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Platts had API at 300K barrs
The American Petroleum Institute late Wednesday reported that crude supplies rose by 2.1 million barrels for the week ended Sept. 4 , according to sources. Analysts polled by Platts forecast a climb of 300,000 barrels. October crude was at $44.15 a barrel on Globex, unchanged from on the New York Mercantile Exchange . Supply reports were delayed by a day because of the Labor Day holiday. The more closely watched Energy Information Administration report is due Thursday.
- Myra P. Saefong ; 415-439-6400; AskNewswires@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
09-09-15 1653ET
API crude build >
16:36 News Bot: US API Crude Oil Inventories (Sep 8) W/W +2100K vs. Prev. +7600K
Interesting since seemed to be expecting a build.
SLB sees long wait & Barron's spec
12:25 p ET
*UPDATE: Schlumberger Says Overcapacity in North America Will Significantly Delay Any Pricing Rebound
*8-K from Schlumberger Shows '16 Oilfield Services Outlook: Underlying 1H Activity Inline with 2H'15 Levels, Sees Continued Pricing Pressure in '16
11:25 a ET
*Barron's Blog Post Says ExxonMobil Could Buy Chevron
---------
8:46 EDT - Oppenheimer has been saying for a while it's a matter of time before Exxon (XOM) uses some of the huge amount of stock it repurchased over the years for a big acquisition amid the low oil-and-gas-price environment. But with shares recently hitting a 5-year low, how might XOM holders benefit? The investment bank notes the 3.8B shares the oil giant has in its treasury are worth $278B , 72% more than Shell's (RDSA) market cap and nearly double Chevron's (CVX). " Theoretically, if government regulators approve, XOM can acquire any of its large rivals at a 40% premium. Such a merger could reduce combined capex by more than 20% and operating costs by more than 40% while sharply reducing [XOM's] net- debt ratio. It would also significantly boost shareholder value for both companies." (kevin.kingsbury@wsj.com; @ kevinkingsbury)
FT piece on Saudi Asian share size
FT having a 'free day'.
http://www.ft.com/intl/cms/s/0/e28ce822-56f2-11e5-a28b-50226830d644.html
September 9, 2015 4:27 pm
Saudi oil maintains Asian market share
Anjli Raval, Oil and Gas Correspondent
A general view shows the Saudi Aramco oil facility in Dammam city©AFP
Saudi Arabia maintained its market share among Asian oil importers in the first half of this year but threats to its long-term standing loom, according to the US energy department.
The share of these crude oil imports from Saudi Arabia averaged 23.2 per cent from January to June, compared with 23.9 per cent in the same period in 2014, the Energy Information Administration said on Wednesday.
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The world’s largest crude exporter and biggest Opec producer “increased production and kept its export levels high, enabling it to maintain its market share”, the EIA said.
Saudi Arabia exported on average 4.4m barrels a day of crude oil to seven major trading partners in Asia in the first half of this year.
Total crude oil imports for these countries averaged 19.1m b/d, about 700,000 b/d higher than during the same period in 2014.
The kingdom’s import share to China (16 per cent), Japan (33 per cent), India (20 per cent), South Korea (33 per cent), Taiwan (33 per cent) and Thailand (19 per cent) were almost unchanged. Its share declined in Singapore, down to 18 per cent from 26 per cent.
Previously during periods of oversupply, Saudi Arabia has adjusted its production to bolster prices. But last November the kingdom led a decision by the Opec producers’ cartel not to cut output and instead focus on maintaining its market share among core customers.
Saudi Arabia’s output rose sharply in the first six months of the year to 10.6m b/d in June, according to the JODI oil database. Exports, meanwhile, have fluctuated between 7m-8m b/d, with Asia making up more than half of the total.
Higher output from countries such as Saudi Arabia has taken Opec’s collective production to more than 31m b/d. Although the kingdom’s production has since retreated, the cartel’s output remains above its 30m b/d target.
Big Asian importers have bolstered oil demand growth in recent years, and have been courted by the Saudi Arabia and other Opec producers keen to find buyers for their crude in a well supplied market.
But the EIA said long-term trends within Saudi Arabia’s energy sector may reduce its global crude market share.
“Saudi Arabia has invested heavily in its refining sector in an effort to reduce petroleum product imports, decrease its reliance on using crude oil for power generation, and shift towards exporting more petroleum products,” the body said.
If the Saudi Arabia continues to use more of its crude for its refineries the amount it will be able to export may decline, “reducing its crude oil market share not only in Asia but in other regions”, the EIA added.
Growing competition from other countries also turning to Asia, including Russia and Iran, could also displace Saudi Arabian barrels, the EIA said.
Brent crude, the international benchmark, dropped to $42 a barrel last month — the lowest since the financial crisis — putting renewed focus on Opec’s strategy. In volatile trading, the price has since rebounded to almost $50 a barrel.
Bassam Fattouh, director of the Oxford Institute for Energy Studies, however said: “I don’t see them changing policy because of the current squeeze.
“If we are going to rely on prices to clear excess supplies, it is going to take time,” he said.
hmm S&P 500 vs Energy Sector
11:30am et Energy crossed lower than SP as both fell. Now both slightly showing some bottoming action past hour on bit of rise.
-------------
Energy
The Energy sector is down today, losing 1.08%, with all of its underlying industries lower. Energy Equipment & Services is weakest, falling by 1.37%. Over the last month, the Energy sector is down by 6.22%, led lower by Oil, Gas & Consumable Fuels and Energy Equipment & Services industries, which are off 6.41% and 4.59% respectively.
Fed rise impacting markets. CNBC coverage coming up.
*MW Oct. crude drops $1.79, or 3.9%, to settle at $44.15/bbl on Nymex
CNBC said both Saudis & EIA saying supply glut continuing. MRO -8% @15.
With overall market & oil trading hand & glove today it appears fear of what happens once Feddy does kick. Worse case is US slows down, world slows down, who needs oil then.
When I saw China boosting infrastructure spend and oil didn't test even 1.25 that's game over for now.
----------
Dollar Gains as Investors Bet China Moves Push Fed Closer to Rate Increase
Today 1:38 PM ET (Dow Jones)Print
By Ira Iosebashvili
The dollar gained against the euro and yen Wednesday, as investors bet that additional measures by China to stabilize its economy would bring the Federal Reserve closer to raising interest rates in the U.S.
The Wall Street Journal Dollar Index, which gauges the greenback against a basket of 16 currencies, was recently up 0.3% at 88.94.
China is ready to roll out a "more forceful" fiscal policy to stimulate economic growth, such as allocating more funds for infrastructure projects and tax cuts for small businesses, the country's finance ministry said late Tuesday.
