By Tyler Durden / ZeroHedge
The dollar index is collapsing this morning (helped by strength in cable and the loonie) as the global bond rout continues to spread…
The Bloomber Dollar Index has tumbled to its lowest since July 9th
As UST bond yields resurge to new cycle highs…
And this time it’s spreading to China, where yields no longer offer any kind of decoupling from US..
Emigrate While You Still Can! Learn More…
As Bloomberg’s Christopher Anstey notes, even though the Chinese economy is slowing, hurt by the weakest investment growth since at least 1999, it’s clear from bond price action that policy makers aren’t prepared to endorse broad monetary stimulus.
Premier Li Keqiang said in a keynote speech Wednesday that while ample liquidity will be maintained and help extended to smaller companies to access financing, China will keep focused on stabilizing leverage.
Li also ruled out yuan devaluation as a strategy in China’s trade war with the U.S., which suggests the need for restraint when thinking about interest-rate cuts or broad liquidity injections.
The trade tensions pose another problem. With prospects for tit-for-tat tariffs stretching into 2019, inflation pressures are likely to mount. Take soybean prices, a key ingredient for meat production: more than one-third of China’s soy imports come from American farmers, with few alternatives in the short term.
That adds to structural catalysts for inflation, such as soaring rents across major cities. A clampdown on the collection of social-security premiums could see firms attempting to raise prices to compensate. While China recently moved to ease the initiative, Morgan Stanley estimated it could cost Chinese companies as much as $350 billion a year.
This all makes for a downright unfriendly environment for rates investors. China’s bond market seemed like a great diversification play earlier this year as yields climbed elsewhere, but that chapter may be over.
In fact some serious volumes are flying through the Treasury futures markets…
Which is sending signals to the algos to panic buy stocks…
And as bond yields rise, hope is high that bank stocks will regain their late 2017 correlation regime and breakout to the upside…
More great articles here: https://www.zerohedge.com
The World Transformed event is taking place alongside the Labour party conference in Liverpool next week.
But in a statement, Momentum said the paper had “smeared” victims of the 1989 Hillsborough stadium disaster – in which 96 Liverpool fans died – and it was backing a long-running boycott of the title in the city.
A Momentum spokesperson said: “This year’s festival is in Liverpool where there is a 23-year-long campaign to boycott the Sun after they smeared Liverpool fans in the wake of the Hillsborough disaster, falsely claiming that they ‘picked pockets of victims’, ‘urinated on brave cops’ and ‘beat up PCs giving the kiss of life’.
“We stand with the people of Liverpool and all of the families who lost loved ones in the disaster and are still fighting for justice. This is why the boycott of The Sun extends to The World Transformed.”
In 2012 The Sun issued an “unreserved” apology for its Hillsborough coverage, describing a front page reliant on briefings by South Yorkshire Police as “without doubt the blackest day in this newspaper’s history”.
The Sun’s press team declined to comment on the Momentum ban.
In 2016, Labour chiefs banned copies of the paper from its party conference following complaints from Liverpool mayor Joe Anderson.
British government is to massively expand its cyber warfare infrastructure with the creation of a 2,000-strong unit that could absorb some 250 million pounds of annual funding and even more.
The Sky News reported on Thursday that the initiative would represent a near four-fold increase in manpower focused on United Kingdom’s offensive cyber operations.
It said that officials from the Government Communications Headquarters (GCHQ) will be staffed to the plan by the British Ministry of Defense which is aimed at countering the increasing cyber threats from countries like Russia.
“By adopting offensive cyber techniques in the UK we are leveling the playing field and providing new means of both deterring and punishing states that wish to do us harm,” said General Sir Richard Barrons, a former commander of Joint Forces Command.
Some sources said that the annual budget earmarked for the new project will even exceed 250 million pounds.
Britain has claimed that it has faced numerous cyber attacks from Russia over the past few years. Moscow denies the allegations. The two countries have also been at odds over the alleged poisoning of a former Russian double spy. British authorities have accused Russian government of direct involvement in the incident in March in the southern English city of Salisbury. Russia has rejected the claims, saying it is a scenario staged by British intelligence agencies to further undermine the bilateral relations.
British authorities admitted recently that they had used cyber weapons for the first time to fight Daesh, a terrorist group that has now been almost obliterated from its bastions in Iraq and Syria.
Russia has warned the United States against “playing with fire” by imposing new sections against the country, saying Washington will never succeed in “dictating terms” to Moscow.
