El-Erian Warns Vexed Central Bankers "The Lowflation Demon Is Real"

"...economies on both side of the Atlantic must contend with the risk that a loose monetary policy approach may have overly repressed financial volatility, excessively boosted a range of asset prices beyond what is warranted by economic fundamentals, and encouraged too much risk-taking by non-banks."

ESPN Pulls Asian Announcer Named Robert Lee To Avoid A Mass Triggering Event

We've been saying this a lot lately, but just when you thought the political climate in this country couldn't get anymore wacky, ESPN has to go and pull an Asian-American announcer, who just happens to be named Robert Lee, off the William and Mary vs. University of Virginia college football game because of concerns they might create a mass-triggering of America's snowflakes. 

Venezuela Bonds Tumble On Report U.S. To Ban Trading

Venezuela bonds are tumbling after the WSJ reported that the US government was considering a ban on trading in the country's debt. The unprecedented move would temporarily ban U.S.-regulated financial institutions from buying and selling dollar-denominated bonds issued by the Republic of Venezuela and state oil company Petróleos de Venezuela.

WTI Algos Uncertain After Gasoline Inventories Draw But Crude Production Surges

WTI crude prices managed to scramble back up to pre-API-tumble levels ahead of DOE's data dump this morning with all eyes on gasoline inventories, which did not disappoint showing a small draw (in line with expectations) along with crude's draw which was roughly in line with API and expectations. Production continues to rise to highest since July 2015.

New Home Sales Crash In July Following Plunge In Household Formations

New Home Sales crashed in July (down a shocking 9.4% MoM compared to expectations of unchanged) following the collapse of household formations in June. The 8.9% year-over-year plunge in home sales is the worst since June 2014 as it appears higher mortgage rates, stagnant wages, and soaring prices have finally caught up to one another.

Draghi: Trillions In QE Have Made Economies "More Resilient"

ECB president Mario Draghi said unconventional policies like quantitative easing have been a success both sides of the Atlantic, and the injection of over $10 trillion in liquidity over the past decade has made eEconomies around the world "more resilient."

Stocks Retrace Tax Bounce As Trump Raises Debt-Ceiling Doubts Overnight

Stocks are rapidly erasing yesterday's "making strides on taxes" gains as Trump's government shutdown threats remind investors just how fragile this whole facade is. The 'risk-off' trade is evident everywhere with Treasury and Bund yields tumbling, gold up, and USDJPY sliding.

Egypt Snubs Kushner, Cancels Meeting After US Yanks $300 Million In Aid

Trump's son-in-law and the White House "global peace" adviser, Jared Kushner, arrived in Cairo on Wednesday only to learn that his top-level meeting with Egyptian officials had apparently been cancelled, as Egypt lashed out at the Trump administration's decision to slash aid to the country.

A Peak Above All Others

“Valuations are still well below the peak of 1999” say the bulls. They are certainly correct from an absolute basis but we caution that the current level of market euphoria is in a league of its own when compared to prior peaks on an “apples to apples” basis.

Frontrunning: August 23

  • Trump Tries to Recharge His Base in Arizona Rally (WSJ)
  • Trump Threatens Government Shutdown Over Border Wall Funding (BBG)
  • Trump defends response to Charlottesville violence (Reuters)
  • Trump Assails Media in Angry Defense of Charlottesville Response (BBG)
  • North Korea presses rocket program, but amid signs of drama easing (Reuters)