Uncertainty about Chinese growth has roiled equity markets around the world and fueled speculation that the global economy was too fraught with risk for the Fed to raise interest rates in coming months. Higher U.S. rates are seen as a boon to the dollar, as they make the currency more attractive to yield-seeking investors.
"If we see some of this negative market volatility abate, that could potentially clear the way for a rate increase," said Joe Manimbo, senior market analyst at Western Union.
The Fed is set to conclude its monetary policy meeting on Sept. 17.
The euro was recently down 0.4% at $1.1154. The dollar was up 1.1% against the yen at Yen121.10.
Write to Ira Iosebashvili at ira.iosebashvili@wsj.com
(END) Dow Jones Newswires
September 09, 2015 13:38 ET (17:38 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
yw k. $5 post R/S for more?
Considering the way this hangs @ the buck and has tested near .70 already, I'm thinking half the buck post split is $5 to reload. Would regain some of that recent $1.50 pop that was on really no big news. $5 to $11.50
Gonna be a struggle. DWTI just hit 120.
Cramer had Core Labs energy CEO, video
$70-80 WTI by eoy he says? 7 min vid.
http://finance.yahoo.com/video/core-labs-ceo-us-oil-221500092.html;_ylt=A0SO80OD7b9VycYA629XNyoA;_ylu=X3oDMTEyYzI1Y2lzBGNvbG8DZ3ExBHBvcwMxBHZ0aWQDQjAzODZfMQRzZWMDc3I-
Core Labs CEO: US oil production to fall
CNBC Videos by CNBC Videos
7:38 mins
Core Laboratories Chairman and CEO David Demshur, discusses U.S. oil production, and whether the price of oil has reached a bottom.
------------------
Above came from a stocktwits link.
$UWTI $USO $CLB David Demshur called the decline in prod in June saying production peaked in April and will fall finance.yahoo.com/video/cor.
Econoday still has Thurs for EIA. Yahoo piece on crude
http://mam.econoday.com/byweek.asp?cust=mam&lid=0
There have been times when delay occurs.
---------------
small bit on Yahoo covering crude projections
http://finance.yahoo.com/news/us-crude-oil-prices-fell-130953531.html
----------------
and these guys have Thurs for data too but not sure where they base the date from, could be Econoday for all I know.
http://leavittbrothers.com/blog/index.php/2015/09/05/economic-numbers-sep-7-11/
Assume u mean financials supporting energy?
Or do u mean the firm bottom refers to the financial sector itself.
Mike P comment tonight. He liked the day's action in total. Singled out:
China ETNs also strong day. Tonight's early Asian action good so far.
Taiwan plus to 3%.
Midstates Petroleum Company, Inc. (MPO) had an interesting day, up 2.07 to 7.15, or 41%, on 1.8 million shares traded, reaching as high as 7.50 late in the day.
Mike Paulenoff crude still action to upside
@1pm ET MP is solid trader. See his results for USO calls.
https://www.mptrader.com/middayminute/ See Chart
NYMEX Oil Technical Set-Up Still Argues for Unfinished Biz to the Upside
By Mike Paulenoff
All of the action off of the Aug 24 low at $37.75 has the right look of the initial upleg of an incomplete recovery-rally period.
The Aug 31 high of $49.33 represents the initial-upside thrust of the recovery period, followed by several sessions of sideways (though volatile) digestion, which should be followed by another upside pop that confronts the major-resistance line off of the July 2014 highs ($105- $108), now at $52.20.
Bizinsider on China commod sets the tone
Starting to wonder what happens if US consumers get it into heads that another Great Recession looms on global scale. Bad enough US housing imploded back then. This condition would be broader in the end. Just so far impacts energy job cuts & failures.
http://e.businessinsider.com/view/4bb22379e3065cb907b4e3a255ecc179e661f0a86d1fdaf6/61df7741
Quick piece & chart comparing countries commod consumption.
Why China's slowdown is a nightmare for commodities, in one chart
by Elena Holodny on Sep 6, 2015, 6:43 PM
China is slowing down.
The country has been front and center over the last few weeks, with its volatile stock market and its newly devalued currency.
But, importantly, this decline isn't an isolated event.
Since China is such a big player in the global economy, and a major trading partner of many countries, its slowdown will inevitably hit other countries. And HSBC economists point out that commodities are a particularly vulnerable sector in this stagnating climate.
"Given China's role as the world's biggest commodity consumer, any slowdown adversely affects prices significantly. Copper prices are down more than 20% from recent highs, and oil is down roughly 40%," writes HSBC economist James Pomeroy.
Take a look below just how thirsty China is for commodities:
Bizinsider on China commod sets the tone
http://e.businessinsider.com/view/4bb22379e3065cb907b4e3a255ecc179e661f0a86d1fdaf6/61df7741
Quick piece & chart comparing countries commod consumption.
Why China's slowdown is a nightmare for commodities, in one chart
by Elena Holodny on Sep 6, 2015, 6:43 PM
China is slowing down.
The country has been front and center over the last few weeks, with its volatile stock market and its newly devalued currency.
But, importantly, this decline isn't an isolated event.
Since China is such a big player in the global economy, and a major trading partner of many countries, its slowdown will inevitably hit other countries. And HSBC economists point out that commodities are a particularly vulnerable sector in this stagnating climate.
"Given China's role as the world's biggest commodity consumer, any slowdown adversely affects prices significantly. Copper prices are down more than 20% from recent highs, and oil is down roughly 40%," writes HSBC economist James Pomeroy.
Take a look below just how thirsty China is for commodities:
Thanks TS
Haven't read their articles in a while. Only concern about Saudis the writer didn't seem to stress is what a few of the postings here are mentioning. There's the need for SA to fund their Yemen activities.
The US supplies some war material to SA, as Russia does to Iran & Syria but for some reason the Royal Family has to cope with a small size population that contains a bunch of types who would go on warpath inside the ranch were they not bought off. More dough to keep it quiet.
I still come back to how the global economic tone is setting the levels for time being rather than in the oil spike/freezings days. Waiting to see what Fed does and how that is handled by players.
Rough side of me figures 100 to 40 would seem 75 is mid-range once stable readings obtained. Otherwise it's the old 40 to 20 days. Just doesn't feel like a 100 to 20 so quickly is in the cards. If it were I'd be smelling flop sweat in markets by now.
Even the housing glut gave serious signals pre bust. Energy is dealing with this round by job cuts and consolidations. Housing did undergo a job crush but precious little consolidation so took years to get somewhat back to even 'normal'.
Energy has had mega boom bust cycles that housing rarely did allowing it to go overboard. Seems energy already gone overboard hence not lot left to work with. Usually that is when floor is in for the sector. We'll see signs soon enough.
UWTI >$1.2B past 6 months draws swingers
Get that feeling if/when this turns it's gonna be a beastmaster just from the sheer weight initially. Course that thins out as higher buyers will bail once get even again. But this heavy inflow does offer hint of where market thinks crude will go forward.
