As is almost always the case, the price of gold was leaned on at the standard PLAN A time in London when The Gold Cartel traders reported for work, but their nudge was thwarted pretty quickly. Gold took off again going into the Comex trading hours and managed to reach $1200 where it was stopped dead in its tracks. James Mc early this morning…
Yes ... They're Collecting the Content of AMERICANS' Phone Calls, Too
After the Saudis allegedly halted their air campaign against Yemen's Houthi rebels on April 21 (allegedly because it promptly resumed the very next day to almost no public announcement), the Yemen civil war and the "skirmishes" by Houthi rebels along the border with the world's biggest oil exporter were quickly forgotten. Until this morning, when the Saudi press and social media has been overrun with reports that the Saudi city of Najran was shelled by Houthi mortars, an attack which Saudi advisor to the armed forces Ahmed Asiri said "will not pass without a response".
We heard from several central banks in the last few days, and what they had to say was just one more reminder that we are in a Hill Street Blues financial world. So, hey, let’s be careful out there - and then some!
- Record month ends in pain as biotech, small-caps, Apple tumble (BBG)
- Japan inflation rises for first time in nearly a year (WSJ)
- US Navy starts to accompany ships in strait where Iran seized cargo carrier (WSJ)
- Russia may be readying for new Ukraine offensive: NATO commander (Reuters)
- Big banks use loophole to avoid ban (WSJ)
- China April official PMI shows factories struggling to grow (Reuters)
- CME suspends traders for alleged Sarao-like manipulation (BBG)
With the topic of racial division increasingly top of mind in America, The Washington Post reports a new study suggests that the rural Northeat and South are the most racist regions of America. The study, based on Goggle searches for race-related phrases, shows racist people in the U.S. appear to be clustered along the Appalachian Mountains from Georgia, through New York and all the way up to Vermont. West of Texas, no region falls into the "much more than average" category.
Hookers for Brazilians, and MiGs for Russians... what cost is your country obsessed with?
Apple is the Ty Cobb of corporate America. Like Cobb, Apple has set some impressive records. Nine years, a trillion dollars in sales, and almost no taxes paid. Apple risks having a legacy of tainted success and isolation.
As Sarao faces charges for crashing the US market for "spoofing" stocks, there is another seemingly much graver 'hack' that is now publicly available for all to utilize (and has been). As SputnikNews reports, the information necessary to hack a military drone is freely available to the public via a simple Google search that explains how to successfully "spoof" GPS signals. NATO has admitted this is possible in a 2013 report, and as we have previously noted Iran has already allegedly brought down and reverse-engineered a US drone.
"Twitter has likely the greatest array of company-specific catalysts of any company in its sphere this year, including Periscope, core monthly active user (MAU) acceleration from the Google partnership, and new core features like embedded video.... building out the "tail" should allow Twitter to grow well-above average over the next several years. With a global ad load between 1% to 2% and 85% from mobile, we think TWTR has more revenue runway than any other company in the Internet space. Our target is $55."
Well, the leak (which ironically came out on Twitter only, and not Facebook) was right, and the full story is even worse than Selerity reported:TWITTER 1Q LOSS PER SHARE 25C; TWITTER INC 1Q ADJ. EPS 7C , EST. 4C.
That much we knew. Here is where it gets worse:
- TWITTER 1Q REV. $ 435.9M, EST. $456.2M
- TWITTER SEES 2Q REV. $470M TO $485M, EST. $538.1M
- TWTR SEES YR REV $2.170B-$2.270B, SAW $2.3B-$2.35B, EST $2.37B
And now perhaps someone will ask how much of Facebook's 1.4 billion "users" are actually real.
- Nepal earthquake toll crosses 3700 (Reuters)
- Greeks Add Pressure on Tsipras to Compromise as Talks Resume (BBG)
- With No Deal on Greek Bailout Aid in Sight, Some in Europe Suggest ‘Plan B’ (WSJ)
- BOJ Shouldn’t Ease Further; Yen Fell Enough: Business Lobby Head (BBG)
- Clinton Foundation admits making mistakes on taxes (Reuters)
- Here’s the Old Nemesis Starting to Spook Bond Traders Again (BBG)
- Deutsche Bank to Trim Investment Banking (WSJ)
- China’s Stocks Rise to Seven-Year High on SOE Merger Speculation (BBG)
In the immediate aftermath of yesterday's destructive Nepal earthquake, which has led to hundreds of aftershocks and a constantly rising death toll, currently exceeding 2000, the most visually stunning, if quite deadly, phenomenon was a massive avalanche on Mt. Everest and leading to at least 17 casualties, including a Google executive, and 61 injured.
The trio of macro-prudential policy, the onset and evolution of shadow banking, and the nebulous concept of financial stability may have become a toxic cocktail which can be instrumental in moving forward the Federal Reserve’s timeline for lift-off zero bound rates. The intuition here is stooped in concepts of volatility and how market structure evolution may contribute or detract from asset volatility. Volatility is the square root of time. Financial repression times time equals volatility. Financial repression and/or macro-prudential policy times time equals the inverse of financial stability. Financial stability inverted equals volatility squared.