Archive - Nov 17, 2015 - Story

Following September's 0.2% MoM drop, October's Industrial Production dropped a further 0.2% (missing expectations of a 0.1% rise by a mile). This is the 9th MoM drop in the 10 months of this year. Utilities (-2.5%) and Mining (-1.5%) were big drivers, as year-over-year, IP rose just 0.34% - the weakest growth since January 2010 - is flashing recessionary signals loud and clear.

The Turkish authorities warned their French counterparts twice in the past year about one of the attackers, Ismaël Omar Mostefaï, a 29-year-old French citizen who was known by the authorities as someone who had radical Islamist beliefs, an official said on Monday. The official, speaking on the condition of anonymity, in line with government protocol, said the government never heard back from France and only received an “information request” about Mr. Mostefaï after the Paris attacks.

The cost of 'living' in America in anything but a cardboard box under an overpass is rising at its fastest rate in 8 years. Both overall "shelter" and "rent" inflation are running at their hottest pace of the 'recovery'... and this is happening as wage growth remains stagnant despite the promises that any minute now it will rise. Well done Janet...

Following September's strongest Core CPI gain since June 2014, October accelerated that modestly with CPI ex food and energy rising 1.9% YoY. Broad CPI rose 0.2% YoY (slightly better than the 0.1% expected rise) - the highest sicne December. Month-over-month saw new and used vehicle prices drop, Apparel prices drop 0.8% (most since Dec 2014), PCs drop 0.9%, but was notably offset by the bigger-weighting in Medical Care which rose 0.7% MoM (3.0% YoY) and Shelter rose 3.2% YoY.

The just concluded 13-F bonanza shows that "some of the world’s top hedge fund managers scaled back their U.S. stock investments last quarter as markets tumbled." Below, courtesy of Bloomberg, is the full summary of what the most prominent hedge fund names did in Q3...

• France, Russia strike Islamic State in Syria, EU aid invoked (Reuters)
• Pressure Grows for Global Response Against Islamic State After Paris Attacks (WSJ)
• Weakened Hollande Faces Election Backlash in Wake of Attacks (BBG)
• French Official Calls for Metal Detectors at Train Stations (NYT)
• Belgium Raises Terror Threat Level, Cancels Soccer Game vs Spain (BBG)
• Foreign Companies Scrap Paris Events After Terror Attacks (BBG)

Who would have thought terrorism is so good for stocks.

Moments ago the Kremlin confirmed for the first time on Tuesday that a bomb did bring down a Russian passenger plane that crashed over the Sinai Peninsula in Egypt on Oct. 31, killing all 224 people on board. "One can unequivocally say that it was a terrorist act," Alexander Bortnikov, the head of Russia's FSB security service, told a meeting chaired by President Vladimir Putin, according to a transcript published on the Kremlin's web site.