France

Electric Vehicles No Threat To Oil Prices Anytime Soon

Hardly a day goes by without another media report about the impending demise of the Internal Combustion Engine as petroleum powered cars and trucks are replaced by uber-clean Electric Vehicles. It is just a matter of time before EVs start to materially reduce global oil demand thereby capping a meaningful oil price recovery now and creating an ever-shrinking industry in the future... Except it isn’t true.

Frontrunning: July 28

  • ‘Skinny’ Repeal of Obamacare Fails (WSJ)
  • Bad News If You Make $150,000 to $300,000: Higher Taxes for Many (WSJ)
  • Senators Move to Block Trump From Ousting Sessions (WSJ)
  • Amazon’s Expansion Takes Toll (WSJ)
  • Japan Slaps 50% Tariff on Some U.S. Beef (WSJ)

Global Markets, Futures Slide Spooked By Poor Amazon Earnings, US Politics

S&P futures have tracked both European and Asian markets lower, which were dragged down by the big EPS miss and guidance cut reported by Amazon on Thursday. Meanwhile, the pounding of the dollar has resumed with the euro and sterling strengthening against the dollar due to renewed political concerns

Global Stocks Hit New All Time High As Dollar Rebounds; Europe Volatile On Earnings Deluge

The levitation continues with S&P futures pointing to - what else - another higher open while European stocks swung between gains and losses on the busiest earnings days of the year (85 of the Stoxx 600 report) which has seen European pharma giant AstraZeneca plunge 15%, the most on record, after its flagship lung cancer trial Mystic failed to show benefits, while Deutsche Bank slumped 4% on a 12% plunge in FICC revenue.

UK Terrorism: 'Enough' Is Not 'Enough'

Were terror attacks like this simply something that the British public would have to get used to, as the Mayor of London, Sadiq Khan, had suggested? What if the public did not want to get used to them?

The Military Industrial Complex Is Undermining US National Security

"The ongoing problems with the F-35 and other military programs, stemming from virtually unlimited budgets, underline the inefficiency of the American military-industrial complex...This will certainly bare consequences for Washington’s present and future strategy of power projection."

Global Stocks Jump, Crude Booms As Yellen Looms

S&P futures were fractionally higher (+0.1% to 2,476) with all eyes on the Fed's rate decision as investors await another earnings deluge from companies including Facebook, Coca-Cola and Boeing. Asian and European shares were also higher, the Dollar rebound continued while oil rose above $48 as copper hit a two year high.

Frontrunning: July 25

  • Dollar slumps to 13-month lows before Fed; euro up (Reuters)
  • Overwhelming approval likely for Russia bill (Reuters)
  • Trump to study tougher Russia sanctions bill: White House (Reuters)
  • Unrest bubbles among Trump's key foreign policy aides (Reuters)
  • Abe Overtaken by Rival as Top Choice for Japan Premier in Poll (BBG)

S&P Futures Bounce As VIX Hammered, Europe "Euphoric"

After sliding to 3 month lows on "car cartel" concerns yesterday, European stocks have rebounded after three days of declines, while oil extended gains after Saudi export cuts, with Brent rising above $49 and WTI just shy of $47. Asian stocks fell while S&P futures rose 0.2% to 2,473, helped by a tumbling VIX which was hammered early by 3% in early Tuesday trading, down to 9.17.