Private Equity

Frontrunning: June 6

  • Yellen faces fine balance on Fed rate hike after job growth tumbles (Reuters)
  • Oil Advances as Abu Dhabi Sees $60 Crude on Shrinking Surplus (BBG)
  • China to submit 'negative list' for U.S. investment treaty talks next week (Reuters)
  • Buoyed by attacks on Trump, Clinton heads into pivotal week (Reuters)
  • Clinton's IT aide keeps email server shrouded in mystery (The Hill)

Futures Flat Following Friday's Jobs Fiasco: All Eyes On Yellen Again

Every ugly jobs report has a silver lining, and sure enough following Friday's disastrous jobs report, global mining and energy companies rallied alongside commodities after the jobs data crushed speculation the Fed would raise interest rates this month.  “The disappointing U.S. jobs report on Friday means that a summer Fed rate hike is off the table,” said Jens Pedersen, a commodities analyst at Danske Bank. “That has reversed the upwards trend in the dollar, supporting commodities on a broader basis. The market will look for confirmation in Yellen’s speech later today.”

The Case For A Super Glass-Steagall

By embracing this kind of Super Glass-Steagall Trump would consolidate his base in the flyover zones and reel in some of the Bernie Sanders throng, too. The latter will never forgive Clinton for her Goldman Sachs speech whoring. And that’s to say nothing of her full-throated support for the 2008 bank bailouts and the Fed’s subsequent giant gifts of QE and ZIRP to the Wall Street gamblers.

Frontrunning: June 3

  • World stocks edge toward one-month high; U.S. jobs data eyed for Fed clues (Reuters)
  • Commodities Stand on Brink of Bull Market After Oil’s Recovery (BBG)
  • Brent crude oil holds above $50 on signs of rebalance (Reuters)
  • Clinton attacks Trump's foreign policy as a threat to U.S. safety (Reuters)
  • Trump strikes back at Clinton's 'phony' speech (Hill)
  • "We want food!', Venezuelans cry at protest near presidency (Reuters)

Futures Flat Ahead Of Strike-Impacted Jobs Report; Commodities Approach Bull Market

After yesterday's two key events, the ECB and OPEC meetings, ended up being major duds, the market is looking at the week's final and perhaps most important event of the week: the May payrolls report to generate some upward volatility and help stocks finally break out of the range they have been caught in for over a year.

Frontrunning: June 1

  • Japan PM delays sales tax hike, puts fiscal reform on back burner (Reuters)
  • Japanese Shoppers Keep Wallets Shut Despite Sales-Tax Delay (BBG)
  • Global stocks limp into June on oil and data slips (Reuters)
  • Euro zone factory growth remained tepid in May - PMI (Reuters)
  • China's factories steadying but weak, hopes for quick recovery fade (Reuters)

The Fascinating Story Of How The Petrodollar Was Born And Lived In Secrecy For Over 40 Years

For decades, the story of Saudi Arabia recycling US petrodollars, i.e., funding the US deficit by buying US Treasuries with proceeds of its crude oil sales (mostly to the US), while the US sweetened the deal by providing the Saudis with military equipment and supplies, remained entirely in the conspiracy realm, with no confirmation or statement from the US Treasury department. Now, that particular "theory" becomes the latest fact, thanks to a fascinating story by Bloomberg which lays out the history of how the petrodollar was born...

Frontrunning: May 31

  • Major Bourses on Course to End Month Sharply Higher (WSJ)
  • Brent crude lower on strong Middle East oil output (Reuters)
  • Treasuries Lose Their Lead Over Shares as Fed Moves Toward Shift (BBG)
  • Lost Decade for Value Stocks Tests Faithful Who Say End is Nigh (BBG)
  • Iraqi army pause at southern edge of Falluja as IS fights back (Reuters)
  • Risky Reprise of Debt Binge Stars U.S. Companies Not Consumers (BBG)

All Eyes On Yellen: Global Markets Flat On Dreadful Volumes, Oil Slides

In a world where fundamentals don't matter, everyone's attention will be on Janet Yellen who speaks at 1:15pm today in Harvard, hoping to glean some more hints about the Fed's intentionas and next steps, including a possible rate hike in June or July. And with a long holiday in both the US and UK (US bond market closes at 2pm today), it is no surprise overnight trading volumes have been dreadful, helping keep global equities poised for the highest close in three weeks; this won't change unless Yellen says something that would disrupt the calm that’s settled over financial markets.

Chasing Yield Into Minefields

Fed policies are directly responsible for ballooning the systemic risk in the financial and socioeconomic landscape. Not just pensions but actual individual retirees are facing the very same dilemma. For those lucky enough to still have a nest egg after the last two bubble crashes they are forced to venture further out onto the risk continuum. But there must be some upside to the ZIRP policies to offset the almost unmanageable amount of resultant risk, right? I mean these policies are meant to help the average American not hurt them, correct??

Stronger Dollar Sends Futures Higher, Oil Lower, Asian Stocks To Two Month Lows

Yesterday's weak dollar headfake has ended and overnight the USD rallied, while Asian stocks dropped to the lowest level in 7 weeks and crude oil fell as speculation returned that the Federal Reserve will raise interest rates as early as next month. The pound jumped and European stocks gained thanks to a weaker EUR.

PE Legend Leon Black Is Buyer Of Tom Cruise's $40 Million Bevely Hills Mansion

When it comes to financial assets, Apollo's legendary founder Leon Black has been gloomy for years, and said in a recent Milken Conference that his firm has been "selling everything that is not nailed down." The billionaire (who at last check was worth around $4.7 billion) however appears to have a soft spot for Hollywood A-lister real estate. Because we were surprised to learn that the buyer of Tom Cruise's $40 million 10,000 square foot Beverly Hills home is none other than Leon Black.

Frontrunning: May 20

  • Lacking new ideas, G7 to agree on 'go-your-own-way' approach (Reuters)
  • Japan's Aso tells G7 FX stability vital, no competitive devaluations (Reuters)
  • Snubbed by West, Russia rolls out red carpet for Asian leaders (Reuters)
  • The Fed Has Something to Prove to Wall Street (BBG)
  • Trump's Supreme Court list: all conservative, some provocative (Reuters)
  • Nasdaq Raises Lawsuit Threat Over SEC’s IEX Speed-Bump Plan (WSJ)