Don't WAIT!

Wednesday, April 27, 2016

Backdoc, Thunderhawk and Mountainman Wed. AM 4-27-16  Part 1

KTFA:

BACKDOC:  THE UNIVERSAL CURRENCY CONTINUES TO SHOW THE WORLD IT'S NOW THE NEW RESERVE CURRENCY!  (See article below)
 
SOON THE DOLLAR WILL FIND ITS NEW REALITY! 

ALL COUNTRIES WILL STRUGGLE TO FIND NEW REVENUE STREAMS FROM THE ELITE AND CORPORATIONS WHILE AT THE SAME TIME COUNTRIES WILL MOVE SPENDING WISHES INTO CRUDE REALITY BUDGETS! OUCH!
 
OZ WILL FIND THE PROPER PRICE DISCOVERY ON BLACK GOLD WHILE CURRENCY VELOCITY WILL BE SHARED AMONG THE SDR BASKET BASED ON GDP REALITIES!
 
ONE THING FOR SURE IS THE NEW UNIVERSAL CURRENCY WILL BE AT A HIGHER REALITY POINT THAN WHERE WE SIT AT THIS MOMENT!
 
SUPPLY AND DEMAND WILL BE CONTROLLED EVENTUALLY IN THE MONTHS AHEAD BY CONTROLLING PAYMENT SETTLEMENTS IN SDR CURRENCIES AND CONTRACTS! 

TPP AND CHINAS' SILK ROAD WILL MAKE THAT BECOME REALITY!  DOC   IMO
....
Thunderhawk:  Backdoc Alert

Oil's Magic Number Becomes $50 a Barrel for Promise of Recovery

The new magic number in the oil industry is $50.

BP Plc, rig-owner Nabors Industries Ltd. and explorer Pioneer Natural Resources Co. all said in the past 24 hours that prices above $50 will encourage more drilling or provide the needed boost to cash flow. With oil bouncing close to $45 a barrel, an industry that has been shaving costs to stay competitive is ready for signs of stability at a price level less than half of 2014’s average.

At an average price of $53 per barrel of oil means the world’s 50 biggest publicly traded companies in the industry can stop bleeding cash, according to oilfield consultant Wood Mackenzie Ltd. Nabors, which owns the world’s largest fleet of onshore drilling rigs, said it has already been talking with several large customers about plans to boost work in the second half of the year if prices rise "comfortably" above $50.
 
"It’s not just about touching $50," Fraser McKay, vice president of corporate analysis at Wood Mackenzie in Houston, said Tuesday in a phone interview. "It’s about touching, maintaining and having the perception of future prices above $50 a barrel before you start sanctioning projects that are economic at $50 a barrel."

Exactly when oil prices hit that level and how long they need to stay there is a question no one can say for sure. Nabors said the activity could start up in the middle of the third quarter or into the final three months of this year. Continental estimated that supply and demand could be nearing balance later this year and be "absolutely in balance" or in need of more oil next year
.
"The absolute timing may be off a bit," Stark said, "but ultimately it’s going to happen."
To Read More:

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BACKDOC:  AS I'VE BEEN SHARING FOR SOME TIME NOW CHINA HOLDS THE HIGHEST DEBT LOAD FOR CORPORATIONS WORLD-WIDE! 

WITH MANY MANY COMPANIES MISSING DEBT PAYMENTS A MELTDOWN HAS STARTED ALREADY! 

CHINA WILL BEGIN TO CONSOLIDATE ITS SHELL COMPANIES OR ZOMBIE COMPANIES AND WILL HAVE TO RESTRUCTURE ITS BAD DEBT OF STATE OWNED COMPANIES!
 
CHINA IS NOW IN THE EARLY STAGES OF PRIVATIZING ITS' STATE OWNED COMPANIES! 

I LOOK TO SEE THEM DO EXACTLY WHAT VIETNAM DID!  IT WILL JUST TAKE LONGER.  DOC    IMO

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Thunderhawk:  IMF Welcomes Chinese Efforts to Tackle High Corporate Debt, Bad Loans

The International Monetary Fund (IMF) said Tuesday that China's efforts to deal with excessive corporate debt and nonperforming loans are welcoming and encouraging.
"It is welcome that the (Chinese) government is focusing on the problems of excessive corporate debt and the corresponding burden on banks of impaired assets," IMF staff wrote in a technical note.

