"248 pages of leaked Transatlantic Trade and Investment Partnership (TTIP) negotiating texts” show that the American negotiating position, as Greenpeace put the matter, allows "No place for climate protection in TTIP,” and, though "We have known that the EU position was bad, now we see the US position is even worse.”
ECB: "information of many macroeconomic announcements is known by some market participants in advance"
Translation: the market was and remains rigged
Following April's flash PMI print plunge to cycle lows - blamed on the presidential election uncertainty - Markit's Final Manufacturing PMI printed 50.8 (as expected) its lowest since September 2009. New orders weakened further as the rate of job creation tumbles to thre-year lows. ISM Manufacturing fell back from its oddly decoupled bounce to July 2015 highs to a coincidental 50.8 (missing expectations of 51.4). As Markit concludes, apparently peddling fiction, "the April PMI data suggest there’s no end in sight to the current downturn in manufacturing activity...raising question marks over whether GDP growth will improve on the near-stalling seen in the first three months of the year."
"There is little doubt in our minds that $/JPY will keep falling in the near term, until Governor Kuroda is forced to respond with overwhelming force. We therefore hold to our structural view that $/JPY ultimately will go a lot higher. But in the short term, it will fall.... Until Governor Kuroda is willing to grab the bulls by the horns and confront market fears over the BoJ’s balance sheet, the path of least resistance for $/JPY is down"
For months, the best performing strategy of 2016 was being long "low hedge fund concentration stocks." Amusingly, as of a few days ago, the second best performing strategy of 2016 is being long "high hedge fund concentration stocks", demonstrating vividly just how schizophrenic hedge fund traders have become...
Similar to Saudi Arabia, which is a swing producer, China is acting like a swing consumer. However, as China doesn’t report its storage data, it is difficult to estimate how long this trend will continue. Though other factors were involved in encouraging the bulls to buy at lower levels, the increased demand from China also helped in lapping up the excess production. If their imports drop, the world will return to the supply glut and oil prices will retrace back to the lower $30s per barrel.
A lack of intervention in the Yen and strength in EUR have combined to weigh on the US dollar (following the Treasury's "currency manipulator" report. Bloomberg's USD Index is back at one-year lows as, while overnight chaos sent stocks higher, it has driven investors into the safety of bonds (Treasury yields down 2-3bps) and precious metals. Gold topped $1300 and Silver $18 as EURUSD pushes above 1.1500...
- Puerto Rico Development Bank Won’t Make Most of a Debt Payment Monday (WSJ)
- Why the jump in futures? Tokyo slide keeps mood downbeat (Reuters)
- Indiana to test Donald Trump’s staying power with evangelicals (Reuters)
- Gold Rallies Above $1,300 for First Time Since January 2015 (BBG)
- This Tech Bubble Is Bursting (WSJ)
After Failed Halliburton Deal, Baker Hughes Unveils "Path For The Future" Including $2.5BN Stock, Bond BuybackSubmitted by Tyler Durden on 05/02/2016 - 07:21
While it wasn't exactly breaking news, with consensus having long ago decided that Halliburton and Baker Hughes would ultimately call off their ill-timed $28 billion merger announced in late 2014 following recurring media leaks, overnight the two companies officially ended speculation when they announced that the contested merger would be called off, resulting in a $3.5 billion termination fee payable to Baker Hughes. And with its immediate future somewhat in limbo, moments ago Baker Hughes outlined its "path for the future."
In what may be the biggest "self-outing" in years, overnight Australian entrepreneur Craig Wright has publicly identified himself as Bitcoin creator Satoshi Nakamoto, revealing his identity to three media organizations - the BBC, the Economist and GQ. His admission ends years of speculation about who came up with the original ideas underlying the digital cash system.
There has been a bevy of negative news in the past 48 hours which perhaps explains why futures are fractionally in the green as of this moment.
Update: PR Governor Padilla has spoken...*PUERTO RICO GOVERNOR SAYS WON'T PAY DEBT TOMORROW, CALLS ON U.S. CONGRESS, PAUL RYAN FOR HELP, CRISIS WILL GET WORSE IF U.S. CONGRESS DOESN'T HELP