Durable Goods Orders Tumble (Again) In May, Still 5% Below 2007 Peak

Following a big drop in April (revised worse), May's preliminary durable goods orders tumbled 1.1% MoM (the worst since November). Across the entire report, numbers disappointed with Capital Goods Orders and Shipments both dropping considerably more than expected. And as a reminder, Durable Goods Orders remain 5% below 2007's peak (while the S&P is 55% above its 2007 peak).

Key Events In The Coming Busy Week: Yellen, Inflation, Durables And GDP

The main releases this week are the durable goods report on Monday, the Q1 GDP revision on Thursday, and the personal income and spending report on Friday. There are also many speaking engagements by Fed officials including a speech by Fed Chair Yellen on Tuesday.

Frontrunning: June 26

  • Italian Bank Deal Raises Questions About Eurozone Rules (WSJ)
  • UK PM May strikes $1.3 billion deal to get Northern Irish DUP support for her government (Reuters)
  • Nestle Targeted by Dan Loeb in Activist’s Biggest-Ever Bet (BBG)
  • Nestle 'committed' to strategy as activist investor moves in (Reuters)
  • Troubled Air-Bag Maker Takata Files for Bankruptcy (WSJ)

SocGen: "Fundamentals No Longer Matter? Yeah Right..."

"Any systematic strategy formulated around any notion of price momentum (we’d put volatility weighted and risk parity into this group as well) are simply following slavishly these changes in fundamentals using price as the principal signal for a change in expectations. So it is not that systematic strategies are not driven by fundamentals, it is they offer no view to the future"

Theresa May Strikes $1 Billion Governing Deal With Northern Irish Party

U.K. PM Theresa May clinched a deal with Northern Irish lawmakers giving her Conservative Party the necessary votes it needs to govern as a minority administration.  The deal provides Mrs. May's party with the extra votes it needs to pass critical legislation and remain in office.

Italy Bank Bailouts Send European, Global Stocks Higher; Gold Flash Crashes

S&P futures point to a higher open following gains in Asia but mostly Europe, where stocks are sharply higher following the €17 billion bailout of the two Veneto banks in Italy, the biggest taxpayer funded bank rescue in modern Italian history, as well as Dan Loeb's activist campaign of the world's biggest food company, Nestle

(Un)Locked & Loaded

"...as many as 38% of gun owners in the States have a loaded, easily accessible gun in the home at all times"

Did Europe Surrender To Radical Islam?

In spite of three attacks in three months, Britain does not seem to be choosing the path of vigilance and determination. June is not even over but the media barely talk about terrorism any more.

The "World's Policeman" Retires On Disability

"The American neo-conservatives predicted the 21st century would be a 'New American Century'. Instead, it is becoming a 'New Chinese Century', with the United States still believing, wrongly, that it is the 'leader of the free world' and a 'super power'."

"Technology Is Replacing Brains As Well As Brawn" - Challenging The 'Official' Automation Narrative (& Social Order)

...even if the academics are right and new high-skill jobs emerge to replace the ones that are being automated away, huge disruptions would still await. Large portions of the global workforce would still need retraining. And if work becomes a luxury, widespread joblessness and greater inequality could make it increasingly more difficult for the government to maintain social order.

If We Want "Unity"... Government Must Become Weaker

It is becoming increasingly clear that the United States is becoming a country in which every election brings a perceived mandate to forcefully - and even vengefully - impose the winning coalition's agenda on the losers...