My reasoning always was that for oil to race higher fast the overall economy needs mass thought that the machines were full out. Only then can the controlling powers figure they can jack prices since buyer can withstand the rise.
Right now the economy thought seems to be slow simmer ergo, simmer crude prices. If Fed bumps Sept, players will figure Ok someone thinks economy strong enough to take higher prices.
Article mentions ETNs getting action from swing traders, another sign of the simmer until the group think believes it's go time. Then getting a ticket on pulling out train will get super pricey. Likely know when prices start 0.35 to 0.50 moves at first and widen from there. First $1 day and party time. Or whole thing goes in dumpster as Paul Ryan would have it.
-----------------------------
http://www.etftrends.com/2015/09/leveraged-etfs-are-popular-plays-among-swing-traders/
For instance, the VelocityShares 3x Long Crude ETN (NYSEArca: UWTI), which tracks three times or 300% the daily performance of WTI crude, has attracted over $1.2 billion in net inflows over the past six months, according to Lipper data. UWTI now sees more action than Apple (NasdaqGS: AAPL), Bank of America (NYSE: BAC) and other prominent stock names – UWTI volume jumped over 300 million shares Monday, and volume was at around 76.1 million mid-Friday after the ETN dipped 3.2%.
While the leveraged aspect of these geared products may produce greater returns, investors are exposed to greater risks as well. Many traders have also recently picked up the products as a way to play larger swings.
AH energy bits Teco, Canada, & Arg-Gazprom
Teco Energy shares jump after Emera buyout offer
Today 5:00 PM ET (MarketWatch)
Teco Energy Inc. (TE) shares jumped in the extended session Friday after Canada-based energy company Emera Inc. said it was buying Teco for $10.4 billion. Teco shares surged 28% to $26.99. The deal offers to pay Teco shareholders $27.55 a share. Teco provides electric and gas utilities in Florida and New Mexico. The $10.4 billion purchase price includes $3.9 billion of Teco's debt. Emera expects to close the deal by mid-2016.
-Wallace Witkowski; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 04, 2015 17:00 ET (21:00 GMT)
Toronto Stocks Close Lower as Resources Fall
Today 4:36 PM ET (Dow Jones)Print
By Ben Dummett
TORONTO--Canadian stocks ended lower Friday amid weakness in resource stocks, as investors shrugged off signs of an improving domestic economy and focused on declining copper, gold and crude prices.
The S&P/TSX Composite Index fell 118.10 points, or 0.87%, to 13,478.31, and declines exceeded advances 914 to 596. Trading volume was 227.4 million shares, down from Thursday's total of 308 million shares. Trading activity was slower than normal because many investors abandoned the market early to get a jump on the long weekend. Markets are closed Monday in observance of Labor Day.
The blue chip S&P/TSX 60 Index closed down 7.47 points, or 0.93%, to 792.56.
Canada's jobs market improved by 12,000 positions in August, easily exceeding expectations that the country would lose 5,000 jobs. That offered some proof the economy may not be as weak as believed amid the fallout from prolonged weakness in Canada's oil patch.
Still, that possibility didn't cheer equity investors. Most sector groups fell, with the materials group down 0.7%. Barrick Gold dropped 0.4% as bullion prices weakened amid rising fears of an interest-rate hike in the U.S. after that country's latest labor data showed a strengthening jobs market.
Rising rates make gold less appealing because it doesn't generate yield income.
Among copper producers Teck Resources dropped 9.3% after a stronger U.S. dollar weighed on the price of the industrial metal. Copper is priced in U.S. currency. That means the metal is more expensive for Asian and European investors when the greenback strengthens.
Toronto's energy sector fell 0.7%, following crude prices lower. Canadian Oil Sands dropped 2.9%
In other trading, BlackBerry fell 2% despite acquiring Good Technology for $425 million to bolster its offerings of mobile security software.
Write to Ben Dummett at ben.dummett@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 04, 2015 16:36 ET (20:36 GMT)
Argentina's YPF SA (YPF, YPFD.BA) and Russia's OAO Gazprom signed an agreement Friday that could lead them to jointly develop unconventional gas projects in the South American country. The deal comes as YPF energetically courts foreign investment in Argentina's energy sector, which is home to the biggest unconventional oil and gas development outside North America. Gazprom, the world's leading player in conventional gas, is looking to expand oil and gas projects around the world. ADRs rose 0.93% to $21.79.
-30 -
(MORE TO FOLLOW) Dow Jones Newswires
September 04, 2015 16:47 ET (20:47 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc
Barron's Blog on UWTI 1-10 R/S
fwiw XLE holds on bit up off lod back to near 64. Also given the USD/Oil dynamic:
SPECULATORS FURTHER CUT U.S DOLLAR LONGS TO SMALLEST IN MORE THAN A YEAR - CFTC AND REUTERS
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3X Crude Oil ETF To See 1-For-10 Reverse Split -- Barron's Blog
Souped-up oil and gas exchange-traded notes are so bombed out that prices are being reset.
Credit Suisse announced this week that VelocityShares 3x Long Crude Oil ETN ( UWTI) will see a 1-for-10 reverse split, meaning that holders will get ten shares for every one that they own. The VelocityShares 3x Long Natural Gas ETN ( UGAZ), meanwhile, will see a 1-for-5 reverse split. Both are effective on Sept. 10 .
These ETNs are highly volatile and are marketed to short-term traders. Woe to anyone caught holding UWTI for longer than even a few days -- it's down 75% so far this year, now trading at just $1.20 a share.
Splits are a form of housekeeping by ETF providers. The splits will not change the value of a shareholder's investment, but traders don't want a fund that's too pricey. Investors will get 10 or five ETN units for every one they own. While splits are generally a wash economically, fractional shares that can lead to unplanned gains (or losses) and, thus, unplanned tax events.
More at Barron's Focus on Funds blog, http://blogs.barrons.com/focusonfunds/
(END) Dow Jones Newswires
09-04-15 1527ET
Copyright (c) 2015 Dow Jones & Company, Inc.
http://blogs.barrons.com/focusonfunds/2015/09/04/3x-crude-oil-etf-to-see-1-for-10-reverse-split/?mod=yahoobarrons&ru=yahoo
UWTI consoldates. BH rigs -13 to 662
The U.S. oil-rig count fell by 13 to 662 in the latest week, breaking six consecutive weeks of increases, according to Baker Hughes Inc.
The number of U.S. oil-drilling rigs, which is a proxy for activity in the oil industry, has fallen sharply since oil prices headed south last year. The rig count dropped for 29 straight weeks before climbing modestly in recent weeks.
Despite recent increases, there are still about 59% fewer rigs working since a peak of 1,609 in October.
According to Baker Hughes , gas rigs were unchanged at 202.
