http://www.zerohedge.com/fullrss2.xml/%2A%7CARCHIVE%7C%2A/594087 en Stocks Slump As Putin Warns Korea Situation Is "Deteriorating" http://www.zerohedge.com/news/2017-04-27/stocks-slumpas-putin-warns-korea-situation-deteriorating <p>Having been unable to stage any kind of recovery from yesterday's Trump Tax Plan disappointment, comments from Vladimir Putin that <em><strong>"the situation in Korea is deteriorating" urging all sides to "avoid belligerent rhetoric"</strong></em> along with <strong>remarks by Chuck Schumer over the short-term spending bill </strong>(to avoid government shutdown), has sparked a leg lower in US stocks...</p> <p>House <strong>Democrats will oppose a short-term spending bill if Republican leaders attempt to expedite an ObamaCare repeal bill this week,</strong> Rep. Steny Hoyer (D-Md.) warned Thursday. Hoyer, the Democratic whip, spoke with House Majority Leader Kevin McCarthy (R-Calif) Thursday morning to warn him of the Democrats' position.</p> <p>The market appears to have woken up...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/04/21/20170426_doiwn.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/04/21/20170426_doiwn_0.jpg" width="600" height="344" /></a></p> <p>&nbsp;</p> <p>Trannies have erased all post-Macron gains...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/04/21/20170426_doiwn1.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/04/21/20170426_doiwn1_0.jpg" width="600" height="275" /></a></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="1816" height="1041" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170426_doiwn.jpg?1493305047" /> </div> </div> </div> http://www.zerohedge.com/news/2017-04-27/stocks-slumpas-putin-warns-korea-situation-deteriorating#comments 111th United States Congress American people of German descent American Presbyterians Business Chuck Schumer Climate change skepticism and denial Dismissal of United States Attorneys controversy Donald Trump Efforts to repeal the Patient Protection and Affordable Care Act Government shutdowns in the United States Obamacare Politics Politics Politics of the United States Presidency of Barack Obama recovery Schumer Statutory law Steny Hoyer Steny Hoyer The Apprentice United States Vladimir Putin Vladimir Putin WWE Hall of Fame Thu, 27 Apr 2017 14:57:37 +0000 Tyler Durden 594544 at http://www.zerohedge.com Crashing Canadian Mortgage Lender Bailed-Out By 321,000 Retired Ontario Healthcare Workers http://www.zerohedge.com/news/2017-04-27/crashing-canadian-mortgage-lender-bailed-out-321000-retired-ontario-healthcare-worke <p>With <a href="http://www.zerohedge.com/news/2017-04-26/canadas-housing-bubble-explodes-its-biggest-mortgage-lender-crashes-most-history">Canada&#39;s housing bubble popping amid the collapse of the country&#39;s largest mortgage lender</a>, it was no surprise that a <strong>bailout had been orchestrated</strong>, and now we know the <strong>source of the $1.5 billion &#39;loan&#39; - 321,000 retired healthcare workers in Ontario</strong>.</p> <p><a href="http://www.zerohedge.com/news/2017-04-26/canadas-housing-bubble-explodes-its-biggest-mortgage-lender-crashes-most-history"><em>As we noted yesterday,</em></a> the stock of Home Capital Group cratered by over 60%, <em>its biggest drop on record</em>, after the company disclosed that it struck an emergency liquidity arrangement for a C$2 billion ($1.5 billion) credit line to counter evaporating deposits at terms that will leave the alternative mortgage lender unable to meet financial targets, and worse, may leave it insolvent in very short notice.</p> <p>As part of this inevitable outcome, one which presages the company&#39;s eventual disintegration and likely liquidation, <a href="https://www.bloomberg.com/news/articles/2017-04-26/home-capital-gets-c-2-billion-loan-will-miss-financial-goals">Bloomberg reported </a>that the <span style="text-decoration: underline;"><strong>non-binding rescue loan with an unnamed counterparty</strong></span> will be secured by a portfolio of mortgage loans originated by Home Trust, the Toronto-based firm said in a statement Wednesday. Home Capital shares dropped by 61% in Toronto to the lowest since 2003, dragging down other home lenders.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/04/19/20170426_HVG.jpg"><img height="265" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/04/19/20170426_HVG_0.jpg" width="500" /></a></p> <p>&nbsp;</p> <p><u><span style="text-decoration: underline;">And now we know the source. </span></u></p> <p><u><span style="text-decoration: underline;">A</span></u>s Bloomberg reports, the <strong>Healthcare of Ontario Pension Plan</strong> (HOOPP)&nbsp;is the lender behind&nbsp;Home Capital Group&#39;s<strong>&nbsp;C$2 billion loan ($1.5 billion) to shore up liquidity</strong>, citing people familiar with the matter.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>The Toronto-based pension plan is said to have given the struggling Canadian mortgage lender the loan to shore up liquidity as it faces a run on deposits amid a probe by the provincial securities regulator.</strong> Home Capital has retained RBC Capital Markets and BMO Capital Markets to advise on &ldquo;strategic options&rdquo; after it secured the loan, according to a&nbsp;statement&nbsp;Thursday. Home Capital didn&rsquo;t identify the lender.</p> <p>&nbsp;</p> <p><strong>HOOPP, which represents more than 321,000 healthcare workers in Ontario, was not immediately available to comment. </strong>HOOPP President and Chief Executive Officer&nbsp;Jim Keohane&nbsp;sits on Home Capital&rsquo;s&nbsp;board&nbsp;and is a shareholder. Home Capital&rsquo;s external spokesman Boyd Erman declined to comment.</p> <p>&nbsp;</p> <p>The one-year credit line has a 10 percent interest rate on outstanding balances and a 2.5 percent rate on undrawn amounts, the Toronto-based lender said. The finalized agreement follows an announcement early Wednesday that Home Capital had&nbsp;reached&nbsp;a non-binding agreement in principle with an institutional investor for the loan.