout party.Tsipras had to rely on temporary support from the opposition to get the 86 billion euro ($98 billion) bailout program through parliament. Almost a third of Syriza lawmakers refused to back the deal, objecting to onerous austerity and reform conditions demanded by Greece's creditors from the euro zone and the International Monetary Fund.(writing by David Stamp; editing by Gareth Jones)
China probing brokers, regulators for possible stock crimes-Associated Press By JOE McDONALD-aug 26,15-yahoonews
BEIJING (AP) — Employees of one of China's biggest securities firms and one current and one former employee of its market regulator are under investigation on suspicion of illegal stock trading, state media reported Wednesday, amid the collapse of a stock price boom.Three other brokerages announced they are under investigation for possible violations of rules on confirming the identities of customers.China's main stock market index has fallen more than 40 percent since early June. On Wednesday, it fell another 1.2 percent, following declines of 8.5 percent on Monday and 7.6 percent on Tuesday.Authorities have accused securities firms of manipulating prices, suggesting the ruling Communist Party might be trying to deflect blame for the collapse, which angered small investors.Eight employees of state-owned Citic Securities Ltd., including one surnamed Xu, are suspected of "illegal securities trading," the Xinhua News Agency said. It gave no other details, but a leading Chinese business magazine, Caixin, reported on its website that Xu was the firm's managing director, Xu Gang.The police ministry announced July 12 investigators had found "evidence to suspect that individual trading companies are illegally manipulating securities and futures exchanges." It gave no details of which firms were targeted.The market benchmark soared more than 150 percent beginning late last year before hitting a June 12 peak and plunging. The downturn triggered complaints politically favored insiders profited at the expense of small investors. Beijing responded by barring large shareholders from selling and ordering executives to buy back any recently sold stock in their own companies.In a statement through the Hong Kong Stock Exchange, Citic Securities said it had received no notice of an investigation.Phone calls to Citic Securities' headquarters in Beijing weren't answered.The firm is part of Citic Group, the Cabinet's main holding company. It is best known abroad for its 2012 purchase of Hong Kong-based brokerage CLSA Asia-Pacific Markets from France's Credit Agricole for $1.25 billion in the first major foreign acquisition by a Chinese broker.Meanwhile, a staff member from the China Securities Regulatory Commission surnamed Liu and a former staff member are suspected of "insider trading and forging official documents and seals," Xinhua said. It gave no other details.A journalist surnamed Wang and several other people also are suspected of fabricating and spreading fake securities and futures trading information, the agency said.It gave no indication whether the cases were connected.Separately, three brokerages said they were under investigation for possible violation of "know your customer" rules. GF Securities, Haitong Securities and HTSC made their announcements through the Hong Kong Stock Exchange.In July, the securities regulator accused brokerages of improperly allowing customers to trade without giving their real names or to subdivide accounts to allow others to use them to trade. It ordered brokers to end the practice and to sever ties with unlicensed companies that lend money to finance trading.___AP Business Writer Kelvin Chan in Hong Kong contributed.
Business-Shares in disarray over China crisis-bbc news-aug 26,15
Wall Street shares have opened sharply higher, with the Dow Jones nearly 2% up, after losing ground on Tuesday.At the same time, European stock markets lost ground as fears persist of a China-led economic downturn.London's FTSE 100 was 1.4% lower in late afternoon trade, with markets in Paris and Frankfurt down by 1.3% and 1.2% respectively.Experts expect more market volatility until the Federal Reserve meets in September to set US interest rates."Until we get September out of the way, I think markets will continue to be choppy," said Michael Hewson, chief market analyst at CMC Markets."These are the sorts of swings that we last saw in 2008," he added.With the wild movements in global markets, Mr Hewson said he did not expect a rate rise out of the US next month, in part because of the central bank's mandate to maintain financial stability."I think they would be absolutely bonkers to raise rates now," he said.-China's economic slowdown-282%-China's debt to GDP ratio-$28 trillion-Debt has quadrupled since 20070.25% cut in key lending rate-5th interest rate cut since November-7% China's growth target for 2015-China contagion-On Tuesday, China's central bank cut its key lending rate by 0.25 percentage points to 4.6% in a bid to calm stock markets after the past days' turmoil.The dramatic losses and volatility in China have shattered investor confidence and led to sharp falls in Asia and the US over the past several sessions.The interest rate cut was the fifth by the People's Bank of China since November last year.The move is aimed at boosting China's growth long-term, rather than having an immediate impact on investors.Given China's central role in world trade, a slowdown in the world's second-largest economy would be likely to reverberate around the globe.A rate cut will make it cheaper for banks to borrow from the central bank and will in turn make it easier for businesses and private people to borrow money from those banks.On Wednesday, the Shanghai index fell 1.27% to 2,927.29, after veering in and out of negative territory.Analysis: Robert Peston, BBC business editor-In some ways I thought yesterday's events on markets were if anything more disturbing than Monday's global rout.Because if share-price gains could not hold after the significant monetary easing by China's central bank, then mistrust about the true state of the world's second largest economy (actually the number-one economy on the purchasing-power-parity measure of GDP) has become very pronounced indeed.And another thing, the Chinese interest rate cuts will exacerbate the phenomenon that has caused so much stress in so many different global markets, from commodities, to foreign exchange, to stocks and bond - the fall in the Chinese currency, the RMB, since it was allowed by Beijing to float more freely on 11 August.Optimism elsewhere-Elsewhere in Asia, the region's largest index, Japan's Nikkei 225 finished 3.2% higher on Wednesday at 18,376.83 points.The Nikkei's gains come after a painful week for the Tokyo index, which had shed more than 8% in the past two sessions.South Korea's Kospi index was also in positive territory, closing 2.6% higher at 1,894.29 points, while in Australia, the S&P/ASX 200 finished 0.7% up at 5,172.80.
