It is the 20th of October 2019


China Devalues Yuan Most In 10 Months As Premier Li Warns Of Brexit "Butterfly Effect" On Financial Markets, Economy

In a somewhat shockingly honest admission of the frgaility of the global financial system, Chinese Premier Li warns that a disillusioned British butterfly has flapped its wings and the entire global financial system could collapse. Responding to the plunge in offshore Yuan since the Brexit vote (down 7 handles to 5-month lows over 6.65), PBOC devalued Yuan fix by 0.9% (6 handles) - the most since the August crash - to Dec 2010 lows. Finally, we note USD liquidity pressures building as EUR-USD basis swaps plunge.

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"Choppy Conditions" - British Pound, Stocks Plunge As Market Await China Open

The collapse continues as Friday's bounce in GBPUSD is rapidly being erased. Cable is now down 2% back to a 1.33 handle..

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The Chinese Real-Estate Bubble Has Gone Parabolic: Land Prices Soar 50% In One Year

The saying goes "when in a hole, stop digging." In China, conventional wisdom appears to be flipped on its head as follows: "when facing a massive real estate bubble, keeping blowing." That is the case at least according to the following chart showing the average price of land, the main ingredient of the property world, in the top 100 Chinese cities, which as of May has hit a record 3,100 Yuan per square meter.

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Dear Janet, "No Surprises!" - China Devalues Yuan To Weakest Since Jan 2011

Just in case The Fed had any ideas of surprising markets with a "confidence-inspiring" rate-hike tomorrow, The PBOC just sent a message loud and clear to Janet as they devalued the Yuan fix by over 2 handles, above 6.60 for the first time since January 2011.

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Markets In Turmoil As Brexit Fears Mount And Japan, China Data Tumbles

FX, equity, and bond markets are in turmoil as Asian markets begin trading with Japan ugly, Sterling getting spanked, China devaluing FX (stocks down hard), and crude ($48 handle) and US equity futures (Dow -70) extending losses (as bond markets are all tumbling to record low yields). The hangover from further brexit concerns is not helped by the weakness in Japanese and Chinese data tonight.

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Bitcoin Spikes Above $600 - 2 Year Highs - On Sudden Massive Chinese Buying

Once again, on a Saturday night (US time), Sunday morning (China) a sudden burst of buying pressure in Bitcoin, driven by Chinese buyers, has spiked the virtual currency higher on dramatic volume. With Bitcoin now trading at its highest level since May 2014 (in Yuan), and up 250% since we first suggested this an outlet for desperate-to-leave capital outflows in September, we note that the 'arbitrage' of over 150 Yuan points to massively more demand from Chinese buyers for now.

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