The U.S. offshore rig count is 33 in the latest week, up three from last week and down 32 from a year earlier.
For all rigs, including natural gas, the week's total was down 13 to 864.
Write to Angela Chen at angela.chen@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
09-04-15 1316ET
Copyright (c) 2015 Dow Jones & Company, Inc.
BH rig count -13 to 662 Y/Y @-59%
The U.S. oil-rig count fell by 13 to 662 in the latest week, breaking six consecutive weeks of increases, according to Baker Hughes Inc.
The number of U.S. oil-drilling rigs, which is a proxy for activity in the oil industry, has fallen sharply since oil prices headed south last year. The rig count dropped for 29 straight weeks before climbing modestly in recent weeks.
Despite recent increases, there are still about 59% fewer rigs working since a peak of 1,609 in October.
According to Baker Hughes , gas rigs were unchanged at 202.
The U.S. offshore rig count is 33 in the latest week, up three from last week and down 32 from a year earlier.
For all rigs, including natural gas, the week's total was down 13 to 864.
Write to Angela Chen at angela.chen@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
09-04-15 1316ET
Copyright (c) 2015 Dow Jones & Company, Inc.
Yes -13 to 662
The U.S. oil-rig count fell by 13 to 662 in the latest week, breaking six consecutive weeks of increases, according to Baker Hughes Inc.
The number of U.S. oil-drilling rigs, which is a proxy for activity in the oil industry, has fallen sharply since oil prices headed south last year. The rig count dropped for 29 straight weeks before climbing modestly in recent weeks.
Despite recent increases, there are still about 59% fewer rigs working since a peak of 1,609 in October.
According to Baker Hughes , gas rigs were unchanged at 202.
The U.S. offshore rig count is 33 in the latest week, up three from last week and down 32 from a year earlier.
For all rigs, including natural gas, the week's total was down 13 to 864.
Write to Angela Chen at angela.chen@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
09-04-15 1316ET
Copyright (c) 2015 Dow Jones & Company, Inc.
Quick piece, chart on short cover & profits
Interesting also how DWTI seems to head bump at $200. hmm Art Cashin mentioning short covering too & Asia being off market. He still sees need for a stock market 'retest of lows' after this ongoing consolidation, then recovery and oil takes off with that.
http://finance.yahoo.com/news/crude-oil-prices-volatile-due-150753244.html
Crude Oil Prices Volatile Due to Short Covering and Profit Booking
Only cash comp at R/S for partials to yur broker acct. em
notice UWTI, inverse DWTI, to do R/S 1:10
DWTI slight rise AH $109. There's a new method to account for crude inventories that may impact for couple months. /CLV5 bit dip AH $46.
The NASDAQ-100 finished as the outperforming index given its lack of energy names amid the largest build in US Crude Oil Inventories (4667K vs. Exp. 900K) in 19 weeks which initially weighed on WTI.
--------
UWTI & UGAZ ETNs R/S 1:10 & 1:5 as of 9/10
Credit Suisse AG Announces the Reverse Splits of its UWTI and UGAZ ETNs
PR Newswire Credit Suisse AG
7 minutes ago
????
NEW YORK, Sept. 2, 2015 /PRNewswire/ -- Credit Suisse AG announced today that it will implement a 1-for-10 reverse split of its VelocityShares™ 3x Long Crude Oil ETN ("UWTI") and a 1-for-5 reverse split of its VelocityShares™ 3x Long Natural Gas ETN ("UGAZ"), each expected to be effective as of September 10, 2015.
The reverse splits will be effective at the open of trading on September 10, 2015 and UWTI and UGAZ will each begin trading on the NYSE Arca on a reverse split-adjusted basis on such date. Holders of UWTI and UGAZ who purchased the ETNs prior to September 10, 2015 will receive one reverse split-adjusted ETN for every ten pre reverse-split UWTI ETNs and one reverse-split adjusted ETN for every five pre reverse-split UGAZ ETNs, respectively. In addition, such purchasers that hold a number of units of ETNs not evenly divisible by ten or five, as applicable, will receive a cash payment for any fractional number of units remaining of such series of ETNs (the "partials"). The cash amount due on any partials will be determined on September 17, 2015 based on the respective closing indicative values of UWTI and UGAZ on such date and will be paid by Credit Suisse AG on September 18, 2015.
The closing indicative value of UWTI on September 9, 2015 will be multiplied by ten to determine its reverse split-adjusted closing indicative value, and the closing indicative value of UGAZ on September 9, 2015 will be multiplied by five to determine its reverse split-adjusted closing indicative value. Following the reverse splits, UWTI and UGAZ will have new CUSIPs but will retain their same ticker symbols.
The reverse splits will affect the trading denominations of UWTI and UGAZ but they will not have any effect on the principal amounts of the underlying notes, except that the principal amounts will be reduced by the corresponding aggregate amount of any cash payments for "partials."
None of the other ETNs offered by Credit Suisse AG are affected by these announcements.
Reverse Split
Ticker Symbol
CUSIP / New CUSIP
VelocityShares™ 3x Long Crude Oil ETN due February 9, 2032
UWTI
22542D589 / 22542D399
VelocityShares™ 3x Long Natural Gas ETN due February 9, 2032
UGAZ
22542D571 / 22542D381
Credit Suisse AG
Credit Suisse AG is one of the world's leading financial services providers and is part of the Credit Suisse group of companies (referred to here as 'Credit Suisse'). As an integrated bank, Credit Suisse offers clients its combined expertise in the areas of private banking, investment banking and asset management. Credit Suisse provides advisory services, comprehensive solutions and innovative products to companies, institutional clients and high net worth private clients globally, as well as to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 46,600 people. The registered shares (CSGN) of Credit Suisse's parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.
Logo - http://photos.prnewswire.com/prnh/20091204/CSLOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/credit-suisse-ag-announces-the-reverse-splits-of-its-uwti-and-ugaz-etns-300137173.html
True, notice a week to go
hmm in past most 1:10 I've seen in past @$1 fall to 0.35 or so but ETNs can be diff. TVIX did one recently and one could make out on it.
The wide swings here could see CS try to get it to 1.50 - 2.00 just for a decent higher number.
Be embarrassing as hell if fell to 0.35 even 0.50 would be chicken feed leading to another R/S quickly as crude tests $20-30.
Very uncommon to give a 'lead time'. The few who do were generally higher in the end pre & post split day.
UWTI & UGAZ ETNs R/S 1:10 & 1:5 as of 9/10
Credit Suisse AG Announces the Reverse Splits of its UWTI and UGAZ ETNs
PR Newswire Credit Suisse AG
7 minutes ago
????
