Technical Rally Runs Out Of Gas Despite Dovish Drawl From Fed’s #2
Over the weekend, we said that with earnings season over, with the lower than expected CPI print in the rearview mirror, and with 4 weeks to go until the next FOMC where just a payrolls report (which may well be the first negative print since the wu-flu) looms, risk has collapsed, and as the following chart from Piper Sandler’s Danny Kirsch shows, the 1-week stradle in the SPX has been slashed in half, and now anticipates just over 2.1% in price movement over the next week, the lowest in almost three months.
SPX 1 week straddle down to 2.18%…took out all the event risk and looking forward not much on the near term calendar pic.twitter.com/PDocUm570g
So with fundamentals now largely irrelevant for the next several weeks, what are traders to do? Why listen to Fed speakers, even if they contradict each other as today’s price action demonstrated so amply when first Fed Governor Christopher Waller spooked markets late on Sunday with his hawkish take that policymakers had “a ways to go” before ending interest-rate hikes, before his superior, the Fed’s #2 and vice chair, Lael Brainard, took the mic and whispered soothing words of dovishness, which immediately stopped the selling and sparked a rally that sent the S&P not only above 4,000 but to the highest level in the past two months, before stocks lost steam in the last hour of trading…
… and the Dow Jones pulled back as it was just shy, or less than 2%, from entering a new bull market from the October lows.
Looking beneath the surface, it was another day where energy outperformed…
… while most other sectors lagged.
Elsewhere, after a record two-day surge in Goldman’s most shorted basket, today’s the most shorted names dropped…
… with low-momentum stocks suffering a similar fate, and undoing some of their striking gains from last week.
On the other side of the trade, the chart below shows that high-momentum L/S funds suffered their 2nd worst 2-Day drop in the past 20 years according to Morgan Stanley.
Turning to other asset classes, after plunging last week, and being closed on Friday for Veteran’s day, cash Treasuries went nowhere on Monday …
… as did the dollar which was flat after suffering one of the biggest 2-day drops on record last week.
Finally, here is a chart of the one asset class that everyone is looking at and which prompted the last hour selling: namely cryptos, which were hammered to session lows just minutes before stocks were also hit, and while it remains unclear what prompted the selling – rumor of another exchange run, rumor of another blow up, rumor, rumor, rumor – it is unmistakable that any time cryptos sneeze (and plunge) they drag the rest of the financial world with them.
Jeff Bezos Promises To Give Away Most Of His Fortune To Charity
Amazon founder Jeff Bezos, the fourth richest person in the world, intends to give away most of his fortune during his lifetime.
In an interview with CNN’s Chloe Melas on Saturday at Bezo’s mansion in Washington, DC, speaking alongside his girlfriend, Lauren Sanchez, he said the bulk of his fortune would go to fighting climate change and unifying humanity.
Melas asked if he intends to donate most of his wealth within his lifetime, and Bezos replied: “Yeah, I do.”
Exclusive: Jeff Bezos tells CNN that he’ll give away the majority of his $124 billion net worth during his lifetime, the first time he’s made such a promise. https://t.co/br4nQKVR3npic.twitter.com/puR4MFOAAo
“But the couple’s biggest challenge may be figuring out how to distribute Bezos’ vast fortune. Bezos declined to identify a specific percentage or to provide concrete details on where it would likely be spent,” CNN said.
Maybe Bezos wouldn’t commit to a specific figure because, according to Bloomberg Billionaires Index, his net worth has collapsed by 25.6% year-to-date due to a 40% plunge in Amazon shares this year. As of Friday, Bezos is worth $123.9 billion.
Bezos’ wealth is mostly tied up in Amazon stock.
The 20-minute interview covered many topics, from Bezos’ views on politics to economic turmoil to his space venture where Sanchez plans to visit low-Earth orbit.
Bezos has committed $10 billion over the decade, or about 8% of his current net worth, to the Bezos Earth Fund, which Sanchez co-chairs.