</p> </blockquote> <p>And in case you are one of the 321,000 retirees who are nervous about your pension managers&#39; actions, don&#39;t worry: The loan is secured by a pool of mortgages originated by Home Trust, and as everyone knows, in Canada home prices never go down.</p> <p><img height="721" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/04/21/20170427_CAD.png" width="500" /></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="328" height="168" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170426_bail.jpg?1493304615" /> </div> </div> </div> http://www.zerohedge.com/news/2017-04-27/crashing-canadian-mortgage-lender-bailed-out-321000-retired-ontario-healthcare-worke#comments Business Capital Markets Credit Line Economy Finance Financial services Home Capital Group Housing Bubble Loans Money Mortgage broker Mortgage industry of the United States Mortgage loan Mortgage Loans RBC Capital Markets Thu, 27 Apr 2017 14:51:28 +0000 Tyler Durden 594543 at http://www.zerohedge.com China To Test New Weapons, Stage Live Fire Drills In Retaliation To US THAAD Deployment http://www.zerohedge.com/news/2017-04-27/china-test-new-weapons-retaliation-us-thaad-deployment <p>Two days after the US military <a href="http://www.zerohedge.com/news/2017-04-25/us-military-begins-moving-thaad-anti-missile-system-south-korea-deployment-site">began to move the controversial THAAD anti-missile system </a>into its deployment site in a South Korean golf course (over the protests of hundreds of locals who were promptly quieted when the police showed up), despite vocal protests from China which is "resolutely opposed" to the THAAD deployment and&nbsp; believes such a move would destabilize the regional balance of power, China said on Thursday that <strong>it would stage live fire drills and test new weapons to protect its national security, </strong>its Defense Ministry said. </p> <p>"The deployment of the THAAD anti-missile system in South Korea damages the regional strategic balance and stability. The Chinese side is resolutely opposed to this" Defense Ministry spokesman Yang Yujun told reporters on Thursday when asked about the Terminal High Altitude Area Defense system.</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/04/19/thaad%20rocket.jpg" width="600" height="310" /></p> <p>He also said that "China’s military will continue to carry out live-fire military exercises and test new military equipment in order to firmly safeguard national security and regional peace and stability," he said, as <a href="http://in.reuters.com/article/northkorea-usa-idINKBN17T0AF">quoted by Reuters</a>.</p> <p>Beijing has been an outspoken opponent of THAAD over fears it will undermine its own deterrence capabilities. In March, and editorial in the state-run Global Times newspaper said Washington should "pay the price" for the deployment of the system, which it said was "on China's front door."&nbsp; Meanwhile, the US insists the system is for purely defensive purposes, against any potential attacks from Pyongyang. US Admiral Harry Harris <a href="https://www.rt.com/usa/386221-thaad-operational-south-korea/">told Congress </a>on Wednesday that it "poses no threat to China." </p> <p>China disagrees. </p> <p>As we reported at the time, a THAAD installation, which was moved onto a golf course in Seongji, South Korea, on Tuesday, is designed to intercept short, medium, and intermediate-range ballistic missiles during their terminal flight phase. It is equipped with long-range radar and is believed to be capable of intercepting North Korea’s intermediate-range ballistic missiles. The system will be operational in the "coming days," according to Harris.</p> <p>As Reuters further adds, the Chinese Defense Ministry's statements come as the US continues to urge Beijing to put pressure on North Korea, as China is the country's main economic lifeline. Referring to the increased tensions between Washington and Pyongyang on Thursday, China said it approves of a recent statement by the Trump administration which said the White House is still "open to negotiations" to achieve stability and "peaceful denuclearization" on the Korean Peninsula.</p> <p>When asked about such statements, Chinese Foreign Ministry spokesman Geng Shuang said Beijing had noted that many US officials had recently made similar remarks.</p> <p>"We have noted these expressions, and have noted the message conveyed in these expressions hoping to resolve the Korean nuclear issue peacefully through dialogue and consultation," he said. "We believe this message is positive and should be affirmed."</p> <p>Earlier this week, China urged restraint from all sides of the conflict during a call with US President Donald Trump, whose administration continues to state that “all options are on the table” when it comes to North Korea. </p> <p>So far, aside from engaging in a massive live-fire drill on Tursday, North Korea has abstained from any provocative moves. </p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="900" height="500" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/thaad.jpg?1493304148" /> </div> </div> </div> http://www.zerohedge.com/news/2017-04-27/china-test-new-weapons-retaliation-us-thaad-deployment#comments Aerial warfare Anti-aircraft warfare China China’s military China–South Korea relations Chinese Defense Ministry Chinese Foreign Ministry Congress Defense Ministry Donald Trump Lockheed Martin Military Missile defense national security Newspaper North Korea Politics Raytheon Reuters Terminal High Altitude Area Defense Trump Administration US military US missile defense system in Asia-Pacific Region War War White House White House Thu, 27 Apr 2017 14:46:08 +0000 Tyler Durden 594537 at http://www.zerohedge.com Russian Warship Sinks After Collision Off Istanbul Coast, 78 Soliders Rescued http://www.zerohedge.com/news/2017-04-27/russian-warship-sinks-after-collision-istanbul-coast-78-soliders-rescued <p>A Russian reconnaissance warship has sunk after colliding with a freighter north of Istanbul on the Black Sea on April 27 although all crew members were reported to have been rescued, <a href="http://www.hurriyetdailynews.com/russian-warship-freighter-collide-in-black-sea-.aspx?pageID=238&amp;nID=112493&amp;NewsCatID=341">Dogan News Agency</a> has reported. A number of tugboats and rescue boats were dispatched to the area by the Coast Guard following the collision between the Russian vessel and the Togo-flagged ship, which was carrying livestock.