NEW YORK, Sept. 2, 2015 /PRNewswire/ -- Credit Suisse AG announced today that it will implement a 1-for-10 reverse split of its VelocityShares™ 3x Long Crude Oil ETN ("UWTI") and a 1-for-5 reverse split of its VelocityShares™ 3x Long Natural Gas ETN ("UGAZ"), each expected to be effective as of September 10, 2015.
The reverse splits will be effective at the open of trading on September 10, 2015 and UWTI and UGAZ will each begin trading on the NYSE Arca on a reverse split-adjusted basis on such date. Holders of UWTI and UGAZ who purchased the ETNs prior to September 10, 2015 will receive one reverse split-adjusted ETN for every ten pre reverse-split UWTI ETNs and one reverse-split adjusted ETN for every five pre reverse-split UGAZ ETNs, respectively. In addition, such purchasers that hold a number of units of ETNs not evenly divisible by ten or five, as applicable, will receive a cash payment for any fractional number of units remaining of such series of ETNs (the "partials"). The cash amount due on any partials will be determined on September 17, 2015 based on the respective closing indicative values of UWTI and UGAZ on such date and will be paid by Credit Suisse AG on September 18, 2015.
The closing indicative value of UWTI on September 9, 2015 will be multiplied by ten to determine its reverse split-adjusted closing indicative value, and the closing indicative value of UGAZ on September 9, 2015 will be multiplied by five to determine its reverse split-adjusted closing indicative value. Following the reverse splits, UWTI and UGAZ will have new CUSIPs but will retain their same ticker symbols.
The reverse splits will affect the trading denominations of UWTI and UGAZ but they will not have any effect on the principal amounts of the underlying notes, except that the principal amounts will be reduced by the corresponding aggregate amount of any cash payments for "partials."
None of the other ETNs offered by Credit Suisse AG are affected by these announcements.
Reverse Split
Ticker Symbol
CUSIP / New CUSIP
VelocityShares™ 3x Long Crude Oil ETN due February 9, 2032
UWTI
22542D589 / 22542D399
VelocityShares™ 3x Long Natural Gas ETN due February 9, 2032
UGAZ
22542D571 / 22542D381
Credit Suisse AG
Credit Suisse AG is one of the world's leading financial services providers and is part of the Credit Suisse group of companies (referred to here as 'Credit Suisse'). As an integrated bank, Credit Suisse offers clients its combined expertise in the areas of private banking, investment banking and asset management. Credit Suisse provides advisory services, comprehensive solutions and innovative products to companies, institutional clients and high net worth private clients globally, as well as to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 46,600 people. The registered shares (CSGN) of Credit Suisse's parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.
Logo - http://photos.prnewswire.com/prnh/20091204/CSLOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/credit-suisse-ag-announces-the-reverse-splits-of-its-uwti-and-ugaz-etns-300137173.html
UWTI & UGAZ R/S 1:10 & 1:5 as of 9/10
Credit Suisse AG Announces the Reverse Splits of its UWTI and UGAZ ETNs
PR Newswire Credit Suisse AG
7 minutes ago
????
NEW YORK, Sept. 2, 2015 /PRNewswire/ -- Credit Suisse AG announced today that it will implement a 1-for-10 reverse split of its VelocityShares™ 3x Long Crude Oil ETN ("UWTI") and a 1-for-5 reverse split of its VelocityShares™ 3x Long Natural Gas ETN ("UGAZ"), each expected to be effective as of September 10, 2015.
The reverse splits will be effective at the open of trading on September 10, 2015 and UWTI and UGAZ will each begin trading on the NYSE Arca on a reverse split-adjusted basis on such date. Holders of UWTI and UGAZ who purchased the ETNs prior to September 10, 2015 will receive one reverse split-adjusted ETN for every ten pre reverse-split UWTI ETNs and one reverse-split adjusted ETN for every five pre reverse-split UGAZ ETNs, respectively. In addition, such purchasers that hold a number of units of ETNs not evenly divisible by ten or five, as applicable, will receive a cash payment for any fractional number of units remaining of such series of ETNs (the "partials"). The cash amount due on any partials will be determined on September 17, 2015 based on the respective closing indicative values of UWTI and UGAZ on such date and will be paid by Credit Suisse AG on September 18, 2015.
The closing indicative value of UWTI on September 9, 2015 will be multiplied by ten to determine its reverse split-adjusted closing indicative value, and the closing indicative value of UGAZ on September 9, 2015 will be multiplied by five to determine its reverse split-adjusted closing indicative value. Following the reverse splits, UWTI and UGAZ will have new CUSIPs but will retain their same ticker symbols.
The reverse splits will affect the trading denominations of UWTI and UGAZ but they will not have any effect on the principal amounts of the underlying notes, except that the principal amounts will be reduced by the corresponding aggregate amount of any cash payments for "partials."
None of the other ETNs offered by Credit Suisse AG are affected by these announcements.
Reverse Split
Ticker Symbol
CUSIP / New CUSIP
VelocityShares™ 3x Long Crude Oil ETN due February 9, 2032
UWTI
22542D589 / 22542D399
VelocityShares™ 3x Long Natural Gas ETN due February 9, 2032
UGAZ
22542D571 / 22542D381
Credit Suisse AG
Credit Suisse AG is one of the world's leading financial services providers and is part of the Credit Suisse group of companies (referred to here as 'Credit Suisse'). As an integrated bank, Credit Suisse offers clients its combined expertise in the areas of private banking, investment banking and asset management. Credit Suisse provides advisory services, comprehensive solutions and innovative products to companies, institutional clients and high net worth private clients globally, as well as to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 46,600 people. The registered shares (CSGN) of Credit Suisse's parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.
Logo - http://photos.prnewswire.com/prnh/20091204/CSLOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/credit-suisse-ag-announces-the-reverse-splits-of-its-uwti-and-ugaz-etns-300137173.html
API # hits oil AH
Oil futures fell on Globex late Tuesday after the American Petroleum Institute reported that crude supplies jumped 7.6 million barrels for the week ended Aug. 28 , according to sources. A Platts survey of analysts forecasted a decline of 800,000 barrels. Following the data, October crude was at $44.44 a barrel in electronic trading, down from the $45.41 . The more closely watched EIA report is due Wednesday.
- Myra P. Saefong ; 415-439-6400; AskNewswires@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
09-01-15 1649ET
Japan Ind Output goes sluggish
19:50 ET djones
JAPAN JUL INDUSTRIAL OUTPUT PRELIM MM DECREASE TO -0.6 % (FCAST 0.1 %) VS PREV 1.1 %
JAPAN JUL IP FORECAST 2 MTH AHEAD* DECREASE TO -1.7 % VS PREV 2.7 %
20:05
TOKYO --Japanese industrial production fell 0.6% in July from the previous month, the Ministry of Economy, Trade and Industry said Monday, as the nation's economy continues to follow a zigzag path amid global uncertainty.