“The hard part is figuring out how to do it in a levered way,” he said, implying that even as he gives away his billions, he is still looking to maximize his return. “It’s not easy. Building Amazon was not easy. It took a lot of hard work, a bunch of very smart teammates, hard-working teammates, and I’m finding — and I think Lauren is finding the same thing — that charity, philanthropy, is very similar.”
“There are a bunch of ways that I think you could do ineffective things, too,” he added. “So you have to think about it carefully and you have to have brilliant people on the team.”
The latest recipient of the billionaire’s money via Bezos Courage and Civility Award, an annual award distributed by Bezos, was country music legend Dolly Parton, who received $100 to donate as she pleases.
Oh… and there’s this.
Jeff Bezos Says He Will Give Most of His Money to Charity: CNN
Zelensky Visits Kherson, Hailing It As “The Beginning Of The End Of The War”
Ukrainian President Volodymyr Zelensky showed up in the southern city of Kherson on Monday, after last week Russia made an unusually blunt defense ministry televised announcement that its forces would withdraw from the city, citing a desire to preserve troop and civilian lives.
Zelensky took part in a flag raising ceremony in the newly liberated city center. “This is a great pleasure for my heart and soul. I want to thank you for who you are and for returning Ukraine to the Kherson region. We are returning our Armed Forces, our state, our flag,” Zelensky said from Kherson’s central square. He called the Kherson victory “The beginning of the end of the war.”
While standing before a crowd, Zelensky led the ceremony in a moment of silence for all the Ukrainians who had died defending the city. It marks a major defeat for Russia, given it was the only regional capital to have been held by Russian forces since nearly the start of the invasion. Russia had firm control of it starting in early March.
“All of us, our Armed Forces, our National Guard, intelligence have shown that it is impossible to kill Ukraine,” Zelensky said. But he said, “The price of this victory is considered very high,” underscoring it came at the cost of “a lot of people wounded and a very high number of dead.”
Most importantly, the Ukrainian leader suggested he could be ready for negotiations, after reports emerged this month that Washington has been pressing him to be open to ceasefire talks. He hinted at this possibility from Kherson:
The liberation of Kherson marks the “beginning of the end” of the war with Russia, Ukrainian President Volodymyr Zelensky said on a visit to the city.
Ukraine is “moving forward” and ready for peace, he told soldiers.
He had stressed the government and people are “ready for peace, peace for all our country.”
Official flag-raising in Kherson with the participation of the President of Ukraine pic.twitter.com/djFHbFRbCB
Additionally, Zelensky suggested it wouldn’t have been possible without support from the US and Western allies:
He thanked Nato and other allies for their support, adding that high mobility artillery rocket systems (Himars) from the United States had made a big difference.
Zelensky last week reiterated that while he’s open to talks, Ukraine will never agree to territorial concessions, which makes the possibility of negotiations unlikely, given President Putin has signed into law the Russian Federation’s annexation over the four territories of Luhansk, Donetsk, Zaporizhzhia and Kherson. Putin recently called this “non-negotiable” and irreversible.
Ukraine’s US-funded army defends democracy in Kherson by capturing and torturing civilians accused of collaboration – this one apparently because his old military ID identified him as Russian pic.twitter.com/lkBeUiDQ4S
Putin spokesman Dmitry Peskov reacted to Zelensky’s appearance in Kherson on Monday, saying “We leave this without comment.” He added: “You know, this territory is part of the Russian Federation.”
Western media outlets have been reporting on Ukrainian retribution attacks now happening in the city…
Meanwhile, President Biden while speaking from the G20 summit in Bali reiterated the US position of “nothing about Ukraine without Ukraine” – responding to a reporter’s question about the possibility of a negotiated settlement. Biden further hailed Kherson a “Significant, significant victory for Ukraine.”
CIA & Russian Intel Chiefs Meet In Turkey To Discuss Nuclear Tensions
In a rare diplomatic opening of dialogue after nine months of war in Ukraine, CIA Director William Burns is in Turkey on Monday for talks with his Russian counterpart aimed at reducing nuclear tensions between the two superpowers.
