Before today's announcement, Charter had a market cap of $20 billion, less than half of Time Warner Cable's $48 billion. Or shown another way: a company with 6.3 million total subs is buying a company with 15.4 million subscribers.
It's official: after seeing it work so well for years in China, the US Department of Commerce's Bureau of Economic Statistics has officially replaced all of its excel models with just one function. The following.
If any evidence was needed that the market is dying at the zero bound, it came in this week’s violent 15-minute rip when the algos read the Fed’s release to mean there will be no rate hike in June. It put you in mind of monetary rigor mortis - the last spasm of something that’s already dead but doesn’t know it. The Great Financial Bubble dying at the zero bound has been inflating with just three interruptions - 1987, 2000 and 2008-09 - for the last 33 years. As a result, the market value of stocks, bonds and other debts have simply become decoupled from national income.
We have all read the latest crop of media articles challenging gold’s investment relevance. The typical approach to bearish gold analysis is to attribute hypothetical fears to gold investors, and then point out these concerns have failed to materialize. Sprott believes the investment thesis for gold is a bit more complex than simplistic motivations commonly cited in financial press. We would suggest gold’s relatively methodical advance since the turn of the millennium has had less to do with investor fears of hyperinflation or U.S. dollar collapse than it has with persistent desire to allocate a small portion of global wealth away from traditional financial assets and the fiat currencies in which they are priced.
That the Fed and other central banks have unleashed the speculative furies is an unassailable and baleful reality. What is going on here plain and simple is a one-sided game of chicken. The robo-traders and hedge fund buccaneers on Wall Street press the market higher on virtually no volume or conviction whenever macro-economic weakness presents itself, virtually daring the Fed to maintain is ultra-accommodative stance still longer. The casino gamblers will keep chop, chop choppin’ higher until they finally lose confidence that the Eccles building is heaven’s door to further riches. Then the machines will sell, sell, sell. There will be no credible Fed speakers to stop them.
Many activists are clamoring for a higher minimum wage. That's an admirable goal, but is that where the worst problem is? Even at the abysmally low wages of the present moment, we still have 938,000 people being turned away from McDonald's because there aren't enough McJobs. The real problem is the lack of meaningful work. In a world of machines and social alienation, meaningful work is as scarce as water in the drought-stricken California Central Valley.
Explaining all that is wrong with the fraudulent US "jobs recovery" using the case study of Japan.
... we have just one question.
While massive binges in stock buybacks and accounting gimmicks have continued to blur the actual profitability of businesses, the decline in jobless claims suggests that there is little room from further reductions in body counts. However, that does not mean that businesses must begin rapidly increasing employment and wages. Businesses are indeed hiring, but prefer to hire from the "currently employed" labor pool rather than the unemployed masses. The "bad news" is that for those unemployed, full-time employment remains elusive, and wages remain suppressed due to the high competition for available work.
Something funny happened on the way to the global reflation (telegraphed so loudly by the recent surge in 10Y yields to the highest level of 2015): PPI just crumbled by a sequential 0.4% in the month of April, despite expectations it would rise by 0.1% and continue the 0.2% monthly increase seen in March. This was a -1.3% drop in PPI - the fastest fall in 5 years. Worse, the annual decline in final demand goods was -5.2% Y/Y, the biggest drop in the revised series in record!
In short, the very project of counting “jobs” is essentially laughable in the context of the US economy as it is currently structured - for better or worse. But regardless of the equities and efficiencies of the current labor market, one thing is abundantly clear. The Payroll Friday report amounts to virtually meaningless noise. It is bad enough that the bubble vision Romper Room and the casino robo-traders are oblivious to this reality. What is scary is that the Eccles Building is just as clueless.
We have called this a tale of two graphs. But what it really describes is a clear and present danger to American capitalism fostered by an unelected monetary politburo in thrall to its own lust for power and mesmerized by its own doctrinaire group think. The tragedy is that nothing can stop them except the thundering crash of the gargantuan bubble they have single handedly enabled.
Labor Department Finally Notices The Jobs Bloodbath In Texas: Midwest "Discharges" Surge To 4 Year HighSubmitted by Tyler Durden on 05/12/2015 10:50 -0400
The most notable aspect of today's JOLTs data was that March layoffs in the Midwest region, aka Texas and the various other shale-heavy regions, saw terminations soar to 455K from 340K, the biggest monthly total in layoffs for the region since June 2011, and the largest monthly jump since August of 2013.
Second Largest Coal Miner East Of The Mississippi Files For Bankruptcy: 4000 Patriot Coal Jobs In PerilSubmitted by Tyler Durden on 05/12/2015 09:23 -0400
At last check Patriot Coal had around 4000 employees. Those soon to be former employees will soon require yet another massive seasonal adjustment by the BLS to be "adjusted" out, because moments ago the second largest coal miner east of the Mississippi and the second largest producer of thermal coal in the eastern US filed Chapter 11 bankruptcy.
There is propaganda, and then there is the harsh reality, as shown by the case of Denny Rder, 47, of Decatur, Illinois: "look closer, and this city of 75,000 resembles many communities across the industrial Midwest, where the unemployment rate is falling fast in part because workers are disappearing: moving away, retiring or no longer looking for a job."