- Bad News Is Great News: Cautious Yellen drives world stocks near 2016 peaks (Reuters)
- Yellen Spurs Global Stock Rally as Oil Rebounds, Dollar Tumbles (BBG)
- Trump drops pledge to back Republican presidential nominee other than himself (Reuters)
- Second judge says Clinton email setup may have been in 'bad faith' (Reuters)
- Brussels Airport Remains Shut as Police Hunt Third Attacker (BBG)
- Headline of the day: Oil prices fall as investors' faith in rally wanes (Reuters)
- Europe shares, dollar gain as investors look to Yellen (Reuters)
- Chinese Bidder for Starwood Has Mysterious Ownership Structure (WSJ)
- Germany wants refugees to integrate or lose residency rights (Reuters)
- BlackRock Joins Pimco Warning Investors to Seek Inflation Hedge (BBG)
- Goldman Sachs and Bear Stearns: A Financial-Crisis Mystery Is Solved (WSJ)
With Europe back from Easter break, we are seeing a modest continuation of the dollar strength witnessed every day last week, which in turn is pressuring oil and the commodity complex, and leading to some selling in US equity futures (down 0.2% to 2024) ahead of today's main event which is Janet Yellen's speech as the Economic Club of New York at 12:20pm, an event which judging by risk assets so far is expected to be far more hawkish than dovish: after all the S&P 500 is north of 2,000 for now.
China's choice of Djibouti as the country that will host Beijing's first overseas military outpost has put the tiny African nation in the geopolitical spotlight. Situated on one of the planet's most critical oil chokepoints, and nestled amongst countries that serve as operations bases for some of the world's most notorious terror groups, Djibouti is set to become a focal point for power poltiics in the years ahead.
Only Gold has the history, depth, unique qualities, loyalty of the elite and transitional power to challenge any man, any nation, any system on earth, past, present and future. The Dynasties understand this, because they have both witnessed and authored this axiom across generations of asset accumulation. As the sand peters past the last curve of the hour glass the Dynastic hand is clear to see. So the Neo-cons need to beat Russia, and soon, as only Globalism can keep the markets enchained.
The story on Wall Street and CNBC continues to be that we’re in a correction and this is a buying opportunity. Even Warren Buffett joins the chorus of stock market cheerleaders for the skeptical public. Well, I agree with the skeptical public, not the experts here!
Ian Taylor, CEO of oil trader Vitol said on Tuesday that "stocks of crude and products continue to build and these will weigh upon the market". Global distillate stocks in the developed world are close to a record high, in the thick of refinery maintenance season, and in the run-up to the time when gasoline use hits its summer high point, but interest in diesel typically fades. "Absent run cuts, the market faces another round of rapid stockbuilds once refineries return from maintenance>"
Russia’s decision to greatly reduce its military presence in Syria, coming as it did with little warning, has left the world struggling for explanations. Russia is to maintain a military presence at its naval base in Tartous and at the Khmeymim airbase. In fact Russia is “withdrawing without withdrawing”. By re-establishing the Assad government in Syria, and permanently placing its forces at Syrian bases, the Russian’s have placed an impenetrable obstacle to the development of the Qatar gas pipeline.
Free trade is a great concept, as are free markets and freedom. The problem is none of these things exist in practice because they don’t provide sufficient advantages to the ruling class. The Fed and HFT systems now dominate global markets, western nations systematically overthrow any (freely elected) foreign government that doesn’t bow down to them and free trade agreements are put in place to ensure investors maximize profits no matter what the costs to society.
Last February spinal orthopedic device maker Globus Medical purchased Branch Medical Group, a key supplier and contract manufacturing operation based just three miles away from its Audubon, Pa. headquarters. The BMG deal was announced on the same day Globus released fourth quarter and 2014 earnings and little attention was paid to what looked like another instance of a high-profile, larger company merging with a small, privately-held one. But with a $52.9 million all cash price tag, the purchase of BMG was not so small for Globus, which had just reported $474 million in sales for the prior year.
Have we gotten a “confession” to all of that? No.
Major news in the gold market over the weekend. With the world’s largest gold-consuming nation reaching an agreement to resume metal sales for the first time in nearly three weeks. That’s in India. A critical gold consumer globally, where buying had been idled since the beginning of March by a nation-wide strike by the jewelry sector. But that strike is now officially over. With the president of India Bullion and Jewelers Association, Mohit Kamboj, announcing late Saturday that jewellers have reached an agreement with the government to return to work.
In the wake of the August 11 "surprise" yuan devaluation, all anyone wanted to talk about was the rapidity with which China was liquidating its FX reserves. Before long, everyone realized that the headline number was a proxy for capital flight out of China. That made Beijing uncomfortable and so, the PBoC found more "creative" ways to intervene in FX markets. Now, the IMF wants clarity.
“Statistics can be used to say anything.” Numbers don’t lie – people do.
Had central bankers simply taken to heart that well known idiom that cautions "a stitch in time saves nine" early on, they would not now be so frantically stitching such a gaping gash in the world economy. One thing is for certain. All of this quantitative pleasing has done little to lift the spirits of the world’s worker bees.