Burns is holding the talks with Sergey Naryshkin, the head of Russia’s Foreign Intelligence Service, or SVR, in Turkey’s capital of Ankara. This marks the highest-ranking face-to-face meeting between US and Russian officials since President Putin ordered the invasion of Ukraine on Feb.24.
The Kremlin confirmed that the meeting is taking place at Washington’s request. “Such negotiations really took place. It was the initiative of the American side,” TASS quoted Kremlin spokesman Dmitry Peskov as saying.
According to Al Jazeera, citing regional sources, “Burns reportedly warned Naryshkin of the consequences Russia would face in the event it used nuclear weapons in Ukraine.”
The two intelligence chiefs are said to not be discussing settlement of the Ukraine war, but are focusing on the potential for a prisoner exchange between the US and Russia, as well as the de-escalation of nuclear tensions.
According to a White House national security official cited by The Associated Press:
The official, who was not authorized to comment publicly and spoke on the condition of anonymity, said Burns and Sergei Naryshkin, the head of Russia’s SVR spy agency, would not discuss settlement of the war in Ukraine. Burns is expected to raise the cases of Phoenix Mercury star Brittney Griner and Michigan corporate security executive Paul Whelan, two Americans detained in Russia whom the Biden administration has been pressing to release in a prisoner exchange.
Washington and NATO allies have long accused President Putin of making nuclear threats while citing ‘red lines’ in Ukraine – something which Putin has denied, explaining his words were taken out context. The Kremlin has repeatedly said its nuclear doctrine has not changed, explaining that it will only use nukes if Russian territory and sovereignty comes under direct existential threat.
Meanwhile, at the G20 summit in Bali on Monday – which Putin was not in attendance for, President Biden and China’s Xi Jinping “reaffirmed our shared belief in the threat for the use of nuclear weapons is totally unacceptable.” The two had discussed Ukraine, finding common agreement on the need to avoid ratcheting nuclear rhetoric among superpowers.
But the real question remains: will Ukraine’s recapture of Kherson lead to any serious attempt at negotiations? It certainly gives Kiev the battlefield leverage it has long sought. Influential voices within the Biden administration have also begun talking about pushing for peace, however, so far the hawks have prevailed, arguing that Ukraine must continue its military momentum and that seeking a ceasefire would only suggest weakness.
CIA director Bill Burns “is not conducting negotiations of any kind” with his Russian counterpart.
“All We Know He’s Alive”: Jay Leno Seriously Burned In Car Fire
Former Tonight Show host Jay Leno was seriously burned when one of his vehicles erupted in flames at his Los Angeles-based garage, according to TMZ.
“Jay was in the L.A. garage where he stores his cars on Sunday when one of the cars erupted into flames without warning,” people with direct knowledge of the incident told TMZ, adding Leno was burned on the left side of his face.
The 72yo comedian was rushed to Grossman Burn Center in Los Angeles, where he is currently recovering. Variety reported Leno suffered “serious burns” but is in stable condition.
“I got some serious burns from a gasoline fire. I am ok. Just need a week or two to get back on my feet,” the comedian said in a statement
Leno was expected to attend The Financial Brand conference in Las Vegas Sunday, but organizers said he suffered a “very serious medical emergency” that prevented him from attending.
“His family was not able to provide us very many details, but there was a very serious medical emergency that is preventing Jay from traveling.
“All we know is that he is alive, so our prayers go out to him and his family tonight,” according to an email from organizers.
Leno’s garage is located next to Burbank Airport in Los Angeles County. It’s reported he has 181 classic and rare cars and 160 motorcycles.
“Given the current market values, Jay Leno’s car collection is worth over $52 million,” DuPont Registry wrote in a blog post in July.
Historically High Breadth A Major Shorter-Term Boost For S&P
By Simon White, Bloomberg Markets Live reporter and analyst
A sharp rise in the number of S&P stocks advancing after last week’s soft inflation print is a promising set up for above-average returns in the coming weeks and months.
