Business

In the latest Chinese domestic financing report released by the PBOC last night, there were two divergent themes: on one hand bank loans grew far less than the expected 700Bn yuan, and at 598Bn this was the second lowest monthly increase in the past year, only higher than October's 514bn; on the other hand total social financing soared to 1.82 trillion yuan, smashing forecasts of a 1.15 trillion increase, and the highest since June.

Dow futures are now over 400 points off the Bullard Bounce highs as it appears The Fed's ability to convince the world it will save it once again is fading. Thanks to deflation-inspiring credit growth in China (yes, you read that right) and Kuroda's implied "we are done for now" comments, growth scares have spread across every asset class with crude and copper clubbed, bonds bid, and stocks tumbling...

JPY is heavily bid as carry trades unwind (JPYUSD futures)

Bullard Bounce dead...

And cruide has collapsed below $30...

Late last month, Freeport McMoRan co-founder and executive chairman James R. Moffett was shown the door.

Moffett, known as the “last of the old-time wildcatters”, was a legend in the industry but made a fatal mistake in 2013: he paid $2.1 billion for McMoRan Exploration Co (an oil-and-gas company the parent company had separated from in the 1990s), and $6.9 billion for Plains Plains Exploration & Production.

As WSJ put it, “the deals in part were a bet that oil prices would remain high.”

• Crude sinks 4 percent as market braces for more Iranian oil (Reuters)
• Plunge in crude oil prices send stock futures sliding (Reuters)
• Oil Slides, Deepening Gloom in Stocks as Bond Buyers Celebrate (BBG)
• China Stocks Enter Bear Market, Erasing Gains From State Rescue (BBG)
• Goldman Says It Will Pay $5.1b in U.S. Mortgage Probe (CBS)
• Friendly no more: Trump, Cruz erupt in bitter fight at Republican debate (Reuters)
• China to expand coverage of advantaged import tax policies nationwide (Xinhua)

   "We're gonna need a bigger Bullard"

    - overheard on a trading desk this morning.