This erosion of opportunities to complete life's stages and core dramas is rarely recognized, much less addressed. The End of Secure Work and the diminishing returns of financialization are disrupting these core human challenges and frustrating those who are unable to proceed to the next stage of life...
Below-the-surface breakdowns strengthen BCA Research's conviction that investors should stay defensive. Technically, the S&P 500 looks weak. Breadth has thinned considerably this year. Less than 50% of S&P 500 industry groups are trading above their 40-week moving average and/or have a positive 52-week rate of change.
Well that escalated quickly...
Because nothing says "sell vol with both hands and feet" and buy Biotechs like a collapse in the wage growth meme and consumer sentiment...
The so-called “trustees” of the social security system issued their annual report last week and the stenographers of the financial press dutifully reported that the day of reckoning when the trust funds run dry has been put off another year - until 2034. So take a breath and kick the can. That’s five Presidential elections away!
...Except that is not what the report really says.
Shortly after we reported the latest market-rigging scandal, in which ITG was busted for frontrunning sellside clients in its dark pool in what has been since dubbed a "trading experiment" (because it sounds better than criminal conspiracy to defraud clients), and which will cost the company a record for a private Wall Street firm $22 million settlement, we had one question for AQR's Cliff Asness yesterday morning: "Hi @Cimmerian999, is Hitesh Mittal the AQR employee who was formerly at ITG and is part of the SEC settlement?" We got no answer from the AQR head, but luckily Bloomberg noticed, and as it turns out the answer to our question was a resounding yes.
Paper gold prices continue their extreme volatility ride, spiking $20 as the dismal ECI data hit this morning (as we pre-suppose weak data means moar money printing inevitably coming down the pike)...
It appears Chicago businesses are immune to the vaguaries of the worst quarterly wage growth in US history. Following significant weakness earlier in the year, Chicago PMI surged to 54.7, the second highest in 2015, smashing expectations of a 50.8 print. Having flashed its recessionary warning lights, while 7 underlying factors improved led by increased production and new orders (and prices paid), employment continued to fall (though at a slower pace). After missing in July's preliminary print (93.3 vs 94.0), UMich consumer sentiment final print for July dropped even further to 93.1, heading back towards the lows of the year as hope plunged from 87.8 to 84.1 - the lowest since Nov 2014.
As Marc Faber said at SocGen's January conference, if he could short central banks directly he would do so, but gold is the next best thing; and despite it being sucked into the general commodity malaise, Albert Edwards says "Gold is a must-have holding in this world."
Bad news is great news again... Stock are surging (and bond yields tumbling) following the worst wage growth in history this morning. The US Dollar is getting hammered and the Fed Funds Futures (price) curve is surging (as rate hike hopes are priced out).
The quarterly increase in US wages was just 0.2% - a third of the 0.6% rise expected - and a meager 2% increase Y/Y in line with all the other depressed BLS data, which dashes the "wage growth is looming" meme and crushed the 0.7% rise in Q1 that had so many hopeful of escape velocity any day now.
Deutsche Bank says a "software glitch" caused an "unknown" number of electronic chats dating back to 2005 to be deleted (possibly forever), a "mistake" that could endanger the bank's record $2.5 billion LIBOR settlement with regulators.
- U.S. stock futures slip amid lukewarm earnings, fall in commodities (Reuters)
- Stressful times for low-polling Republicans who may miss debate stage (Reuters)
- Trump shows staying power with surge ahead of first debate (Reuters)
- China Market Manipulation Probe Targets Spoofers After Crash (BBG)
- Beijing Chosen to Host 2022 Winter Olympics (WSJ)
- Obama Warns Support on Iran Deal ’Getting Squishy’ Amid Pressure (BBG)
- Pacific trade negotiators chase elusive final deal in tough talks (Reuters)
Italy Youth Unemployment Hits Record High 44.2%, Concerns Rising "Recession Exit May Be Unsustainable"Submitted by Tyler Durden on 07/31/2015 - 07:32
While the overall unemployment rate for the Eurozone also unchanged at 11.1%, it was renewed concern about what is going on in Italy, where unemployment rose from 12.5% to 12.7%, while Italy's youth unemployment rate, which surprisingly jumped by nearly 2% to 44.2%, a record level. As Bloomberg put it, "Italy’s jobless rate unexpectedly rose in June as businesses continue to dismiss workers amid concerns that the country’s exit from recession may not be sustainable."