Economic principles explain why the Saudis began, in late 2014, to pump crude as fast as they could – or close to as fast as possible. In fact, there is a good reason why the Saudi princes are panicked and pumping.
In yet another awkward moment for Democratic talking point providers and Trump-deniers, Wikileaks' leaked DNC emails turned up an interesting factual confirmation of Trump's 'conspiracy theory' questions about Ted Cruz's father's background... "I will note that Cruz's father was in fact a militant who fought the Batista regime (which Fidel Castro defeated) and it would not be unusual for him to be caught up in the ugly web of Cuban militants with questionable histories."
Washington Post writer Matt O’Brien proposes Getting Stuck Without a Job is Mostly a Matter of Bad Luck. That notion is ridiculous. While there may be instances of 'bad luck', in general, the employees with the weakest skills were the first to be let go and the last to be rehired.
Silver was monkey-hammered lower as Japan and China opened overnight, bashed back below $19.50, and was accelerating lower ahead of the US Open when the fixing struck and suddenly Silver was panic-bid... on heavy volume... back into the green for the day...
Following the release of greatly embarrassing emails that are forcing Hillary to lose control of the narrative, Politico reports, The Federal Bureau of Investigation has launched a probe into the hacking of the Democratic National Committee's emails. We are sure Director Comey will be closely watching and AG Lynch will once again take his word as gospel as somehow, we suspect, a narrative of Trump-Putin partnership will be created (or at the very least questions raised).
The suicide bomber who blew himself up outside a German concert, injuring 15, had declared allegiance to the leader of Islamic State, Bavarian Interior Minister Joachim Herrmann said. "A video with a corresponding threat of an attack made by the assailant was found on his cellphone, in which he declares in Arabic…in the name of Allah allegiance to Abu Bakr al-Baghdadi, a known Islamist leader, and threatens vengeance against Germans because they stand in Islam’s way."
"Europe, hot weather, riots, shootings and the political situation are not conducive to a healthy economy... Entry-level candidates cannot read or follow instructions. Most cannot do simple math problems. What is wrong with the educational system?"
"I am sorry to be the bearer of bad news, but I gave it to you straight last summer when I told you that Donald Trump would be the Republican nominee for president. And now I have even more awful, depressing news for you: Donald J. Trump is going to win in November. This wretched, ignorant, dangerous part-time clown and full time sociopath is going to be our next president. Here's why..."
if one looks only at trends revealed by CAT's retail sales the global economy has been mired not in a recession but an unprecedented depression, one which has now lasted some 43 months. That's how long CAT has gone without a single positive month in global retail sales, well over double the duration of the acute collapse in demand following the financial crisis.
Pouring cold water on speculation that Merkel may take responsibility for the past week's events, German Interior Minister Thomas de Maiziere said that "the attacks are unrelated to Merkel's refugee policy." He urged people "not to panic." And to help them do just that, the interior minister said that he has ordered increased security presence at airports, train stations and other public places, adding that the "German army can play a domestic role in special cases." Cases such as these.
For the 19th week in a row, it appears low oil prices are not "unequivocally good" for the Dallas Fed region. Despite surging from -18.3 to -1.8 (beating expectations by 3 standard deviations) we note that wages tumbled on the month, as did prices received. The biggest driver of the bounce appears to be 'hope' about the future new orders growth rate (20.3 to 34.7)...
The dramatic shrinkage of Greek earnings due to recession, the explosion of unemployment and the dominance of flexible forms of employment is exposed in a new document submitted by an experts’ committee to Greek Labor Ministry. As KeepTalkingGreece reports, the document featured details wage inequality during the period 2010-2015 and exposes a new social class of workers: the Neo-Poor Greeks earning wages much less than the unemployment allowance of 360 euro.
Turkish prosecutors have begun investigating people who claim that Turkey's coup attempt was a hoax carried out by the government, the country’s justice minister said Sunday, reflecting a farcical crackdown on free speech. “Just look at the people who are saying on social media that this was theater, public prosecutors are already investigating them. Most of them are losers who think it is an honor to die for Fethullah Gulen’s command,” Justice Minister Bekir Bozdag said.
Debt works the same way for countries as it does for individuals and families: When you borrow too much your life spins out of control. And civil unrest becomes the rule rather than the exception. This sudden outbreak of apparent insanity doesn’t seem closely tied to the recent change in our borrowing habits. But it is, in several ways...
Accelerating the post-Trump speech/RNC convention "bounce" we noted over the weekend, CNN today reports that Trump has taken a dramatic 48% - 45% head-to-head lead over Hillary in the latest CNN/ORC Poll, conducted July 22-24. This represents a substantial 6% surge in support for Trump since the last poll conducted on July 16, and opens up Trump's largest lead over Clinton since September 2015.
WTI Crude (Sept) oil futures have contonued their 6-day slide this mornig, pressing back to a $43 handle at 3-month lows. While the seasonality, both price and oil demand, and gasoline glut remain significant overhangs, it appears a bigger driver for now is the rapid unwind of record long speculative positioning in crude markets.
The key economic releases this week include consumer confidence on Tuesday, the durable goods report on Wednesday, and the advance release of 2nd quarter GDP on Friday. The July FOMC statement will be released on Wednesday at 2PM. There are several scheduled speeches from Fed officials this week. 197 S&P 500 companies are due to report (or 38% of the index market cap) with the notable names including Apple, Verizon, Facebook, Coca-Cola, Alphabet, Exxon Mobil and Chevron.