Housing Recovery False Alarm - Starts, Permits Plunge In July As Rental Units Collapse

Following June's huge surprise jumps in Housing Starts (revised lower) and Building Permits (revised notably higher), July saw both starts and permits plunge (-4.8% and -4.1% respectively) dramatically missing expectations. The majority of the plunge is driven by multi-family starts crashing 35.2% YoY to its lowest since Sept 2016.

Frontrunning: August 16

  • White House braces for fallout from Trump remarks (Reuters)
  • Trump Drags GOP Onto Dangerous Ground, This Time Over Race (BBG)
  • Trump Gives White Supremacists an Unequivocal Boost (NYT)
  • Trump orders faster permitting on infrastructure projects (Reuters)
  • Trump’s U.S. Senate Pick Advances in Alabama Republican Race (BBG)

Global Stocks Rise Amid Unexpected ECB "Trial Balloon"; Dollar Flat Ahead Of Fed Minutes

European markets continued their risk-on trend in early trading, rising to the highest in over a week and rallying from the open led by mining stocks as industrial metals spike higher after zinc forwards hit highest level since 2007. The EUR sold off sharply, boosting local bond and risk prices after the previously discussed Reuters "trial balloon" report that Draghi's speech at Jackson Hole would not announce the start of the ECB's taper.

Euro Turmoils After ECB Walks Back Draghi Jackson Hole Appearance

The Euro whipsawed after Reuters "Trial ballooned" that contrary to a previous report by theWSJ, the ECB's Mario Draghi will not deliver a new policy message at the upcoming Jackson Hole conference, tempering expectations for the bank to start charting the course out of stimulus, and rallying European bonds as fears of an imminent taper have been pushed back once again.

A Defiant Trump Doubles Down: "Blame On Both Sides" For Violence

In a fiery, impromptu press conference, President Trump on Tuesday said there is “blame on both sides” for the violent protests in Charlottesville, remarks that are sure to inflame his critics and reignite debate over Trump's alleged support for white nationalists.

Austerity Isn't Dead, It Will Come Back With A Vengeance

"Whilst I don’t deny the medium term tide is against austerity, the very high levels of sovereign debt mean austerity will return. To understand why this must happen we need to deal with the three key fallacies that austerity opponents are propagating."

Korea And Venezuela: Flip Sides Of The Same Coin

"By suggesting that he might order a US regime-change invasion of Venezuela, President Trump has inadvertently shown why North Korea has been desperately trying to develop nuclear weapons - to serve as a deterrent or defense against one of the US national-security state storied regime-change operations..."

Visualizing The Diversity Of The Tech Industry

With the recent leak of the “Google Manifesto” and the maelstrom of media backlash that followed, it seems that concerns around diversity in the technology industry have finally reached a boiling point. The following infographic breaks down the demographics of 23 major tech companies, based on statistics from 2016...

Iran Threatens Trump With Restart Of Nuclear Program "Within Hours"

"Those who try to return to the language of threats and sanctions are prisoners of past delusions," Iran president Rouhani said on Tuesday. "If they want to go back to that experience, definitely in a short time — hours and days — we will return to our previous [nuclear] situation very much stronger."