House GOP Unveils 2018 Budget: Here Are The Highlights

On Tuesday morning, House Republicans released a fiscal 2018 budget plan on Tuesday that could pose a major new political test for President Donald Trump's legislative agenda by combining tax reform with controversial spending cuts. Here are the highlights.

Why 2017 Is Like 1969

A deeply polarizing new president, a disastrously misguided official narrative that the political Establishment doggedly supports despite a damning lack of evidence, and an economy teetering on the edge of recession--and worse. Sound familiar? Welcome to 1969 redux. The similarities between the crises unfolding in 1969 and the present-day crises are not just skin-deep--they're systemic.

Goldman FICC Revenue Plunges 40%, Worst Since 2015, Blames "Low Client Activity"

While Goldman's overall Q2 results reported were generally solid, there was just one number everyone was focused on: the bank's most profitable segment, its FICC revenue, which was painfully disappointing, at just $1.159 billion, a 40% drop from a year ago and roundly missing expectations of $1.47 billion, the worst FICC quarterly revenue going back to Q4 2015.

Frontrunning: July 18

  • U.S. Republicans left scrambling after health bill sinks again (Reuters); Republicans Give Up on Health-Care Reform, Now Seek Straight Repeal (BBG)
  • Trump Blames Democrats and a ‘Few Republicans’ for Health-Bill Wreck (BBG)
  • House Republicans Set Out Plan to Rewrite Tax Code (WSJ)
  • House GOP Budget Ignores Trump’s Cuts to Domestic Agencies (BBG)
  • House Republicans unveil 2018 budget with tax reform instructions (Reuters)

BofA Beats Despite 14% Slump In FICC Revenue; Interest Income Unexpectedly Declines

Echoing the trend set by JPM and Wells Fargo last Friday, moments ago Bank of America reported revenue and earnings that modestly beat expectations, with Q2 revenue of $22.8bn, above the $21.8bn expected, generating net income of $5.3 billion up 10% Y/Y, and EPS of $0.46, above the $0.43 estimate, and 12% higher than Q2 2016.

Bill Blain: "The US Is Now Looking Like A Deflated Drunken Uncle"

"With the US now looking like a deflated drunken uncle, the focus is firmly fixed on what Mario Draghi says on Thursday at the ECB meeting. Does he confirm Euro strength with a bullish assessment of Eurozone recovery, and hint at an early taper and normalisation… Or does he step back, go soft and mushy, and make some “kick that can down that strasse” comments?"

Dollar Tumbles, Euro Soars After Obamacare Repeal Dies; China Intervenes To Halt Rout

The Bloomberg Dollar Index tumbled to a fresh 10-month low after two more Republican defections on Monday night doomed the proposed GOP healthcare plan in the Senate. And while Treasuries rose on concerns about inflationary pressures and the viability of the Trump stimulus agenda, S&P futures rebounded gingerly from session lows, and were up 0.1%

NATO Member Turkey Turns To Russia For Air Defense Cooperation

Turkey’s gradual shift from the West to Eurasia and other partners is part of a broader process as the West gets weakened, divided and less attractive. The very notion of «Western unity» is fading away. Unsurprisingly, as its relations with the West sour, Turkey is reaching out to other poles of power. The S-400 deal conforms to the trend.

Criminal Groups Still Prefer Cash To Bitcoin, EU Study Finds

“...virtual currencies which seem to be rarely used by criminal organizations. While they may have a high intent to use due to VCs characteristics (anonymity in particular), the level of capability is lower due to high technology required.

Fusion: Will Humanity Ever Harness Star Power?

Fusion is the epitome of “high risk, high reward” scientific research. If we were to ever successfully harness the forces that power the stars, mankind could have access to power that is almost literally too cheap to meter. However, reaching that goal will be a very expensive, long-term commitment – and it’s also very possible that we may never achieve a commercially viable method of fusion power generation.

3/4 UK Graduates Will Never Repay Student Loans

...The UK government will have to write off some or all of the debt taken out by 77% of students because they will not earn enough to repay their loans within 30 years of graduation...