Despite today's jump in the USD index, the sharp dollar selloff trend remains even as U.S. rates have climbed and the commodity rally pauses. It’s logical to query if there is an end in sight for the rout. The short answer, according to Bloomberg's Mark Cudmore, is no. The dollar may be due a bounce, but that would likely mark a consolidation phase rather than a trend reversal.
China's military is out with a new recruiting video, although it isn't what some may envision. The People's Liberation Army (incidentally the world's largest military force, with a strength of approximately 2,285,000 personnel, or 0.18% of China's population) released an online recruiting video, which however was anything but your average, army stock filler with a beating bass line or a cherubic choir in the background: it was just the testament to demonstrate China's militant yet "cultured uniqueness" as it sets off to dominates the world. In other words: a "culturally unique" rap video.
Ted Cruz Explodes In Epic Anti-Trump Rant: "He Is Utterly Amoral, Narcissist, Philandering, Pathological Liar"Submitted by Tyler Durden on 05/03/2016 - 17:58
"I’m going to do something I haven’t done the entire campaign. I’m going to tell you what I really think of Donald Trump. This man is a pathological liar. He doesn't know the difference between truth and lies. He lies practically every word that comes out of his mouth. And in a pattern that I think is straight out of a psychology text book, his response is to accuse everybody else of lying."
"... one of the most dangerous places on a college campus is the so-called safe space because it creates a false impression that we can isolate ourselves from those who hold different views. We can't, and we shouldn't try. Not in politics, or in the workplace..."
After three years of the dollar being pretty much the only strong currency in the world, US corporate profits are falling (because it’s hard to sell things abroad when you price them in an expensive currency) and growth is slowing (because an economy can’t expand if corporate profits are falling). Presumably the plunging dollar will offer some relief on those fronts. But our relief comes at a high, potentially-catastrophic price for Japan and Europe...
There is one group of investors who will be closely watching Tesla's results due out tomorrow: the shorts. The reason is that with the stock trading near record highs following a dramatic rebound from the February lows when it plunged to $150, only to rebound back to $250, short sellers have stubbornly refused to step away, and as the chart below shows, short interest remains just shy of record high.
Notable weakness in oil prices amid growth/demand concerns today, following Genscape's (+821k) Cushing's big build report yesterday, and expectations for continued builds in overall crude and Cushing levels set up trades ahead of API's report with oil below $44 heading in. An overall crude inventory rise of 1.3mm barrels (almost double the 750k expectation) was not enough to trump a smaller than expected Cushing build of just 382k barrels (1.3m exp) which seemed to please the machines which ripped WTI back above $44 instantly.
Revolutions, of course, can take many forms. There are social revolutions, political revolutions... and even financial revolutions. Now that interest rates are negative in many parts of the world, the financial system has become an incredibly destructive force. Negative rates adversely impact the livelihoods of just about everyone, from the average guy on the street all the way to the banks themselves... and a few key players have reached their breaking points and are starting to engage in acts of defiance.
From our friends at Fasanara Capital we get their latest contrarian - and very bearish - Investment Outlook, which can be summarized as follows: "Reflation Phase To Be Temporary, More Downside Ahead", and which also contains four key conviction trade ideas over the next 12 months. "The narrative of reflation is today dominant and can continue to propel markets for a while longer. But as we know the narrative changes fast, and when it does we can expect a quick re-pricing. As we re-assess the validity of the underlying risks, we expect a shift in narrative in the few months ahead and a sizeable sell-off."
Update: *PAUL RYAN SAYS TRUMP WILL BE NOMINEE IF HE WINS INDIANA: CNBC
Today's primary in the Hoosier State could prove to be the last stand for Ted Cruz and John Kasich, as The Donald looks to deliver the final knockout blow to the two challengers. If Trump wins, it certainly would be an embarrassment for a GOP establishment that has literally done everything it can to stop Trump, most recently touting the Cruz/Kasich alliance that self-destructed just hours after it was announced.
"Most people in the bulk of the job market are not involved in super-high-value jobs. They are doing routine work and tasks and it's precisely these tasks that computers are going to be better at doing..."
German Coverup Scandal: Ministry Urged Erasing "Rape" From "Monstrous" Cologne Migrant Attack ReportSubmitted by Tyler Durden on 05/03/2016 - 15:17
A high-ranking police officer has alleged that his seniors tried to strike the word rape from an internal police report after the mass sexual assaults in Cologne over New Year. A chief superintendent in the Cologne police told the investigative committee established in the wake of the attacks that the interior ministry in North Rhine-Westphalia had sought to influence the investigations.