</p> <p><em><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/04/19/liman.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/04/19/liman_0.jpg" width="594" height="292" /></a><br />The Liman</em></p> <p>According to the Defense Ministry, ‘the Liman’ collided with another ship, ‘Ashot-7,’ about 40km southwest from the Bosporus Strait. The hull of ‘the Liman,’ a 1,560-ton reconnaissance ship of the Russian Black Sea Fleet, was breached below the waterline, the Russian ministry said in a statement. According to authorities, it has since sunk.</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">Liman sunk at 14:48 at local time. All 78 personnel on board rescued by Youzarsif H and by boats of Directorate General of Coastal Safety</p> <p>— Bosphorus Naval News (@Saturn5_) <a href="https://twitter.com/Saturn5_/status/857585304080986112">April 27, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><p>Turkish Coast Guard officials stated that all 78 soldiers on the ship were rescued after the collision.</p> <p>The collision, which occurred 18 nautical miles away (29 kilometers) from the coast of Kilyos, might have been caused by fog, according to officials.&nbsp; Media identified the other ship involved in the collision as the Togo-flagged livestock carrier ‘Youzarsif H.’</p> <p>According <a href="https://www.rt.com/news/386326-russian-navy-ship-crashes/">to RT</a>, ‘The Liman’ was built during Soviet times in Poland and commissioned in 1970. It is mostly unarmed, but carries a radar station, a hydroacoustic detector and other reconnaissance equipment needed to track surface ships and submarines. </p> <p>It’s listed as requiring a crew of 85, although it was not immediately clear how many people were on board at the time of the incident.</p> <p>Acording to <a href="http://www.hurriyetdailynews.com/russian-warship-freighter-collide-in-black-sea-.aspx?pageID=238&amp;nID=112493&amp;NewsCatID=341">Hurriyet</a>, Turkish Prime Minister Binali Y?ld?r?m called Russian counterpart Dmitry Medvedev by telephone to convey sadness over crash of Russian ship, according to the Prime Ministry sources.</p> <p><iframe src="http://www.hurriyet.com.tr/video/embed/?vid=40440220&amp;resizable=1&amp;autostart=true&amp;playsinline=true&amp;v_utm_source=haber_detay" width="580" height="326" frameborder="0" scrolling="no"></iframe></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="780" height="384" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/liman.jpg?1493295492" /> </div> </div> </div> http://www.zerohedge.com/news/2017-04-27/russian-warship-sinks-after-collision-istanbul-coast-78-soliders-rescued#comments black sea Black Sea Fleet Defense Ministry Disaster Dogan News Agency Environment Lagoons Liman Maritime history Military Poland Prime Ministry Turkish Coast Guard Water Thu, 27 Apr 2017 14:30:14 +0000 Tyler Durden 594512 at http://www.zerohedge.com The Fed Has Bankrupted the US In Order to Create Another Bubble http://www.zerohedge.com/news/2017-04-27/fed-has-bankrupted-us-order-create-another-bubble <p>Yesterday&rsquo;s article caused quite a stir. If you missed it, you can read it <strong><a href="http://www.zerohedge.com/news/2017-04-26/bubble-alert-weve-passed-2007-and-are-our-way-1999">here</a>.</strong></p> <p>The basic premise is that when you value the stock market based on objective metrics that cannot be fudged, it&rsquo;s more overpriced than it was at the 2007 peak and is rapidly approaching the 1999 peak.</p> <p>However, the underlying reason that stocks are so ridiculously overpriced has to do with another asset class: <strong><u>bonds.</u></strong></p> <p>The fact is that by keeping interest rates at zero for seven years, the Fed has created a bubble in bonds. Back in 2008, the US&rsquo;s Debt to GDP was just 65%.</p> <p>Thanks to seven years of ZIRP, the US Government was able to go on a massive spending spree, ballooning the Debt to GDP to above 105% where it sits today.</p> <p><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2017/04/24/debt%20to%20GDP.jpg" style="width: 480px; height: 329px;" /></p> <p>How does this impact stocks?</p> <p>&nbsp;According to the Fed Model for valuing assets, stock prices trade based on <u><strong>interest rates (bond yields).</strong></u></p> <p>The equation is the following:</p> <p>(Stock Earnings/ Stock Prices)= 10 Year Treasury Yields.</p> <p>So&hellip; if yields are pushed to <u><strong>record lows courtesy of Fed policy</strong></u>&hellip; and earnings are not growing rapidly to make up the difference, <strong><u>stock prices must soar.</u></strong></p> <p>If this sounds like a load of nonsense to you, it is in fact the primary argument the financial elites are making for why stocks are such a bargain even today.</p> <p style="margin-left:.5in;"><em>&quot;Measured against interest rates, stocks actually are on the cheap side compared to historic valuations,&quot;</em></p> <p style="margin-left:.5in;">~Warren Buffett in an interview with CNBC February 2017.</p> <p>Buffett is indirectly revealing the Fed&rsquo;s whole game here: drive yields down so that stocks will rally. Indeed,this was the entire point of Fed activity post-2008: to reflate another bubble (this time in bonds) forcing capital into the financial markets.</p> <p>So in this sense, stocks are in fact in a <em>derivative</em> bubble&hellip; a bubble that is derived from another bubble (this one in bonds). And it will end as all bubbles do: in disaster.</p> <p>The below chart isn&#39;t a pretty one, but it&#39;s worth keeping in mind as stocks move ever higher into nosebleed territory.</p> <p><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2017/04/24/sc.png" style="width: 460px; height: 284px;" /></p> <p>To pick up a FREE investment report outlining three investments that you could make you a ton of money when this bubble bursts&hellip;&nbsp;</p> <p><strong><a href="http://phoenixcapitalmarketing.com/bondbubble3.html">CLICK HERE!