BACKDOC: WHY DO WE WATCH WHAT THE MARKET DOES?
WHAT DOES IT HAVE TO DO WITH THE MONETARY REFORM?
THESE ARE GOOD QUESTIONS RIGHT? RIGHT!
CURRENCIES AND MARKETS ARE INSEPERABLY LINKED. YOU CAN'T AFFECT ONE WITHOUT THE OTHER.
WE CONTINUE TO WATCH THE FED FLOUNDER FOR MORE EXCUSES OF WHY THEY CONTINUE TO CHANGE THEIR NARRATIVE ON HOW THEY DECIDE THEIR MONETARY POLICY.
THEIR SEEMS TO BE CREDIBLE DEBATE ON WHETHER THERE WILL BE A RATE CHANGE IN APRIL.
SINCE THE G20 MEETING THERE HAS BEEN CURRENCY ADJUSTMENTS THAT MOVED OUR MARKETS.
WHILE THE DOLLAR STILL HAS STRONG PURCHASING POWER WE HAVE SEEN THE LARGEST MULTINATIONAL CORPORATIONS BUY BACK THEIR OWN STOCK ELEVATING THEIR STOCK VALUES. WHEN THAT ENDS OR WHEN EARNINGS START TO COME OUT SOON THE MARKET MAY FIND A NEW DIRECTION. WE WILL SEE.
I HAVE TO WONDER HOW THIS ALL MIGHT DOVETAIL WITH THE DECISIONS HAPPENING IN IRAQ THIS WEEK. MID APRIL COULD BE THE NEXT MOVE BY THE FED ON RATES.
IF WE SEE A LIVE RATE GLOBALY I WOULD BET THE FED GETS OFF THEIR HEELS AND STARTS MOVING ON RATES. TIME WILL TELL.
UNLESS THERE IS A GLOBAL EFFORT TO GRADUALLY MANIPULATE THE DOLLAR LOWER WE SHOULD SEE THE MARKET BEGIN TO REPRICE VALUE.
WITH EARNINGS EXPECTED TO BE IN DECLINE WE HAVE TO BELIEVE THE MONEY SUPPLY IS DROPPING WITH DEFLATION. DOC IMO
Mountainman: Well We KNOW this isn't going to Last.......The Ups and Downs Are Going to Eventually be More of A (DOWNER) as Time Arrives to It's ROLLER COASTER Plunge.....IMO.....As Doc says NOT If,but When OIL Shifts Away from the FIAT......Oh Buddy I feel for those Who are Baby Boomers and the "Next" in Line......for w/Out A Sound Plan......Even then......Your Stomach will End Up in Your THROAT on this RIDE......IMO
Thunderhawk: Backdoc Alert
Wall St. closes flat, five-week rally ends
U.S. stocks broke a five-week winning streak on Thursday with a strengthening dollar weighing on commodity-related shares.
The three major indexes closed mostly flat on the day, paring losses by the session's end.
"After the run that we've had ... I think it's natural for folks to take a deep breath and take some chips off the table," said Jeff Buetow, president of BFRC Services in Charlottesville, Virginia.
The Dow Jones industrial average .DJI rose 13.14 points, or 0.08 percent, to 17,515.73, the S&P 500 .SPX lost 0.77 points, or 0.04 percent, to 2,035.94 and the Nasdaq Composite .IXIC added 4.64 points, or 0.1 percent, to 4,773.51.
Stocks began to dip this week after comments by U.S. Federal Reserve officials, who raised expectations for more interest rate hikes in coming months than investors expected. St. Louis Fed President James Bullard was the latest to join a chorus of officials who highlighted the chance of at least two rate rises this year.
The possibility of more interest rate hikes pushed the dollar .DXY to a fifth day of gains, its best run since April. Oil and materials sectors dropped as a result.
Record crude stockpiles further weighed on oil prices.
"This market is still in some respect taking its cues from what's going on with the oil market and the dollar," said Chuck Carlson, chief executive at Horizon Investment Services.
The deadly bombing attacks in Brussels on Tuesday added to investors' uncertainty this week.