Shanghai's index declines 1.3%, other Asian markets mixed after China's rate cut-aug 26,15-los angeles times By Jonathan Kaiman Reporting from Beijing
China’s Shanghai Composite dropped 1.3% on Wednesday after a volatile day of trading, bringing the benchmark index down to 2,927.29, its lowest point since December 2014.Chinese stocks have fallen about 16% over the past week, rattling markets worldwide as investors raise concerns about the Chinese leadership’s ability to prop up the country’s ailing economy. The Shenzhen Composite also fell 3.1% to 1,695.76 on Wednesday, while ChiNext, a Shenzhen-based exchange that hosts fast-growing enterprises, ended down 5.1%.China plays an increasingly central role in global trade — the country accounts for at least 15% of global output — and panic over the volatility of its markets has cut trillions of dollars from exchanges around the world, in both developed and emerging economies.On Tuesday, China’s central bank cut its key lending rate by 0.25 percentage points to 4.6% in an effort to end the rout. Yet investors in other Asian markets dumped shares on Wednesday afternoon over concerns that the stimulus measure was too little, too late.On Wednesday, Hong Kong's Hang Seng index lost 1.5%, while exchanges in New Zealand, Taiwan and Southeast Asia also saw modest losses. South Korea's Kospi index closed 2.6% higher, and Japan’s Nikkei index rose 3.2% after six days of declines.U.S. stocks rallied Tuesday and then fell sharply just before the closing bell; the Dow Jones industrial average fell 204.91 points, or 1.3%, extending Wall Street’s losing streak to six days."The seemingly endless issues confronting global markets remind us too much of the good old arcade game of Whack-A-Mole. Even as one problem retreats, another one seems to be lurking around and ready to spring up," Wellian Wiranto, an economist at Singapore's OCBC bank, said in a research note, according to Reuters."For one, renewed volatility in China and oil’s price slump have resurfaced to demand attention. Meanwhile, though the potential for Fed’s [interest rate] lift-off has receded somewhat, it remains a matter of time before it pops up again.”The Shanghai exchange endured a roller coaster trading day on Wednesday, gaining as much as 4.29% and losing as much as 3.85% throughout the day.The exchange had fallen by 8.5% on Monday and 7.6% on Tuesday, after an independent survey Friday revealed that China’s factory activity in August hit a 77-month low.In a sign that the plunge has rattled Chinese authorities, the country’s heavily censored media has either ignored or downplayed the tumult. On Tuesday, the Communist Party mouthpiece People’s Daily and the state broadcaster China Central Television’s prime-time national news broadcast did not even mention the two consecutive days of heavy losses.“Beijing has emphasized since last year that the real economy has entered a ‘new normal', a period of lower growth and deeper reforms,” the state newswire New China News Agency said in a Wednesday editorial. “Meanwhile, it is still growing fast at an enviable rate. Problems do exist, but worrying about a probable crisis is certainly overdone.”
China Anxiety Resurfaces to Torpedo Relief Rally in U.S. Stocks-Anna-Louise Jackson Joseph Ciolli-Updated on August 25, 2015 — 5:49 PM EDT-BLOOMBERG
A rebound that took the Dow Jones Industrial Average up more than 440 points disappeared in the final hours of trading, with investors giving in to trepidation over what will happen overnight in China amid the most volatile equity markets in four years.The 30-stock gauge ended down 204.91 points, or 1.3 percent, at 15,666.44 at 4:09 p.m. in New York, and 4 percent below its session high. The peak-to-trough retreat exceeded the loss at Monday’s close, when concern about global growth ignited the worst decline for U.S. shares in four years. The Standard & Poor’s 500 Index went from up 2.9 percent to down 1.4 percent, closing at 1,867.61 as most of the selling occurred after 2 p.m.“People are nervous about the potential volatility that could erupt or resurface in the market,” said Stephen Carl, principal and head equity trader at Williams Capital Group LP. “They’re not sure what’s going to happen overseas, and that uncertainty is winning out.”The unwinding disappointed bulls who earlier in the day staked hopes on China’s efforts to inject stimulus into its economy. The central bank today cut interest rates for the fifth time since November and lowered the amount of cash banks must set aside in an attempt to stem the country’s biggest stock market rout since 1996 and a deepening economic slowdown.-‘Technical Damage’-More than $2 trillion has been erased from American equity values since last Wednesday, breaking a calm in a stock market that before this week had gone almost four years without a 10 percent correction.“Investors are going to be keeping a keen eye on the Asian markets overnight and how they react to the rate cut,” said Walter “Bucky” Hellwig, who helps manage $17 billion as a senior vice president at BB&T Wealth Management in Birmingham, Alabama. “The weak last hour in the market wasn’t a good sign.”Stocks couldn’t avoid plumbing Monday’s depths in a chart phenomenon known as a retest, where the lowest levels of previous days starts to influence trader psychology. The S&P 500 has now lost 11 percent in five days, the worst stretch since August 2011, with a measure of market turbulence known as the VIX sitting at more than twice its average level for the past three years.“There’s still some technical damage that needs to be corrected, and there’s still some selling that needs to take place,” said Terry Morris, a senior equity manager who helps oversee about $2.8 billion at Wyomissing, Pennsylvania-based National Penn Investors Trust Co. “We’re not just going to slingshot back up.”-More Swings-Every industry in the S&P 500 ended with losses, with the biggest in utilities, phone companies, commodity shares and banks. About 10.4 billion shares traded hands on U.S. exchanges, 53 percent higher than the three-month average.After a day of wild swings, the S&P 500 lost 3.9 percent Monday. That capped a 7 percent two-day retreat, the most since December 2008, sending the index into its first correction since 2011. JPMorgan Chase & Co. today recommended buying at these levels. The Chicago Board Options Exchange Volatility Index slid 12 percent Tuesday to 36.02. The VIX surged as much as 90 percent Monday to touch the highest level since January 2009 before closing at a nearly four-year high.Investors continued to watch economic reports for clues on the timing of an interest-rate increase by the Federal Reserve. Data today showed purchases of new homes rebounded in July, bolstering signs the real-estate market is picking up. A separate report showed consumer confidence climbed more than forecast in August, reaching the second-highest level in eight years on more favorable views of the labor market.Traders are now pricing in a roughly one-in-four chance the central bank will act at its September meeting, from about 48 percent just before the yuan devaluation, as the rout in equity markets has shaken confidence that the global economy will be strong enough to withstand higher U.S. rates.Fed Bank of Atlanta President Dennis Lockhart said Monday he still expects a rate raise this year, while cautioning that a stronger dollar, a weaker Chinese yuan and falling oil prices complicate the outlook.
EU markets recover after China's Black Monday By Benjamin Fox-AUG 25,15-EUOBSERVER
BRUSSELS, Today, 20:30-After four days of market panic wiped 20 percent off the value of Chinese stocks, European markets rallied strongly on Tuesday (25 August).On the bourses of London, Frankfurt, and Paris, at least, Black Monday was followed by Turnaround Tuesday, as indices rose by 3.5 to 4.5 percent.Events in Shanghai had caused pandemonium on Monday, wiping $2.7 trillion (€2.3 trillion) off global share prices. European shares had their largest single-day fall since 2008 - the height of the financial crisis.On Tuesday morning (25 August), the People’s Bank of China (PBoC) reacted by introducing its fifth interest rate cut since last November. The bank reduced its one-year lending rate to 4.6 percent in a clear signal it’s prepared to head off a repeat of the stock market crash which hit the country in June.Despite the PBoC intervention, the benchmark Shanghai Composite fell by a further 7.6 percent on Tuesday, taking its losses over the past four trading days to more than 20 percent.The euro has also gained 3 percent against the dollar and sterling, although at $1.14 it is still slightly weaker than it was when the European Central Bank (ECB) announced its €1.1 trillion bond-buying programme in January.If this is confusing, it’s because there aren’t many signs that the European economy is actually that vulnerable to turmoil in the Far East. For example, the index on German business confidence has increased in August, indicating belief that its export-driven economy won’t be harmed.Europe is less dependent on Chinese imports and exports relatively little in return.Many of the container ships which ply the sea routes from Asia return there carrying empty boxes, or boxes full of recycled paper to make packaging for Chinese products.This means that a drop in spending by Chinese consumers, who saw their savings and pensions suffer a huge blow over the past week, shouldn’t hurt European firms too much.“What happened yesterday was purely panic,” said Commerzbank economist Peter Dixon.“We’re overplaying the impact the Chinese collapse would have on Europe. The risks are still high, and sentiment is still fragile”."Markets are beginning to realise this is a Chinese problem, not a European one,” he added. “These are specific issues which refer to fundamentals in other markets and do not reflect the situation in Europe”.For the time being, European economies are less likely to be hit by a slowdown in Chinese growth than the likes of Japan, Australia, and the US, whose firms have greater exposure to and higher investment in China.But in the long term, if the Chinese economy stagnates, European consumers will pay a price, particularly in countries whose economies are more reliant on borrowing and domestic consumer spending.China has been willing to buy large amounts of European and US debt while its economy was booming, but may be more reluctant to prop up Western borrowing if confidence evaporates at home.The China crisis has also underscored the continuing volatility in financial markets and the fact that the world’s largest trading blocs - China, the US, and Europe are significantly out of kilter with each other, both in terms of economic and monetary policy.The PBoC has cut interest rates five times since November.But the European Central Bank has been buying €60 billion of government and private bonds since March as part of a quantitative easing programme set to last until September 2016.By contrast, before the summer holidays most market analysts expected the US Federal Reserve to increase interest rates twice by Christmas.The Bank of England is also in line to raise rates, although in both cases, the uncertainty in China is now likely to delay rate increases.
