Meanwhile, In Germany...

The floats at Karneval parades across southern and western Germany are known for their biting satire. As The Local reports, this year the main target of their derision was only ever going to be one man.

What To Watch For In President Trump's Address To Congress

"It's T-Day" as one trader put it this morning. President Trump will address a joint session of Congress Tuesday night for the first time as president in a much anticipated speech with a lot of hyped-up hope hanging on it. Here's what to watch for...

Female Engineer Sues Tesla For Sexual Harassment

A female engineer at Tesla has accused Elon Musk’s car company of ignoring her complaints of “pervasive harassment”, paying her a lower salary than men doing the same work, promoting less qualified men over her and retaliating against her for raising concerns.

Trump Accuses Obama Of Being Behind Protests, Leaks

In an interview with Fox & Friends airing early Tuesday, President Trump blamed former President Obama for protests against him and other Republicans, as well as some of the leaks to come from the White House: “I think President Obama’s behind it, because his people are certainly behind it."

Norway Wealth Fund Gains $53 Billion in 2016 On Trump Rally

"All of the fund’s asset classes generated positive returns, but it was the strong equity return in the second half of the year that drove the fund’s results.  After the presidential election in the U.S., markets priced in higher growth and inflation in the global economy."

Evercore ISI: "Trump Budget Not Happening"

In a note by Evercore ISI's Terry Haines and Ernie Tedeschi, the analyst duo pours cold water on Trumps' budget proposal before it has been even formalized and confidently predicts that "Trump budget not happening" adding that the most likely outcome is that "Congress will modestly hike defense and nondefense spending."

A Quarter Of Snap IPO Buyers Agree Not To Sell For One Year

Snap said it expected approximately 50 million shares of its Class A common stock purchased by investors in the offering to be subject to a separate one-year lock-up agreement, meaning they would be unable to sell for one year after the IPO breaks for trading on Thursday after it prices late in the day on Wednsday.

The Greek "Bank Jog" Is Back: Bank Deposits Tumble To Lowest Since 2001

Greek private sector bank deposits declined in January for the second month in a row, driven by renewed concerns over the country's neverending bailout. Business and household deposits fell by €1.63 billion, or 1.34% month-on-month to €119.75 billion ($126.8 billion), the lowest level since November 2001.

Despite Rising Mortgage Rates, Home Prices Jump Most In A Year

Despite soaring mortgage rates, US home prices rose at 5.58% year-over-year in December according to the latest (lagged) data from S&P Case-Shiller. The 0.93% monthly gain in the best for December in at least a decade. However, the lagged response (as seen in pending home sales this week) suggests this odd 'stability' in home price appreciation may be set to become more volatile at least...

Europe: Laughing At The Messenger

" It might make us feel better, but every time we attack or laugh at the messenger, rather than addressing the message, we ensure that our own future will be less funny."

Q1 GDP At Risk As Trade Deficit Balloons Near 9 Year Highs

On the heels of a disappointing revised Q4 GDP print, the US trade balance for January printed a $69.2 billion deficit. This is the second largest deficit since August 2008 (slightly smaller than the March 2015 plunge) as the dollar surge has not helped.

In Latest Tightening Move, China To Cut Money Supply Growth To 12%

In the latest warning that Beijing hopes to tighten financial condition, Reuters reported that China plans to target broad money supply growth of around 12% in 2017, down from the 13% target in 2016, signaling a bid to contain debt risks while keeping growth on track.

Frontrunning: February 28

  • Trump Puts the Final Touches on His Speech (BBG)
  • Trump to Make Case for Higher Military Spending, Lay Out Vision in Speech (WSJ)
  • Traders Are Glued to These Stocks Ahead of Tonight’s Trump Speech (BBG)
  • Trump Regulation Rollback May Threaten U.S. Firms' EU Access (Reuters)
  • GOP Health Plan Suffers Blow With Rejection by Key Republican (BBG)

Target Plunges 12% After Missing Lowest EPS Estimate, Slashing Outlook

When we discussed yesterday Reuters' report that Wal-Mart is now actively "price testing" its products, and squeezing vendors in a scramble to preserve market share while keeping margins relatively flat, we cautioned that this is the latest indication of what appears to be a pervasive "deflationary shock" among the retail industry which is caught in a vicious fight for market share. This morning's results from Target validated this observation.