Meanwhile, the financial sector .SPSY was the biggest loser, falling 0.65 percent. UBS rated Wells Fargo stock a "sell," due to a cloudy revenue outlook and credit risks. Wells Fargo, JP Morgan Chase and Citigroup were among the biggest drags on the S&P 500 index Thursday. Six of the 10 major S&P sectors were higher, however, led by a 1-percent rise in telecommunication services.
Yahoo (YHOO.O) shares rose 0.2 percent after activist hedge fund Starboard Value LP moved on Thursday to overthrow the entire board of the technology company.
Staples (SPLS.O) shares were up 7 percent at $10.75 after a media report said a U.S. judge rebuked the Federal Trade Commission's legal tactics in the Staples and Office Depot merger case.
NYSE advancing issues outnumbered decliners 1,532 to 1,460, for a 1.05-to-1 ratio on the upside; on the Nasdaq, a 1.17-to-1 ratio favored advancers.
Volume was light on the last day of the holiday-shortened week. About 6.2 billion shares changed hands on U.S. exchanges, below the 8.0 billion daily average for the past 20 trading days, according to Thomson Reuters data.
The S&P 500 posted 10 new 52-week highs and 1 new low; the Nasdaq recorded 20 new highs and 54 new lows.
Indexes are well off their 2016 lows, thanks largely to evidence of a reviving U.S. economy and the recent sharp rebound in oil prices.
Mountainman: The HIGHWAY of the WATERWAYS will be A Tremendous BOOST to A Starving Country Ridden w/Debt.....and Unemployment.....
Plus Greece is Rich in Many Resources....GRAPHNE being One W/ Multiple Uses.....IMO
BACKDOC: THUNDER WE SAW THIS COMING ABOUT A YEAR AND A HALF AGO!
WE DEFINITELY SEE GREECE HEADED TO THE SILK ROAD. THERE SEEMS TO BE TIES TO ITALY, CATALONIA REGION (BARCELONA), CUBA, AND NOW EVEN GERMANY AS EVIDENCED BY THEM BUILDING A RAILWAY THROUGH EUROPE ALL THE WAY TO IRAN. GERMANY IS ALSO LOOKING TO BUILD A MERCEDES FACTORY IN IRAN AS WELL!
REMEMBER, GREECE IS A MAJOR PORT!
THERE IS BIG MONEY IN PORTS. REMEMBER IRAQ SAID THAT THE PORT OF FAW WOULD INCREASE THEIR GDP BY 30%! WOW! GREECE IS A POWERHOUSE OF TRADE WAITING TO HAPPEN! DOC IMO
Thunderhawk: Greek min.: No impediment to expansion of Iran-Greece relations
Athens, March 24, IRNA – Greek Minister of Shipping, Maritime Affairs and the Aegean, Theodoros Dritsas, on Thursday announced that his country wants all-out expansion of relations with Iran, considering no impediment on the way.
Dritsas told Iran's Ambassador to Greece Majid Motalebi Shabestari that there are abundant capacity for cooperation between the two countries in shipping and Greek shipping and ports can play an important role in transfer of Iranian energy and goods to the world markets.
He also urged exchange of views by Iranian and Greek authorities to expand the two-way cooperation.
The Iranian diplomat for his part pointed to recent visit of Greek Prime Minister Alexis Tsipras to Iran and described it as a turning point in bilateral relations. 'The road map of the two-way cooperation was agreed upon in the meeting and the framework and highlights of mutual cooperation, including in the area of shipping, were specified.'
He said mutual cooperation in the international organizations will expand.
BACKDOC: IRAN CONTINUES TO WORK ITS WAY TO WTO MEMBERSHIP! DOC IMO
Mountainman: Obviously Pakistan/Iran are both Seizing the BUSINESS.......Remember w/Global Trade and CORPORATE CONTROL of TRADE......Countries Are Scrambling to have their MONETARY PIPELINES Filled.....LOL.....So to Speak......Iran ain't Stupid either....
they are OPEN for said Business.....Let's Go......LOL.....Because here Comes Our SHIITE Brother down the Final Stretch=IRAQ Soon....IMO
Thunderhawk: Pakistan to trade with Iran in euros
Tehran, March 24, IRNA - Pakistani businessmen will open letters of credit (LCs) for imports from Iran in euros instead of dollars as some US sanctions are still in place that could obstruct payments to Tehran.