</a></strong></p> <p>Best Regards</p> <p>Graham Summers</p> <p>Chief Market Strategist</p> <p>Phoenix Capital Research</p> <p>&nbsp;</p> http://www.zerohedge.com/news/2017-04-27/fed-has-bankrupted-us-order-create-another-bubble#comments 10 Year Treasury Bond Business Capital structure substitution theory Economic bubble Economy Fed model Finance Financial crises Financial history of the Dutch Republic Investment Money Stock market US Federal Reserve US government Warren Buffett Warren Buffett Thu, 27 Apr 2017 14:28:24 +0000 Phoenix Capital Research 594536 at http://www.zerohedge.com Pentagon Inspector General Launches Investigation Of Michael Flynn http://www.zerohedge.com/news/2017-04-27/pentagon-inspector-general-launches-investigation-michael-flynn <p>Moments ago, AP reported that Trump's embattled former national security advisor Michael Flynn had been warned not to accept foreign government payments in 2014. </p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">BREAKING: Army documents: Ousted National Security Adviser Michael Flynn warned not to accept foreign government payments in 2014.</p> <p>— The Associated Press (@AP) <a href="https://twitter.com/AP/status/857596900920479744">April 27, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><p>As <a href="http://www.cnn.com/2017/04/27/politics/michael-flynn-foreign-payments-investigation/index.html">CNN details</a>, former national security adviser Michael Flynn was warned by the Defense Intelligence Agency in 2014 against accepting foreign payments as he entered retirement.&nbsp; </p> <p>"These documents raise grave questions about why General Flynn concealed the payments he received from foreign sources after he was warned explicitly by the Pentagon," said Rep. Elijah Cummings, the top Democrat on the House oversight committee, in a statement. "Our next step is to get the documents we are seeking from the White House so we can complete our investigation. I thank the Department of Defense for providing us with unclassified versions of these documents."</p> <p>This <a href="http://www.zerohedge.com/news/2017-04-25/house-oversight-committee-confirms-flynn-likely-broke-law-overseas-payments">follows a report from earlier this week </a>according to which the House overnight Committe said there was no evidence Flynn properly disclosed payments for his foreign lobbying connected to Turkey and Russia, and noted that Flynn likely broke the law on overseas payments.</p> <p>As The Washington Post reported, Jason Chaffetz (R-Utah) and ranking member Elijah Cummings (D-Md.) said they believe Flynn neither received permission nor fully disclosed income he earned for a speaking engagement in Russia and lobbying activities on behalf of Turkey when he applied to reinstate his security clearance, after viewing two classified memos and Flynn's disclosure form in a private briefing Tuesday morning. "Personally I see no evidence or no data to support the notion that General Flynn complied with the law," Chaffetz told reporters following the briefing. "He was supposed to get permission, he was supposed to report it, and he didn't," Cummings said.</p> <p>Chaffetz confirmed that Flynn had failed to reveal the more than $45,000 he was paid to speak at a 2015 gala for RT, the Kremlin-run TV network, as well as the money he was paid by an air freight company and a cybersecurity firm with direct connections to Russia. Chaffetz added that the White House had refused to provide his committee with information and documents related to Flynn's security clearance and payments from organizations tied to the Russian and Turkish governments. The committee made six requests, and the White House cited reasons it could not comply with each of them, Cummings said.</p> <p>Flynn's life got even more complicated when Cummings also revealed that the inspector general of the Department of Defense opened an investigation of Flynn earlier this month, according to an April 11 letter released by the oversight committee Thursday. </p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en"><a href="https://twitter.com/hashtag/BREAKING?src=hash">#BREAKING</a>: <a href="https://twitter.com/RepCummings">@RepCummings</a> releases three new docs on fired Michael <a href="https://twitter.com/hashtag/Flynn?src=hash">#Flynn</a> <a href="https://t.co/H3FS8tfny8">https://t.co/H3FS8tfny8</a></p> <p>— House OversightDems (@OversightDems) <a href="https://twitter.com/OversightDems/status/857591782967738369">April 27, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><blockquote class="twitter-tweet"> <p dir="ltr" lang="en">.<a href="https://twitter.com/RepCummings">@RepCummings</a> DOD IG on <a href="https://twitter.com/hashtag/Flynn?src=hash">#Flynn</a> ?? <a href="https://t.co/RuxSG8oRpT">https://t.co/RuxSG8oRpT</a> <a href="https://t.co/86OLguR28I">pic.twitter.com/86OLguR28I</a></p> <p>— House OversightDems (@OversightDems) <a href="https://twitter.com/OversightDems/status/857592553323016193">April 27, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><p>Flynn's lawyer, Robert Kelner, had previously said that Flynn briefed the DIA on his speech to RT and the payments, but Cummings said Thursday that another document that was declassified this week shows no evidence to support that statement. CNN has reached out to Flynn's attorney Thursday and have yet to receive a response.</p> <p>As Cummings said,"These documents raise grave questions about why General Flynn concealed the payments he received from foreign sources after he was warned explicitly by the Pentagon. Our next step is to get the documents we are seeking from the White House so we can complete our investigation. I thank the Department of Defense for providing us with unclassified versions of these documents."