The result was weaker than a 0.1% decline expected by economists in a survey conducted by The Wall Street Journal and the Nikkei.
July saw a mild rebound in Japanese retail sales and personal spending but a slowdown in exports, according to data released last week. The economy contracted 1.6% in the April-June quarter as a recent slowdown in China was felt in Japan .
The ministry said output is expected to rise 2.8% in August from July and then decrease 1.7% in September, based on surveys of companies.
Website: http://www.meti.go.jp/english/statistics/index.htmk
Write to Mitsuru Obe at mitsuru.obe@wsj.com
(END) Dow Jones Newswires
08-30-15 2005ET
Copyright (c) 2015 Dow Jones & Company, Inc.
Fischer: Fed eyes China closely, Sept watch
By Greg Robb , MarketWatch
The Federal Reserve is following developments in the Chinese economy "even more closely than usual" to understand how they might impact the outlook in the U.S., Stanley Fischer , the vice chairman of the U.S. central bank, said on Saturday.
"In making our monetary policy decisions, we are interested more in where the U.S. economy is heading than in knowing whence it has come," Fischer said in a speech at Jackson Hole, Wyo.
It now appears Fed officials were, after their July meeting, leaning toward a rate move in September. But since then, potentially troubling trends have emerged, all exacerbated by China's surprise decision to liberalize its exchange rate. Equity markets have plunged amid wild swings, the dollar has strengthened and commodity prices have fallen.
The key question is how China's move and the other trends will impact the U.S., Fischer said.
"At this moment, we are following developments in the Chinese economy and their actual and potential effects on other economies even more closely than usual," Fischer said.
Some economists said the Fed won't have enough data to clear up questions about China's impact until after the U.S. central bank's policy meeting in mid-September.
Economists at BNP Paribas said "it seems obvious that the data released in the next two weeks will give almost no information to reduce that uncertainty since they will almost entirely relate to the period before the market correction."
The Fed wants to see further improvement in labor markets and be reasonably confident inflation is moving back toward its 2% annual rate target before hiking rates.
In his speech, Fischer said that there is "good reason" to believe that inflation will move higher.
The impact on prices from the stronger dollar is already "starting to fade," Fischer said. The same is true for the fall in oil prices, through the most recent declines this summer have yet to fully show though, he added.
BNP Paribas economists said there was no way Fed officials could be gaining confidence about inflation given the global developments.
"To think policy makers will be more confident [about inflation] in September than there were in July is ridiculous," economists for the bank said in a research note.
Fischer's comments came at the annual economic symposium hosted by the Federal Reserve Bank of Kansas City this weekend in Jackson Hole, Wyo.
- Greg Robb ; 415-439-6400; AskNewswires@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
08-29-15 1255ET
China Molycorp USDoD Never mind.
UPDATE: China just undermined the U.S. Defense Department
Today 8:46 AM ET (MarketWatch) By Brett Arends
China now controls most of the world's crucial rare earth elements
For all its recent advances, China today remains in the hands of a brutal and undemocratic dictatorship with little regard for anyone who stands in its way.
The Beijing regime menaces Taiwan and overshadows neighbors. It has provided support for murderous and evil governments in North Korea and in Darfur. It has ruthlessly crushed dissent and human rights, at home, in Tibet, and elsewhere.
And this week it quietly tightened its control of a precious set of materials that are absolutely vital to every defense department in the world, including our own.
And nobody noticed.
In an announcement little regarded outside of bankruptcy court, America's only producer of 17 minerals known as "rare earth elements" said it had been forced to abandon production because of its ailing finances and the worldwide commodity crash.
Molycorp Inc., now in Chapter 11 bankruptcy protection, said it was suspending indefinitely all production at Mountain Pass, Calif. -- once the world's largest rare-earths mine.
And that leaves almost all the world's production in the hands of China -- a country which already has a track record of using its clout to intimidate others.
Rare earths are a group of chemical elements that are essential for the manufacture of many modern defense and weapons systems, including planes, tanks, ships, submarines, missiles and lasers. According to the federal government's numbers, you can't make an F-35 Lightning II plane, for example, without 920 pounds of rare earths, and you can't make a Virginia-class nuclear sub without 9,200 pounds. Without rare earths your "guided" missiles won't fly straight.
Rare earths are also used in a wide variety of high-tech devices in the civilian world, from a smartphone to a Toyota Prius.
And China now controls more than 95% of the world's total supply of these essential materials.
Back in the 1950s and 1960s the U.S. dominated global production of rare earths, until driven out by the Chinese. The world's democracies only woke up to the menace in 2010, when China suddenly announced sharp restrictions on their exports -- and then ordered an embargo of shipments to Japan during a territorial dispute.
A report the Government Accountability Office showed that the U.S. had become alarmingly exposed to Chinese control. Many military systems depended on rare earths and would continue to do so for many years to come. Yet after years of Chinese dominance, the U.S. rare earths industry was almost nowhere. Furthermore, warned the GAO, it would take up to 15 years to rebuild U.S. capabilities fully. Mines would have be prospected, sunk and put into operation, new technologies developed, patents acquired, and factories and infrastructure built.
Molycorp re-opened the Mountain Pass mine in the wake of the study and the rise in rare earth prices caused by Chinese export restrictions. By an amazing coincidence, China then reversed the restrictions, prices collapsed, and the mine filed for bankruptcy.
That didn't stop the Pentagon from taking a blasé view of its rare earth supplies back in 2012. Sure, we may need rare earths for most of our systems, the Department of Defense said in a report. But that shouldn't be a problem, it noted, since the Mountain Pass mine is coming back on line.
So much for that.
-Brett Arends; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 28, 2015 08:46 ET (12:46 GMT)
BOJ Kuroda Says Fed Rate Increase Would Be Good for World Economy
Today 8:52 PM ET (Dow Jones)Print
By Michael S. Derby
NEW YORK-- Bank of Japan Governor Haruhiko Kuroda said Wednesday a Federal Reserve rate rise, whenever it happens, would be a welcome development for the world economy.
If Fed officials raise their short-term interest rate target, "that means that they are confident that the U.S. economic recovery is strong and robust, and that is not only good for the U.S. economy, but also for the world economy, including the Japanese economy," Mr. Kuroda said at an event held by the Japan Society in New York.
"I don't know when" the Fed might act to push its short-term interest rate target off of current near-zero levels, Mr. Kuroda said, but "if they decide to do it, it must be good for the world economy."
Mr. Kuroda, who was broadly optimistic about the state of the Japanese economy and the policies pursued by his bank and the Japanese government, and he signaled it would be steady-as-she-goes for current stimulus efforts.
"If necessary we will certainly make adjustments" to a bond-buying program known as QQE, the official said. But he added "at this stage the underlying trend of economic activity, as well as inflation, is as we intended, so we think that 2% inflation target would be achieved with the current QQE," Mr. Kuroda said.
