Money Supply Growth Drops To Lowest Since Lehman

Growth in the supply of US dollars fell again in May, this time to a 105-month low of 5.4 percent. The last time the money supply grew at a smaller rate was during September 2008 — at a rate of 5.2 percent.

Junk Bonds Are Finally Starting To Care About Oil

"The recent price action in the oil market and the stronger response of the HY Energy sector has prompted many market participants to question the ability of the broader HY market to continue to resist lower oil prices. In our view, the bar remains high for oil prices to become the main directional driver of HY spreads but the risk has risen."

Lavrov Scoffs At Western Media: "Trump-Putin May Have Met Multiple Times... In The Bathroom"

Headlines ripped across social media - 'the Russians admit that Trump and Putin may have met more than 3 times' - sparking an instant 'I told you so' from the 'left' proving the conspiracy of collusion is correct. However, we note that the source of this new story, Russian Foreign Minister Sergie Lavrov, compared these conversations to "children mingling at a kindergarten," making fun of an NBC reporter, adding "maybe they met in the toilet?"

Trader Tells 'New' Volatility-Sellers: "Come On In, The Water's Warm"

"My message to all those new quant fund vol sellers, come on in! The water’s warm. Glad to have your new supply keeping implieds low. Don’t worry, I am sure the returns of the next 8 years of commodity volatility selling will be just as good as the last 8 years of equity index volatility selling… Yeah, when didn’t chasing the previous decade’s best return strategy not work?"

Frontrunning: July 21

  • Euro surge to two-year high prompts stocks pause (Reuters)
  • Short Sellers Give Up as Stocks Run to New Records (WSJ)
  • U.S. toughens stance on foreign deals in blow to China's buying spree (Reuters)
  • Trump team seeks to control, block Mueller’s Russia investigation (WaPo)
  • Trump Would Set Off a Chain Reaction by Trying to Fire Mueller (BBG)

Trump Legal Shake Up: Kasowitz Out As Personal Attorney, Corrallo Resigns

There's been a shakeup in President Trump's legal team. According to CBS News White House correspondent Major Garrett, Marc Kasowitz is out as Mr. Trump's personal attorney, while Kasowitz's spokesman, Mark Corallo - who has had a rocky relationship with Trump in the past - has resigned.

Euro Surges To 2-Year High In "Bipolar" Draghi Reaction; Futures Flat

"Draghi tried to talk the Euro down, even going so far as to suggest that ECB’s quantitative easing could be increased and prolonged," said Swissquote Bank's Yann Quelenn. "But the currency markets were not buying Draghi’s line, and neither are we. Available bonds are too scarce, and turn to a taper is too clear to disguise."

The Worst Ideological Enemy Of The US Is Now Europe

"Americans, therefore, would do well to understand that for the time being the "Cultural Left" is so deeply entrenched in Western Europe and the EU, that their worst ideological enemy is not the Middle East or Russia: it is Europe."

Visualizing The Countries Suffering Most From Low Oil Prices

As Warren Buffet says, “Only when the tide goes out do you discover who’s been swimming naked.” And in 2014, when oil prices crashed and burned, the tide was gone – and it was shown that too many countries were relying on frothy oil revenues to balance out their trade deficits.

Analysis: Advantages And Disadvantages Of US Seaborne Laser Weapon System

To believe what the media say - the US has made a great stride ahead to acquire a super-weapon, giving it a critical advantage over any potential enemy in the world. No doubt, the ongoing tests testify to the fact that the US Navy has achieved some progress, but there are limitations and shortcomings...

Washington's "Good Terrorists, Bad Terrorists" Policy In The Middle East

"...More to the point, raising funds for proxy wars from the Gulf Arab States allows the Western executives the freedom to evade congressional scrutiny; and the benefit of buying weapons from the unregulated arms’ markets of the Eastern Europe is that such weapons cannot be traced back to the Western capitals; and using jihadist proxies to achieve strategic objectives has the advantage of taking the plea of “plausible deniability” if the strategy backfires, which it often does."