Brazil

Frontrunning: June 7

  • Soothing Fed sounds send stocks to five-week high (Reuters)
  • Clinton reaches magic number in fight for Democratic nomination (Reuters)
  • Euro-Area Economy Grows Faster as Consumption Gathers Pace (BBG)
  • Trump unyielding on Hispanic judge uproar (Reuters)
  • European Firms Find ‘Increasingly Hostile’ Environment in China (WSJ)
  • China tells U.S. to play constructive South China Sea role (Reuters)

Peak Facebook? New Study Finds Social Media App Usage Tumbles Across The Globe

While Facebook's stratospheric ascent to new record highs continues, storm clouds may be gathering for the $340 billion market cap company: according to a new study by marketing intelligence firm Across the board, people are spending less time on their Social Media apps. Using SimilarWeb data on Android apps, the company found that in almost all countries, time spent on the 4 leading Social Media apps is down, in many cases sharply. On Facebook, Snapchat, Instagram, and Twitter, Android users seem to be cutting down on their Social Media app usage time.

Futures Flat Following Friday's Jobs Fiasco: All Eyes On Yellen Again

Every ugly jobs report has a silver lining, and sure enough following Friday's disastrous jobs report, global mining and energy companies rallied alongside commodities after the jobs data crushed speculation the Fed would raise interest rates this month.  “The disappointing U.S. jobs report on Friday means that a summer Fed rate hike is off the table,” said Jens Pedersen, a commodities analyst at Danske Bank. “That has reversed the upwards trend in the dollar, supporting commodities on a broader basis. The market will look for confirmation in Yellen’s speech later today.”

Venezuela Burning

Idleness, whether forced or chosen, combined with entitlement, can lead to nothing good. You can only placate the masses with an ever-expanding welfare state and misguided monetary policy that fails to grow the workforce while enriching the haves for so long before things turn.

US Manufacturing Weakest Since 2009: "No Comfort For Those Looking For A Rebound"

Following China's drop, Japan's plunge, and Brazil's crash, US Manufacturing PMI slipped once again to 50.7 - its weakest since September 2009 amid " subdued client demand and heightened economic uncertainty." New orders bounce is over as it fell to its weakest since Dec 2015 and worse still input costs are surging to 9 month highs as employment suggest payrolls will remain under pressure. ISM Manufacturing data improved marginally - leaving 50% of the last 10 months in contraction and 50% in expansion. The improvement seesm based on a rise in prices paid and customer inventories - hardly a positive sustainable trend. As Markit concludes, "for those looking for a rebound in the economy after the lacklustre start to the year, the deteriorating trend in manufacturing is not going to provide any comfort.”

Here's Proof That The US Dollar Is Insanely Overvalued

Anyone who owns US dollars has an opportunity right now to trade overvalued pieces of paper for undervalued real assets... as long as you look abroad. From productive farmland in central Chile, deeply undervalued, profitable businesses in Australia, and real estate in Colombia; these are all REAL assets, and as long as central bankers continue to print paper money without restraint or regard for the consequences, it’s critical to own something real. Gold and silver are also real assets, and both are historically inexpensive relative to the US dollar.

Investors Are Fleeing As Attention Returns To Brazil's Depression

Now that the market's fascinated dream with the regime of Brazil's new president Michel Temer is quickly turning into a nightmare, following two immediate resignations of his closest ministers over the ongoing Carwash corruption scandal, including ironically that of the country's anti-corruption minister, Fabiano Silveira, attention is gradually returning to what is truly the cause of Brazil's woes: an unprecedented economic depression.

Oil Spikes Near $50 On Libya Turmoil Despite Highest OPEC Production Since 2008

In its ubiquitous manner, crude futures decided to try and run the stops at the US equity open but were unable to get to $50 (49.984 in July WTI) before fading back a little. Ths driver - according to the narrative-du-jour - is turmoil in Libya and ongoing Nigeria and France disruptions, which are both offsetting a surge in OPEC production to its highest level since 2008 in the minds of the machines. "The market is pretty much on hold until we get all this information," says Deutsche Bank's Jens Pedersen of the data dump and OPEC meetings this week. "We need to get that out of the way to see if there is a reason for oil to go higher."

Futures Flat, Gold Rises On Weaker Dollar As Traders Focus On OPEC, Payrolls

After yesterday's US and UK market holidays which resulted in a session of unchanged global stocks, US futures are largely where they left off Friday, up fractionally, and just under 2,100. Bonds fell as the Federal Reserve moves closer to raising interest rates amid signs inflation is picking up. Oil headed for its longest run of monthly gains in five years, while stocks declined in Europe.

Brazil's New Anti-Corruption Minister Quits After Leak Exposes His Involvement In Corruption Scandal

Things for the new, just as corrupt as his predecessor president, Michel Temer got particularly awkward, not to mention painfully ironic, when none other than Brazil's Transparency and Anti-Corruption Minister, Fabiano Silveira resigned on Monday after leaked recordings suggested he tried to derail a sprawling corruption probe, the latest cabinet casualty impacting interim President Michel Temer's administration.

Trickle-Down Crash? Trophy Assets Suddenly Tanking

One of the defining traits of the past few years’ “recovery” has been the torrent of money flowing from big banks to favored clients, and from there into trophy properties like high-end real estate, superyachts, and fine art. This might be the first financial bubble to completely bypass the 99%. And now it’s ending...

The Global Bear Market In Freedom

Americans will be celebrating Memorial Day this weekend, to honor those who fought and died for the values they have traditionally cherished the most as a nation: life, liberty and the pursuit of happiness. The world has changed dramatically in recent decades. The geopolitical situation is much more complex, with rising powers challenging America's supremacy. The intractable war on terror seems interminable. Old foes appear to spring back to life even more powerful than before. And things at home look dicey in terms of politics and economics. As we reflect upon the ultimate sacrifice that others have made‎, it is an opportune moment to consider a very important question: is the US winning the fight for freedom?

What Would Ludwig von Mises Do In Venezuela?

The crisis in Venezuela is the most modern illustration of the horrific consequences of socialism and the devastating reality of hyperinflation. What makes this disaster all the more infuriating is that it could have been avoided with a basic understanding of history. We’ve seen the disaster of socialism and interventionism in various forms play out across the world time and time again with similar results, and yet new generations of central planners — backed by ideologically aligned intellectuals — are consistently able to fool people into believing that “this time will be different.”