Hong Kong

Weak Chinese Trade Data Confirms Global Slowdown, Imports Tumble

While central banks continue to "print" liquidity, now at a pace of nearly $200 billion per month, they are unable to print trade, perhaps the single best indicator of deteriorating global economic conditions. The latest confirmation came overnight from China, which reported another batch of disappointing trade data including imports which have now declined for 21 straight months, while exports have fallen for 12 of 13 months.

Ahead Of Tomorrow's Jobs Number, A Big Red Flag: Tax Withholdings Slump

Individual tax/withholding receipts for the month of July – those tax and withholding payments that come straight from wage earner pay stubs – are down 1.0% year over year. YTD non-withheld tax receipts (such as those that come from “Gig economy” workers) are down 6.5%, and July’s comp is 15% lower than a year ago. Last, corporate tax receipts are down 11% YTD, and if the current pace of these payments holds it will be the first negative comp since 2011.

S&P Futures Flat As Europe, Asia Lifted By Banks, Yen; All Eyes On The Bank Of England

In a mostly quiet session, European and Asian stocks rose, pushed higher by financial stocks and the USDJPY which initially dipped on some hawkish comments by BOJ deputy governor Iwata, only to rebound later in the session, lifting the Nikkei 1.1%, while the Stoxx 600 rose 0.4% led higher by the banking sector. S&P futures are unchnaged after yesterday's last hour ramp. The key event is the BOE decision due in half an hour.

China's New Silk Road To Make A Big Move In Gold

In short, the New Silk Road is all about building alternatives to U.S. power. Part of that, of course, is displacing the U.S. dollar, the world’s premier currency. So it should be no surprise that China’s New Silk Road project is about to make its first big move in the gold market.

Frontrunning: August 3

  • European bank rebound not enough to save world stocks from further losses (Reuters)
  • Republican rift widens as Trump declines to endorse Ryan, McCain (Reuters)
  • New Rough Patch for Trump Campaign Roils Republicans as Defections Grow (WSJ)
  • Obama says Trump unfit to be president (FT)
  • World’s Largest Oil Hedge Set to Make Billions for Mexican State (BBG)

Global Shares Slide As Japan Stimulus Disappoints, RBA Underwhelems, Italy Bank Fears Return

European stocks slid to a two-week low amid mixed earnings, as bank stocks extended yesterday’s decline as fears that Italy is not "fixed" have reemerged, not helped by an adverse market reaction to a disappointing Japanese fiscal stimulus announcement, while the AUD first dropped but then jumped after the RBA's priced in rate cut was announced, seen as underwhelming.

Euro Stocks Reverse Early Gains Dragged Lower By Slumping Banks; US Futures Flat; Crude Slides

Following last Friday's shocking weak US GDP print, Asian stocks jumped to an 11 month high on reduced prospects of a near-term rate hike, while the region also digested mostly encouraging in conflicting Chinese PMI data. European bank stocks initially rose following the release of the 2016 stress test then declined, tempering gains in global equity indexes, amid investor skepticism over the usefulness of stress-test results and weaker oil prices.

17,359 Americans Have Renounced Citizenship Under Barack Obama

Another 508 people renounced their US citizenship last quarter according to documents published this morning by the Internal Revenue Service. This brings the total number of US ‘renunciants’ under the Obama administration to 17,359.