Risk Bounces After Trump Promises To Start "Spending On Infrastructure Big", But Warns On Tax Plan

With the dollar sliding on rising fears Trump may disappoint in his address to Congress tomorrow evening, moments ago the dollar spiked, and risk assets rebounded after headlines hit from Reuters and Bloomberg in which Trump previewed that "we're going to start spending on infrastructure big." However, fading the optimistic tone, Trump also warned that his tax plan would be released only after Obamacare is tackled, and health plan costs are known:

Are Big Banks' Dark Pools Behind The Run-Up In Bank Stock Prices?

The biggest banks on Wall Street, both foreign and domestic, have been repeatedly charged with rigging and colluding in markets from New York to London to Japan. Thus, it is natural to ask, have the big banks formed a cartel to rig the prices of their own stocks?

Key Events In The Coming US

The main focus this week will be on President Trump's speech to Congress and Chair Yellen's speech which is the last before the blackout period. US durable goods, ISM, the BoC rate decision, EZ CPI, UK PMIs and a busy calendar in Australia & Scandinavia also coming up.

Iran Test-Fires Sea-Launched Cruise Missile After Ahmadinejad Slams Trump, USA In Open Letter

The Iranian Navy successfully test-fired its Nasr sea-launched cruise missile, the country's Defense Minister said. The latest naval cruise missile, called The Nasr, was successfully launched and hit the predetermined targets. Iran also successfully test-fired an advanced domestically-made laser-guided missile system dubbed Dehlaviyeh, "specialized in targeting vessels and ships."

Core Durable Goods Orders Tumble Most Since June, Shipments Slump

While the headline durable goods oders print beat expectation (rising 1.8% MoM in Jan) - thanks to a considerable downward revision in December - the core orders and shipments disappointed markedly and declined in all cases.  Core durable Goods Orders fell most since June and Shipments fell most since July as it appears 'hard' data drastically disappoints relative to 'soft' data expectations.

Frontrunning: February 27

  • Epic Oscars Mistake: Faye Dunaway, Warren Beatty Announce Wrong Best Picture Winner (Variety)
  • Oscar host Jimmy Kimmel turns Trump into recurrent punch line (Reuters)
  • After Mix-Up, Hollywood Searches for an Explanation (WSJ)
  • Trillions at Risk When Trump Speaks to Congress (BBG)
  • Bond Market Is Flashing Warning Signal on Trump Reflation Trade (WSJ)
  • Mexico Warns U.S. It'll Cut Off Nafta Talks If Tariffs Proposed (BBG)

Trump Seeks Sharp Increases In Military Spending, "Drastic Cuts" To State Department, EPA

As part of his proposed budget, President Trump will instruct federal agencies on Monday to assemble a spending plan for the coming fiscal year that includes sharp increases in Defense Department spending and "drastic cuts" to domestic agencies such as the State Department, the EPA and other non-defense programs, so that he can keep his promise to leave Social Security and Medicare alone.

Buffett Boosts Apple Holdings To 133 Million Shares In 2017, Becomes Top 5 Holder

Berkshire Chairman and CEO Warren Buffett told Becky Quick this morning that he more than doubled his already massive holdings in Apple between the start of 2017 and the tech company's most recent earnings report, and now owns 133 million shares, 2.5% of the outstanding stock, and is now a Top 5 holder of the company's public stock.

Goldman Downgrades Tesla To "Sell" On Cash And Execution Risk

The recent avalanche of bad news for Tesla has refused to stop this morning, when former Tesla cheerleader, Goldman Sachs analyst David Tamberrino, announced he was cutting the company's stock rating to "Sell", slashing his price target to $185, and predicting 28% downside from current prices. TSLA stock was down -2.3% in premarket trading on the Goldman report.

Global Stocks Drop, Futures Flat; French Yields Slide As Political Jitters Subside

In a quiet night for markets, in which the top highlight was the Oscar's historic peddling of best picture "fake news" and where "millions" of Academy members seemingly voted illegally, European stocks were little changed after a selloff that pushed them to a two-week low, while the MSCI Asia index fells as Japan’s Topix dropped for third day. S&P futures were unchanged.

Stockman: "After March 15 Everything Will Grind To A Halt"

"I think what people are missing is this date, March 15th 2017.  That’s the day that this debt ceiling holiday expires. We are burning cash at a $75 billion a month rate.  By summer, they will be out of cash.  Then we will be in the mother of all debt ceiling crises.  Everything will grind to a halt."