In the latest "revelation" after the tragic fact, moments ago the WSJ reported that Andreas Lubitz, the Germanwings co-pilot suspected of deliberately crashing an airliner into the French Alps last week, searched the internet on ways to commit suicide and on cockpit doors’ security measures, the German prosecutor in charge of the case said Thursday.
MSNBC’s Ed Schultz who never saw a Democratic he did not like or a Republican who should not be executed, amazingly admitted in trying to defend Hillary that she is 67 years old and too old to know what she is doing. “There’s a lot of people in her demographic that just don’t want to be overwhelmed by that technology that are going to take the easier, simplest route to do something — I get that.” You cannot get around the fact that what she did was criminal for when all those emails were subpoenaed by Congress, she failed to produce them or inform Congress she had a secret personal email. That is outright OBSTRUCTION OF JUSTICE and anyone else would go to prison for 5 years. Then when they are discovered, she erases the files. Come on! Why are there three sets of laws – (1) for Democrats, (2) for Republicans, and (3) for the rest of us?
Greece officially runs out of cash on April 9 according to Reuters, citing Eurozone officials, and with interest payments due on the 17th and the 20th, and with €2.4 billion in t-bills coming due in two weeks, BofAML outlines the end game.
It appears Beijing isn’t opposed to throwing billions behind serving as a lender of last resort and we can’t help but wonder if the new round of Petrobras financing is indicative of where China will steer initial AIIB funding — that is, into oil and into Washington's backyard.
This long-term weakening of the economy is the direct result of financialization and the Federal Reserve's policy of propping up impaired debt with more debt and constantly bringing demand forward with zero interest rates. The U.S. economy is slowing to stall speed--the point when gravity overcomes the lift provided by central bank free money. This deceleration is evident in a number of indicators such as gross domestic product (GDP), which is now at 0% according to the Federal Reserve Bank of Atlanta's GDPNow model.
Anyone scratching their head how it is possible that in an environment of a soaring dollar the US trade balance just tumbled, and printed its smallest monthly deficit since 2009, here is the answer: in January, US imports (with the delta entirely in the goods, not services, column) plunged from $232 billion to $222 billion, a whopping $10.2 billion or 4.4% drop, and the biggest monthly decline in US imports since the peak of the financial crisis in the aftermath of the Lehman collapse.
Initial Claims Slide Again; Trade Deficit Lowest Since 2009 Despite Soaring Dollar On Imports PlungeSubmitted by Tyler Durden on 04/02/2015 08:52 -0400
The volatility in initial claims continues: after last week's drop to 282K pulled the heavily-watched number back under 300K, this week we have seen even less layoffs, with the DOL reporting that only 268K claims for unemployment benefits were filed in the past week, well below the 286K expected. The 4-week moving average was 285,500, a decrease of 14,750 from the previous week's revised average. The previous week's average was revised up by 3,250 from 297,000 to 300,250. And while it is no secret that US labor data leave much to be desired it was today's trade data that will shock many, after the BEA reported that in February, the US trade deficit collapsed to just $35.4 billion, a 17% plunge compared to the $42.7 billion January revision, and far below the $41.2 billion expected. The $7.3 billion drop in the deficit was the largest since the $8.3 billion drop posted in June of 2013. And even more notable: the total February deficit was the lowest since October 2009!
Unlike yesterday's vertigo-inducing overnight session, today has been a smooth sea by comparison even if one which has flowed from the top left to the bottom right for now, with futures erasing all of the last minute surge which was HFT programmed to sticksave the S&P just green for the year and then some. It is difficult to pinpoint the catalyst that will be today's market narrative although with NFP in just over 24 hours, falling on a holiday which will allow S&P futures just 45 minutes of trading after the BLS report hits before closing for the day, and with the weak ADP not to mention the 0.0% GDP, the "whisper" expectation is for a NFP print that will be well below consensus, somewhere in the mid-100,000s if not worse now that the bartender hiring spree is over. The fact that March payrolls have missed on 6 of the last 7 reports probably adds to the dollar weakness, even if a huge miss tomorrow may just be the catalyst Yellen needs to launch the QE4 trial balloon.
- Samaras Says He’d Join Alliance to Keep Greece in Euro (BBG)
- Tensions with Warren camp could loom over Clinton campaign (Reuters)
- Ackman Report on Herbalife in China Figures in Probe (WSJ)
- Al Shabaab storms Kenyan university, 14 reported killed (Reuters)
- Iraq’s Four-Mile Line of Supertankers Fuels Shipping-Rates Surge (BBG)
- Menendez's fate could sharpen Republicans' edge in Senate (Reuters)
- IRS Chief Chides Ted Cruz Over 'Abolish the IRS' Mantra (BBG)
- Yemen Houthi fighters backed by tanks reach central Aden (Reuters)
For First Time In History, California Governor Orders Mandatory Water Cuts Amid "Unprecedented, Dangerous Situation"Submitted by Tyler Durden on 04/01/2015 14:32 -0400
For the first time in the state's history, Governor Jerry Brown has directed the State Water Resources Control Board to implement mandatory water reductions across California, in an effort to reduce water usage by 25 percent.
Current policy coming from the Fed seems to be geared to create a never-ending series of booms and busts, with the hope that the busts can be shortened with more debt and easy money. Yet one major driver behind the financial crisis in 2008 was too much debt - much of which led to taxpayer-funded bailouts. In spite of this, the best the Fed can come up with now is to lower interest rates to boost demand to induce households and governments to borrow even more. Interfering with interest rates, however, is by far the most damaging policy. The economy is not a car, and interest rates are not the gas pedal. Interest rates play a critical role in aligning output with society’s demand across time. Fiddling with them only creates an ever-growing misalignment between demand and supply across time requiring an ever larger and more painful adjustment.
Here is what happens when mega-corporations such as WalMart and McDonalds, whose specialty are commoditized products and services and have razor thin margins, yet which try to give an appearance of doing the right thing, raise minimum wages. They start flexing their muscles, and in the process trample all over the companies that comprise their own cost overhead: their suppliers and vendors.Take the case of WalMart: the world's biggest retailer "is increasing the pressure on suppliers to cut the cost of their products, in an effort to regain the mantle of low-price leader and turn around its sluggish U.S. sales."