In a very unusual move, President Trump took time away from his personal Twitter account to tell the free world - via @POTUS - that "FBI Director Comey refuses to deny he briefed President Obama on calls made by Michael Flynn to Russia."
"We lower our 2017 forecast of corporate equity demand by $100 billion, to $700 billion, given our Washington, D.C. economist’s expectation for a delay in corporate tax reform. However, corporations will remain the primary source of US equity demand this year."
Five-year Treasury yields have tumbled back below 2.00% to the lowest levels in almost three-weeks, extending the drop amid the weakest economic growth period for a rate-hike since 1980. With net positioning near record high shorts, and everyone and their pet rabbit sure that a breakout above 2.15% was 'inevitable', we wonder what happens next.
CEO pay increases took a brief pause in 2015 dropping to a paltry median of just $10.8 million. But, the CEO's of America can once again rest assured that their families will not starve to death as 2016 pay soared nearly 7%, setting a post-recession record.
David Rockefeller, the famous banker and philanthropist with the family name that controlled Chase Manhattan bank for more than a decade and wielded vast influence around the world in the world of finance, has died on Monday morning at his home in Pocantico Hills, N.Y. He was 101.
Financial markets seem convinced that the recent surge in business and consumer confidence in the US economy will soon be reflected in “hard” data, such as GDP growth, business investment, consumption, and wages. But economists and policymakers are not so sure. (To some outside the US, it is an assumption that sometimes looks a lot like blind faith.)
"Following the reaching of our mid-year S&P 500 target, we raise both our mid-year and year-end S&P targets to 2,400 and 2,500, respectively (from 2,350 and 2,300). We continue to see a clear-cut risk that we get an overshoot to the upside in equities that then reverses later on; more realistically, this reversal is likely to be a very late-2017 or 2018 event." - Credit Suisse
After admitting to notable differences with President Trump during a press conference with Japanese PM Abe, German Chancellor Angela Merkel poured some cold water on the neocon narrative as she appeared to offer an olive branch to Russia - hardly painting Putin as the enemy of all and destroyer of worlds.
Russian daily Kommersant reports that the Bank of Russia detected malware that hides inside ATM’s operating memory which "forces" them to dispense cash to anyone who enters certain code on its keyboard.
The key economic releases this week are the new home sales report on Thursday and the durable goods report on Friday. In addition, there are several scheduled speaking engagements by Fed officials this week, including a speech by Chair Yellen on Thursday.
"Investors are staying calm but patience could quickly run thin if repeal/replace stays deadlocked into Apr. The Bottom Line for US stocks remains the same: ~$133-135 is still being penciled in for Washington-neutral SPX 2018 EPS and on that number the PE at ~2400 (~18x) is rich but not ridiculous (although to sustain prices north of 2400 Washington will have to add at least a few dollars to the $133-135 range which is why tax reform confidence is so key to justify further gains)."
FX traders had a slightly delayed reaction to news that UK PM Theresa May will trigger Article 50 next Wednesday but Cable is now sliding on the headlines. However, with speculative positioning already at record lows, many are asking "why would a long-term trader sell the pound now?"
"James Clapper and others stated that there is no evidence Potus colluded with Russia. This story is FAKE NEWS and everyone knows it! The Democrats made up and pushed the Russian story as an excuse for running a terrible campaign. Big advantage in Electoral College & lost!"