China's Yuan Shock Gives Carry-Trade Crowd Worst Year Since '08-Ye Xie Liz McCormick-August 25, 2015 — 7:00 PM EDT-BLOOMBERG
China just gave investors one more reason to shun the most popular trading strategy in the $5.3 trillion-a-day currency market.Carry trades, or borrowing one currency cheaply to invest in a higher-yielding asset elsewhere, were already suffering the biggest losses since 2008 as the rout in emerging markets sent potential purchases tumbling. By cutting interest rates two weeks after its shock devaluation, China effectively crossed the yuan off investors’ shopping lists, too.Add to this a surge in volatility -- which is kryptonite for these transactions because it can wipe out the profit from the interest-rate differential -- and carry traders are finding fewer and fewer ways to make money. JPMorgan Private Bank and the asset-management unit of Bank of China both say the strategy’s best days are behind it.“It’s a terrible time to be long carry,” said Joseph Capurso, a Sydney-based currency strategist at Commonwealth Bank of Australia. “Increased volatility -- which I think we’ll stay with -- will continue to be terrible for carry. The period is over for carry trades.”A Deutsche Bank AG index tracking carry trade returns has plunged 13 percent this year, on track for its worst annual decline since the 2008 financial crisis.-Bear Markets-The losses accelerated in the past week as bear markets in equities around the world, combined with a plunge in oil and metals prices, sent currencies from South Africa’s rand to Mexico’s peso tumbling to records. They’re the sort of currencies investors tend to buy in carry trades because of their relatively high interest rates.A JPMorgan Chase & Co. measure of currency volatility meanwhile approached its highest level this year, further sapping carry returns.“Across the board, carry has been under pressure,” said Kristjan Kasikov, a London-based quantitative analyst at Citigroup Inc., the world’s biggest currency dealer. “Weakness in commodity prices has hit some of the high-yielding currencies quite hard.”One of the most popular carry trades in recent months was borrowing yen to buy Australian dollars, according to CBA’s Capurso. Investors would pocket the difference between Japan’s near-zero borrowing costs and Australia’s main rate, which at the start of the year was 2.5 percent.The deals started to lose money, he said, as weaker growth in China and falling raw-materials prices sent the Aussie tumbling toward this week’s six-year low versus the dollar. Investors in the carry trades would have lost 5 percent in August, wiping out a 4 percent profit in the second quarter.-China Trade-Buying the yuan with funds borrowed more cheaply elsewhere was one of the most reliable ways to make money earlier in the year as China held its currency at about 6.2 to the dollar.As recently as mid-June, BlackRock Inc., which oversees $4.7 trillion, was piling into the trade and predicting it would remain a good bet for the next year and a half. The deal had been popular for some time, with Deutsche Bank estimating that almost $800 billion had poured into yuan carry trades since 2010.The transaction turned sour on Aug. 11, when China unexpectedly devalued its currency to boost exports. Tuesday’s interest-rate cut, its fifth since November, further undermined the yuan, which traded at about 6.4 per dollar yesterday in New York.As a result, buying the yuan with borrowed dollars and euros would have lost about 5 percent since the devaluation, after gaining an average 4 percent annually over the previous four years, data compiled by Bloomberg show.-Swiss Shock-The People’s Bank of China isn’t the first central bank whose policy decisions upset the carry trade this year. Investors who took advantage of Switzerland’s negative interest rates were left nursing losses when officials abandoned their exchange-rate cap back in January, sending the franc soaring to a record and upending deals funded in the currency.Yet China’s twin policy shocks have had the biggest impact, investors say, if only because of the sheer amount of money poured into yuan carry trades.BOCHK Asset Management Ltd., a unit of Bank of China that overseas about $7.7 billion, says investors in the deals will probably take profits.The yuan was “the best carry-trade currency for years because of its low volatility,” said Ben Sy, head of fixed-income, currencies and commodities for Asia at JPMorgan Private Bank in Hong Kong. “Now, volatility has almost doubled. Definitely, people will unwind.”
CHINA DEVALUES CURRENCY FOR AMERICAN INTEREST RATE RISE SPECULATION
http://israndjer.blogspot.ca/2015/08/i-believe-this-china-devaluing-of-its.html
http://israndjer.blogspot.ca/2015/08/see-how-stock-markets-fare-today-at-ok.html
http://israndjer.blogspot.ca/2015/08/asian-stock-markets-crash-badly-to.html
http://israndjer.blogspot.ca/2015/08/stock-market-crash-was-inevitable-and.html
http://israndjer.blogspot.ca/2015/08/imf-its-premature-to-say-china-is.html
http://israndjer.blogspot.ca/2015/08/10-currencies-that-may-follow.html
http://israndjer.blogspot.ca/2015/08/11-chinese-banks-ask-for-bailouts.html
http://israndjer.blogspot.ca/2015/08/north-korea-threatens-us-what-china.html
http://israndjer.blogspot.ca/2015/08/what-kinda-story-is-this-america-used.html
http://israndjer.blogspot.ca/2015/08/112-now-dead-722-injured-in-china-port.html
http://israndjer.blogspot.ca/2015/08/china-devalues-currency-for-3rd-day.html
http://israndjer.blogspot.ca/2015/08/china-currency-wars-angers.html
http://israndjer.blogspot.ca/2015/08/china-devalues-currency-for-second-day.html
http://israndjer.blogspot.ca/2015/08/china-devalues-its-currency-stocks-fall.html
GREECE NEWS
http://israndjer.blogspot.ca/2015/08/typhoons-fires-koreas-talk-planned.html
http://israndjer.blogspot.ca/2015/08/tsipras-resigns-for-greece-elections.html
http://israndjer.blogspot.ca/2015/08/china-says-it-arrested-15000-people-for.html
http://israndjer.blogspot.ca/2015/08/russia-and-nato-rehearsing-for-war.html
http://israndjer.blogspot.ca/2015/08/at-least-56-dead-720-injured-in-chinese.html
http://israndjer.blogspot.ca/2015/08/greece-lenders-clinch-bailout-deal.html
HOARDING OF GOLD AND SILVER
JAMES 5:1-3
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.