</p> <p><em>This is the full statement <a href="https://democrats-oversight.house.gov/news/press-releases/cummings-releases-three-new-docs-on-flynn">Cummins released this morning</a>:</em></p> <p><strong>Cummings Releases Three New Docs on Flynn</strong></p> <p><em><strong>Pentagon Explicitly Warned Flynn Not to Accept Foreign Government Payments; Newly Unclassified Letter Confirms Flynn Did Not Report Foreign Payments; Defense Department IG Launches Its Own Investigation</strong></em></p> <p>Washington, D.C. (Apr. 27, 2017)—Today, Rep. Elijah E. Cummings, the Ranking Member of the House Committee on Oversight and Government Reform, released new documents relating to Lt. General Michael Flynn, who was fired by President Trump from his position as National Security Advisor after concealing information about his communications with the Russian Ambassador to the United States.</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>“These documents raise grave questions about why General Flynn concealed the payments he received from foreign sources after he was warned explicitly by the Pentagon,” said Ranking Member Cummings. “Our next step is to get the documents we are seeking from the White House so we can complete our investigation.&nbsp; I thank the Department of Defense for providing us with unclassified versions of these documents.”</p> </blockquote> <p>First, the Oversight Committee has obtained a letter to Flynn on October 8, 2014, from the Defense Intelligence Agency (DIA) Office of General Counsel explicitly warning Flynn, as he entered retirement, that he was prohibited by the Constitution from receiving payments from foreign sources without advance permission:</p> <p><span style="text-decoration: underline;"><strong>“Foreign Compensation Requires Advance Approval</strong></span></p> <p>The Emoluments Clause of the U.S. Constitution, article I, section 9, clause 8, as interpreted in Comptroller General opinions and by the Department of Justice Office of Legal Counsel, prohibits receipt of consulting fees, gifts, travel expenses, honoraria, or salary by all retired military personnel, officer and enlisted, regular and reserve, from a foreign government unless congressional consent is first obtained.&nbsp; Consent is provided by Congress under 37 U.S.C. 908, which requires advance approval from the relevant service secretary and the Secretary of State before accepting employment, consulting fees, gifts, travel expenses, honoraria, or salary from a foreign government. ... Accordingly, if you are ever in a position where you would receive an emolument from a foreign government or from an entity that might be controlled by a foreign government, be sure to obtain advance approval from the Army prior to acceptance.” (emphasis in original)</p> <p>In addition, this week, the Defense Department produced to the Oversight Committee an unclassified, redacted version of a letter that DIA originally sent to the Committee in classified form on April 7, 2017.</p> <p>The new DIA letter counters the suggestion by Flynn’s attorney on Tuesday that Flynn followed appropriate procedures for accepting foreign funds for his trip to Moscow in December 2015 when he dined with Russian President Vladimir Putin.&nbsp; The DIA letter states:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>“DIA did not locate any records referring or relating to LTG Flynn’s receipt of money from a foreign source. ... DIA did not locate any records of LTG Flynn seeking permission or approval for the receipt of money from a foreign source.”</p> </blockquote> <p>Flynn’s attorney issued the following <a href="http://www.politico.com/story/2017/04/25/lawmakers-flynn-did-not-disclose-russia-payments-in-security-clearance-application-237576">statement </a>on Tuesday:</p> <p>“As has previously been reported, General Flynn briefed the Defense Intelligence Agency, a component agency of the Department of Defense, extensively regarding the RT speaking event trip both before and after the trip, and he answered any questions that were posed by DIA concerning the trip during those briefings.”<br />In other words, regardless of whether Flynn discussed his trip to Moscow with DIA, the Committee has obtained no evidence that he disclosed the payments he received from the Kremlin-backed propaganda outlet RT or that he obtained permission from the Secretary of the Army and the Secretary of State, as required.</p> <p>The new DIA letter also confirms that the Pentagon warned Flynn explicitly when he retired in 2014 not to accept payments from foreign government sources without obtaining advance approval:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>“LTG Flynn was advised of the legal restrictions concerning foreign compensation and instructed to report any potential receipt of compensation in advance.”</p> </blockquote> <p>In another development, on April 11, 2017, the Inspector General of the Department of Defense sent a letter informing the Oversight Committee that it has now launched its own investigation:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>“This office has initiated an investigation to determine whether Lieutenant General (LTG) Flynn, U.S. Army (Retired) failed to obtain required approval prior to receiving any emolument from a foreign government.”</p> </blockquote> <p>The White House is still <a href="http://www.cnn.com/2017/04/25/politics/trump-flynn-white-house-russia/">refusing </a>to provide even a single document as part of the Committee’s investigation and has refused to comply with the bipartisan document request sent by Chairman Jason Chaffetz and Ranking Member Cummings on March 22, 2017.