Monday, December 14, 2015


    • okrocks said
      07:48 AM Dec 14, 2015
     China's New Yuan Index: Here's What the Market Needs to Know
    Fion Li
    December 13, 2015 — 11:32 PM PST
    A new currency index in China is causing a stir as policy makers seek to refocus the market’s attention away from the yuan’s moves versus the dollar and instead compare performance against a wider selection of peers.
    The CFETS RMB Index was unveiled late on Friday and the People’s Bank of China said yuan fluctuations mustn’t be measured in terms of the greenback alone, adding that exchange rates are a reflection of trade and investment with multiple countries. The new measure monitors moves against a basket of trading partners’ currencies and was introduced by China Foreign Exchange Trade System, an arm of the PBOC that facilitates interbank trading.
    Here’s what the market needs to know about the new gauge and what it means for the exchange rate, which is poised for its lowest close in four years:
    What is it?
    The CFETS RMB Index will measure the yuan’s performance against a basket of 13 currencies, with weightings based mainly on international trade, according to the PBOC. The measure has an end-2014 level of 100 as its base level and will be published regularly, it said, without providing details of frequency.
    The dollar has the largest weighting with 26.4 percent, followed by the euro and the yen with 21.4 percent and 14.7 percent, respectively. The measure also includes the currencies of Hong Kong, the U.K., Australia, New Zealand, Singapore, Switzerland, Canada, Malaysia, Russia and Thailand. The U.S. accounted for 14.2 percent of China’s trade this year through November, while the European Union had a 14.3 percent share. About 95 percent of the yuan’s onshore spot transactions were against the dollar in 2014, according to a China International Capital Corp report.
    CFETS will publish two other trade-weighted yuan indexes that reference performance against the IMF’s Special Drawing Rights and a Bank for International Settlements basket. The BIS-referenced gauge contains 40 currencies, while the SDR version has four.
    Why now?
    The Federal Reserve is widely expected to raise U.S. interest rates this week for the first time since 2006, a move that’s forecast to spur further gains in the greenback against the currencies of developing nations. The PBOC’s moves are being seen as part of efforts to ease concern about yuan depreciation and prepare the market for further weakness.
    "Timing seems important" and it’s an attempt to cut the link with a strong dollar before the Fed tightens, Societe Generale SA strategists Jason Daw and Frances Cheung wrote in a note on Monday. "The PBOC is clearly preparing the market to interpret a weaker yuan versus the dollar not being devaluation."
    MORE http://www.bloomberg.com/news/articles/2015-12-14/china-s-new-yuan-index-here-s-what-the-market-needs-to-know

    China launches new currency index
    SHOTARO TANI, Nikkei staff writer   December 14, 2015 7:48 pm JST
    TOKYO -- The China Foreign Exchange Trade System, a unit of the People's Bank of China, has launched a new exchange rate index.
    The index is calculated using the trade-weighted value of 13 currencies against the yuan and takes Dec. 31, 2014, as its baseline of 100. The index weights the U.S. dollar most heavily, at 26.4% of the basket, followed by the euro, at 21.39% and the yen, at 14.68%. The new index was announced on Friday.
    Following the International Monetary Fund's decision to include the yuan in its Special Drawing Rights, the PBOC refrained from intervening in the currency market. As a result, the yuan hit a four-year low against the dollar at one point on Friday. CFETS said on Monday, however, that the index stood at 101.45 on Friday, an appreciation of 1.45% from Dec. 31 last year.
    "China's CFETS index demonstrates the well-known fact that while the [yuan] depreciated steadily against the dollar since August, it remains relatively stronger against most other trading partners," Brian Jackson, China economist at IHS Global Insight, said in an email.

    CEO exits after mutual fund implodes
    by Matt Egan   @mattmegan5 December 14, 2015: 9:27 AM ET
    The CEO of the risky junk bond mutual fund that blew up last week has stepped down.
    The Third Avenue Focused Credit Fund focused on the riskiest corners of the junk bond market, investing in distressed debt of companies that were close to defaulting on their loans and ones that already had. Last week the fund announced it is liquidating and blocked investors from getting their money back.
    Its implosion is a very rare event in the normally-sleepy mutual fund industry and highlights the turmoil rippling through the riskiest parts of the bond market.
    The event also raises questions about whether Third Avenue's focus on extremely risky and difficult to trade assets was really appropriate given the fact that mutual funds promise investors the ability to take their money out whenever they wish.......
    The Third Avenue liquidation also spooked already-rattled investors who were left wondering if there are more ailing funds in the horizon. The Dow tumbled more than 300 points on Friday.
    "Is this just the tip of the iceberg? Are there more funds having similar distress? These things tend to snowball," said Michael Block, chief market strategist at Rhino Trading. 

