Sessions: "I Will Continue Serving As Attorney General As Long As That Is Appropriate"

Following his scathing NYT interview published on Wednesday, in which Trump said he regretted appointing the Attorney General, and said would not have chosen Sessions to serve as attorney general had known Sessions would recuse himself from the investigation into Russian election meddling, on Thursday AG Sessions said he plans to continue to serve in his post "as long as that is appropriate."

BIll Gross: Beware The "Unknown Consequences Lurking In The Shadows"

"the adherence of Yellen, Bernanke, Draghi, and Kuroda, among others, to standard historical models such as the Taylor Rule and the Phillips curve has distorted capitalism as we once knew it, with unknown consequences lurking in the shadows of future years."

One Trader Warns - Next Week's FOMC Meeting May Not Be As "Benign" As The Market Believes

If ever there was a chance for The Fed to 'sneak' in a rate-hike while everyone is distracted, it's next Wednesday as Trump Jr testifies to Congress. As former FX trader Richard Breslow remarks, The Fed "woulda, coulda, shoulda [hike] next week... but certainly won't," noting that if they are truly concerned about the "stretched valuations" taking an extended vacation through the summer is the worst thing The Fed can do...

Philly Fed Slumps From 33-Year Highs To November Lows As New Orders Plunge

Another day, another 'soft' data point disappointments and heads towards it 'hard' data reality. This time is the turn of the Philly Fed survey, which missed expectations and dropped to 19.5 - its lowest since Nov 2016. New Orders collapsed, employees tumbled, and average workweek slumped... but hope rose very modestly for business activity 6-months ahead.

ECB Keeps Rates, QE Unchanged; Ready To Increase QE "In Size And Duration"

While nobody was expecting much from the ECB's policy statement this morning, with all eyes on Draghi's press conference in 45 minutes, judging by the modestly disappointed market reaction to what were largely canned remarks by the ECB which sent the EURUSD in kneejerk reaction lower, positioning is indeed stretched and unless Draghi comes out with hawkish bazookas blazing, the EURUSD may slide bigly.

Frontrunning: July 20

  • Futures flat as investors await earnings deluge (Reuters)
  • Investors Brace for Clues on ECB’s Tapering Plans (WSJ)
  • When Will the ECB Pull Its Trillions From the Markets? (BBG)
  • Citing Recusal, Trump Says He Wouldn’t Have Hired Sessions (NYT)
  • Trump Urges GOP to Seek Agreement on Health Measure (WSJ)

World Stocks Hit Record High For 10th Consecutive Day In "No-Vol Nirvana"

Traders, so mostly algos, are riding a global risk "high" in stocks as Asia's and then Europe's early 0.4 percent gains ensured MSCI's 47-country All World index was up for a 10th straight session. This is the longest winning streak in global stocks since February 2015 and shows little sign of fatigue even as bond yields edged modestly higher again.

"ECB Or Not To Be": A Preview Of What Mario Draghi Will Say

Questions on possible exit scenarios will dominate the press conference. While acknowledging the strength of the economy, Draghi is likely to counter any ideas of an imminent and rapid path towards ending QE, instead urging patience with the still-subdued inflation outlook.

John McCain Diagnosed With Brain Cancer

Just days after John McCain had a blood clot removed above his left eye, late on Wednesday his office announced that McCain has a brain tumor associated with the removed blood clot. In a statement doctors revealed that McCain has been diagnosed with glioblastoma, an aggressive cancer.