Confidence Crushed Despite Collapsing Jobless Claims

The trend of jobless claims continues lower (despite a modest 10k rise this week to 268k from a revised lower 258k last week). The problem is... as we have shown numerous times, this 'measure' of the labor market appears to have seasinally adjusted itself into being totally-useless as an indicator of anything factual. With Consumer Confidence for over-55s at its lowest in 2 years, it seems the job exuberance is just not rubbing off...

Frontrunning: June 30

  • Brexiters at war as Johnson pulls bid to be PM (FT)
  • Soros Says Brexit Has ‘Unleashed’ a Financial-Markets Crisis (BBG)
  • World stocks poised for worst month since January (Reuters)
  • China to tolerate weaker yuan, wary of trade partners' reaction (Reuters)
  • China central bank criticizes media for publishing 'inaccurate information' on yuan rate (Reuters)

Yuan Tumbles, Stabilizes After Reuters Report China Willing To Weaken Currency To 6.80

The biggest macro event overnight was a report out of Reuters that China's central bank is willing to let the yuan fall to 6.8 per dollar in 2016 to support the economy, which would mean the currency matching last year's record decline of 4.5 percent. The report promptly sent the offshore yuan tumbling, sliding much as 0.72% to 6.7021 per dollar, the lowest since January 11, however it promptly recovered losses following significant PBOC intervention in the open market.

Day 3 Of Global Post-Brexit Rally: European Stocks, US Futures At Session Highs

Day three of the post-Brexit rally continues, and after some initial weakness due to concerns about Chinese currency devaluation, both European stock and US equity futures were trading at session highs, facilitated by yesterday's stress test results which saw dozens of US banks unleash a tsunami of stock buyback announcement which in turn pushed S&P futures to new post-Brexit highs.

"Deutsche Bank Poses The Greatest Risk To The Global Financial System": IMF

"Deutsche Bank appears to be the most important net contributor to systemic risks, followed by HSBC and Credit Suisse. The relative importance of Deutsche Bank underscores the importance of risk management, intense supervision of G-SIBs and the close monitoring of their cross-border exposures, as well as rapidly completing capacity to implement the new resolution regime."

The Elites Have Lost The Right To Rule

They came from the dark, corrupt and hopelessly deranged policies of the status quo. The same status quo that remains in power to this very day. The sooner we rid ourselves of this societally cancerous tumor the better, because the longer it takes to move on to something else, the more negative that something else is likely to be.

Imports Collapse At East Coast Ports

"The peak season has disappeared. Carriers have already taken out capacity, and if there was a strong peak season coming, they wouldn't do that. It's partly overall trade declining, but it's also that importers simply bought too much."

Rotten To The Core

Brexit and financial markets’ subsequent reactions expose the corruption at the heart of the world’s socio-political systems...

"The British Woke Up!" Paul Craig Roberts Asks "Can The Americans?"

If no one knows or respects truth, the world is lost. But it only takes a few to change the world. The cultural anthopologist Margaret Mead said: “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.” Change can be for better or worse...Americans need to decide that they, like the British, do not appreciate being led backward to worse times.

Brexit Aftermath - Here's What Will Happen Next

The great weakness among economic analysts and many independent analysts is their refusal to examine the long game of the elites. The Brexit is part of a globalist long game that is designed to finally and completely demonize sovereignty movements. Think about it for a moment — what better way to remove the only obstacle in their path? The globalists create an economic crisis and then foster conditions by which their primary opponents (liberty activists) get BLAMED for it.  They then swoop in as the heroes of their little cinema after the damage is already done and offer their solution: complete globalization.  With enough people destitute from a global financial calamity, they may very well be begging the elites for help.

Teachers Unions Vs Hedge Funds: The Battle Over Billions

Randi Weingarten is the president of the American Federation of Teachers, and is a name Wall Street is beginning to know quite well. Since the beginnging of her reign in 2013, having sifted through the personal charitable donations of hedge fund managers, focusing on those who want to end defined benefit pensions, and entities backing charter schools and the overhauling of public schools, she implemented a 'suggestion' to Teachers' pension fund adminstrators that if asset managers don't support unions, the unions won't invest with the funds. Some hedge fund managers - with exceptional return records - did not take kindly to her 'influence'.

Revenge Of The Rubes - Why The Days Of The Financial Elite's Rule Are Numbered

The truth is, it is the “European Project” which represents the darker impulses -  it is a tyranny based on a muddled brew of globalism, statism, financialization and the cult of central banking. It’s days are numbered because even the rubes can see that it doesn’t work, and that its massive internal contradictions are heading for a spectacular implosion. The British voters have decided to get out of harms’ way. Hopefully, there will soon be many other cases of the rubes in revolt.