Michigan

European Stocks, US Futures Extend Slide On UK Chaos, Pound Carnage

With global asset correlations once again approaching 1, overnight stocks have been trading in broadly "risk off" mode, following every twist of pound sterling and the rapidly deteriorating British financial situation as "chaos infects" virtually all markets, from China, to European banks, to US equity futures.  As a result of ongoing aftershocks from the Brexit vote, coupled with the sudden political chaos in UK politics, where both parties now seem in disarray, with the pound has extended its selloff to a fresh 31-year low dropping below the Friday lows while European equities are dropping to levels last seen in February.

Frontrunning: June 23

  • ‘Brexit’ Vote: U.K. Heads to the Polls in Historic Referendum on EU Membership (WSJ)
  • The Brits Have No Good Options on Europe Vote (BBG)
  • Stocks Rise With U.S. Futures as Pound Gains While U.K. Votes (BBG)
  • Trump and Clinton Place Bets to Woo Undecided Voters (BBG)
  • China brushes off doubts over support on South China Sea, says it is growing (Reuters)

Wayne State University Drops Math As General Requirement, Will Replace It With "Diversity"

Wayne State University has proposed adding a three credit hours requirement in diversity to the general education curriculum just days after the university dropped math as a core requirement. "We are proposing the creation of specific ‘Diversity’ courses, with students required to take one course in this designation,” said a document from the General Education Reform Committee, which is recalibrating what the university will expect from all students who earn a degree from the state university.

Global Stocks Rebound As Brexit Odds Decline Following Tragic Death Of UK Lawmaker

While it may very well not last and all of yesterday's gains could evaporate instantly if the Brexit vote is set to take place as scheduled, all 10 industry groups in the MSCI All-Country World Index advanced, with the index rising 0.7% trimming the week’s drop 1.6%. The Stoxx Europe 600 Index rose 1.4%. Futures on the S&P 500 were little changed, after equities Thursday snapped their longest losing streak since February. . Oil rose, paring its biggest weekly decline in more than two months. Bond yields around the globe fell.

Goldman's Internal Tracker Of The Economy Just Dropped To The Lowest Since 2009

Goldman's internal economic tracker, the Current Acticity Indicator, just dropped for one more month, from May's 1.3% print, to 1.2%, and contrary to expectations of a GDP rebound in Q2, this is the lowest economic "expansion" print since 2009. Perhaps not surprising is that this series has been declining in virtually a straight line since the end of QE3.

Coal Production Collapses To 35-Year Low

Coal production in the first three months of 2016 was 173 million short tons, the lowest quarterly level in the United States since a major coal strike in the second quarter of 1981.

Global Stocks Plunge; US Futures, Oil Slide As Brexit Fears "Jolt Markets"

Right now it is all about the immediate fate of the UK, and as Bloomberg explains the "jolted markets" and overnight plunge in global risk assets, "growing anxiety over the prospect of the U.K. exiting the European Union dominated financial markets, sending global stocks down for a third day and the British pound to an eight-week low while boosting demand for havens such as the yen and gold."

Global Stocks Sharply Lower As Bond Yields Hit New Record Lows; Oil Slides Below $50

Global stocks, U.S. index futures are sharply lower pressured by fears of another day of record low bond yields, as investors start to worry about numerous risk catalysts in the coming weeks, from the Brexit vote to Fed meeting. The Dollar spot index rose for the second day in a row, pushing commodities lower for their first two-day decline since May 24, while WTI has dipped back under $50.

FedSpeak - Lost In Translation

Federal Reserve speakers appear to be suffering from an inability to contain themselves to the detriment of their audiences. So damaging is FedSpeak, so to speak, that it’s become the Fed’s greatest liability, chipping away at what little credibility monetary policymakers have left in reserve. Perhaps what is most disturbing about today’s stretch of FedSpeak is how it parallels with the months preceding the Great Recession.

Bailout Nation - Detroit Public Schools Receive $617 Million Government Handout

Coming out of bankruptcy in late 2014, Detroit had a new lease on life - it had shed some $7 billion in debt and restructured another $3 billion, and could finally move forward, or so it was thought. Detroit has hit two significant potholes on its recent road to recovery, one being the fact that it was "discovered" that there was an enormous pension shortfall, and now we learn that the Michigan legislature has just narrowly approved a $617 million bailout of Detroit's Public Schools.

Mapping The Cost Of "Sin" Across America

As spring heads into summer across the United States, many Americans may be enjoying a frosty adult beverage. And associated with the purchase of that alcohol, Americans will pay a hefty tax. The taxes collected from so-called sin taxes serve as a major source of revenue for some states. Sin taxes can cover activities from tobacco and alcohol to casino and racing gambling. States collected over $32 billion in sin taxes in 2014.... but which state pays the most for "sin"

Key Events In The Coming Week

After last week's global data deluge which culminated with the worst US jobs reported in 6 years, looking at this week’s calendar we get the usual post-payrolls data lull, punctuated by Yellen's speech today which will be the last scheduled Fed statement before the June FOMC.