In his speech, the official said that for his central bank, "it was necessary to dispel the deflationary mindset" that had beset the Japanese economy. Mr. Kuroda said "there have been very encouraging changes" in the nation's thinking regarding price increases since the central bank embarked on QQE.
The official's said expectations of price pressures are rising, and he said Japan's labor market is now very tight, which is boosting wage rise pressures in a way the Bank of Japan would like to see. "It is clear a positive feedback loop between wages and inflation is now in place" that is helping to push price pressures higher, Mr. Kuroda said.
He said the Bank of Japan wants to achieve 2% inflation "at the earliest possible time."
Mr. Kuroda spoke at a time of considerable turbulence in global financial markets and rising concern about the economic outlook's facing the world's biggest nations. Financial markets have been in flux amid mounting signs of economic distress in China. Weakness there has hit global stock markets hard and raised questions about the growth outlooks for nations like Japan and the U.S.
The uncertainty surrounding recent events has cast a shadow over the Federal Reserve's upcoming policy meeting. A once broadly held view the Fed would raise rate then has given way to calls in some quarters for the central bank to hold back. Speaking Wednesday, influential New York Fed President William Dudley said "the decision to begin the normalization process at the September [Federal Open Market Committee] meeting seems less compelling to me than it did several weeks ago. But normalization could become more compelling by the time of the meeting as we get additional information" about the state of the economy.
Uncertainty over the Fed's willingness to raise the cost of borrowing in the American economy comes as the Bank of Japan continues to press forward with aggressive efforts to boost growth and inflation in that economy. China's troubles have raised questions about Bank of Japan efforts to push up inflation, and Japanese equity prices have been hard hit in a sign of reduced investor confidence central bank efforts will work.
Mr. Kuroda played down the effect of China's slowdown. "In the long run, even the Chinese economy is likely to further slow down," he said. But, "I'm reasonably sure this year, next year, the Chinese economy is likely to achieve 6% to 7% growth," Mr. Kuroda said.
"Despite some decline of stock prices in Shanghai or a correction of a rapid rise in stock prices, I'm reasonably sure" China will continue to grow, he said, and leave Japan's recovery on track.
Mr. Kuroda also played down any idea that national central banks were deliberately trying to weaken their currencies in a bid to gain a leg up on their international competitors. "I'm not concerned about currency war. There has been no currency war," he said.
Mr. Kuroda said Chinese central bank rate cuts aren't a problem from his point of view. "We will welcome" that nation's lowering of interest rates, he said.
Write to Michael S. Derby at michael.derby@wsj.com
(END) Dow Jones Newswires
August 26, 2015 20:52 ET (00:52 GMT)
Goldman looks at how a 10% decline in equity prices has impacted the Fed in the past http://bloom.bg/1JlVSkb
Check out this short piece. Recent times are were in zero or neg ranges.
According to Goldman's Alec Phillips, this type of decline typically results in a lower fed funds rate -- by 15 basis points -- at the following meeting.
Asia trying to find footing
21:58 News Bot: Nikkei 225 (+0.50%) pares earlier losses and the Hang Seng (+1.71%) trades higher while the ASX 200 (+2.62%) outperforms amid gains in large banks as stock markets rebound from global equity market selloff
22:00 News Bot: Chinese Conference Board Leading Economic Index (Jul) 331.2 (Prev. 329.6)
22:05 News Bot: Honda (7267 JT) says it has not made a decision on reducing its Thailand production capacity
Asia go boomboom
Shanghai Composite opened -6.4% now just -5.5%.
CHINESE MARKETS TANK AT THE OPEN
by David Scutt on Aug 24, 2015, 9:40 PM
After being obliterated on Monday, suffering the largest decline since February 2007, China’s share market is being hammered yet again today.
The benchmark Shanghai Composite index currently down 5.84%, extending its losses from the multi-year high of 5178.2 of June 12 to 41.3%.
It is now trading at the lowest since December 25 last year.
The CSI 300 and 500 indices are also down by 6.00% and 7.15% respectively.
The SSE 50, comprising large-cap stocks listed in Shanghai is outperforming, falling only 4.80%.
------------------
21:46 ET
HANG SENG INDEX REVERSES EARLY LOSSES, NOW UP 1 PCT
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For All Its Heft, China's Economy Is a Black Box
For sheer clout, China's economy outweighs every country in the world save the U.S. But on transparency, it remains distinctly an emerging market, with murky politics, unreliable data and opaque decision making.
This veil dims the understanding of China's economy and is an important reason its recent slowdown has produced so much turmoil.
Economists widely doubt that China grew at a robust 7% pace in the second quarter, as the country's official statistics say. Citing other data, such as power generation and passenger travel, some think the rate might be as little as half that.
Similarly, when the People's Bank of China devalued its currency two weeks ago, a step that sparked much of the recent market upheaval, officials couched the move as part of a long-term effort to align the yuan's value more closely with market forces. Some outside analysts, noting that the PBOC isn't independent, saw a more political motive: to boost exports and thus bolster the Communist Party's credibility and hold on power.
In many ways, China is more transparent than it was a decade ago, and also no worse than some other countries whose troubles have roiled world markets, such as Mexico or Russia .
The difference is size. Mexico accounted for 2% of the world's gross domestic product, in dollar terms, when a peso devaluation in 1994 touched off the "tequila crisis." The five countries at the center of the 1997 Asian crisis represented 4%. Russia made up a mere 1% of world GDP in 1998 when it defaulted.
China represents 15% of world economic output. It is a major export market for industrialized countries such as Japan and Germany as well as for commodity exporters like Brazil and Australia . Its economy contributes a sizable chunk of the profit growth of many Western multinationals.
Japan accounted for a comparable share of world GDP when its stock and property bubbles imploded in the early 1990s. But Japan was a member of the Group of Seven advanced economies, with democratically accountable and stable institutions. China is far harder to read than any member of the G-7 .
"With my G-7 and many G-20 counterparts there were frank, honest conversations, you were on the phone pretty frequently, often weekly," recalls one former Treasury official who still deals extensively with China for the financial industry. "With China , you don't know who to call. It's hard to know where decision making occurs or who's calling the shots."
In many ways, China has become less opaque in recent decades, in part to meet the demands of other countries and of institutions such as the World Trade Organization and International Monetary Fund . Many of China's rules and regulations are published online. The foreign press has a significant presence and was allowed to attend a news conference by the PBOC after the yuan announcement.
China expert Nick Lardy at the Peterson Institute for International Economics says suspicions about China's statistics are overblown. China's National Bureau of Statistics has made big efforts to improve the data since 2008, he says, including by running two immense censuses involving 10 million survey takers. The agency has defended the reliability of its data.