REVELATION 18:10,17,19
10 Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.(IN 1 HR THE STOCK MARKETS WORLDWIDE WILL CRASH)
17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
19 And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.
EZEKIEL 7:19
19 They shall cast their silver in the streets, and their gold shall be removed:(CONFISCATED) their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.
LUKE 2:1-3
1 And it came to pass in those days, that there went out a decree from Caesar Augustus, that all the world should be taxed.
2 (And this taxing was first made when Cyrenius was governor of Syria.)
3 And all went to be taxed, every one into his own city.
REVELATION 13:16-18
16 And he(THE FALSE POPE WHO DEFECTED FROM THE CHRISTIAN FAITH) causeth all,(IN THE WORLD ) both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:(MICROCHIP IMPLANT)
17 And that no man might buy or sell, save he that had the mark,(MICROCHIP IMPLANT) or the name of the beast,(WORLD DICTATORS NAME INGRAVED ON YOUR SKIN OR TATTOOED ON YOU OR IN THE MICROCHIP IMPLANT) or the number of his name.(THE NUMBERS OF HIS NAME INGRAVED IN THE MICROCHIP IMLPLANT)-(ALL THESE WILL TELL THE WORLD DICTATOR THAT YOUR WITH HIM AND AGAINST KING JESUS-GOD)
18 Here is wisdom. Let him that hath understanding count the number of the beast:(WORLD LEADER) for it is the number of a man; and his number is Six hundred threescore and six.(6-6-6) A NUMBER SYSTEM (6006006)OR(60020202006)(SOME KIND OF NUMBER IMPLANTED IN THE MICROCHIP THAT TELLS THE WORLD DICTATOR AND THE NEW WORLD ORDER THAT YOU GIVE YOUR TOTAL ALLIGIENCE TO HIM AND NOT JESUS)(ITS AN ETERNAL DECISION YOU MAKE)(YOU CHOOSE YOUR OWN DESTINY)(YOU TAKE THE DICTATORS NAME OR NUMBER UNDER YOUR SKIN,YOUR DOOMED TO THE LAKE OF FIRE AND TORMENTS FOREVER,NEVER ENDING MEANT ONLY FOR SATAN AND HIS ANGELS,NOT HUMAN BEINGS).OR YOU REFUSE THE MICROCHIP IMPLANT AND GO ON THE SIDE OF KING JESUS AND RULE FOREVER WITH HIM ON EARTH.YOU CHOOSE,ITS YOUR DECISION.
REVELATION 6:5-6
5 And when he had opened the third seal, I heard the third beast say, Come and see. And I beheld, and lo a black horse; and he that sat on him had a pair of balances in his hand.
6 And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.(A DAYS WAGES FOR A LOAF OF BREAD)
DOCTOR DOCTORIAN FROM ANGEL OF GOD
then the angel said, Financial crisis will come to Asia. I will shake the world.
The Shemitah is coming true.Do people not get it? There is a economic crash every 7 years.
1980: Recession
1987: Stock market crash
1994: Bond market crash
2001: 9/11, dot com, recession
2008: Housing crash
2015: See if something will happen-The central banks will be the death of us. Get ready and embrace yourself for the economic collapse.
BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On Two Consecutive Days
http://theeconomiccollapseblog.com/archives/black-monday-the-first-time-ever-the-dow-has-dropped-by-more-than-500-points-on-two-consecutive-days
UPDATE-AUGUST 26,2015-12:00AM
DOW MARKET WEDNESDAY-AUG 26,2015
09:30AM-396.20
09:45AM-290.32
10:00AM-312.34
10:15AM-227.36
10:30AM-290.43
10:45AM-270.92
11:00AM-248.60
11:15AM-232.77
11:30AM-252.81
11:45AM-189.94
12:00PM-198.81
12:15PM-178.12
12:30PM-158.47
12:45PM-129.20
01:00PM-220.24
01:15PM-214.73
01:30PM-292.13
01:45PM-330.45
02:00PM-347.92
02:15PM-355.67
02:30PM-297.11
02:45PM-350.34
03:00PM-409.08
03:15PM-540.34
03:30PM-540.90
03:45PM-539.06
04:00PM-619.07+ 16,285.51
HIGH TODAY +638 LOW +129 - DOWS 3RD HIGHEST POINT TOTAL IN HISTORY-AND THE HIGHEST TOTAL SINCE 2011.
TSX +223.61 13,374.60 - GOLD -15.30 $1,123.10 - OIL -0.34 $38.97
5 reasons why china is shaking the world markets
http://www.cnbc.com/2015/08/25/5-reasons-why-chinas-woes-are-shaking-the-global-markets.html
Market Pulse-U.S. stocks close with biggest gains in nearly 4 years-Published: Aug 26, 2015 4:05 p.m-By Anora Mahmudova Reporter
The Wall Street rally picked up steams in afternoon trade, as the main indexes closed with biggest gains in nearly four years, breaking a dramatic six-day slide that left them in correction territory. The main indexes traded within a wide range, with some analysts saying the price action indicates the market is going through a bottoming process. The Dow Jones Industrial Average DJIA, +3.95% jumped 619.07 points, or 4%, to 16,285.51, with all 30 members of the blue-chip index closing with gains. The S&P 500 SPX, +3.90% closed 72.90 points, or 3.9% higher at 1,940.51. The Nasdaq Composite COMP, +4.24% ended the day up 191.05 points, or 4.2% at 4,697.54.