Breadth studies rely on the assumption that the behavior of the parts can give extra information about the whole. One of the simplest measures of breadth is the net number of stocks in an index advancing on a daily basis.
When this goes from being deeply negative to very positive in a rapid fashion – as it did for the S&P 500 last week – it typically points to above-average returns in the short-to-medium term.
Last Wednesday, the day before the CPI release, the net number of advancing S&P 500 stocks was -424, i.e. almost all stocks fell on the day. The next day, though, after the softer-than-expected inflation data, that number shot up to +467, i.e. almost every stock was up on the day. That’s in the top 0.6% of all readings going back to 1990. Net new advances remained supported on Friday at +130.
How does the S&P go onto fare when we see a number that high or higher? Historically speaking, very well, as we can see in the left table below of forward returns. However, that comes at the cost of higher volatility. The right-hand table shows that volatility going forward tends to pick up when we see such a large number of stocks advancing.
Caveats apply though. The liquidity backdrop remains poor, and recession risk in the US is rising, which would historically imply more downside ahead for stocks.
Moreover, studies like these select specific intervals of the market that condition on only one feature, whereas the liquidity backdrop applies through all time, and has a broader array of inputs that encapsulate a wide range of conditions – rates, growth, inflation – and is therefore likely to be more robust.
That said, though, when the results are particularly compelling as these are, it pays to incorporate them into one’s view. This study shows that, despite the still challenging backdrop for equities, there is a bias towards upside surprises.
Amazon To Fire 10,000 Employees, Largest Layoff In Company History
Over the past month, technology companies have laid off tens of thousands of employees. And the momentum in layoffs only appears to be worsening.
According to a new report via NYTimes this morning, Amazon could add to the count this week as approximately 10,000 people in corporate and technology jobs will be slashed, in what could be the most significant job cut in the company’s history.
People with direct knowledge of the layoff plan said job cuts would be focused on Amazon’s devices organization, including the voice-assistant Alexa, its retail division, and human resources.
“The total number of layoffs remains fluid. But if it stays around 10,000, that would represent roughly 3 percent of Amazon’s corporate employees and less than 1 percent of its global workforce of more than 1.5 million, which is primarily composed of hourly workers,” NYTimes said.
A deteriorating macroeconomic backdrop led America’s second-largest employer to announce a hiring freeze in early October (read: here). Amazon recruiters were instructed to halt all hiring for “corporate roles, including technology positions, globally in its Amazon stores business, which covers the company’s retail and operations, and accounts for the bulk of Amazon’s sales” by mid-Oct. Then in late October, the company froze hiring for its lucrative web services division, Amazon Web Services.
Amazon shares pumped and dumped on today’s news.
Amazon would become the latest tech company to reduce headcount. Just in the last few months, Twitter, Facebook parent Meta, ride-hailing company Lyft, software service firm Salesforce, payment platform Stripe, and a growing list of tech companies have announced layoffs of engineers, salespeople, and support staff.
The Chinese communist regime announced on Nov. 11 that it would relax some COVID-19 restrictions, but said it won’t change its zero-COVID policy. Meanwhile, the regime has been implementing more lockdowns in its southern megacity of Guangzhou.
The regime’s State Council and the National Health Commission announced 20 relaxation measures for COVID-19 epidemic control on Friday, including reducing the seven-day centralized quarantine to five days of at-home quarantine. It also canceled the controversial circuit breaker mechanism for inbound flights and reduce the two negative PCR test results within 48 hours needed before boarding a flight to one.
Despite the relaxation, China’s COVID-19 restrictions are still the most restrictive in the world, while other governments have basically allowed their residents to return to normal life.
Also on Nov. 11, China’s Ministry of Foreign Affairs spokesman Zhao Lijian said at a press briefing that the regime will continue to “unswervingly implement the general policy of ‘zero-COVID.’”
This policy has weighed greatly on China’s economic development, and brought immense suffering and countless tragedies to the Chinese people. It has also triggered increasing domestic opposition to the government policies for strict COVID-19 control measures.