The State Bank of Pakistan (SBP) told the Ministry of Commerce and other stakeholders in a recent meeting that it was not possible at this stage to open LCs in dollars in trade with Iran, a senior officer in the ministry told The Express Tribune.
The central bank was of the view that businessmen could now start trade with Iran following the lifting of sanctions by the United Nations under a nuclear deal with the Islamic republic.
However, if LCs were opened in dollars, clearance from US intermediary bank would be needed, however, certain sanctions were still in place in US and that would cause trouble for the Pakistani businessmen.
This is the reason why the SBP has given advice that LCs for immediate trade must be opened in euros. There won’t be any such issue with the euro as any intermediary bank in the EU could clear the LCs, the officer said.
In this regard, the Ministry of Commerce and the State Bank are apprising the business community of the merits of trade in euros and a relevant seminar has also been arranged in the first week of next month in Karachi.
The officer suggested that instead of waiting for the removal of all sanctions, Pakistan must engage in trade deals with Iran with payments in euros. “We have informed the Iranian side about this option and hopefully LCs will be opened in coming days.”
Apart from this, the Ministry of Commerce is preparing certain trade proposals that will be shared with an Iranian delegation, led by President Hassan Rouhani, which is expected to arrive in Pakistan next week.
“Major focus will be on a five-year business road map as we have already shared a draft with the Iranian officials,” said the officer.
The commerce ministry sees significant opportunities for trade and investment with Iran that must be tapped.
Last week, a high-level meeting was held in the ministry where representatives of the Federal Board of Revenue, State Bank, ministries of finance, national food security and research and petroleum and natural resources discussed the avenues of commerce with neighboring countries.
Mountainman: Ok.......Do We really Think.....w/ALL these Deals w/ Multiple Countries.....that the WTO/WORLD isn't going to Make IT Happen after ALL the Negotiations......One Word=Please.....LOL......Come June......IRAN/IRAQ will be Singin a NEW TUNE.....IMO
Thunderhawk: British business secretary due in Iran next month
London, March 25, IRNA – British Secretary of State for Business, Innovation and Skills Sajid Javid has said he will visit Tehran next month at the head of a top-ranking trade and economic delegation.
Speaking during a meeting in London on Thursday with Iran’s Charge d’affaires in Britain Mohammad-Hassan Habibollahzadeh, Javid said that David Cameron’s government supports active presence of British companies in Iran and encourages further investment in the country.
Referring to the significance of Iran as an emerging market, he said that the upcoming visit to Tehran by the British delegation indicates Britain’s determination to boost trade with Iran.
He also voiced his country’s support for Iran’s jointing World Trade Organization.
Meanwhile, the Iranian diplomat reiterated that the UK government has to honor its commitments to the nuclear deal Iran reached last July with the six world powers including Britain – widely known as the Joint Comprehensive Plan of Action.
Mountainman: Well,Well......NOT "If"....but WHEN they Unveil the New (OIL REALITY).....Countries will be Grateful for the Deals Made w/Iran and Others......IMO
Thunderhawk: President Rouhani due in Austria in coming days
Tehran, March 25, IRNA – President Hassan Rouhani is due to visit Vienna at the head of a high-ranking delegation on March 30 upon an official invitation by his Austrian counterpart, a senior official at the presidential office said on Thursday.
Parviz Esmaeili, head of Communications and Publicity Affairs at the Presidential Office, said that the visit follows a visit to Tehran in September by the Austrian President Heinz Fischer.
During president Rouhani’s visit, a road map for cooperation will be finalized between Iran and Austria, Esmaeili said.
Apart from holding separate meetings with Austrian president and chancellor, Rouhani is scheduled to participate in an economic gathering also to be attended by his Austrian counterpart and representatives from private sector of the two countries, the official added.
The president will be accompanied by a number of his cabinet ministers and Iranian entrepreneurs from both public and private sectors.