Relief Descends on U.S. Stock Market With Best Rally Since 2011-Joseph Ciolli-Updated on August 26, 2015 — 4:02 PM EDT-bloomberg
Two things that have supported U.S. stocks in the past, dovish words from the Federal Reserve and improving economic data, triggered the biggest rally since 2011 and halted a plunge that erased $2.2 trillion from share values.The Standard & Poor’s 500 Index climbed 3.9 percent to 1,940.49 at 4:01 p.m. in New York, its biggest gain since November 2011.“This type of short-term rally shouldn’t be much surprise given recent weakness,” said Chad Morganlander, a money manager at Stifel, Nicolaus & Co. in Florham Park, New Jersey, which oversees about $170 billion. “Eventually the reality that valuations have come off so much will come into play.”-Fed’s Dudley-The recent turmoil in global stock markets sparked by growth concerns has reduced expectations for the Federal Reserve to increase interest rates as soon as next month. New York Fed Bank President William Dudley said Wednesday the upheaval has reduced the case for raising rates in September, while cautioning it’s important not to overreact to short-term developments.Traders are pricing in a one-in-four chance the central bank will act at its next meeting, down from almost even odds before China’s surprise currency devaluation earlier this month. Fed policy makers remain focused on economic data, which financial markets can influence, Dudley said, through the wealth effect on U.S. households. A report today showed orders for capital goods increased in July by the most in more than a year, indicating corporate spending was finding its footing prior to the turmoil in financial markets. Orders for all durable goods -- items meant to last at least three years -- rose 2 percent, exceeding all forecasts of economists surveyed by Bloomberg.More than $2 trillion had been erased from American equity values since the S&P 500 started its losing streak, breaking a calm in a stock market that had gone almost four years without a 10 percent correction. The measure plunged 11 percent in the six days through Tuesday, the most since the U.S. was stripped of its AAA credit rating by S&P in August 2011, and was 1 percent away from erasing its gains since the end of 2013.“This isn’t up and up and away, this is the process of finding a bottom,” said Julian Emanuel, executive director of U.S. equity and derivatives strategy at UBS Securities LLC in New York. “When you look at why this could be a bottoming process, the first reason is the notion that it’s not a bear market because every bear market of the last 25 years has been accompanied by a recession. Every time I get nervous I walk down the hall to our chief economist and he’s been as solid as a rock all year saying there is zero evidence of a recession looking out through 2016.”
The Stock Market Hasn't Had a Selloff Like This One in Over 75 Years-This is how wild the last few days have been.-Luke Kawa-August 26, 2015 — 11:10 AM EDT-bloomberg
By one metric, investors would have to go back 75 years to find the last time the S&P 500's losses were this abrupt.Bespoke Investment Group observed that the S&P 500 has closed more than four standard deviations below its 50-day moving average for the third consecutive session. That's only the second time this has happened in the history of the index. May 15, 1940, marked the end of the last three-session period in which this occurred:-Bespoke Investment Group-This string of sizable deviations from the 50-day moving average is a testament to just how severe recent losses have been compared to the index's recent range."Not even the crash of 1987 got this oversold relative to trend," writes Bespoke.The money management and research firm produced a pair of analogue charts showing what's in store if the S&P 500 mimics the price action seen in mid-1940. Overlaying the axes gives the impression that the worst of the pain is behind us, and a market bottom isn't too far off:Bespoke Investment Group-However, indexing the S&P 500 to five sessions prior to the tumult shows that a replication of the mid-1940 plunge could see equities run much further to the downside and into a bear market:If it tracked the 1940 trajectory, the S&P 500 would hit a low of 1,556 in relatively short order. But Bespoke doesn't think stocks are fated to repeat that selloff."There is nothing, nothing, we have seen - Chinese fears, positioning, valuation, or any other factor - suggests to us that we are headed to 1556," the analysts write. "More likely, in our view, is something along the lines of the top analogue; we doubt the bottom is in, but see it unlikely we enter a bear market and a true stock market crash."
China’s Stocks Slump as Rate Cut Fails to Stop $5 Trillion Rout-Kyoungwha Kim-Updated on August 26, 2015 — 4:32 AM EDT-bloomberg
China’s stocks extended the steepest five-day drop since 1996 in volatile trading as lower interest rates failed to halt a $5 trillion rout.The Shanghai Composite Index fell 1.3 percent to 2,927.29 at the close, after rising as much as 4.3 percent and declining 3.9 percent. The cuts in borrowing costs and lenders’ reserve ratios were announced hours after the benchmark measure closed with a 7.6 percent drop on Tuesday.Chinese equities have lost half their value since mid-June, as margin traders closed out bullish bets and concern deepened that valuations are unjustified by the weak economic outlook. The government has halted intervention in the equity market this week as policy makers debate the merits of an unprecedented rescue, according to people familiar with the situation.“The prevailing sentiment is still that investors want to cash out, whatever the government does,” said Ronald Wan, chief executive at Partners Capital International in Hong Kong. “Confidence is already damaged. Doubts over the effectiveness of policies are getting bigger. The market will remain under selling pressure for a while.”The People’s Bank of China said it will cut the one-year lending rate by 25 basis points to 4.6 percent and lower the required reserve ratio by 50 basis points for all banks. The move, which follows the biggest devaluation of the yuan in two decades earlier this month, comes amid signs of decelerating growth for the world’s second-biggest economy. A rate cut failed to boost the market for a second straight time as stocks ended lower after the last reduction in June.-Intervention Cost-“The PBOC’s reserve-requirement ratio cut cannot make up for the loss of liquidity resulting from the yuan’s depreciation,” Chia Woon Khien, Singapore-based portfolio manager at Nikko Asset Management Asia Ltd., said in an interview in Bloomberg’s office in Shanghai. “If we’re lucky, China’s economy will start to recover from the fourth quarter.”The Hang Seng China Enterprises Index dropped for a ninth day, losing 0.9 percent at the close in Hong Kong, The Hang Seng Index slid 1.5 percent to a two-year low. The CSI 300 index fell 0.6 percent as losses for technology companies overshadowed gains for financial shares.Some Chinese officials argue that falling stocks will have a limited economic impact and the costs of supporting the market are too high, said one of the people, who asked not to be identified because deliberations are private. Officials who back intervention say tumbling shares pose a risk to the banking system, the people said.-Technical Indicators-Tom DeMark, who predicted this month’s selloff in Chinese stocks, said the Shanghai Composite Index may extend its decline by 13 percent should it stay below a critical technical level on Wednesday.A failure to close above 3,200, or almost 8 percent higher than Tuesday’s level, may open the way for a move to 2,590, which would be the lowest since November, according to DeMark, founder of DeMark Analytics. An advance above that level, however, would signal the stock rout may be over, he said.China’s margin debt has plunged by 1 trillion yuan ($156 billion) from its June peak as stock traders close out bets using borrowed money. Outstanding margin loans on the Shanghai and Shenzhen exchanges fell to about 1.25 trillion yuan on Monday from a record high of 2.27 trillion yuan on June 18.A gauge of technology companies in the CSI 300 fell 6.1 percent, the biggest loss among 10 industry groups. Hundsun Technologies Inc., which has a financial investment platform known as HOMS that allows trust firms and online lenders to provide leveraged trading facilities to clients, tumbled 10 percent. China Construction Bank Corp. paced gains for lenders, rallying 5.2 percent. Bank of Beijing Co. surged 9 percent.Littery Sentiment-“The struggle between gains and losses suggests that the market doesn’t really know what to make of the policy move yet,” said Bernard Aw, a strategist at IG Asia Pte. in Singapore. “There might be a chance we could see some consolidation in the markets before investors are confident enough to push higher.”Deutsche Bank AG recommended investors buy so-called H-shares on attractive valuations and an improving economic outlook. The Hang Seng China Enterprises gauge of mainland companies listed in Hong Kong will rally 37 percent by year-end, according to the analysts’ forecast.The central bank’s move “reaffirmed that the leadership’s policy priority is growth support,” strategists led by Yuliang Chang at Deutsche Bank wrote in a note on Tuesday. An above-average risk premium in H shares suggests “investors may have priced in some pretty bad scenarios. The market dipped and appeared oversold amid jittery sentiment.”