</p> <p></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="1242" height="685" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/flynn%20teaser_4.jpg?1493303458" /> </div> </div> </div> http://www.zerohedge.com/news/2017-04-27/pentagon-inspector-general-launches-investigation-michael-flynn#comments army Congress Defense Intelligence Agency Defense Intelligence Agency Department of Defense Department of Justice Department of Justice Flynn Government House House Committee on Oversight and Government Reform House Oversight Committee House Oversight Committee Jason Chaffetz Justice Office Law Lieutenant general Michael T. Flynn Military Military intelligence national security Oversight Committee Pentagon Politics Title of Nobility Clause Turkey Twitter Twitter United States Army United States Department of Defense United States House Committee on Oversight and Government Reform Vladimir Putin Washington D.C. White House White House Thu, 27 Apr 2017 14:23:39 +0000 Tyler Durden 594535 at http://www.zerohedge.com Pending Home Sales Drop In March - Stagnant For 2 Years http://www.zerohedge.com/news/2017-04-27/pending-home-sales-drop-march-stagnant-2-years <p>Contracts&nbsp;to buy previously owned U.S. homes <strong>declined in March after rising a month earlier by the most since 2010</strong>, as perhaps the seasonal exuberance gives way to affordability constraints. Despite NAR&#39;s comments that &quot;home shoppers are coming out in droves this spring,&quot; it is evident from the chart below that <strong>pending home sales have been stagnant for almost two years</strong>.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/04/21/20170426_sales1.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/04/21/20170426_sales1_0.jpg" style="width: 600px; height: 311px;" /></a></p> <p>2013 deja vua ll over again?</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/04/21/20170426_sales.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/04/21/20170426_sales_0.jpg" style="width: 600px; height: 302px;" /></a></p> <p>Regionally, <strong>only The South saw a sales increase:</strong></p> <ul> <li> <p>The PHSI in the <strong>Northeast decreased</strong> 2.9 percent to 99.1 in March, but is still 1.8 percent above a year ago.</p> </li> <li> <p>In the <strong>Midwest the index declined 1.2 percent</strong> to 109.6 in March, and is now 2.4 percent lower than March 2016.</p> </li> <li> <p>Pending home sales in the<u><strong> South rose 1.2</strong></u> percent to an index of 129.4 in March and are now 3.9 percent above last March.</p> </li> <li> <p>The index in the <strong>West fell 2.9 percent </strong>in March to 94.5, and is now 2.7 percent below a year ago.</p> </li> </ul> <div> <div id=":185.co"> <p><span dir="ltr"><a href="https://www.nar.realtor/news-releases/2017/04/pending-home-sale-dip-08-in-march"><em>Lawrence Yun, NAR chief economist</em></a>, says&nbsp;<strong>sparse inventory levels caused a pullback in pending sales</strong> in March, but activity was still strong enough to be the third best in the past year. </span></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><span dir="ltr"><strong>&quot;Home shoppers are coming out in droves this spring and competing with each other for the&nbsp;meager amount of listings in the affordable price range,&quot;</strong> he said. </span></p> <p>&nbsp;</p> <p><span dir="ltr">&quot;In most areas, the lower the price of a home for sale, the more competition there is for it.&nbsp;That&#39;s the reason why <strong>first-time buyers have yet to make up a larger share of the market this year, despite there being more sales overall.</strong>&quot;</span></p> <p>&nbsp;</p> <p>Yun worries that the painfully low supply levels this spring could&nbsp;heighten price growth &mdash; at 6.8 percent last month &mdash; even more in the months ahead.&nbsp;Homes in March came off the market at a near-record pace&nbsp;1, and indicating an increase in the likelihood of listings receiving multiple offers,&nbsp;<u><em><strong>42 percent of homes sold at or above list price (the second highest amount since NAR began tracking in December 2012).</strong></em></u></p> </blockquote> </div> </div> <p>&quot;Take my money!!&quot;</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="960" height="483" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170426_sales.jpg?1493301995" /> </div> </div> </div> http://www.zerohedge.com/news/2017-04-27/pending-home-sales-drop-march-stagnant-2-years#comments Business Lawrence Yun Shoppers Drug Mart Thu, 27 Apr 2017 14:11:58 +0000 Tyler Durden 594534 at http://www.zerohedge.com Crude Oil support break here, could be hard on stocks! http://www.zerohedge.com/news/2017-04-27/crude-oil-support-break-here-could-be-hard-stocks <p><img src="https://www.kimblechartingsolutions.com/wp-content/uploads/2017/04/look-alike-einstein-pic.jpg" alt="EINSTEINS KIMBLE CHARTING SOLUTIONS" title="Crude Oil support break here, could be hard on stocks!" width="400" style="user-select: none; background-position: 0px 0px, 10px 10px; background-size: 20px 20px; background-image: linear-gradient(45deg, #eeeeee 25%, transparent 25%, transparent 75%, #eeeeee 75%, #eeeeee 100%), linear-gradient(45deg, #eeeeee 25%, white 25%, white 75%, #eeeeee 75%, #eeeeee 100%); display: block; margin-left: auto; margin-right: auto;" /></p> <p><span style="color: #303030; font-family: &quot;Open Sans&quot;, Arial, sans-serif; font-size: 14px;">Below compares the price of Crude Oil and the NYSE Index over the past decade. Even though both of these assets don’t always correlate, sometimes they do, for good periods of time. Over the past couple of years, they have correlated and several lows and highs have taken place at the same time. If correlations are to continue, what Crude does next, could be very important for the bull market in stocks.</span></p> <p><a href="https://www.kimblechartingsolutions.com/wp-content/uploads/2017/04/crude-oil-nyse-correlation-high-crude-testing-support-april-27.jpg" title="Crude Oil support break here, could be hard on stocks!"