China also relies less than it used to on local government statistics when calculating GDP and more on its own surveys. Local officials were seen as under more pressure to show positive results. Adding up China's provincial GDP often yields a much higher figure than what the National Bureau of Statistics reports.
Nonetheless, no major advanced country's statistics are viewed as skeptically as China's . In 2007 Li Keqiang, now China's premier, told the U.S. ambassador, according to a memo released by WikiLeaks, that GDP is "man-made" and therefore unreliable.
Mr. Li, who was then Communist Party chief of Liaoning province, said he looked at data on electricity, rail cargo and loans to get a better gauge on economic activity. Several analysts have since come up with indexes based on Mr. Li's favorite stats.
In London , Capital Economics looks at freight activity, electricity, property development, passenger travel and sea shipments, and concludes China's economy expanded much more slowly in the second quarter than China reported. Lombard Street Research , another London research outfit, uses another approach, including a different measure of inflation, and comes up with just a 3.7% growth rate.
Chinese statistics are "spookily stable from quarter to quarter," says Capital Economics analyst Mark Williams . For instance, China's unemployment rate registers 4.1% nearly every quarter.
Analysts have tried to work around the flaws and gaps. Real-estate analysts will go to individual housing projects and count gas meters to get an idea of how many apartments are occupied. Steel traders will swap stories with their competitors about the amount of steel backing up in warehouses.
But the gaps become more problematic at times like this when they can mask important aspects of the economy. For example, China publishes its foreign-currency reserves but not whether some have been lent out and thus aren't readily available, notes Ted Truman , a former Treasury official now at the Peterson Institute , though China has pledged to start doing so by year-end. Nor does China confidentially disclose to the IMF the composition of its reserves, as many countries do.
Central banks in most countries have become more independent and transparent, publishing detailed meeting minutes, forecasts and numerical goals. The PBOC has opened up a bit, but its most important decisions must be approved by the top body of either the government or the Communist Party . If one of these "overrules the central bank, you'll never get the minutes on that," notes one Wall Street executive.
China's leaders are heir to a tradition of secrecy. In 1971, when Mao Zedong's anointed successor died, the public wasn't told for nearly two months. In the current corruption crackdown, it can still be weeks or months after senior or retired leaders disappear before their detention is announced.
For years, China's opacity delivered a Wizard-of-Oz effect. "Chinese leaders were perceived as omnipotent and great managers who had a very precise, top-down approach," said Diana Choyleva, chief economist at Lombard Street Research . Beijing economic officials had many more levers than their Western counterparts, such as ordering state-owned banks to lend to targeted industries. The absence of democracy was seen as enhancing their freedom to act, as in 2008 and 2009 when China ordered up a massive stimulus plan.
That opacity lately seems to have backfired. Officials' interventions on the stock market have appeared ineffective, and on the exchange rate contradictory.That preoccupation with internal stability is a factor the rest of the world will have to weigh in watching China's actions. In 1998, the Federal Reserve cut interest rates out of concern for the rest of the world, then roiled by the Asian and Russian financial crises. China's decision to devalue, which props up its own exports while damping growth and inflation in the rest of the world, suggests that for now, the rest of the world comes second.
Opinion on China's policy-making prowess may have swung too far from omnipotent to impotent. China still retains leverage over the economy through its ownership of the banks and limits on cross-border capital flows.
Attempting to stimulate growth through higher lending and investment risks aggravating the dangerous debt buildup that followed the first stimulus. Even so, an economic slowdown could weaken support for President Xi Jinping in China's rising middle class and embolden critics reeling from his anticorruption drive, says Cheng Li of the Brookings Institution .
Write to Greg Ip at greg.ip@wsj.com and Bob Davis at bob.davis@wsj.com
(END) Dow Jones Newswires
08-24-15 2147ET
Copyright (c) 2015 Dow Jones & Company, Inc.---------------
3 late day tidbits
18:07 News Bot: Honda (7267 JT) is to reduce its auto production by half according to reports in Yomiuri
18:07 News Bot: US equity futures are up following the reopen of electronic trade with E-mini S&P up by 0.5% and DJIA futures up by 100 points following the prior session's 4% declines
18:07 News Bot: Goldman Sachs sees a Fed rate hike less likely in the approaching weeks
20:10 Asia equity markets open with significant losses in a continuation of the sell-off seen on Friday where US equity markets moved into correction territory after poor data added to the China concerns; Nikkei 225 (-2.46%), ASX 200 (-2.18%), KOSPI (-0.50%)
----------------
Nikkei -343 -2.25% now so bit recovered from low
Australia foul opening and US futs icky.
CNBC special hour Sunday 7pm ET on Mkt
If you are around their feed, they did quick announcement Friday AC about special hour discussion of the recent market action.
Praying for an Octobox with The Mandy.
Their home page has this link. Don't know if site will show it for free since much of their shows have a key over the image (members only).
Could be other sites they'll show it on.
CNBC Special
Tune in
7 pm ET Sunday
http://www.cnbc.com/live-tv/
Stuffit dang, all the best. em
a few early ones
The Fresh Market Inc (NASDAQ: TFM) shares declined 15.49 percent to $22.47 in pre-market trading after the company reported downbeat Q2 results and issue a weak full-year forecast. The company also announced a $200 million repurchase program.
Intuit Inc. (NASDAQ: INTU) shares dropped 5.76 percent to $97.00 in pre-market. Intuit reported a narrower-than-expected loss for its fiscal fourth quarter, but the company's sales missed analysts' expectations. The company issued a weak forecast for the full year and announced its plans to divest Demandforce, QuickBase and Quicken.
Netflix, Inc. (NASDAQ: NFLX) fell 5.24 percent to $106.60 in pre-market trading after dropping 7.84 percent on Thursday.
Deere & Company (NYSE: DE) shares fell 4.35 percent to $86.71 in pre-market trading. Deere reported upbeat earnings for its fiscal third quarter, but the company issued a weak sales outlook.
Ambarella Inc (NASDAQ: AMBA) shares tumbled 3.09 percent to $94.04 in pre-market trading after dipping 7.26 percent on Thursday.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Bank of Montreal on China
/CLV5 <$41 pre.
07:51 AM EDT, 08/21/2015 (MT Newswires) -- Bank of Montreal (BMO.TO) in its morning note, noted China's Caixin manufacturing PMI unexpectedly fell 1.6 pts to 47.1 in August, the weakest since March 2009 (or the depths of the great recession). BMO said this is clearly bad news for global growth and commodities more broadly, as China continues to struggle to maintain momentum. Indeed, it added, if the rest of the August numbers point to similar weakness, another round of easing measure will likely be coming shortly. According to BMO, it could even come ahead of the August data if officials are sufficiently concerned. Lower interest rates or reserve requirements are likely just a matter of time for China.
http://www.mtnewswires.com Copyright © 2015 MTNewswires.