Economic principles explain why the Saudis began, in late 2014, to pump crude as fast as they could – or close to as fast as possible. In fact, there is a good reason why the Saudi princes are panicked and pumping.
This afternoon, an anslysis has emerged that suggests the Kremlin may indeed have had a role to play in the resignation of the DNC chairwoman, and the hectic, at time chaotic first day of the Democratic National Convenation.
While the plunge in Twitter share moments ago put those looking forward to AAPL's earnings on edge, Tim Cook delivered, beating on both the top and bottom line, reporting Q3 revenue of $42.4 billion, above the $42.1 billion expected as a result of better than expected iPhone sales, with the company selling 40.4 million units in the quarter, above the 39.9 million expected.
With all eyes now focused on Gasoline inventories, API's report surprised with a modest draw (-420k) but a considerablyless than expected draw in Crude (-827k vs -2mm exp) and major build at Cushing (+1.4mm vs 750k exp). Crude had faded into the close after testing stops at $43, and extended losses after the API data hit.
Miraculously managing to beat user growth expectations (313mm MAUs vs 312mm MAUs exp) and EPS (+13c vs +9c exp), Twitter stock is plummeting after-hours after slashing Q3 revenue (and EBITDA) guidance drastically (from $681.4m to between $590 and $610mm). TWTR is trading down 11% after-hours...
“I don’t understand people... who talk about us as being in decline, and who act as though we are not yet the greatest country that has ever been on the face of the Earth for all of history!” - Hillary Rodham Clinton, 25 July 2016
Italy is scrambling to secure a privately-backed bailout of Monte dei Paschi di Siena, the most exposed of the country’s troubled lenders, including a plan to raise €5bn of fresh capital so as to avert nationalisation, the FT reports. The bank needs to obtain some €5 bilion in capital ahead of Friday's stress test, or else a dire "contagion" scenario could unfold that could impair not only all Italian banks, but promptly spread first to France and then to Germany...
When it comes to AAPL, the company is truly in a class of its own. And while in the past it helped propel the S&P500 profitability almost singlehandedly (it was responsible for 7% of total S&P earnings in 2015), this has reverse, and now AAPL is set to be the single biggest detractor from S&P growth. Here is what to look for and what Wall Street expects when AAPL reports earnings at 1:30pm Pacific today...
The financial and economic world in 2016 is, more than anything, a confidence game (pun intended). The year started with confidence severely shaken, so gasoline (as one real economic variable) and hiding intervention (the further hint of desperation) are more likely to have lasting negative effects than effusive but unbacked mainstream praise for the nth year in a row.
For those lucky Americans who can afford to own a house instead of being stuck renting the New Normal American dream where they are prohibited from peddling fiction as their annual rent increases by 10% or more each year, here is the breakdown of the best and worst cities for home price appreciation in the U.S.
"Don’t let someone tell you this country isn’t great - that we need to make it great again. Because, right now, this country is the greatest country on Earth." or “Well, that was a colossal waste of my time,” said Obama with an air of weary irritation before reminding the audience she had been 45 years old at her husband’s inauguration and now she was “fifty-fucking-two.”
At the same time that the Nikkei released its latest "market response" trial ballon, where it posted an article around 2am local time clearly meant for US market consumption according to which BOJ officials "were said to be leaning more toward easing", the same Nikkei also published a preview of what Japan's helicopter money may look like. There is just one problem: at first read, and judging by the market's reaction, it appears to be rather underwhelming.
Yesterday at 2am local time, Japan's Nikkei reported a doubling of stimulus being proposed (to 6 trillion yen) after Goldman suggest 3 trillion was not enough. That spiked USDJPY briefly. Today, at 2am, Nikkei decided to try it again... announcing that "BoJ officials said to be leaning more toward easing," and sure enough USDJPY spiked...
The hits just keep on coming. After yesterday's ugly 2 Year auction, and following last month's less than stellar, tailing 5 Year auction, moments ago the Treasury sold $34 billion in 5 Year paper in what was another woeful issuance, one where the high yield of 1.18% was a substantial tail of 1.6bps to the 1.164% When Issued, and whose Bid to Cover dropped again, reaching 2.27, the lowest since September 2009.
Over the past week, market watchers have noticed something which otherwise could be seen as a warning signal: there has been a dramatic move in swap spreads space, notably a substantial widening in recent days from what was until recently record tight - and negative - levels, coupled with a blow out in FX swaps, where the EURUSD has seen its cross-currency swap slide -3 bps today to -48 bps, the widest since July 2012. What does this mean, and what are the implications? Read on for the explanation.