At the same time, the CCP’s official media have published commentaries blaming local authorities for the improper role-out of COVID-19 control measures while they are implementing CCP leader Xi Jinping’s “zero-COVID” policies.
Regarding the relaxation of some of the control measures, China Affair commentator Zhou Xiaohui pointed out in his column for The Epoch Times, “In the face of an increasingly uncontrollable situation, life under COVID-19 control has become increasingly unbearable for the people. And in a worsening social atmosphere, Xi and the communist regime had to loosen their grip a little to reduce public grievances and the domestic crisis that the regime may usher in by shifting the blame to the local authorities.”
International media, such as The Wall Street Journal and Bloomberg, citing analysts, also warned that the international community shouldn’t be overly optimistic about the relaxation, as the changes are just minor adjustments. They anticipate the Chinese regime’s “zero-COVID” policy will continue indefinitely.
Locking Down Another Megacity
Meanwhile, the Chinese regime continues to lockdown more cities and conduct mass COVID-19 testing.
Guangzhou, the provincial capital of Guangdong in south China, is now on the brink of a city-wide lockdown, with millions of residents undergoing mass testing and being shut in at home.
Haizhu District in the city has already been locked down since Nov. 11, according to official notice. All residents in the district must stay at home and undergo regular mass PRC testing.
One person in each household is allowed to go out once every day to buy basic necessities nearby.
Public transportation has been suspended, including subways, buses, taxis, and online car-hailing services. The entrances and exits of the highways in Haizhu District are closed, and temporary traffic control has been implemented across the district.
Mr. Chen (pseudonym), the owner of a barbecue restaurant in Haizhu District of Guangzhou City, has five or six employees who live in two dormitories. He told The Epoch Times on Nov. 11, “My restaurant is not allowed to open; food and supplies have not been distributed to us; only the large supermarkets can stay opened, which will have a great impact on the economy.”
Chen said that after the lockdown notice was issued, everyone went out to shop to stock up on food. “There are a lot of people shopping, and if they are slow, the goods will be gone, such as green vegetables are no longer available for grabs.”
Since Nov. 10, a number of high-risk areas and temporary control areas have been added to the lockdown list in other districts of Guangzhou.
Mr. Zhao (pseudonym), the owner of an art studio in Baiyun District of Guangzhou, told The Epoch Times on Nov. 11 that there have been COVID-19 cases reported in various districts in Guangzhou, and basically every village has shut down and many businesses have been suspended for almost a month.
“There are basically barriers on the streets everywhere to blockade various neighborhoods, no more than 500 meters (0.3 mile) away from each other,” Zhao described.
Xiao Lusheng and Gu Xiaohua contributed to this report.
Biden Sees ‘No Imminent Attempt Of China To Invade Taiwan’ After Xi Meeting
Update(1052ET): During President Biden’s Q&A portion of his post Xi meeting presser, he took just a few questions, during which time he stressed that he and the Chinese president understood each other well. “There need not be a new Cold War…We were candid and clear with one another across the board.”
Addressing the key geopolitical flashpoint between the rival nuclear-armed superpowers, Biden said he doesn’t believe that China will invade Taiwan:
“I do not think there’s any imminent attempt of China to invade Taiwan. We want cross-strait issues to be resolved,” he said.
He called the meeting “direct and straightforward” – while saying that on Taiwan and “every issue that was raised” they will maintain open lines of communication. He confirmed that Secretary of State Blinken will later visit China as a follow-up to Monday’s G20 summit discussions.
As for the official readout from the Chinse said, it too stressed that “differences” between the two countries should not become an obstacle to cooperation on key fronts. “It is in our mutual and fundamental interest to prevent conflict and confrontation and achieve peaceful coexistence. The two economies are deeply integrated, and both face new tasks in development,” Xi said. He said the world is big enough for the two to develop and prosper.
As for the Taiwan question, Xi stressed that this is “the bedrock of the political foundation of China-US relations, and the first red line that must not be crossed in China-US relations.”
Pres. Biden says he found China’s Xi Jinping “to be what he’s always been—direct and straightforward.”
