Business

As its foreign reserves dwindle to less than $10 billion, the government of Venezuela – desperate for any kind of financial lifeline - has partnered with a Chinese brokerage to try and resell $5 billion in bonds that it initially issued at a deep discount, according to the Wall Street Journal. The brokerage, Haitong Securities USA, a unit of China’s Haitong Securities, is quietly marketing the bonds to yield-starved hedge fund managers.

Authored by Kevin Muir via The Macro Tourist blog,

This morning’s big news is the Chinese announcement they would they would buy more US Treasuries as the Yuan stabilizes. From Bloomberg:

China is prepared to increase its holdings of U.S. Treasuries under the right circumstances, as officials judge the assets are becoming more attractive than other sovereign debt and as the yuan stabilizes, according to people familiar with the matter. Treasuries rose, driving yields to the lowest since November.

 

Here's another example of when cornered hacks blame "fake news" or in this case, the "irresponsible media" for their gross incompetence, only to prove the media very much responsible and unfake.

Authored by Frank Shostak via The Mises Institute,

According to the president of the Federal Reserve of St. Louis James Bullard the current level of US prices is noticeably lower than what it would be if the Federal Reserve had delivered on its 2% inflation target, calling the trend “worrisome.” The yearly growth rate of the consumer price index (CPI) eased in April to 2.2% from 2.4% in March. 

Short-seller Carson Block triggered a small panic in Hong Kong on Tuesday after he told Bloomberg that he had identified a new short play listed in the former British colony.