New Home Sales Plunge Most In 8 Months Following Sharp Downward Revisions; Median Home Price Tumbles

Despite exuberance in existing home sales, new home sales just printed 551k SAAR - missing expectations for the first time since Oct 2015 - sliding by the most since Sept 2015. With the last 3 months of exuberant increases - to 8 year highs - now revised drastically lower; and median prices tumbling to the lowest since June 2015, the picture of the US housing recovery is considerably less rosy than before... time for a rate-hike?

US Manufacturing PMI Jumps In June But "Domestic Demand Remains Worryingly Weak"

Great news... Markit's US Manufacturing PMI (flash) for June beat expectations, rising to 51.4 from 50.7, driven by the fastest rise in exports since Sept 2014 (cough weaker dollar cough) as Input costs rose by the most in 18 months. Small bounces in production and employment do nothing to dismiss the "worrying weak" domestic demand picture; and, as Markit warns, "the three months to June has seen the worst quarter for manufacturing in terms of both production and employment growth since 2009."

Where Are The Jobs?

Maintaining the status quo of red tape, high taxes, high junk fees and indifference to small business realities guarantees decline and failure. The motto of the most dynamic elements of our economy is: trust the network, not the corporation or the state.The most creative places share three essential characteristics: disorder, diversity and discernment. In other words, the exact opposite of places designed to preserve the privileges of vested interests and a sclerotic status quo.

Gundlach Will Sell European Stocks Into "Remain" Pop; Bashes SolarCity Deal

With cable trading just shy of 1.49, and well above what many banks had expected was the currency's maximum "surge" rebound from last week's lows in the case of a "Bremain" victory, the looming question among trading desks ahead of tonight's official results is whether the market has fully priced in the brexit favorable outcome. According to at least one person the answer is yes. Jeffrey Gundlach said that his firm is considering selling its position in European equities early Friday on a "Bremain" vote

Bremain Bounce Fades As "Biblical" Flooding Disrupts Vote

While cable holds near 2016 highs, it has begun to fade modestly from overnight exuberance as concerns over turnout due to torrential rain and flooding in the south of England are raising doubts about the Brexit vote outcome. With the majority of southern-England - most especially London - suffering "biblical" flooding, where the bulk of Britain's "remain" voters would be; as opposed to "balmy" weather in the rest of the country, perhaps the fade in cable and stocks is warranted?

Fed's National Activity Index Plunges In May

Against expectations of a rise to +0.11, Chicago Fed's National Activity Index plunged to -0.51 (from a revised lower +0.05), hovering at its worst level since January 2014... Under the surface, things are ugly with only 28 of the 85 monthly individual indicators made positive contributions, while 57 indicators deteriorated.

Hawkish Fed Looms As Initial Jobless Claims Plunge Near 42 Year Lows

Who knows best? The Department of Labor  - who is telling the American public that the labor market, based on initial claims, are hovering near the best levels in 42 years; or The Fed - who is warning that labor market conditions are deteriorating at the fastest pace in seven years?

 

Democrat "Gun Control" Sit-In Continues Into Its Second Day On House Floor

In a dramatic turn of events Democrats took the floor of the House and staged a sit-in just before Noon on Wednesday. The Democrats were demanding that Republican leadership schedule votes on gun control bills, and according to Politico, Republicans almost immediately recessed the House and turned off the chamber video cameras. That only added fuel to the fire, and the sit-in went on all day and has continued into the early hours Thursday morning.

As Of This Moment, Barclays Is Not Accepting FX Stop Loss Orders

"Both Barclays Electronic Trading Desk and Barclays Voice Spot Trading Desk will endeavour to operate as close to normal levels of service as the Disrupted Market Conditions allow.  However, taking into account the potential Disrupted Market Conditions during the EU Referendum Period, Barclays has decided to impose certain restrictions on its electronic and voice FX Stop Loss order offering during this period and would like to highlight certain matters with respect to Disrupted Market Conditions."

Frontrunning: June 23

  • ‘Brexit’ Vote: U.K. Heads to the Polls in Historic Referendum on EU Membership (WSJ)
  • The Brits Have No Good Options on Europe Vote (BBG)
  • Stocks Rise With U.S. Futures as Pound Gains While U.K. Votes (BBG)
  • Trump and Clinton Place Bets to Woo Undecided Voters (BBG)
  • China brushes off doubts over support on South China Sea, says it is growing (Reuters)

Robots To Pay "Social Security" Under EU Tax Proposal

The EU is studying a proposal that would count robots as people for tax purposes. Although the proposal is deemed “too early” to implement just yet, rest assured once nannycrats get a bad idea in their heads, it never leaves. This provides yet another reason to vote in favor of Brexit.