Mexico

Ford CEO Folds? Trump Confirms Carmaker Won't Move Production To Mexico

Just hours after Ford CEO complained of the "huge impact" of Donald Trump's proposed trade plans, following the company's plan to move a substantial portion of its passenger-car production to Mexico from a factory in Michigan, Donald Trump tweeted “Just got a call from my friend Bill Ford, Chairman of Ford, who advised me that he will be keeping the Lincoln plant in Kentucky -- no Mexico," seemingly winning his first 'america-first' victory.

Peso Plunges After Banxico Hikes Rates 50bps, Fears "Change To US Relationship"

Banxico hike rates by 50bps - meeting expectations - to 5.25% (the highest since 2009) in their first post-Trump statement. Warning that the Mexican economy "faces elevated uncertainty" hike for the fourth time, presumably in an effort to support the currency but fears that a more hawkish Fed will be more aggressive going forward sparked renewed selling in the Peso.

An "Anti-Establishment" Trump Would Pardon Edward Snowden

Trump’s legacy as president is a blank slate, it could go either way. If he wants to keep his current base of support and prove his skeptics wrong, he would be wise to pardon Edward Snowden, and dish out the first real blow to the establishment during his first days in office.

Goldman Reveals Its Top Trade Recommendations For 2017

  • Top Trade #1: Long US$ vs GBP and EUR
  • Top Trade #2: RMB weakening: Long $/CNY
  • Top Trade #3: Long BRL, RUB, INR and ZAR, short KRW and SGD
  • Top Trade #4: Long Brazil, India and Poland, FX un-hedged
  • Top Trade #5: Long 10-year US$ and EUR inflation
  • Top Trade #6: Long EURO STOXX 50 2018 dividends

Frontrunning: November 17

  • Dollar halts charge as bashed bonds steady (Reuters)
  • BOJ Fires Warning at Bond Market With Unlimited Buying Plan (BBG)
  • Trump Flouts Traditions Heading Into an Office Defined by Them (BBG)
  • Mr. Hedge Fund Goes to Washington, Looking for Ally in Trump (BBG)
  • Donald Trump’s Son-in-Law, Jared Kushner, Could Get Key White House Role (WSJ)

Global Bonds Plunge As "Trumpflation" Rally Returns, Dollar Jumps

After taking a one day breather, the "Trumpflation Rally" returned with a vengeance as global government bonds tumbled and the dollar rose on renewed speculation the economic outlook is strong enough to allow the Federal Reserve to hike in December (odds are now 94%). Asian shares rose, industrial metals and crude oil fell, European shares and US equity futures were pressured.

The Catastrophic Consequences Of Peak Oil Demand

With OPEC’s 2016 World Oil Outlook now grimly forecasting that peak oil demand could become a reality in just over a decade, and natural gas and renewables chomping at the bit to cannibalize commodity market growth, it may be good for the environment, but the trade-off will be global instability on a catastrophic level.

The Scenic Route To Hell

Regardless of who won the American presidential election, market collapses, debt defaults and an eventual currency collapse were baked in the cake. It’s safe to say that, should they occur in the next four years, as would seem likely, they would be blamed on the president, as they would happen on his watch. This being the case, in addition to the fact that conservative thinkers are aging and being replaced by collectivists, it’s very likely that the US is looking at its last Republican president.

Secede And Decentralize: An Open Letter To Clinton Supporters

Dear Clinton Voters, I know this election has been painful for you. Many feel betrayed and even believe yourselves no longer living in the country you thought you were. Reflect on that pain and frustration for a moment. Now recognize how you feel now is how an equally large, possibly larger, number felt for the past eight years. Those who are of a liberty bent feel it all the time, no matter who ends up in office. Reflect on it, feel it, understand it, own it.

Markets In Turmoil: Global Bond Bloodbath, Currency Rout Accelerates As Stocks Erase Early Gains

Monday started off where Friday left off, with the dollar surge continuing, pushing the DXY above 100 for the first time since December, global bond yields soaring, emerging market currencies tumbling, and the Yuan slammed below 6.85 for the first time. However, where Monday is different is that while European stocks and US index futures started off far higher, E-minis have now faded the entire overnight rally and are now red for the session, on concerns that the spike in yields will cap any more stock upside.