On Thursday, the US State Department announced it has added the names further 33 Russians to its sanctions blacklist, bringing the total number of sanctioned individuals to 72 people.
Russian Foreign Ministry issued a strongly worded statement on Friday, warning Washington not to play with fire since “it can become dangerous.”
“It would be good for them to remember there is such a concept as global stability which they are thoughtlessly undermining by whipping up tensions in Russian-American ties,” said deputy foreign minister Sergei Ryabkov.
“We recommend that Washington’s operators of the sanctions machine at least superficially acquaint themselves with our history to stop going round in circles,” Ryabkov added.
Ryabkov said that none of the rounds of sanctions had so far managed to force Russia to change its course.
“The numerous American ‘black lists’ increasingly repeat each other. It is funny but it is so,” he said. “It seems like this has turned into a kind of national entertainment, because yesterday’s were already the 60th anti-Russian measures since 2011.”
Separately on Friday, US Ambassador to Moscow John Huntsman said that the relationship between the two countries was “stressed.”
“The months ahead will be key in stabilizing our relationship and deepening trust,” Huntsman told a US investment forum in Moscow. “We must work on replenishing the level of trust between our officials.”
China warns US of ‘consequences’ over sanctions
The US also imposed sanctions against China, announcing punitive measures for the first time against a military organization for buying Russian fighter jets and missiles.
China’s Foreign Ministry also reacted to the move on Friday, strongly urging Washington “to immediately correct their mistake and withdraw their so-called sanctions, otherwise the US will have to bear the consequences.”
Foreign ministry spokesman Geng Shuang told a regular press briefing that Beijing “expresses strong indignation over the above-mentioned unreasonable practices of the US side.”
He said the Chinese government had lodged an official protest with Washington.
“The US actions have seriously violated the basic principles of international relations and seriously damaged the relations between the two countries and the two militaries,” Geng said.
The sanctions are adopted against the Equipment Development Department of the Chinese Ministry of Defense, and its top administrator, for the recent purchase of Russian Sukhoi Su-35 fighter jets and S-400 surface-to-air missiles.
This is the first time a third country is being punished by the US for dealing with Russia— the world’s second largest weapons seller, after the US.
India, China and Vietnam are the principal sources of demand for Russian weapons in the region.
The US itself is under fire for providing arms, including internationally banned cluster munitions, to Saudi Arabia, which has launched a military campaign against Yemen since 2015.
Earlier this week, CNN published an exclusive report that revealed US-made bombs were used in numerous bombing attacks which led to civilian deaths in Yemen. The report titled “Made in America” states that shrapnel found in the Saudi attacks in Yemen “ties US bombs to a string of civilian deaths.”
The BBC has been accused of lying to its audience in its ongoing campaign to discredit the Labour leader Jeremy Corbyn.
Listeners of its early morning Radio 4 programme woke up to presenter John Humphrys’ speaking about the International Holocaust Remembrance Alliance (IHRA) definition of anti-Semitism, which is at the centre of the row within the Labour Party.
Humphrey’s reportedly said that “almost every country in the world has adopted the IHRA definition and examples of anti-Semitism.” His remark was picked up by listeners and was denounced as another one of “BBC fiction”.
Listeners rushed to correct the BBC on social media to point out that of the 195 countries in the world only 31 have adopted the IHRA definition of anti-Semitism, citing the Jewish Chronicle as their source. Of those only six are said to have endorsed and adopted it fully with all the examples.
They also pointed out that the six include: Austria is threatening to make Jews put their names on a state register in order to get kosher meat. Lithuania, whose government supports commemorations of Nazi wartime events. And Israel, which has just enacted a constitutional law entrenching apartheid.
Listeners berated Humphrys as an “overpaid liar” for failing to fact check his information on such a crucial topic.
The IHRA definition has been presented by the BBC and the mainstream media as the gold standard which the international community has endorsed in full. This narrative has been pushed by the media, including the Conservative Party to berate Corbyn, even though the reality is the complete opposite.
Not only have the overwhelming majority of countries not adopted the IHRA definition even the Tories do not include the controversial definition in their rule book. The Conservative code of conduct, Channel 4 News found, does not at any point mention the word “anti-Semitism” or spell out a definition of anti-Semitism, IHRA-approved or otherwise.
This is not the first time the BBC has allowed itself to be used to advance a false narrative. Last month the broadcaster was found to have a conflict of interest after it was discovered that the daughter of Labour MP Margaret Hodge, who is at centre of the row, is employed as deputy editor for its main news programmes.
Israel and certain jews are clearly meddling in internal British affairs !