Department Of Commerce

Frontrunning: April 19

  • As Trump warned N. Korea, 'armada' headed to Australia (Reuters)
  • Threat of Carrier Heading to Koreas Wasn’t All It Seemed (WSJ)
  • Markets Start to Ponder the $13 Trillion Asset Gorilla in the Room (BBG)
  • Investors’ Nightmare Scenario Takes Shape in French Election (WSJ)
  • Venezuelan opposition to hold 'mother of all marches' against Maduro (Reuters)

Why Is Loan Growth Collapsing: Goldman Has An Answer

"we believe the current C&I slowdown reflects payback from credit facility usage by commodities firms, many of which began drawing upon credit lines in late 2015 as financial conditions tightened and the debt issuance window closed" - Goldman

Americans Will Be The Loser In The Fed's Dangerous Game Of "Chicken"

Here is the real problem with the gap between the Fed and government’s outlook versus reality: the more they push to convince markets of the economy’s strength, the more they set us up for a crisis. When Americans finally wake up and realize the Fed and U.S. government were bluffing all along, there will be no safety net to keep the economy from crashing down.

The US Government Now Has Less Cash Than Google

"Our modern 'experts' tell us that the US government will always pay and that a debt default is impossible. Well, we’re living in a world where the 'impossible' keeps happening."

China Telecom Giant ZTE Pleads Guilty, To Pay $1.2 Billion Penalty For Selling US Tech To Iran

China's telecommunications giant ZTE has agreed to pay a total of $1.2 billion in penalties and plead guilty to violating U.S. sanctions on Iran, selling US technology to Tehran, and obstructing a federal investigation, ending a five-year probe that has raised trade tensions between the U.S. and China. The penalty was among the largest ever in a sanctions case.

Trump Won't Be Happy: US Records Biggest Trade Deficit In 5 Years

In a report that will be closely scrutinized by the trade-sensitive Trump administration, today the Department of Commerce announced that the January trade deficit surged in January 2017, jumping from $44.3 billion in December (revised) to $48.5 billion in January, as imports increased more than exports.This was the biggest trade deficit going back to early 2012.

Federal Officials Are Searching Caterpillar's Corporate Headquarters; Stock Plunges

Federal officials have executed search warrants at three Caterpillar, Inc. facilities in the Tri-County Area — including the corporate headquarters — Thursday morning. Company officials confirmed the presence in a statement without specifying which agency was performing the search or what the search was in regard to.

Donald Trump's Most Important Fed Appointment (Spoiler Alert: It's Not The Chair)

Fed Chair Janet Yellen is still at the helm and will be for another year. But two long-standing vacancies are available for the President immediately, and in them lies a key to understanding a fundamental relationship that should guide how we think about the Trump presidency and the very nature of financial and monetary system.

Nomi Prins On The Goldmanization Of President Trump

In his Inaugural Address, having nominated the wealthiest cabinet in American history, he proclaimed, “For too long, a small group in our nation's capital has reaped the rewards of government.”  Under Trump, an even smaller group will flourish -- in particular, a cadre of former Goldman Sachs executives. To put the matter bluntly, two of them (along with the Federal Reserve) are likely to control our economy and financial system in the years to come.

Trump Team Preparing "Dramatic Cuts To Government Spending"

According to a report from The Hill this morning, President-elect Trump's transition team is already working with career staff at the White House on plans to slash federal spending with significant cuts expected to the budgets of the Department of Commerce, Energy, Transportation, Justice and State, among others, totaling $10.5 trillion over 10 years.

Goldman's 10 Most Important Questions For 2017

Goldman Sachs is relatively optimistic about growth in 2017, for three reasons: first, despite the lack of spare capacity, US recession risk remains below the historical average; second, financial conditions should remain a growth tailwind - at least in the first half of 2017; and third, we expect a fiscal easing accumulating to 1% of GDP by 2018. However, uncertainty remains and here is what Jan Hatzius and his team believe are the ten most important questions for 2017.