    Related: Warning: Half of oil junk bonds could default

    LAST NIGHT....
    isa52bc wrote This coming week is going to be a wild ride! Hang onto your hats everyone!

    Purifiers:  I have had some thoughts on this for many months now...What Kim (Clement) said on June 29th, 2011
    'By the way, I'm hearing something in the Spirit. What is the Dinar? Hasn't been time, hasn't been time, sudden change. So, for those that are investing, I cannot tell you to do this or purchase them, but for those that are holding on – nothing, nothing, nothing, and then suddenly something.
    OK – don't hold too tight onto gold. I'm not an economist, trust me, but I hear the word of the Lord sometimes. Don't rely too much upon it. God is opening other doors as well.
    Don't forget to look at the tree, don't forget to look at the oak tree – it's also a symbol that God spoke about.'
        This was said in 2011, and the word Nothing was used 3 times.
    2012 NOTHING
    2013 NOTHING
    2014 NOTHING
    The oak tree, is a symbol of our United States...

     Iko - If you want to watch this real time go to MoneyCNN.com, click on World Market, Nikkei dropping 1/4% every few minutes. Watching crash. This is a good thing. Chinese promise this would happen. Fantastic position. The way to fix it is let the RV go.
    From a standpoint of observation...tonight is fascinating... Europe will cave... watch as it travels west.. we are there...watch it unfold.Japan is crashing, no worries
    Nikkei already down 3.15 %. This is good for us.

    Houston : Did you all see this? To / all licensed banks and money transfer companies and exchange companies (stop processing the dollar) 12/14/2015  

    BruceA:  Billion dollar currency swap, China and the UAE done today

    December 14, 2015 UAE, China launch $10b joint strategic fund
    UAE, China sign 9 agreements as Crown Prince of Abu Dhabi visits China on three-day visit to boost ties

    Published: 15:37 December 14, 2015  Gulf News Report
    Beijing: His Highness Shaikh Mohammad Bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces held official talks with Chinese President Xi Jinping on Monday to bolster strategic bilateral cooperation, and discuss regional and international issues.
    During the talks, the two leaders witnessed the launch of a $10 billion UAE-China joint strategic investment fund.
    UAE and China launched $10b strategic investment fund. @gulf_news— Abdul Hamid Ahmad (@AbdulHamidAhmad) December 14, 2015..........


    Iko Ward wrote  GM all. Oil continuing to slide..34.76. Gold holding at 1170, give or take. Forex being a little stubborn this morning, not moving off 1075.8. Pre-markets are red. US market is anybody's guess. Sit tight.

    Iko Ward wrote  Today will be good. Tomorrow seems to be the day.

    elmerf123456 wrote soups hot and gonna get piping hot
    elmerf123456 wrote  the week is set up for what we seek!     
    elmerf123456 wrote the 8 EMA trend, AND the 50 day moving average AND the lower 34, 2 Bollinger Band! YES, ALL THREE ! Now, IF you're an investor, that's a really really bad thing.
    elmerf123456 wrote Gold copper silver oil gas all in red.
    elmerf123456 wrote It's going to be a Bad week in the markets IMO.

    elmerf123456 wrote All indicators and Intel says this is our week. We heard that b4 however, but this just looks and feels very different! Relax and enjoy every moment.
    Four2atous wrote GB and Russia....Lets be friends= http://tass.ru/en/politics/843169     
    moneymerge wrote We are closer than you think.....hang on
    Beethoven wrote Do you think the market will pin to the greatest volume put level or do the opposite, go UP, to cause the greatest amount of puts to expire worthless? After all, for every put bought someone is taking the opposite side

    Beethoven wrote Oil is $ 35.31 now.

    buckmaster wrote hearing that Tuesday should be Super !!!! As in Super Tuesday

    Iko Ward wrote Everyone is putting on their happy face, like a big corporation the day before the layoffs are being announced. wink

    elmerf123456 wrote Choppy day. Ups and downs and then look tilting Tuesday. 

    10:35 AM ET
     Dow -46.66 17,218.55  -0.27%
     Nasdaq  -21.26 4,912.21 -0.43%
     S&P -6.79  2,005.58 -0.34%

    elmerf123456 wrote .
    okrocks wrote elmer here let me finish your dot for you... · · · - - - · · ·  morse code for SOS
    olesailor wrote Ok. That really means. Save Our S....t. Jejeje      
    okrocks wrote Ole well that says it all huh lol
    elmerf123456 wrote Ok rocks. Yes it does. Lol. We broke 17200. Let's see some fun.      
    elmerf123456 wrote Gonna see a ping pong match today and tomorrow the ball may be lost under the furniture. .......
    elmerf123456 wrote we wait and watch this is a significant week.

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