Frontrunning: October 20

  • Trump’s Tax Plan Takes a Big Step Forward, But What Comes Next Won’t Be Easy (BBG)
  • Low pay, no bonus: U.S. retailers struggle with hiring (Reuters)
  • Donald Trump Jr. Becomes a Rainmaker on the Republican Speaking Circuit (BBG)
  • In Kuroda's face - researchers find ways to predict central bank changes (Reuters)
  • One Month After Maria, a Crisis Still Rages in Rural Puerto Rico (BBG)

General Electric Plunges 8% After Slashing Guidance

General Electric shares plunged 8% in the pre-market after the company cut its 2017 profit forecast while its new CEO grapples with one of the deepest slumps in the iconic US manufacturer’s history. The company reported that adjusted earnings this year are expected to be only $1.05 to $1.10 per share, down over 30% from a previous range of $1.60 to $1.70 a share.

Who's 'Winning' In Africa?

"The US military-industrial complex has overtaken and indeed supplanted State Department diplomacy in Africa, as elsewhere in the world, and is intent on escalating its military presence while China is quietly winning friends and influencing people by engaging in massive, well-planned economic projects. No prizes for deducing who is winning in Africa."

Europe's Secession Problems Aren't Going Away

"Europe's democracy problem persists. Is democracy only allowed when it is no threat to the established status quo for nation-states? Should the central government send in the troops to beat citizens and seize ballots when people vote 'the wrong way'? "

Blaming Russia For The Internet 'Sewer'

"As the Russia-gate hysteria spirals down from the implausible to the absurd, almost every bad thing is blamed on the Russians, even how they turned the previously pristine Internet into a 'sewer'..."

Chinese Capital Outflows Return As Soon As PBOC Halts FX Intervention

Although the PBOC reported that in September official central bank reserves rose by $17 billion to $3.109 tn , according to the latest SAFE data released overnight, after the first, and only month of inflows in three years, outflows have again returned for a total of $7bn in September (vs. net inflows of +US$9bn in Aug), in light of the recently relaxed FX forward rule