Things got ugly last night in the Asia session. Shanghai was down another -1.1% bringing the YTD drop down to -25.5%.
Meanwhile, the Chinese are going to issue a record level of local bonds this week at 379B Yuan.
The U.S. Dollar sold off last week (-0.46%, +3.00% YTD), both LATAM countries Argentina and Brazil witnessed their currencies not get the reprieve that Emerging market currencies experienced, their currencies continue to crash & burn (Argentine Peso -7.4% WoW,-53.4% YTD).
(Brazilian Real -2.8% WoW, -20.6% YTD). Stagflation concerns are now very real.
Corn getting shucked again today diverging away from crude oil. Corn is seeing follow through selling this morning after deflating -4.2% last week.
Corn peaked in May along with the US 10Yr Yield.
Chinese stocks (BABA, JD, BIDU) fall on trade rhetoric from President Trump.
He took to Twitter early this morning whereby he said countries who don’t make fair deals with the US will be “Tariffed”.
In response, the Chinese are crouched in wait to by restricting China’s sales of materials, equipment and other key parts to the US manufacturing supply chain.
In the direct fire of China’s restrictions is Apple and their iPhones, which are assembled on the mainland of China. However, in the latest from the US is said to spare Apple Watches from the latest Chinese tariffs.
Last week in Turkey, the Lira appreciated a little against the US Dollar. In turn, turkey tried to restore some of their depleted Gold reserves that are used to defend their currency and economy from completely crashing.
Overnight, Turkish officials are drafting a plan measures to support banks on bad loans. Turkish Bank bonds catch a Bid.
Turkiiye Garanti Bankasi A.S.
Turkieye Vakiflar Bankasi T.A.O
Alternatifbank Anonim Sirketi
In the US, Trump just moving markets with trade war positioning.
In US economic new the Empire State falls to a lowest level since April.
US Closing Figures
Banyan Capital Management, LLC (“BCM”) is a publisher, not a registered investment advisor, and nothing in BCM’s newsletter is intended, and it should not be construed, to be investment advice. BCM’s newsletter is for informational use only. Any mention in BCM’s newsletter of a particular security, index, derivative, or other instrument is neither a recommendation by BCM to buy, sell, or hold that security, index, derivative, or other instrument, nor does it constitute an opinion of BCM (or of any of its officers, employees, agents or representatives) as to the suitability of that security, index, derivative or other instrument for any particular purpose. BCM is not in the business of giving investment advice or advice regarding the suitability for any purpose of any security, index, derivative, other instrument or trading strategy and nothing in BCM’s newsletter should be so used or relied upon. BCM is not acting as your financial advisor nor in a fiduciary capacity, with regard to any securities, index, derivative or other instrument referred to in BCM’s newsletter. Also, no representation is made concerning the tax implications in any applicable jurisdiction regarding any securities, index, derivative or other instrument and BCM is not advising you in respect of the tax implications. All opinions and estimates in the newsletters are given as of the date of their publication on the BCM’s website and are subject to change and BCM does not assume any obligation to update the newsletters or to reference any such changes. BCM hereby expressly disclaims any and all representations and warranties that: (a) the content of its newsletters is correct, accurate, complete, reliable or a guaranty of future performance; (b) any of its newsletters will be available at any particular time or place, or in any particular medium; and (c) that any omission or error in any of its newsletters will be corrected. BCM shall not be liable for any errors or omissions made in its newsletters or for any inaccuracies in its assumptions. BCM specifically disclaims liability for any losses or damages (incidental, consequential or otherwise) that may arise from the newsletters and that are either used or relied upon by anyone for any reason, including without limitation, the use of the newsletters in the preparation of any financial books and records. Although from time to time BCM’s newsletter may link to or promote others’ websites or services, BCM is not responsible for and does not control those websites or services. BCM’s newsletter is published and distributed in accordance with applicable United States and foreign copyright and other laws. Without the prior written consent of BCM, no person or entity, directly or indirectly, may copy, reproduce, recompile, decompile, disassemble, reverse engineer, distribute, publish, display, perform, modify, upload to create derivative works from, transmit, or in any way exploit all or any part of BCM’s website, its newsletter, or any other material belonging to BCM.Without the prior written consent of BCM, no person or entity, directly or indirectly, may offer all or any part of BCM’s website, its newsletter, or any other material belonging to BCM for sale, nor may any person or entity, directly or indirectly, distribute all or any part of BCM’s website, its newsletter, or any other material belonging to BCM over or by means of any medium.Without the prior written consent of BCM, no person or entity, directly or indirectly, may make all or any part of BCM’s website, its newsletter, or any other material belonging to BCM, available as part of or in connection with another website, whether by hyperlink, framing on the Internet or otherwise. At any given time BCM’s principals may or may not have a financial interest in any or all of the securities and instruments discussed herein. At any given time BCM’s principals may or may not have a financial interest in any or all of the securities and instruments discussed herein.