><img src="https://www.kimblechartingsolutions.com/wp-content/uploads/2017/04/crude-oil-nyse-correlation-high-crude-testing-support-april-27.jpg" alt="CRUDE OIL WEEKLY NYSE INDEX WEEKLY KIMBLECHARTING SOLUTIONS" title="Crude Oil support break here, could be hard on stocks!" width="1000" style="user-select: none; background-position: 0px 0px, 10px 10px; background-size: 20px 20px; background-image: linear-gradient(45deg, #eeeeee 25%, transparent 25%, transparent 75%, #eeeeee 75%, #eeeeee 100%), linear-gradient(45deg, #eeeeee 25%, white 25%, white 75%, #eeeeee 75%, #eeeeee 100%); display: block; margin-left: auto; margin-right: auto;" /></a></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 0px; padding-bottom: 1em; outline: 0px; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; font-size: 14px; color: #303030; font-family: &quot;Open Sans&quot;, Arial, sans-serif; text-align: center;"><span style="box-sizing: border-box; outline: 0px; background: transparent; color: #0000ff;"><strong style="box-sizing: border-box; outline: 0px; background: transparent;">CLICK ON CHART TO ENLARGE</strong></span></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 0px; padding-bottom: 1em; outline: 0px; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; font-size: 14px; color: #303030; font-family: &quot;Open Sans&quot;, Arial, sans-serif;">Crude Oil hit falling resistance at (1), which appears to be the top of a narrowing pennant pattern. Once it hit resistance at (1) a couple of weeks ago, Crude has turned rather soft. The decline now has it testing rising support at (2), which appears to be support of the narrowing pennant pattern. If correlations are to remain high between the two, what Crude does at (2), could become very important for the broad markets.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 0px; padding-bottom: 1em; outline: 0px; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; font-size: 14px; color: #303030; font-family: &quot;Open Sans&quot;, Arial, sans-serif;">Below looks at positions by traders from&nbsp;<a href="https://sentimentrader.com/" style="box-sizing: border-box; background: transparent; color: #2ea3f2; outline: 0px;">Sentimentrader.com.&nbsp;</a></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 0px; padding-bottom: 1em; outline: 0px; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; font-size: 14px; color: #303030; font-family: &quot;Open Sans&quot;, Arial, sans-serif;"><a href="https://www.kimblechartingsolutions.com/wp-content/uploads/2017/04/crude-traders-positions-april-27.jpg" target="_blank" title="Crude Oil support break here, could be hard on stocks!"><img src="https://www.kimblechartingsolutions.com/wp-content/uploads/2017/04/crude-traders-positions-april-27.jpg" alt=" CRUDE OIL AND SENTIMENT KIMBLE CHARTING SOLUTIONS" title="Crude Oil support break here, could be hard on stocks!" width="1000" style="background-position: 0px 0px, 10px 10px; background-size: 20px 20px; background-image: linear-gradient(45deg, #eeeeee 25%, transparent 25%, transparent 75%, #eeeeee 75%, #eeeeee 100%), linear-gradient(45deg, #eeeeee 25%, white 25%, white 75%, #eeeeee 75%, #eeeeee 100%); display: block; margin-left: auto; margin-right: auto;" /></a></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 0px; padding-bottom: 1em; outline: 0px; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; font-size: 14px; color: #303030; font-family: &quot;Open Sans&quot;, Arial, sans-serif; text-align: center;"><span style="box-sizing: border-box; outline: 0px; background: transparent; color: #0000ff;"><strong style="box-sizing: border-box; outline: 0px; background: transparent;">CLICK ON CHART TO ENLARGE</strong></span></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 0px; padding-bottom: 1em; outline: 0px; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; font-size: 14px; color: #303030; font-family: &quot;Open Sans&quot;, Arial, sans-serif;">If traders and positions is any indicator of the future prices of Crude oil, history would suggest that Crude is closer to a high than a low, due to the chart above.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 0px; padding-bottom: 1em; outline: 0px; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; font-size: 14px; color: #303030; font-family: &quot;Open Sans&quot;, Arial, sans-serif;">Bottom line with these two charts, Crude and the NYSE remain highly correlated over the past couple of years and Crude Oil is testing rising support. If Crude would happen to break below support and correlations remain high, a break&nbsp;could cause some selling pressure in stocks.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 0px; padding-bottom: 1em; outline: 0px; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; font-size: 14px; color: #303030; font-family: &quot;Open Sans&quot;, Arial, sans-serif;"> </p><p><strong><span style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-stretch: inherit; line-height: inherit;"><span style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-stretch: inherit; line-height: inherit;"><span style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-stretch: inherit; line-height: inherit;"></span></span></span></strong></p> <p style="margin: 0in; margin-bottom: .0001pt; 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margin: 0in 0in 0.0001pt; font-variant-numeric: inherit; font-stretch: inherit; font-size: 13px; line-height: 1.3; font-family: lucida_granderegular, Verdana, sans-serif;"><span style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; color: #303030;"><strong style="box-sizing: border-box; font-style: inherit; font-variant: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;"><br /></strong></span></p> <div class="field field-type-filefield field-field-image-blog"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_blog" width="1569" height="732" alt="" src="http://www.zerohedge.com/sites/default/files/images/user182769/imageroot/crude-oil-nyse-correlation-high-crude-testing-support-april-27.jpg?1493302270" /> </div> </div> </div> http://www.zerohedge.com/news/2017-04-27/crude-oil-support-break-here-could-be-hard-stocks#comments Business Commodity markets Crude Crude Crude Oil Economy Finance Market economics) NYSE Price of oil Pricing Stock market Technical analysis Thu, 27 Apr 2017 14:11:39 +0000 kimblecharting 594533 at http://www.zerohedge.com Atlanta Fed Throws In The Towel: Cuts Final Q1 GDP Forecast To Just 0.2% http://www.zerohedge.com/news/2017-04-27/atlanta-fed-throws-towel-cuts-final-q1-gdp-forecast-just-02 <p>Well that was fast: <a href="http://www.zerohedge.com/news/2017-04-27/jpm-cuts-q1-gdp-forecast-just-03">literally seconds ago we posted JPM's Q1 GDP forecast revision</a>, saying "while we wait to see if the Atlanta Fed will cut its final Q1 GDP estimate ahead of tomorrow's official print to 0% or negative." At precisely the same time as we hit the publish button, the Atlanta