China has recognized the importance of de-leveraging and slashing overcapacity and overstock, against the background of rising corporate debt and bad loans. To wind down corporate leverage ratio and ease the bad loan risks on banks, China is considering detailed measures, which are likely to include debt-equity swap and bad-loan securitization.

Chinese Premier Li Keqiang has recently stressed on several occasions the importance of introducing debt-equity swaps to gradually bring down the corporate leverage ratio.
The IMF staff said that debt-equity conversions and bad-loan securitization can play a role in addressing problems, such as rising corporate debt.

"The success in addressing this issue is important for China's economic transition and, given its size and growing global integration, the world's economy at large," said the note.
The IMF staff suggested that debt-equity conversions should convert debt only of viable firms instead of allowing debt-laden "zombie" companies to stay afloat.

IMF's First Deputy Managing Director David Lipton has recently said at a forum that finding a way to improve corporate governance while reducing their debt to manageable levels through restructuring, and helping banks to deal with unpayable debt are the right things to think about.

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BACKDOC:  IF CHINA RUNS INTO CAPITAL ISSUES I SUSPECT THEY WILL SPEED UP THEIR PRIVATIZATION TO GAIN MORE REVENUE! THAT HAS HELPED VIETNAM ON THEIR STELLAR GROWTH!  DOC  IMO

Thunderhawk:  China's Plan to Clear Bad Loans Could Backfire, IMF Staff Warn

China’s plan to rid banks of bad loans could backfire, allowing debt-laden “zombie” companies to stay afloat and creating conflicts of interest for bankers, International Monetary Fund staffers warned.

China is drafting rules to make it easier for lenders to convert bad loans into equity stakes in debtor companies, people familiar with the matter said last month, in a move that would help authorities clean up banks’ soured credit, which has climbed to the highest in a decade. Chinese banks may also repackage non-performing loans and sell them as securities. The Chinese government hasn’t released details of the proposal yet.

“While such techniques can play a role in addressing these problems and have been used successfully by other countries, they are not comprehensive solutions by themselves,” the IMF staffers said in a blog post Tuesday that accompanied a short report.

“Unless they are carefully designed and part of a sound overall framework, they could actually worsen the problem,” such as by allowing “zombie” firms to survive, they said.
Banks don’t generally have the expertise to run or restructure businesses, and debt-to-equity conversions could create conflicts of interest, they warned. To Read More:

http://ift.tt/1VAOLga
BACKDOC:  ONCE WE REACH MID YEAR WE CAN ALL ASSUME THAT THE IMF'S RESTRUCTURE  PLANS FOR EMERGING COUNTRIES WILL BE SATISFIED!
 
THIS  FACT WILL BEGIN A NEW PRICE DISCOVERY FOR THE DOLLAR AS IT UNHINGES ITSELF FROM ITS RESERVE CURRENCY THRONE. 

A CASCADE OF EVENTS WILL BEGIN TO FOLLOW OF WHICH ONE WILL BE A NEW PRICE REALITY FOR STOCKS AS THEY BECOME SECURITIZED!
 
I BELIEVE THAT REALITY WILL BE 50% OR MORE LOWER THAN NOW DUE TO THE CHANGE IN GREATER VALUE OF AN ASSET BACKED CURRENCY.
 
THIS NEW PRICE DISCOVERY WILL BE VERY PAINFUL BUT EXPECT MOST OF IT TO BE DONE BY OCT. 1ST WHEN CHINA HAS ITS LAST REVIEW TO BE PLACED FULLY IN THE SDR BASKET! DOC   IMO

Thunderhawk:  Backdoc Alert

Two big events coming — and one could rock the market

The Fed begins its two-day meeting Tuesday, but earnings from Apple after the closing bell may create a bigger trading event.

There are dozens of major earnings during Tuesday morning hours, with BP, Procter & Gamble, 3M and Eli Lilly among them. But Apple stands tall after the closing bell, following a series of high-profile tech misses and expectations for Apple's profits and revenues to decline. Twitter and AT&T also report after the close.