Mountainman: Cmon Frankie.....I mean Oops....LOL....Cmon Japan.....These Negative Rates CREATE ZERO Incentitive for Customers.....In FACT I have read Many Articles About Japanese Citizens Buying Up Safes and Storing What they can at Home.....So What is that Telling You.....Banks......Yup....EVERYTHING.....IMO
Thunderhawk: Overwhelming Risks: Bank of Japan Considers Abandoning Negative Interest
The Bank of Japan (BOJ) has discussed the possible revocation of its negative rates policies just two months after having implemented them, as the move's negative effects couldn't be justified by its positive outcomes, suggesting that monetary stimulus has worn out.
The Bank of Japan (BOJ) introduced negative interest rates in January in an attempt to spur inflation and domestic borrowing, thereby stimulating overall economic growth. However, the move's collateral damage seems to have eclipsed the minuscule positive effects of the unprecedented policy easing.
A recent BOJ policy meeting in mid-March sparked a heated debate over the possible revocation of the negative rates policy, while the Japanese bond market is staggering amidst investors' reluctance to sell; bondholders are capitalizing on government-paid interest. Japan's financial indicators, consequently, do not reflect the trends in the real economy and are stirring a potentially hazardous situation, pressuring the BOJ to return its monetary policy to normal, even if it results in slower growth and lingering disinflation.
The BOJ released on Thursday the minutes of its March 14-15 policy meeting, and the document contains evidence of a heated debate within the nine-member board regarding the effects of the unprecedented negative rates policy it implemented in January.
Several of the board members admitted that the weak inflation and unfavorable global conditions impairing Japan's positions in international trade were still affecting economic growth. They also noted that negative rates had hardly helped propel the price index, hadn't resulted in a weakening of the yen's exchange rate, and hadn't spurred the domestic credit market.
Consequently, direct proposals to reverse the rates policy were voiced during the policy meeting, suggesting the BOJ might indeed return its monetary policy back to normality within several months.
"It's preferable to roll back the negative rate policy. But abandoning it immediately after introducing it would cause market confusion and risk eroding trust in the BOJ. With the effects still not clear, we should maintain the policy," one of the BOJ board members said.
Base BOJ interest rate has been at negative 0.1% since January, as the regulator was hoping charging commercial banks for holding money liquidity would prompt domestic lending, resulting in faster economic growth. Besides, lower interest rates were supposed to accelerate domestic inflation and trigger a selloff and subsequent devaluation of the yen, thus supporting Japan's exporters.
Thus far, none of that has happened, at least, not on a noticeable scale.
Japan's domestic inflation in faltering amidst low oil prices; prices for other global commodities has also remained low. The nation is a major importer of fuels and industrial metals, which are consumed by the huge Japanese manufacturing sector. While global raw material prices are low, any pickup in Japan's inflation is unlikely.
The yen, on the other hand, strengthened dramatically after January's outburst of volatility in global stocks. Currently the yen's FX rate stands at 112.82 per 1 USD, while Japanese exporters are most comfortable with last year's lows: 124-125 per 1 dollar.
The yen has risen because of its reserve-currency haven asset status, and this appreciation is painful for Japanese industries. However, negative interest rates have failed to wrestle down the global markets' rush into buying the yen.
Besides, negative rates resulted in banks accumulating Japanese Governmental Bonds (JGB) instead of money liquidity. Consequently, the bond market is suffering a massive decline in activity, as investors prefer sitting on bonds extracting interest rather than selling them.
"We hold a lot, and we're not selling," Yoshiyuki Suzuki of Tokyo-based Fukoku Mutual Life Insurance said. "We can get interest income. If we sell, there are no good alternatives."
Bond market volatility, meanwhile, skyrocketed to its 17-year peak, as the BOJ is still buying bonds within its broader quantitative easing program, whilst other bondholders are not selling. As prices soar, the yield is swinging wildly as the situation is unpredictable.
BOJ's current scale of bond-buying is $106 bln worth of JGB per month, but the regulator might be struggling fulfilling its target amidst lack of effective market supply.
Consequently, either the BOJ may reverse rates to spur bond selloffs by other market participants, with yield becoming higher eventually, or the Japanese government will issue new bonds, which market participants might not be willing to buy as negative interest rates imply contingent losses for holders of newer bonds.
These seem to be the limits of BOJ's monetary stimulus, and the regulator doesn't really have any better options than to withdraw its negative rates policy, possibly expanding the scale of its bond-buying in order to make up for a possible selloff in bonds.