Japan’s Defense Ministry wants its 200 F-15 fighter jets to carry twice as many air-to-air missiles as they do now, in a bid to prepare for "a possible confrontation with Chinese Air Force" around disputed East China Sea islands. This follows the latest warning from China, which warned Tokyo of a harsh response if it ever crossed a "red line" in deciding to sail with US warships near disputed waters.
We can pretend fundamentals don’t matter and sure in the day to day profit taking of Citadel and the like they really don’t matter. But, while the PhDs may talk big about this new world economy where a move to universal welfare means jobs and wages don’t matter - well that is nonsense. Jobs and wages matter and they will always matter.
What the world is witnessing, without actually paying much attention, is the death of our debt-based economy - that is, borrowing the means to thrive in the now from a future that can’t really furnish it anymore.
The farce continues as a detailed reckoning of Hillary Clinton's State Department emails reveals former top aide Huma Abedin provided influential Clinton Foundation donors special, expedited access to the secretary of state. In many instances, as Judicial Watch exposes, the preferential treatment provided to donors (from a British soccer player to the crown prince of Bahrain) was at the specific request of Clinton Foundation executive Douglas Band.
Perhaps taking a hint from BOJ governor Haruhiko "Peter Pan" Kuroda, Japanese Prime Minister Shinzo Abe's made a brief gig at the Olympics closing ceremony as Super Mario in what was a glimpse at Tokyo's plans for the 2020 games.
In what was likely the most anticipated "surprise" announcement in French politics, moments ago Former French President Nicolas Sarkozy announced he will run for next year's presidential election, with a statement on his facebook page.
One of the big fears among the bond market, where most participants now openly admit there is a "bubble in credit", is that an unwind in global bond yields would lead to substantial losses. To test this assumption, Bank of America's Ralf Preusser looks at the "what if" scenario, namely what would happen to total returns should government yields fully reverse their 30 year historical evolution. What he finds is surprising.
"Rather than the NSA hacking tools being snatched as a result of a sophisticated cyber operation by Russia or some other nation, it seems more likely that an employee stole them. If Snowden could not have stolen the hacking tools, there are indications that after he departed in May 2013, someone else did, possibly someone assigned to the agency’s highly sensitive Tailored Access Operations."
In a hit to Obama's appeal to the transgender community, a federal judge in Texas has temporarily blocked an Obama administration directive on bathroom rights for transgender students in U.S. public schools. U.S. District Judge Reed O'Connor in Fort Worth issued the preliminary injunction Sunday. Judge O'Connor in Fort Worth sided with Texas and 12 other states that argued the administration’s policy usurps local control and threatens students’ safety and privacy.
Donald Trump exclaimed "I'm not flip-flopping on immigration, we want to come up with a really fair but firm answer," this morning after meeting with his newly announced Hispanic advisory council this weekend in an effort to figure out a “humane and efficient” manner to deal with immigrants in the country illegally.
The key economic releases this week are new home sales on Tuesday and durable goods on Thursday. However, the main event in what is one of the slowest summer weeks, will be the Jackson Hole symposium starting this Friday, where focus will be on Yellen's speech who will be scrutinized to see if she can bring the Fed's message back on track after several conflicting statements by Fed speakers in recent weeks.
Market confusion remains following Fischer's hawkish tone yesterday at J-Hole. Despite market-implied rate-hike odds have barely budged but the USDollar, stocks, VIX, bonds, and commodities are moving notably.
Italian Prime Minister Matteo Renzi hosts German Chancellor Angela Merkel and French President Francois Hollande on an island off the coast of Naples ahead of September's EU summit called to discuss reverberations from the Brexit vote. "They will be coming to discuss how to relaunch Europe from the bottom up, there's a big need," Renzi said on Sunday. "Relaunching Europe is a totally open game but it needs to be played."
In response to Friday's allegations that Clinton started using a personal email server following the advice of Colin Powell, the former Secretary of State said Hillary Clinton’s campaign has been trying to use him to help justify her use of a private email server while she was secretary of State, and accused her of "trying to pin" her violation of department rules on him.