Apple is expected to report earnings fell to $1.99 from $2.33 per share, on revenues of $52 billion, down from $58 billion, according to Thomson Reuters. That would be the first quarter in 51 in which Apple's revenues would have actually shrunk.

Apple has lost some of its shine as a tech darling, but it still has big impact and is part of the Dow, S&P 500 and Nasdaq. In the past eight quarters, Apple rose 63 percent of the time on the day after earnings, for a gain of 1.25 percent, according to analytics firm Kensho. Its worst performance in those eight quarters was last quarter when Apple missed and iPhone sales disappointed. Its stock fell more than 6.5 percent.

Stocks were squishy Monday, as the S&P 500 lost three points to 2,087 as oil weakened. West Texas Intermediate crude futures were down 2.5 percent at $42.64 per barrel, as over-supply worries again bubbled up.

"I think there'll be a lot of eyes on Apple, and on earnings in general," said Steve Massocca of Wedbush Securities. S&P 500 companies' earnings are expected to decline by 7.3 percent in the first quarter, though more than 70 percent of companies reporting so far have beaten estimates, according to Thomson Reuters. Massocca says he does not believe that earnings have bottomed, a view shared by many analysts.

"I think [the stock market] is due for a little pullback, quite frankly. I think it's a little overbought," he said of the stock market. "The S&P at 17 times [earnings] is not cheap. I think the current monetary regime is a stock market flotation device."

As for the Fed, strategists expect no rate action and little tweaking to its statement when it is released Wednesday afternoon. "I think they'd telegraph something if they were going to say something," said Massocca. "If you look just at the U.S. economy, it makes sense to raise rates, but if you take all the international machinations including currency relations into account, it makes it more difficult to raise rates. The yen and euro I think would react dramatically to a significant change in U.S. interest rate policy at this point."

Some strategists expect the Bank of Japan meeting Thursday to be more market moving than the Fed, since there is a wide range of expectations for the BOJ, including more quantitative easing and more negative yields. The yen moved higher against the dollar on speculation ahead of that meeting, and dollar/yen was at 111.23 late Monday.

John Briggs, head of strategy at RBS, said he expects no action from the Fed this week, but traders in the bond market have been positioning for higher yields. The 10-year rose to 1.9 percent Monday, while the two-year yield rose to 0.83 percent.

"If you've been long and you're heading into the Fed, and you don't think they're going to do anything, would you rather have the opportunity of losing a five-basis-point rally or being shocked and losing 10 to 15 basis points?" he said.

There are some expectations that the Fed could look at moving in June because of the steadier risk markets and better data.

"I still think it's too early for them to set up a June hike," said Briggs. "There's no upside for them to do that."
Jeff Mortimer, director of investment strategy at BNY Mellon Wealth Management, said he expects one to two interest rate hikes this year. The market meanwhile barely prices in one hike for December. "We think the market is more right than the Fed."

"I think it's a lot of uncertainty as the market wrestles with whether the Fed will be tighter than the market wants it to be. What does negative interest rates around the world have to do with stimulating growth? Is it a good thing or bad thing?" said Mortimer.

Some strategist have said the Fed would stay away from a June hike because the U.K. votes whether to stay in the European Union the following week, and that could create risk for financial markets.
Odds of a Brexit fell below to about 27 percent, down from 37 percent last week, according to Reuters, quoting betting website Betfair. Sterling also rallied Monday, after Friday's comments from President Barack Obama urging Britain to stay in the EU.

Briggs said it's too early to rule out the risk of the Brexit vote for the Fed's June meeting.
Other earnings expected Tuesday include DuPont, Coach, Corning, Lockheed Martin, Whirlpool, Hershey, Freeport-McMoran, AK Steel, T. Rowe Price, Whirlpool and Tenneco. After the bell reports are expected from eBay, Chipotle, Capital One, Buffalo Wild Wings, Panera Bread, U.S. Steel, KLA-Tencor, Akamai, Aflac and TransUnion.

There is also some important data including durable goods, at 8:30 a.m. EDT; S&P/Case-Shiller at 9 a.m. and Services PMI at 9:45 a.m. Consumer confidence and the Richmond Fed survey are reported at 10 a.m. EDT. There is also a five-year note auction at 1 p.m.

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