It appears the pain that Europe is already suffering post-Russian sanctions, is too much to bear (as we explained here). While NATO admits it saw Russian military forces cross the Ukraine border, European leaders, after discussions on widespread 'aid' for nations suffering from Russia's food ban, have said they are 'ready to review Russia sanctions' if the situation stabilizes. Furthermore, snubbing Washington, European leaders said they do not want to impose more sanctions on Russia. Obama alone again?
In July, the gain in durables was led by an increase of 10.1 percent in the index for motor vehicles and parts, which was the largest since the index jumped 26.9 percent in July 2009. In other words, when it comes to the US economy, subrpime is the new "cash for clunkers" as can be seen on the chart below.
Unpossible! With stocks at record highs and unemployment plunging (according to the government's data and talking heads), how is it possible that University of Michigan Consumer Confidence has collapsed to its lowest since November, missing extrapolated expectations by the most since 2006? We suspect you know the answer...
UPDATE: *FERGUSON POLICE SAY OFFICER DARREN WILSON SHOT MICHAEL BROWN - Police suggest Brown was primary suspect in earlier robbery incident.
Following much consternation yesterday after Anonymous 'announced' the possible name (Bryan Willman) of the police officer who shot and killed Mike Brown in Ferguson; Police Chief Thomas Jackson is about to announce the details... Forty-five percent of US citizens don’t trust in justice amid police killings of civilians, according to a poll by HuffPost, with Sixty-nine of black Americans thought the officers used lethal force too frequently,
Canada Releases Atrocious Jobs Data; Then Revises It Above The Highest Estimate Following Public OutcrySubmitted by Tyler Durden on 08/15/2014 - 09:08
This morning it was take two for the Canada jobs print, which was as follows: In July, Canada employment increased 41.7K in July according to Statistics Canada, from -9.4K in prior month. This was about 41K higher than the previous "erroneous" print, and double the original estimate: high enough to make everyone happy. In fact, it was so high, it surpassed the highest range of the forecast, which topped out at 41.4K based on 20 economists.
The outbreak of Ebola virus disease in West Africa continues to escalate, with 1975 cases and 1069 deaths reported from Guinea, Liberia, Nigeria, and Sierra Leone, according to the WHO, but warns that "there is evidence that the number of reported cases and deaths vastly underestimate the magnitude of the outbreak." While Nigeria remains 'contained' for now, Ireland now has its first suspected case of Ebola according to The Journal. What is perhaps most concerning is Doctors Without Borders warn the ebola outbreak is "moving faster" than they can handle.
Producer Prices Slide Driven By Biggest Plunge In Energy Since November 2013, Core PPI Rises Most Since MaySubmitted by Tyler Durden on 08/15/2014 - 08:47
Following another monthly surge in the June PPI print, when it rose by 0.4%, or the second highest amount in a year, the July headline reading was a far tamer 0.1%. This was driven entirely by the plunge in energy prices (supposedly due to the Iraq military incursion and the "de-escalation" of the Ukraine civil war), which resulted in a -0.6% plunge in energy costs, which was the biggest monthly drop in over a year, matching the decline recorded in November of 2013. Offsetting the energy drop was a 0.4% increase in food prices, following two months of -0.2% decline. When stripping the volatile, and easily manipulated asset prices linked to brent, crude and the like, core PPI ex food and energy rose by 0.2%: the highest since March.
Despite serial extrapolators expectation that last month's 4-year high Empire Manufacturing data would continue to rise, it didn't - instead falling by the most since June 2012 to 14.69 (from 25.6). This is the biggest miss in 4 months. The number of employees and new orders tumbled as inventories collapsed. Of course, when current sentiment plunges, hope comes alive... the surge in 'hope' for 6 months from now to its highest since January 2012.
Despite NATO's warnings of Russian escalation in Ukraine, 8amET was a far bigger catalyst for precious metals this morning as the once ubiquitous morning meltdown is back. With gold relatively flat and Treasury yields down 10bps after a 60 point S&P surge, maybe this is catch-down but the heavy-volume plunge in Gold and Silver is notable in that USDJPY appeared to jerk higher at the same time.
NATO Accuses Russia Of Escalating Ukraine Conflict, Demands Withdrawal Of Russian Troops From BorderSubmitted by Tyler Durden on 08/15/2014 - 08:03
"Remember when"... US futures soared by over 60 point in 5 trading days on what was the tiniest hint that Putin may be de-escalating based on a Russian media report citing the Russian security council? Well, NATO disagrees with the momentum chasing algos, and this odd spin coming out of Russia. Moments ago NATO said that Russia, while calling for de-escalation of the Ukraine conflict, had in fact been escalating it.
- Barack Obama's 'vacation from hell' (Politico)
- Russian aid convoy checked; military vehicles mass near Ukraine (Reuters)
- Ukraine Says APCs Entered From Russia to Aid Insurgents (BBG)
- Islamic State Said to Challenge Al-Qaeda for Leadership (BBG)
- Missouri protests calmer after governor puts black police captain in charge (Reuters)
- Finally someone will prove the US is a pyramid scheme (in a 1000 page presentation): Ackman’s Pershing Square Sues U.S. Over Fannie, Freddie (BBG)
- Banks, Financial Firms Load Up on Cheap Debt (WSJ)
- Putin to Meet Finnish President as Threat of Cold War Grows (BBG)
Curious what (long) positions hedge funds bought, sold, initiated or liquidated in the second quarter? Then the following summary, courtesy of RanSquawk is for you. And while these 13F reports are far less relevant than they used to be when central-planning wasn't the rule of the land, keep a close eye on these most frequently mentioned stocks: AAPL, DG, AAL, MNK, FB, PCLN, GM, VZ, AGN, AIG, DTV, CMCSA, WMB, QCOM, APC, and CBS.
Futures Continue Levitation On More "Deescalation" Hopes Despite UK Warning Russia Of "Serious Consequences"Submitted by Tyler Durden on 08/15/2014 - 07:05
There were headlines for everyone this morning, but especially for fans of what is increasingly known as Russia's "Schrodinger Invasion" of East Ukraine: one which may or may not be happening depending on i) one's point of view and ii) how one is observing it.