Thursday, April 17, 2014

Three morning newsbits

Some stuff this morning:

BI - Goldman Q1 earnings slay. Also Morgan Stanley looked good. So can we stop puking bank stocks now that I've loaded up on ZUB? The world's not ending after all, lemmings.

FT Alphaville - China gold collateral financing shock. Several things to learn from this article: first, Goldman Sachs thinks about 1000t of gold is tied up in commodity-backed financing in China, and presents some data to back their thesis. Second, Izzy Kamizzy must be reading my blog:
Bringing it back to gold, this is why we’ve always been sceptical of those using rampant Chinese consumption of gold as an indication of an imminent rebound in the gold price.
Who's "we", Izzy? You and the blog you nicked the idea from? And thus, third, now I know the identity of that person with the Portobello Road IP address who's been showing up in my blog stats.

Mineweb - Vale CEO says China pessimism not justified. Quote:
Vale SA is not concerned about an economic slowdown in China, the mining company's top iron ore market, because Chinese steel output is setting records, Chief Executive Officer Murilo Ferreira told Reuters on Wednesday.

China's economic indicators remain strong, Ferreira said after data on Wednesday showed China's economy grew at its slowest pace in 18 months at the start of 2014.
It's a case of scale of the Chinese economy relative to the iron market, not so much the speed of growth. Then again, Chinese leadership recognizes they have far too much output, and want to kill a bunch off; the increasing output is only happening because the steel industry isn't obeying the government's commands. Yet.


  1. That diagram in the FT article looks like the schematic for a furnace or something.

    I think it's good of you to help out Izzy. She's gotta make a living ya know! You've inspired her to write paragraphs like this one:

    "moves that were arguably driven by fears of prospective currency devaluation (something, which made gold look cheap in relative terms) than by any ARGHHH HYPERINFLATION IS IMMINENT, THE FED HAS RIGGED ALL THE MARKETS, THE DOLLAR IS DOOMED, GOLD IS THE ONLY VIABLE CURRENCY IN THE WORLD!!!-type concerns."

    Which sounds like something you wrote, hehe.