Greek president expected to formally call election on Friday-Reuters By Lefteris Papadimas-aug 26,15-yahoonews
ATHENS (Reuters) - Greek President Prokopis Pavlopoulos is expected on Friday to call a snap election for next month, an official at the presidency told Reuters, ending fruitless coalition efforts among parties deeply divided over the country's new bailout.Following last week's resignation of leftist Prime Minister Alexis Tsipras, Pavlopoulos asked a conservative and a radical left leader to try to form a new government and thereby avoid another election just seven months after the previous poll.The official stressed on Wednesday that the timetable could still change, but said Pavlopoulos intended to appoint a caretaker premier, Supreme Court judge Vassiliki Thanou, on Friday. Thanou would become Greece's first female prime minister, albeit briefly."The same day the president will announce the election date and it will probably be Sept. 20. The president wants the process to be fast and have elections as soon as possible," the official said.Tsipras, who during his seven months in office took Greece to the brink of financial collapse and exit from the euro, resigned in the hope of crushing a far-left rebellion in his Syriza party and strengthening his grip on power through a snap election.Syriza says it is aiming for an outright majority, although the strength of its support is unclear due to a lack of surveys by leading pollsters in the past month. Last week, 25 out of Syriza's 149 lawmakers walked out to form a new anti-bailout party.Tsipras had to rely on temporary support from the opposition to get the 86 billion euro ($98 billion) bailout program through parliament. Almost a third of Syriza lawmakers refused to back the deal, objecting to onerous austerity and reform conditions demanded by Greece's creditors from the euro zone and the International Monetary Fund.(writing by David Stamp; editing by Gareth Jones)
China probing brokers, regulators for possible stock crimes-Associated Press By JOE McDONALD-aug 26,15-yahoonews
BEIJING (AP) — Employees of one of China's biggest securities firms and one current and one former employee of its market regulator are under investigation on suspicion of illegal stock trading, state media reported Wednesday, amid the collapse of a stock price boom.Three other brokerages announced they are under investigation for possible violations of rules on confirming the identities of customers.China's main stock market index has fallen more than 40 percent since early June. On Wednesday, it fell another 1.2 percent, following declines of 8.5 percent on Monday and 7.6 percent on Tuesday.Authorities have accused securities firms of manipulating prices, suggesting the ruling Communist Party might be trying to deflect blame for the collapse, which angered small investors.Eight employees of state-owned Citic Securities Ltd., including one surnamed Xu, are suspected of "illegal securities trading," the Xinhua News Agency said. It gave no other details, but a leading Chinese business magazine, Caixin, reported on its website that Xu was the firm's managing director, Xu Gang.The police ministry announced July 12 investigators had found "evidence to suspect that individual trading companies are illegally manipulating securities and futures exchanges." It gave no details of which firms were targeted.The market benchmark soared more than 150 percent beginning late last year before hitting a June 12 peak and plunging. The downturn triggered complaints politically favored insiders profited at the expense of small investors. Beijing responded by barring large shareholders from selling and ordering executives to buy back any recently sold stock in their own companies.In a statement through the Hong Kong Stock Exchange, Citic Securities said it had received no notice of an investigation.Phone calls to Citic Securities' headquarters in Beijing weren't answered.The firm is part of Citic Group, the Cabinet's main holding company. It is best known abroad for its 2012 purchase of Hong Kong-based brokerage CLSA Asia-Pacific Markets from France's Credit Agricole for $1.25 billion in the first major foreign acquisition by a Chinese broker.Meanwhile, a staff member from the China Securities Regulatory Commission surnamed Liu and a former staff member are suspected of "insider trading and forging official documents and seals," Xinhua said. It gave no other details.A journalist surnamed Wang and several other people also are suspected of fabricating and spreading fake securities and futures trading information, the agency said.It gave no indication whether the cases were connected.Separately, three brokerages said they were under investigation for possible violation of "know your customer" rules. GF Securities, Haitong Securities and HTSC made their announcements through the Hong Kong Stock Exchange.In July, the securities regulator accused brokerages of improperly allowing customers to trade without giving their real names or to subdivide accounts to allow others to use them to trade. It ordered brokers to end the practice and to sever ties with unlicensed companies that lend money to finance trading.___AP Business Writer Kelvin Chan in Hong Kong contributed.
Business-Shares in disarray over China crisis-bbc news-aug 26,15
Wall Street shares have opened sharply higher, with the Dow Jones nearly 2% up, after losing ground on Tuesday.At the same time, European stock markets lost ground as fears persist of a China-led economic downturn.London's FTSE 100 was 1.4% lower in late afternoon trade, with markets in Paris and Frankfurt down by 1.3% and 1.2% respectively.Experts expect more market volatility until the Federal Reserve meets in September to set US interest rates."Until we get September out of the way, I think markets will continue to be choppy," said Michael Hewson, chief market analyst at CMC Markets."These are the sorts of swings that we last saw in 2008," he added.With the wild movements in global markets, Mr Hewson said he did not expect a rate rise out of the US next month, in part because of the central bank's mandate to maintain financial stability."I think they would be absolutely bonkers to raise rates now," he said.-China's economic slowdown-282%-China's debt to GDP ratio-$28 trillion-Debt has quadrupled since 20070.25% cut in key lending rate-5th interest rate cut since November-7% China's growth target for 2015-China contagion-On Tuesday, China's central bank cut its key lending rate by 0.25 percentage points to 4.6% in a bid to calm stock markets after the past days' turmoil.The dramatic losses and volatility in China have shattered investor confidence and led to sharp falls in Asia and the US over the past several sessions.The interest rate cut was the fifth by the People's Bank of China since November last year.The move is aimed at boosting China's growth long-term, rather than having an immediate impact on investors.Given China's central role in world trade, a slowdown in the world's second-largest economy would be likely to reverberate around the globe.A rate cut will make it cheaper for banks to borrow from the central bank and will in turn make it easier for businesses and private people to borrow money from those banks.On Wednesday, the Shanghai index fell 1.27% to 2,927.29, after veering in and out of negative territory.Analysis: Robert Peston, BBC business editor-In some ways I thought yesterday's events on markets were if anything more disturbing than Monday's global rout.Because if share-price gains could not hold after the significant monetary easing by China's central bank, then mistrust about the true state of the world's second largest economy (actually the number-one economy on the purchasing-power-parity measure of GDP) has become very pronounced indeed.And another thing, the Chinese interest rate cuts will exacerbate the phenomenon that has caused so much stress in so many different global markets, from commodities, to foreign exchange, to stocks and bond - the fall in the Chinese currency, the RMB, since it was allowed by Beijing to float more freely on 11 August.Optimism elsewhere-Elsewhere in Asia, the region's largest index, Japan's Nikkei 225 finished 3.2% higher on Wednesday at 18,376.83 points.The Nikkei's gains come after a painful week for the Tokyo index, which had shed more than 8% in the past two sessions.South Korea's Kospi index was also in positive territory, closing 2.6% higher at 1,894.29 points, while in Australia, the S&P/ASX 200 finished 0.7% up at 5,172.80.
