Reuters

It's Time To Blame Obamacare For Losing So Many Full-Time Jobs

Had a sinking feeling about the economy of late? It may not be your imagination. Economic indicators have flashed yellow for much of 2016, and the latest jobs report shows further depletion of the work force and a dearth of job creation. That trend, says one major bank, may be attributable to President Barack Obama’s signature legislation.

Bundesbank Warns Of "Abrupt Surge" In Risk Premia, Asset Bubbles

The Bundesbank joined the fray between Deutsche Bank and the ECB, when Jens Weidmann warned that an extended period of low interest rates could increase the risk of a sudden surge in risk premiums, and policymakers should consider the implications of financial imbalances, translation: "the ECB is blowing bubbles."

Frontrunning: June 10

  • Bund Brexit rally puts zero yield firmly in sight (Reuters)
  • Investors Shed Assets as Government-Bond Yields Hit Fresh Lows (WSJ)
  • Stocks Retreat With Oil as Record-Low Bond Yields Point to Angst (BBG)
  • Oil prices ease from 2016 highs on stronger dollar (Reuters)
  • Puerto Rico Debt Crisis Bill Passes U.S. House (WSJ)

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.

"This Could Be The Biggest Auto Scandal Since The GM Ignition Switch" - Why Tesla Is Probed Over A "Suspension Issue"

"where Tesla crosses the line here is not the “crime” itself, but the coverup. If Tesla used a TSB rather than a recall to fix a safety problem, if it has an institutional bias against ordering recalls and if it uses NDAs as a matter of course to prevent owners from reporting defects, this could become the biggest auto safety scandal since the GM ignition switch affair."

U.S. Deploys Two Aircraft Carriers To Mediterranean To "Send A Clear Message To Russia"

The USS Harry Truman which has served as a launching point for a near-constant barrage of airstrikes on Islamic State targets, made an unplanned diversion from the Gulf to the eastern Mediterranean last week: a quick pivot intended to send a clear message to Russia. A military official in Washington said the Truman’s shift was a signal to Moscow: "It provides some needed presence in the Med to check…the Russians,” the official said. "The unpredictability of what we did with Truman kind of makes them think twice."

Frontrunning: June 9

  • European Bond Yields Hit Record Lows as Stocks Tumble (WSJ)
  • Oil prices soften on profit taking after hitting 2016 highs (Reuters)
  • Wooing Sanders supporters will be tough task for Clinton (Reuters)
  • Clinton ally Warren weighs potential VP role, sees hurdles (Reuters)
  • Rise of the Machines Fueled by Higher Asia Manufacturing Wages (WSJ)

Futures Slide On Rising Dollar As Global Bond Yields Hit Fresh Record Lows

Please do not adjust your screens: that off-green color you are seeing, that is not a malfunction. Yes, for the first time in six days, global stocks are lower with the MSCI all-country world index dipping from a 6 month high dragged down by lower European and Japanese equity markets, as the USDJPY dropped to a fresh five-week low while Treasury yields continued to hit new record lows because, as Bloomberg explains, "traders assessed the outlook for the global economy."

US Says North Korea Has Restarted Production Of Plutonium Fuel

North Korea may have already declared itself "a responsible nuclear weapons state" - disavowing the use of nuclear weapons unless its sovereignty is first infringed by others with nuclear arms - but according to the US State Department, North Korea has restarted production of plutonium fuel, indicating that it intends to pursue its nuclear weapons program in defiance of international standards, and tougher UN sanctions that were backed by China in March.

China Oil Imports Drop To Four Month Low As Demand Is Expected To "Moderate Significantly" In 2016

Oil imports by China fell to a four-month low in part due to congestion at one of its biggest ports curbed purchases from independent refiners. Inbound shipments in May totaled 32.24 million metric tons. That’s equivalent to 7.62 million barrels a day , down 4.3 percent from the previous month, and the lowest since January. It gets worse; according to an analysis from S&P Global Platts "China's oil demand growth is expected to moderate significantly in 2016 as gross domestic product growth slows on the back of economic rebalancing."

China Says The US "Deliberately Hyping Up" Latest Spy Plane Intercept

"One of the intercepting Chinese jets had an unsafe excessive rate of closure on the RC-135 aircraft. Initial assessment is that this seems to be a case of improper airmanship, as no other provocative or unsafe maneuvers occurred" Pacific Command said, without saying how close the Chinese fighter came to the US plane. One official told CNN that the jet was never closer than 100 feet however. China's Defense Ministry told Reuters "judging by the report, the US side is again deliberately hyping up the issue of the close surveillance of China by US military aircraft."

NIRP Blowback: Commerzbank Plans To Hoard Billions In Euros In Vaults, Avoid ECB

As The ECB threatens deeper and deeper NIRP, because that's what the 'economy' needs, it seems unintended (though entirely foreseeable) consequences abound. Just three months after Munich Re - the world second-largest reinsurer - started buying gold and hoarding cash to counter negative rates, in order to avoid The ECB's increasing 'fees' for depositing cash with the central banks, Reuters reports that Commerzbank - one of Germany's largest lenders - is mulling the possibility of hoarding billions of euros in vaults. So it would appear that a policy designed to encourage banks to lend money is instead forcing them to hoard it...