Reuters

Global Stock Rally Halted In Aftermath Of Latest French Terror Attack

The tremendous rally of the past 4 days that has sent global stocks soaring in recent days has finally been capped and European shares, S&P futures are all modestly lower following a deadly terror attack in Nice, France. Meanwhile Asian stocks rose as Chinese economic data beat estimates, with Q2 GDP rising by 0.1% more than the estimated 6.6% on the back of stronger housing data.

Homeland Security Prepares For Violence At Republican Convention

Homeland Security Secretary Jeh Johnson said today he is worried that violence will erupt at the Republican National Convention in Cleveland next week. "I am concerned about the prospect of demonstrations getting out of hand. I am concerned about the possibility of violence." FBI director Comey added that  "Anytime there is a national spotlight on a political event in the United States, there is a risk that groups that aspire to do just that, engage in acts of domestic terrorism, will be attracted."

Trump Picks Mike Pence As Vice President

While hardly a surprise to those who have been following the republican vice presidential race, moments ago Roll Call reported, citing a source, that Trump will pick Indiana governor Mike Pence as his vice president. In addition to Pence, Trump has considered former speaker of the House Newt Gingrich, New Jersey Gov. Chris Christie and Army Gen. Michael Flynn for the No. 2 spot on his ticket

3 Things: Bonds, Bulls, & Central Banks

With global rates at zero to negative, money will continue to chase U.S. Treasuries for the higher yield. This will continue to push yields lower as the global economy continues to slow. What would cause this to reverse? It would require either an economic rebound as last seen in 50’s and 60’s or a complete loss of faith in the U.S. to pay its debts such as a collapse of the Government and the onset of the “zombie apocalypse.” We no longer have the drivers of manufacturing, demographics or credit expansion for the former, so I am ready for the latter.

Putin Claims Biggest Diplomatic Victory In Syria Conflict Yet, As Kerry Arrives In Moscow To "Seek Cooperation"

In an unexpected twist over the Syrian conflict, John Kerry arrives Moscow today to seek closer Russian cooperation in the war against Islamic State in Syria, in what some have dubbed a dramatic shift in US military objectives on the ground, and what to most is seen as the clearest diplomatic victory by Putin in the escalating "new cold war" with the west yet.

"It's Prohibited By Law" - A Problem Emerges For Japan's "Helicopter Money" Plans

"Adopting helicopter money in the strict sense is impossible as it's prohibited by law," said one of the officials. "If it's about the BOJ buying huge amounts of bonds and the government deploying fiscal stimulus, we're already doing that." Japan shouldn't make its central bank directly underwrite government borrowing, "or it could suffer the kind of runaway spending and inflation that followed a similar move in the 1930s."

Frontrunning: July 14

  • BoE surprises markets by keeping rates on hold, signals August move (Reuters)
  • Bank of England Signals August Stimulus as Rate Kept at 0.5% (BBG)
  • JPMorgan results boost futures, but BoE move trims gains (Reuters)
  • Bernanke Floated Japan Perpetual Debt Idea to Abe Aide Honda (BBG)
  • Oil bounces after big losses but glut persists (Reuters)

More Questions Emerge About Skewed Hillary Polls

One glimpse at the massive variance between the last two days polls in swing states suggests something very odd is going on. Simply put, given the post-Email-gate disapproval ratings, Pro-Hillary Clinton polls simply don't make sense... "The American public is far more pissed off than even you’d like to admit. Part of the reason you refuse to admit it is that this reality is truly terrifying."

Germany Sells First Ever Negative-Yielding 10Y Treasury, Corporate Bonds

Just hours prior to Germany selling its first ever negative-yield 10Y bund, German railway operator Deutsche Bahn became the first non-financial company to sell a corporate bond with a negative yield in euros on Tuesday. . Joint leads BayernLB and Raiffeisen Bank set the final spread at plus 15bp as orders reached 840m. The deal priced with a negative 0.006% yield and a 0% coupon.

Tesla Quietly Kills Car Buyback Program As Probes Reporter Reveals Undisclosed SEC Investigation

Copnfirming that used Tesla car values are sinking faster than even the company had expected in its worst case scenario, today Tesla quietly announced it had discontinued its resale value guarantee program that assured buyers that cars would retain value over time. With this program ending, demand for new vehicles is set to slump even more as concerns about resale prices emerge. Meanwhile, courtesy of our friends at Probes Reporter, we learn of another potentially far more troubling problem facing Tesla: namely another SEC investigation.