Further, the readout via China’s Foreign Ministry stated, “Their financial teams will continue dialogue and coordination on macroeconomic policies, economic ties and trade They agreed to make good use of the China-US joint working group to promote the resolution of more issues Both sides agreed that cultural exchange is very important and encourage to enlarge the personnel exchanges in all areas.”
Bloomberg noted Chinese stocks listed in the US extend their gains in premarket trading upon the conclusion of the three-and-a-half hour meeting.
* * *
The high-stakes G20 Bali meeting between President Biden and Chinese leader Xi has concluded after three hours on Monday, having begun at 4:41am ET/5:41pm local time. Two cabinet-level officials were included seated on Biden’s side – Secretary of State Antony Blinken and Secretary of the Treasury Janet Yellen, with the former official having previously called China the “most serious long-term challenge to the international order.” Also at the table wasnational security adviser Jake Sullivan.
In opening remarks going into the meeting President Xi Jinping had said, “Currently the China-US relationship is in such a situation that we all care a lot about it, because this is not the fundamental interest of our two countries and peoples, and it is not what the international community expects (from) us.”
“As leaders of the two major countries we need to chart the right course for the US-China relationship,” Xi added. “In this time and age great changes are unfolding in ways like never before, humanity is confronted with unprecedented challenges, the world has come to a crossroads.”
“Where to go from here is a question that is not only on our minds, but also on the minds of all countries.” the Chinese leader stressed.
The White House has signaled there are no plans to make fundamental concessions to Xi, nor are there any expected major breakthroughs, also as the war on Ukraine overshadows the Group of 20 summit. Here’s how the meeting started as the two leaders entered the room:
“Good to see you,” Biden said to Xi before they joined US and Chinese officials. The two sides sat at long conference tables with a display of flowers between them.
“We share a responsibility, in my view, to show China and the United States can manage our differences, prevent competition from coming anywhere near conflict, and find ways to work better together,” Biden said to kick off the talks.
As for Xi, he agreed on the “need to find the right direction” and “elevate the relationship.” Among the chief foreign policy issues discussed were Ukraine, Taiwan, and North Korea. All eyes have been on China’s continued resistance to Western pressure on Ukraine, given Beijing has never once condemned the invasion, while at the same time has called for negotiations and the avoidance of escalation.
On trade and the economy, CNN reported, “Speaking with reporters in Bali, US Treasury Secretary Janet Yellen said the meeting was intended to stabilize the relationship and expressed hopes that it would lay the groundwork for bilateral economic engagement.”
China’s Foreign Ministry immediately following the meeting described the lengthy meeting as including a “candid and in-depth exchange of views.”
The White House readout issued within an hour of the meeting concluding said that Biden stressed readiness to “compete vigorously with the PRC, including by investing in sources of strength at home and aligning efforts with allies and partners around the world,” however reiterated that this “competition should not veer into conflict and underscored that the United States and China must manage the competition responsibly and maintain open lines of communication.”
President Biden underscored that the United States and China must work together to address transnational challenges – such as climate change, global macroeconomic stability including debt relief, health security, and global food security – because that is what the international community expects. The two leaders agreed to empower key senior officials to maintain communication and deepen constructive efforts on these and other issues. They welcomed ongoing efforts to address specific issues in U.S.-China bilateral relations, and encouraged further progress in these existing mechanisms, including through joint working groups. They also noted the importance of ties between the people of the United States and the PRC.
On China’s human rights record and the Taiwan issue, President Biden said the following:
President Biden raised concerns about PRC practices in Xinjiang, Tibet, and Hong Kong, and human rights more broadly. On Taiwan, he laid out in detail that our one China policy has not changed, the United States opposes any unilateral changes to the status quo by either side, and the world has an interest in the maintenance of peace and stability in the Taiwan Strait. He raised U.S. objections to the PRC’s coercive and increasingly aggressive actions toward Taiwan, which undermine peace and stability across the Taiwan Strait and in the broader region, and jeopardize global prosperity. President Biden also raised ongoing concerns about China’s non-market economic practices, which harm American workers and families, and workers and families around the world.
