Friday, September 30, 2016
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
14,187 Blog Posts

Deutsche Bank is Crashing, Contagion Spreading to Other European Banks

grim

This isn’t a joke people. Laugh and masturbate all you want over a rigged market dominated by explicit central bank schemes, but this is the game changer. The collapse of Deutsche Bank is underway and it’s having a profound effect on other banks too, like Commerzbank and Soc Gen, just to name a few. I can’t even sleep right now.

Shares of Deutsche are collapsing, now off by 9%.

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Germany’s second largest bank, Commerzbank, is collapsing — down 7%.

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Soc Gen is off by 5%. You get the picture.

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German and American yields are dropping like a stone, while peripheral Europe rise. This is a huge issue that will become front page news if it should continue.

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Futures are down over 100 and Europe is down more than 2%.

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Saudi Run News Site Creates a New Meaning for the JASTA Acronym

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Arab News is Saudia Arabia’s first english newspaper, founded in 1975. After U.S. lawmakers overrode Obama’s vetoe of the JASTA bill, they lost their shit — apparently.

The bill is Justice Against Sponsors of Terrorism Act, typically referred to as JASTA.

The House of Saud translation is Just Acted Stupidly Towards Allies.

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Obviously, they believe the House will reject the bill and uphold the Obama veto.

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U.S. State Department Threatens Russia with the Specter of Terrorist Attacks in Russian Cities for Syrian Involvement

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These are some of the most insane public comments by a US diplomat I’ve ever seen. Russia’s involvement in protecting the Assad regime and to destroy ISIS has gotten the Obama administration in such a frenzy that they’re now sending out their shit talkers to make veiled threats to Russia.

Is this wise foreign policy, sabre rattling with a country who has 10,000 ICBMs? This is fucking stupidity at the highest levels.

 

“Extremist groups will continue to exploit the vacuums that are there in Syria to expand their operations, which could include attacks against Russian interests, perhaps even Russian cities. Russia will continue to send troops home in body bags, and will continue to lose resources, perhaps even aircraft,” Kirby told reporters at Wednesday’s press briefing, adding that if the war in Syria continues “more Russian lives will be lost, more Russian aircraft will be shot down.”

 

Maria Vladimirovna Zakharova, Director of the Information and Press Department for Russia, said in a Facebook post “And those [acts of terrorism] will be perpetrated by ‘moderate’ [Syrian opposition groups]? Just the ones that Washington has been unable to separate from Al-Nusra for as long as six months? Don’t you think that such ventriloquism about ‘body bags,’ ‘terrorist attacks in Russian cities’ and ‘loss of aircraft,’ sounds more like a ‘get ’em’ command, rather than a diplomatic comment? Is Kirby actually threatening to use the same “moderate” jihadists that the Obama administration has funded and armed to kill Russian troops, down Russian planes and slaughter Russian citizens in their own country?”

 

maria

What the fuck is going with this country and why are we supporting ISIS in Syria?

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Carter Worth on Deutsche Bank: ‘There’s No Telling How Low it Can Go, Including All the Way’

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Following a long summer of french martinis and bloody marys, Carter Braxton Worth has placed his polo gear in the family mud room and taken to the charts to have a gander, or two, at Deutsche Bank.

He posits the shares have zero support, currently well below the 2009 lows, saying it can go ‘all the way.’ He then goes on to compare its paltry $15b market cap to some of its American competitors, whose caps are 10x Germany’s largest bank. Having a eureka moment. C.B. Worth says ‘something’s wrong here.’

Indeud.

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Gundlach: Avoid Deutsche Bank, says the Bank Will Get Bailed Out if Things Get Bad

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The new bond King, Jeff Gundlach, offers some sage advice here, in a Reuters interview by morse code.

“I would just stay away. It’s un-analyzable,” Gundlach told Reuters by phone about Deutsche Bank shares and debt. “It’s too binary. The market is going to push down Deutsche Bank until there is some recognition of support. They will get assistance, if need be.”

“One day, Deutsche Bank shares will go up 40 percent. And it will be the day the government bails them out. That jump will happen in a minute,” Gundlach said.

“It is about an event which is completely out of your control.”

While we all love to see Germany’s biggest bagholder punished in biblical terms, it’s a toxic trade for both longs and shorts. On one hand, the bank is all but dead. The capital base is on the verge of destruction — with over $1.8t in assets and a market cap slightly above $15b. On the other, in spite of what Merkel said, there is no way the Bundesbank permits DB to blow up, when considering they underwrote every single Greek bailout over the past decade.

The billion dollar question is, when will Germany assist Deutsche Bank? Do you know? I have no idea. I’m guessing they won’t do it, unless the stock gets hammered a little bit more. Clearly, they’d like to avoid displaying moral hazard for as long as they can. But, if we’re being honest here, the entirety of western finance is now a rigged game of smoke and mirrors. You’d have to be crazy to believe they’d sit back and let Deutsche Bank unravel and then blow up.

Short sellers will be met with an awfully acrimonious vengeance, whenever the Bundesbank decides to step in. You’re better off sitting back and enjoying the shit-show.

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California’s Prop 61 Stands to Change the Pharma Game Forever; Healthcare Stocks Slide

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Early polling suggests Proposition 61 will easily pass in California on November the 8th, with 50% already in favor of it, compared to a meager 16% saying they’d vote no. If passed, it will permit the State of California to negotiate costs for the 3 million Medi-cal patients, 830k state employees and retirees, in addition to another 294k teachers.

For now, the ordinary, non-warden of the state, will not enjoy the splendour of prop 61. But it’s a start.

RBC analyst, Mike Yee, says it’s mostly headline risk and should only affect earnings by 2-3% — due to the limited scope of the porgram.

In a note to clients, RBC Dominion Securities Analyst Michael Yee indicated the passage of this measure could adversely affect all the biotech companies in his coverage universe, including Amgen Inc., Gilead Sciences Inc., Celgene Corp., Biogen Inc., Regeneron Pharmaceuticals Inc., and Vertex Pharmaceuticals Inc. However, Yee doesn’t think this measure would have a materially deleterious effect on pharmaceutical companies’ financial performance.

“We think a possible 2-3 percent earnings per share impact to large-caps if this initiative were passed across all 50 states, but this is more headline risk than anything,” the analyst wrote.

Nevertheless, this could be a keystone event that leads the way towards other states making a stand against big pharma. In spite of their efforts in California, outspending the people by a factor of 7, higher drug prices for the benefit of a few C level execs and company share buyback just isn’t resonating with the people.

“After $35 million spent (so far by opponents) on lying ads … it’s gotten them 16 percent of the vote,” Weinstein said of the David-and-Goliath battle that has seen Big Pharma spend at least $86 million to defeat the measure. In contrast, the proponents have raised at least $14 million.

Speciality pharma stocks MNK, MYL, ALKS, ENDP, VRX, ALNY and a sundry of other pharma stocks were pummeled today.

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Schadenfreude: Companies That Are Now Bigger Than $DB

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Since $DB has fallen on hard times, with the stock being hammered into oblivion, I thought it’d be ‘fun’ in a Schadenfreude sort of way, to highlight some companies that are now bigger than Europe’s largest bank.

Credit Suisse
Newmont Mining
Molson Brewing
Panasonic
Suntrust
Campbell Soup
Sirius XM
Hertz Global
Southern Copper
L Brands
Sunlife Financial
Hormel Foods
Level 3
Sprint
M&T Bank
Ctrip
Twitter
Ulta
Dr. Pepper
JM Smucker

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