HIGHER UNEMPLOYMENT

Full Text Of Donald Trump's Convention Speech

To all Americans tonight, in all our cities and towns, I make this promise: We Will Make America Strong Again.
We Will Make America Proud Again.
We Will Make America Safe Again.
And We Will Make America Great Again.
THANK YOU.

Labor Market Continues To Deteriorate: Job Openings Tumble, Fewest Hires Since 2014

It wasn't just job opening which disappointed in May: so did the far more important, in our opinion, number of hires. In May, the BLS reported that the number of total hires was only 5.036MM, the third month in a row of declines, and the lowest print since November 2014 as suddenly employers clamped down on new (seasonally-adjusted) hiring.

Bank Of England Unveils First Easing Measures After Brexit

In its first official easing act, the Financial Policy Committee lowered the countercyclical-capital buffer rate for UK exposures to zero from .5% of risk-weighted assets in a move that it said would raise the capacity for bank lending to households and businesses by as much as £150 billion. "This action reinforces the FPC’s view that all elements of the substantial capital and liquidity buffers that have been built up by banks are to be drawn on, as necessary" the committee said in a statement.

Bob Janjuah Explains All That Is Wrong With The Financial System (And Remains Bearish)

"By dumping the responsibility for the heavy lifting for growth on central banks, we have ended up with asset bubbles, rampant speculation, lack of investment in productivity and in the real economy, significant levels of financial engineering to artificially boost earnings, and merely the (now failed) hope that “trickle down” still works. The outcome has been almost unprecedented levels of rising inequality in the global economy.  I suspect that it is this inequality that was behind a fair chunk of last week’s Brexit outcome and which has driven the rise of extremism across other important nations/blocs."

Housing Bubble 1.0 Vs. Housing Bubble 2.0 - The Culprit Is "Shadow Demand"... Again!

"If 2006 was a known bubble with housing prices at “X”, affordability never better, easy availability of credit, unemployment in the 4%’s, total workforce at record highs, and growing wages, then what do you call today with house prices at X+ 5% to 20%, worse affordability and credit, higher unemployment, weakening total workforce, and shrinking wages? Whatever you call it, it’s a greater thing than “X”."

In Stunning Reversal, IMF Blames Globalization For Spreading Inequality, Causing Market Crashes

In a stunning reversal for an organization that rests at the bedrock of the modern "neoliberal" (a term the IMF itself uses generously), aka capitalist system, overnight IMF authors Jonathan D. Ostry, Prakash Loungani, and Davide Furceri issued a research paper titled "Neoliberalism: Oversold?" whose theme is a stunning one: it accuses neoliberalism, and its immediate offshoot, globalization and "financial openness", for causing not only inequality, but also making capital markets unstable.

A Nationwide Minimum Wage Is Even Worse Than State-Imposed Wages

The lesson to be learned here is that, while minimum wage laws are bad, uniform minimum wage laws imposed across dozens of diverse economies are much, much worse. Naturally, imposing minimum wages at the statewide level leads to the same problem, but on a slightly smaller scale. If politicians wanted to increase real wages, they'd instead focus on lowering the cost of living and increasing worker productivity.

Trump Reveals How Mexico Will Pay For "The Wall"

In what he assures will be "an easy decision," Donald Trump has released details of his plan to "compel Mexico to pay for the wall." In a 600 word statement, Trump proposes, in a potentially devastating move for Mexico’s economy, to block billions of dollars in payments immigrants send back home until the nation made "a one-time payment of $5-10 billion" to the U.S.

Brazil's President Digs In: "I Will Never Resign Under Any Circumstances!"

It's all falling apart for Brazil's embattled President Dilma Rousseff whose political career could be over in a matter of months. With the impeachment committee in place and VP Michel Temer's PMDB set to break from the government, the fate of Lula's Worker's Party hangs in the balance. Meanwhile, the economy continues to collapse as last month was the worst February on record for jobs. As for the central bank, Alexandre Tombini is attempting to use reverse FX swaps to keep the BRL just weak enough to help the economy adjust and just strong enough to permit a Selic cut (or two). What could go wrong?

Rally Hobbled As Ugly China Reality Replaces Japan NIRP Euphoria; Oil Rebound Fizzles

It didn't take much to fizzle Friday's Japan NIRP-driven euphoria, when first ugly Chinese manufacturing (and service) PMI data reminded the world just what the bull in the China shop is leading to a 1.8% Shanghai drop on the first day of February. Then it was about oil once more when Goldman itself said not to expect any crude production cuts in the near future. Finally throw in some very cautious words by the sellside what Japan's act of NIRP desperation means, and it becomes clear why stocks on both sides of the pond are down, why crude is not far behind, and why gold continues to rise.