Fed came out with its revised forecast and it's a doozy: after starting its Q1 GDP nowcast at 2.5%, rising as high as 3.4%, and plunging recently as low as 0.5%, the Atlanta Fed has "thrown in the towel" on the quarter in which the Fed hiked rates, and while not negative - or 0.0% - it was about as close as it could go without the Fed losing all credibility for having hiked in a contraction quarter. </p> <p><em>Fr<a href="https://www.frbatlanta.org/cqer/research/gdpnow.aspx?d=1&amp;s=tw">om the Atlanta Fed: </a></em></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Latest forecast: 0.2 percent — April 27, 2017 </p> <p>&nbsp;</p> <p><strong>The final GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2017 is 0.2 percent on April 27, down from 0.5 percent on April 18</strong>. </p> <p>&nbsp;</p> <p>The forecast of first-quarter real consumer spending growth fell from 0.3 percent to 0.1 percent after yesterday's annual retail trade revision by the U.S. Census Bureau. The forecast of the contribution of inventory investment to first-quarter growth declined from -0.76 percentage points to -1.11 percentage points after this morning's advance reports on durable manufacturing and wholesale and retail inventories from the Census Bureau. </p> <p>&nbsp;</p> <p>The forecast of real equipment investment growth increased from 5.5 percent to 6.6 percent after the durable manufacturing report and the incorporation of previously published data on light truck sales to businesses from the U.S. Bureau of Economic Analysis.</p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/04/19/020170419010704_0.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/04/19/gdpnow-forecast-evolution%20%2820%29_0.gif" width="500" height="375" /></a></p> </blockquote> <p>Some context:</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/04/19/20170426_comf1_0.jpg" width="500" height="260" /></p> <p>Some more context: if the Atlanta Fed is right, and tomorrow the BEA confirms that GDP was around 0.2% , this will be the lowest GDP quarter in which the Fed has hiked rates since Q4 1980.</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/04/19/20170426_comf2_0.jpg" width="500" height="255" /></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="580" height="435" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/gdpnow-forecast-evolution%20%2820%29.gif?1493301564" /> </div> </div> </div> http://www.zerohedge.com/news/2017-04-27/atlanta-fed-throws-towel-cuts-final-q1-gdp-forecast-just-02#comments Atlanta Fed Business Census Bureau Economics Economy Economy of the United States Great Recession in Europe Gross domestic product Recession U.S. Bureau of Economic Analysis U.S. Census Bureau Thu, 27 Apr 2017 13:59:39 +0000 Tyler Durden 594532 at http://www.zerohedge.com JPM Cuts Q1 GDP Forecast To Just 0.3% http://www.zerohedge.com/news/2017-04-27/jpm-cuts-q1-gdp-forecast-just-03 <p>While we wait to see if the Atlanta Fed will cut its final Q1 GDP estimate ahead of tomorrow's official print to 0% or negative, here comes JPM which after slashing its Q1 GDP tracker from 0.6% to 0.4% yesterday, having started the quarter - like most others on Wall Street - at 3%, just trimmed its Q1 GDP estimate to the lowest yet, at just 0.3%.</p> <p><em>Here is the full note from JPM's Daniel Silver</em></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>We now believe that real GDP increased 0.3% saar in 1Q. </strong>This incorporates the various source data that were released this morning as well as a correction to our treatment of the annual revision to the retail sales data that was released yesterday. The updated details of our forecast are in the table below. </p> <p>&nbsp;</p> <p>In terms of the retail sales data, it appears that this year the BEA will not incorporate the updated figures until the May GDP report, so this Friday’s GDP release will be based on an older vintage of retail sales data. Reverting to the older data, we think Friday’s GDP report will show real consumption at 0.9% saar.</p> <p>&nbsp;</p> <p><strong>Turning to today’s reports, the flurry of information was a negative for 1Q growth on net, mainly through the inventory components.</strong> Wholesale inventories declined 0.1% in March, retail inventories increased 0.4%, and durable manufacturing inventories ticked up 0.1%. These figures continued what has been a weak run for much of the inventory data, <strong>and we now think that the real change in inventories in 1Q will actually be negative (at -$2bn saar). </strong>This very weak inventory figure expected for 1Q should be a positive development for 2Q growth,<strong> but we hold our 2Q growth forecast at 3.0% saar.</strong> </p> <p>&nbsp;</p> <p><strong>Separately, the nominal goods balance widened from -$63.9bn to -$64.8bn in March, with declines in both exports (-1.7%) and imports (-0.7%) during the month. </strong>This was slightly less widening in the deficit than we had been expecting for the month and it looks like net exports will be a small positive for growth in 1Q. However, the trade report did have some negative implications for equipment spending, and we now think that real equipment spending increased 5.2% saar in 1Q despite a modest upside surprise on the core capital goods shipments data that were also released today. Core capital goods orders and shipments have both been trending higher lately, with the latest figures showing core orders up 0.2% in both February and March and core shipments up 0.4% in March after a 1.1% gain in February.</p> </blockquote> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/04/19/jpm%20gdp%20q1_0.png" width="500" height="851" /></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="592" height="376" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/jpm%20teaser%202_2.jpg?1493300977" /> </div> </div> </div> http://www.zerohedge.com/news/2017-04-27/jpm-cuts-q1-gdp-forecast-just-03#comments 1Q Atlanta Fed Business Gross domestic product Human Interest National accounts Real gross domestic product Wholesale Inventories Thu, 27 Apr 2017 13:50:09 +0000 Tyler Durden 594530 at http://www.zerohedge.com