Shanghai's index declines 1.3%, other Asian markets mixed after China's rate cut-aug 26,15-los angeles times By Jonathan Kaiman Reporting from Beijing
China’s Shanghai Composite dropped 1.3% on Wednesday after a volatile day of trading, bringing the benchmark index down to 2,927.29, its lowest point since December 2014.Chinese stocks have fallen about 16% over the past week, rattling markets worldwide as investors raise concerns about the Chinese leadership’s ability to prop up the country’s ailing economy. The Shenzhen Composite also fell 3.1% to 1,695.76 on Wednesday, while ChiNext, a Shenzhen-based exchange that hosts fast-growing enterprises, ended down 5.1%.China plays an increasingly central role in global trade — the country accounts for at least 15% of global output — and panic over the volatility of its markets has cut trillions of dollars from exchanges around the world, in both developed and emerging economies.On Tuesday, China’s central bank cut its key lending rate by 0.25 percentage points to 4.6% in an effort to end the rout. Yet investors in other Asian markets dumped shares on Wednesday afternoon over concerns that the stimulus measure was too little, too late.On Wednesday, Hong Kong's Hang Seng index lost 1.5%, while exchanges in New Zealand, Taiwan and Southeast Asia also saw modest losses. South Korea's Kospi index closed 2.6% higher, and Japan’s Nikkei index rose 3.2% after six days of declines.U.S. stocks rallied Tuesday and then fell sharply just before the closing bell; the Dow Jones industrial average fell 204.91 points, or 1.3%, extending Wall Street’s losing streak to six days."The seemingly endless issues confronting global markets remind us too much of the good old arcade game of Whack-A-Mole. Even as one problem retreats, another one seems to be lurking around and ready to spring up," Wellian Wiranto, an economist at Singapore's OCBC bank, said in a research note, according to Reuters."For one, renewed volatility in China and oil’s price slump have resurfaced to demand attention. Meanwhile, though the potential for Fed’s [interest rate] lift-off has receded somewhat, it remains a matter of time before it pops up again.”The Shanghai exchange endured a roller coaster trading day on Wednesday, gaining as much as 4.29% and losing as much as 3.85% throughout the day.The exchange had fallen by 8.5% on Monday and 7.6% on Tuesday, after an independent survey Friday revealed that China’s factory activity in August hit a 77-month low.In a sign that the plunge has rattled Chinese authorities, the country’s heavily censored media has either ignored or downplayed the tumult. On Tuesday, the Communist Party mouthpiece People’s Daily and the state broadcaster China Central Television’s prime-time national news broadcast did not even mention the two consecutive days of heavy losses.“Beijing has emphasized since last year that the real economy has entered a ‘new normal', a period of lower growth and deeper reforms,” the state newswire New China News Agency said in a Wednesday editorial. “Meanwhile, it is still growing fast at an enviable rate. Problems do exist, but worrying about a probable crisis is certainly overdone.”
China Anxiety Resurfaces to Torpedo Relief Rally in U.S. Stocks-Anna-Louise Jackson Joseph Ciolli-Updated on August 25, 2015 — 5:49 PM EDT-BLOOMBERG
A rebound that took the Dow Jones Industrial Average up more than 440 points disappeared in the final hours of trading, with investors giving in to trepidation over what will happen overnight in China amid the most volatile equity markets in four years.The 30-stock gauge ended down 204.91 points, or 1.3 percent, at 15,666.44 at 4:09 p.m. in New York, and 4 percent below its session high. The peak-to-trough retreat exceeded the loss at Monday’s close, when concern about global growth ignited the worst decline for U.S. shares in four years. The Standard & Poor’s 500 Index went from up 2.9 percent to down 1.4 percent, closing at 1,867.61 as most of the selling occurred after 2 p.m.“People are nervous about the potential volatility that could erupt or resurface in the market,” said Stephen Carl, principal and head equity trader at Williams Capital Group LP. “They’re not sure what’s going to happen overseas, and that uncertainty is winning out.”The unwinding disappointed bulls who earlier in the day staked hopes on China’s efforts to inject stimulus into its economy. The central bank today cut interest rates for the fifth time since November and lowered the amount of cash banks must set aside in an attempt to stem the country’s biggest stock market rout since 1996 and a deepening economic slowdown.-‘Technical Damage’-More than $2 trillion has been erased from American equity values since last Wednesday, breaking a calm in a stock market that before this week had gone almost four years without a 10 percent correction.“Investors are going to be keeping a keen eye on the Asian markets overnight and how they react to the rate cut,” said Walter “Bucky” Hellwig, who helps manage $17 billion as a senior vice president at BB&T Wealth Management in Birmingham, Alabama. “The weak last hour in the market wasn’t a good sign.”Stocks couldn’t avoid plumbing Monday’s depths in a chart phenomenon known as a retest, where the lowest levels of previous days starts to influence trader psychology. The S&P 500 has now lost 11 percent in five days, the worst stretch since August 2011, with a measure of market turbulence known as the VIX sitting at more than twice its average level for the past three years.“There’s still some technical damage that needs to be corrected, and there’s still some selling that needs to take place,” said Terry Morris, a senior equity manager who helps oversee about $2.8 billion at Wyomissing, Pennsylvania-based National Penn Investors Trust Co. “We’re not just going to slingshot back up.”-More Swings-Every industry in the S&P 500 ended with losses, with the biggest in utilities, phone companies, commodity shares and banks. About 10.4 billion shares traded hands on U.S. exchanges, 53 percent higher than the three-month average.After a day of wild swings, the S&P 500 lost 3.9 percent Monday. That capped a 7 percent two-day retreat, the most since December 2008, sending the index into its first correction since 2011. JPMorgan Chase & Co. today recommended buying at these levels. The Chicago Board Options Exchange Volatility Index slid 12 percent Tuesday to 36.02. The VIX surged as much as 90 percent Monday to touch the highest level since January 2009 before closing at a nearly four-year high.Investors continued to watch economic reports for clues on the timing of an interest-rate increase by the Federal Reserve. Data today showed purchases of new homes rebounded in July, bolstering signs the real-estate market is picking up. A separate report showed consumer confidence climbed more than forecast in August, reaching the second-highest level in eight years on more favorable views of the labor market.Traders are now pricing in a roughly one-in-four chance the central bank will act at its September meeting, from about 48 percent just before the yuan devaluation, as the rout in equity markets has shaken confidence that the global economy will be strong enough to withstand higher U.S. rates.Fed Bank of Atlanta President Dennis Lockhart said Monday he still expects a rate raise this year, while cautioning that a stronger dollar, a weaker Chinese yuan and falling oil prices complicate the outlook.