Concerning the most anticipated hot button issue, Russia’s ongoing military offensive in Ukraine:
President Biden raised Russia’s brutal war against Ukraine and Russia’s irresponsible threats of nuclear use. President Biden and President Xi reiterated their agreement that a nuclear war should never be fought and can never be won and underscored their opposition to the use or threat of use of nuclear weapons in Ukraine. President Biden also raised concerns about the DPRK’s provocative behavior, noted all members of the international community have an interest in encouraging the DPRK to act responsibly, and underscored the United States’ ironclad commitment to defending our Indo-Pacific Allies.
Thus the two sides reiterated their agreement that the Ukraine crisis should never reach the point of spiraling toward nuclear rhetoric or war.
From the Chinese side, the first statement at the conclusion of the meeting issued via Xinhua said “China and the United States should take history as a mirror and let it guide the future.”
* * *
Below are headlines previewing the issues of contention and that were under discussion via Newsquawk:
US President Biden says US and China can manage differences and stop competition from turning into conflict, expects US and China to play a role in address climate and food shortages.
Chinese President Xi says has stayed in touch with US President Biden via video but it is no replacement for in-person meetings, both nations need to chart their course and find the right direction for the relationship and elevate it. Prepared to have a candid and in-depth exchange of views on the US-China relationship.
The White House said further engagement after the Biden-Xi meeting could include face-to-face meetings, according to Reuters.
Stated prior to the meeting US President Biden will make it clear in the meeting with Chinese President Xi that the US does not seek competition or conflict, and the meeting could last “a couple of hours”, according to Reuters citing the White House National Security Adviser Sullivan.
Stated prior to the meeting US President Biden underscored that freedom of navigation and overflight must be respected in the East China Sea and the South China Sea, via Reuters.
US President Biden will raise the issue of North Korea with Chinese President Xi at the G20 Summit, according to the White House. Biden will tell Xi that if North Korea continues, there will be more enhanced US military presence in the region. Blackrock (BLK) has shelved its China bond ETF amid growing tensions between the US and China alongside a reversal in the China-US yield differential, according to FT.
US Treasury Secretary Yellen will ask for clarity on China’s plans to ease COVID restrictions alongside issues in the Chinese property market, in a meeting with the PBoC Governor, according to Treasury officials cited by Reuters.
US Treasury Secretary Yellen said the US will likely discuss export controls with Chinese officials, according to Bloomberg.
The White House has confirmed that Biden and Xi agreed Secretary of State Blinken will later visit China as a follow-up to Monday’s G20 summit discussions.
… for “criminal misconduct“, the democrat-controlled US judicial system has finally been dragged kicking and screaming into investigating the single biggest fraud in crypto history, and the second biggest Democratic donor in recent history…
… just one day after Elon Musk saying that SBF will be spared any real punishment precisely because of his generosity (with other people’s money).
According to Reuters, prosecutors with the Manhattan district of New York are now probing FTX’s collapse, days after the crypto exchange filed for bankruptcy protection last Friday following a rush of customer withdrawals.
Reuters reported last week that at least $1 billion of customer funds have vanished from FTX, citing sources; others have said the number is much bigger, with FTX holding less than $1 billion in liquid assets vs $9 billion in liabilities.
Of course, the prosecution’s case here is a slam dunk: all that is needed is for the DA to find a recording of the video conference that took place last Wednesday in which 27-year-old Alameda CEO Caroline Ellison (also known as @carolinecapital) said that she, Bankman-Fried and two other FTX executives, Nishad Singh and Gary Wang, were aware of the decision to send customer funds to Alameda. That should be all the vidence of criminal commingling the jury needs to send FTX’s entire senior management team to prison for a long time. But of course, if Elon is right and if the prosecution instead focuses on them being Democrat Donors first and foremost, then SBF will be living a cozy life in some non-extradition country (UAE, Maldives) until the next crypto bubble helps everyone forget what happened.
