Data Says Fed Is Making A Mistake

"While raising rates will accelerate a potential recession and a significant market correction, from the Fed’s perspective it might be the ‘lesser of two evils. Being caught near the “zero bound” at the onset of a recession leaves few options for the Federal Reserve to stabilize an economic decline. In other words, they already likely realize they are screwed."

Sears Canada Announces Bankruptcy; Fires 2,900

It's official - the US 'retail apocalypse' has moved north as Sears Canada (and some of its subsidiaries) have applied to Ontario Superior Court of Justice for protection under the companies’ Creditors Arrangement Act (CCAA), in order to continue to restructure its business.

It Wasn't Just The NSA: Germany Spied On The White House For Years

Germany's foreign intelligence service had long spied on numerous official and business targets in the United States, including the White House. The magazine said it had seen documents showing that the intelligence service, the BND, had a list of some 4,000 so-called selector keywords for surveillance between 1998 and 2006.

Gartman Turns Bullish On Oil

"This morning, given the myriad downgrades that the energy stock analysts have put forth in the course of the past several days and given the severity of the recent weakness we think it is wise to say that for at least a while strength is not to be sold and that for a while weakness is indeed to be bought."

Yield Curve Inversion Looms As Jobless Claims Hover Near 44-Year Lows

With all eyes on a collapsing yield curve and its implications - exposing the dismal reality of US economic growth expectations that The Fed would really rather you ignore - this morning's jobless claims data (at 240k, near 44 year lows) further confirms the historical pattern that suggests yield curve inversion looms...

Qatar Airways Wants To Buy 10% Of American Airlines

Define irony: at a time when Qatar is suffering an economic and geographic blockade, and its sovereign wealth fund is reportedly preparing to start liquidating some of its domestic holdings, moments ago American Airlines announced it has received an unsolicited notice from Qatar Airways indicating an interest in acquiring a 10% stake in AAL, sending the carrier's shares surging 5.6% pre-market.

Frontrunning: June 22

  • European stock markets stumble as oil languishes near lows (Reuters)
  • Some Trump Aides Want a New Leader at the Fed (BBG)
  • Goal of Saudi Shake-Up: Drag Country Into the Modern Era (WSJ)
  • Under fire in Washington, Trump back in campaign mode in Iowa (Reuters)
  • Revenue Slides at Some Trump Businesses, but Vegas Tower Brings Windfall (WSJ)

Europe Slides For Third Day As Oil Attempts A Rebound; US Futures Flat

US equity futures were marginally in the red, while Asian markets rose and European stocks dropped. WTI oil rose 0.61% to $42.79 as some suggest the time to go long has arrived; oil tumbled 2.3% in the previous session. The Bloomberg Dollar Spot Index fell 0.1 percent.

If BlackRock And Pimco Are Right, "Another Fed Shock Looms"

"Once bitten, twice eager sounds like a contradiction but it can often seem like standard operating procedure in global markets - just look at the money piling into bets that the Federal Reserve is going nowhere soon with monetary tightening. It’s as if the February shock - when a deluge of Fedspeak made traders realize their bets against a March hike were wrong - never happened." 

Buffett Stuns Market After Berkshire Acquires 38.4% Of Home Capital Group, Provides C$2 Billion Loan

In a stunning development involving Canada's largest alternative lender which as recently as a month ago was facing virtually certain insolvency after a furious depositor run drained it of liquidity, overnight Home Capital Group Inc said billionaire Warren Buffett's Berkshire Hathaway Inc will provide a new C$2 billion ($1.50 billion) line of credit to its unit Home Trust Co, ending the Canadian lender's strategic review process.

Ethereum Flash Crashes By 96% After Status ICO Clogs Network

Ethereum suffered dramatic losses on Wednesday, sliding from $360 to $260 before rebounding, in the process experiencing what appears to have been its first flash crash, when it plunged by 96% from $315 to $13 on massive volume, before rebounding.

McKinsey: Banks Will Have To Slash 30% Of Analyst Jobs To Comply With New Research Rules

"Two to three global banking players will preserve their status in the new era, winning the execution arms race and dominating trading in equities around the globe.  Over the coming five years, banks will need to make hard choices and play to their strengths. Not only will the top ranks be thinned out, there will be shakeouts in regional markets."

Why The EU's Policy Towards The Syrian Conflict Is A Disaster?

"The European Union has to understand finally that idealism is simply magnifying human suffering and endangering the security of all parties. There is the realist alternative, which focuses on one’s own interest instead of morality."

Schaeuble Warns US Pullback Could "End Our Liberal World Order"

“I doubt whether the United States truly believes that the world order would be equally sound if China or Russia were to fill the gaps left by the US, and if China and Russia were simply given a free hand to dominate the spheres of influence that they have defined for themselves"...