EU markets recover after China's Black Monday By Benjamin Fox-AUG 25,15-EUOBSERVER
BRUSSELS, Today, 20:30-After four days of market panic wiped 20 percent off the value of Chinese stocks, European markets rallied strongly on Tuesday (25 August).On the bourses of London, Frankfurt, and Paris, at least, Black Monday was followed by Turnaround Tuesday, as indices rose by 3.5 to 4.5 percent.Events in Shanghai had caused pandemonium on Monday, wiping $2.7 trillion (€2.3 trillion) off global share prices. European shares had their largest single-day fall since 2008 - the height of the financial crisis.On Tuesday morning (25 August), the People’s Bank of China (PBoC) reacted by introducing its fifth interest rate cut since last November. The bank reduced its one-year lending rate to 4.6 percent in a clear signal it’s prepared to head off a repeat of the stock market crash which hit the country in June.Despite the PBoC intervention, the benchmark Shanghai Composite fell by a further 7.6 percent on Tuesday, taking its losses over the past four trading days to more than 20 percent.The euro has also gained 3 percent against the dollar and sterling, although at $1.14 it is still slightly weaker than it was when the European Central Bank (ECB) announced its €1.1 trillion bond-buying programme in January.If this is confusing, it’s because there aren’t many signs that the European economy is actually that vulnerable to turmoil in the Far East. For example, the index on German business confidence has increased in August, indicating belief that its export-driven economy won’t be harmed.Europe is less dependent on Chinese imports and exports relatively little in return.Many of the container ships which ply the sea routes from Asia return there carrying empty boxes, or boxes full of recycled paper to make packaging for Chinese products.This means that a drop in spending by Chinese consumers, who saw their savings and pensions suffer a huge blow over the past week, shouldn’t hurt European firms too much.“What happened yesterday was purely panic,” said Commerzbank economist Peter Dixon.“We’re overplaying the impact the Chinese collapse would have on Europe. The risks are still high, and sentiment is still fragile”."Markets are beginning to realise this is a Chinese problem, not a European one,” he added. “These are specific issues which refer to fundamentals in other markets and do not reflect the situation in Europe”.For the time being, European economies are less likely to be hit by a slowdown in Chinese growth than the likes of Japan, Australia, and the US, whose firms have greater exposure to and higher investment in China.But in the long term, if the Chinese economy stagnates, European consumers will pay a price, particularly in countries whose economies are more reliant on borrowing and domestic consumer spending.China has been willing to buy large amounts of European and US debt while its economy was booming, but may be more reluctant to prop up Western borrowing if confidence evaporates at home.The China crisis has also underscored the continuing volatility in financial markets and the fact that the world’s largest trading blocs - China, the US, and Europe are significantly out of kilter with each other, both in terms of economic and monetary policy.The PBoC has cut interest rates five times since November.But the European Central Bank has been buying €60 billion of government and private bonds since March as part of a quantitative easing programme set to last until September 2016.By contrast, before the summer holidays most market analysts expected the US Federal Reserve to increase interest rates twice by Christmas.The Bank of England is also in line to raise rates, although in both cases, the uncertainty in China is now likely to delay rate increases.
China's Yuan Shock Gives Carry-Trade Crowd Worst Year Since '08-Ye Xie Liz McCormick-August 25, 2015 — 7:00 PM EDT-BLOOMBERG
China just gave investors one more reason to shun the most popular trading strategy in the $5.3 trillion-a-day currency market.Carry trades, or borrowing one currency cheaply to invest in a higher-yielding asset elsewhere, were already suffering the biggest losses since 2008 as the rout in emerging markets sent potential purchases tumbling. By cutting interest rates two weeks after its shock devaluation, China effectively crossed the yuan off investors’ shopping lists, too.Add to this a surge in volatility -- which is kryptonite for these transactions because it can wipe out the profit from the interest-rate differential -- and carry traders are finding fewer and fewer ways to make money. JPMorgan Private Bank and the asset-management unit of Bank of China both say the strategy’s best days are behind it.“It’s a terrible time to be long carry,” said Joseph Capurso, a Sydney-based currency strategist at Commonwealth Bank of Australia. “Increased volatility -- which I think we’ll stay with -- will continue to be terrible for carry. The period is over for carry trades.”A Deutsche Bank AG index tracking carry trade returns has plunged 13 percent this year, on track for its worst annual decline since the 2008 financial crisis.-Bear Markets-The losses accelerated in the past week as bear markets in equities around the world, combined with a plunge in oil and metals prices, sent currencies from South Africa’s rand to Mexico’s peso tumbling to records. They’re the sort of currencies investors tend to buy in carry trades because of their relatively high interest rates.A JPMorgan Chase & Co. measure of currency volatility meanwhile approached its highest level this year, further sapping carry returns.“Across the board, carry has been under pressure,” said Kristjan Kasikov, a London-based quantitative analyst at Citigroup Inc., the world’s biggest currency dealer. “Weakness in commodity prices has hit some of the high-yielding currencies quite hard.”One of the most popular carry trades in recent months was borrowing yen to buy Australian dollars, according to CBA’s Capurso. Investors would pocket the difference between Japan’s near-zero borrowing costs and Australia’s main rate, which at the start of the year was 2.5 percent.The deals started to lose money, he said, as weaker growth in China and falling raw-materials prices sent the Aussie tumbling toward this week’s six-year low versus the dollar. Investors in the carry trades would have lost 5 percent in August, wiping out a 4 percent profit in the second quarter.-China Trade-Buying the yuan with funds borrowed more cheaply elsewhere was one of the most reliable ways to make money earlier in the year as China held its currency at about 6.2 to the dollar.As recently as mid-June, BlackRock Inc., which oversees $4.7 trillion, was piling into the trade and predicting it would remain a good bet for the next year and a half. The deal had been popular for some time, with Deutsche Bank estimating that almost $800 billion had poured into yuan carry trades since 2010.The transaction turned sour on Aug. 11, when China unexpectedly devalued its currency to boost exports. Tuesday’s interest-rate cut, its fifth since November, further undermined the yuan, which traded at about 6.4 per dollar yesterday in New York.As a result, buying the yuan with borrowed dollars and euros would have lost about 5 percent since the devaluation, after gaining an average 4 percent annually over the previous four years, data compiled by Bloomberg show.-Swiss Shock-The People’s Bank of China isn’t the first central bank whose policy decisions upset the carry trade this year. Investors who took advantage of Switzerland’s negative interest rates were left nursing losses when officials abandoned their exchange-rate cap back in January, sending the franc soaring to a record and upending deals funded in the currency.Yet China’s twin policy shocks have had the biggest impact, investors say, if only because of the sheer amount of money poured into yuan carry trades.BOCHK Asset Management Ltd., a unit of Bank of China that overseas about $7.7 billion, says investors in the deals will probably take profits.The yuan was “the best carry-trade currency for years because of its low volatility,” said Ben Sy, head of fixed-income, currencies and commodities for Asia at JPMorgan Private Bank in Hong Kong. “Now, volatility has almost doubled. Definitely, people will unwind.”
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