Boeing

The airline has been working with its banks and the relevant authorities and understands that the funds – less than $5 million – have now been frozen. Although the sum stolen was relatively small in corporate terms and appears to have been tracked and frozen quite quickly, the incident - yet again - highlights the threat posed by cybercrime to today’s banking and financial systems.

Having missed expectations for 5 of the last 7 months, Durable Goods New Orders jumped 4% MoM in March - the biggest jump since the July Boeing aberration (all driven by a 112% surge in defense Aircraft new orders). Durable Goods New Orders (ex-Transports) fell 0.2% MoM (missing expectations of a 0.3% rise) for the biggest YoY drop since 2012, and under the covers it is ugly - Capital Goods New Orders non-defense, ex-aircraft have now fallen for 7 straight months, missing expectatons dramatically (-0.5% vs +0.3% exp.). These numbers have never fallen for this long a period without a recession.

Whether it is in sympathy with the now relentless surge in the Shanghai Composite which tacked on another 2.44% overnight to close at a fresh multi-year high just shy of 4400, well more than double from a year ago, or because Mrs Watanabe was unable to read the latest Japan trade data whose first trade surplus in 3 years hinted that there will be no new easing by the BOJ any time soon, but overnight the Nikkei closed above 20,000 for the first time in 15 years, with "makers of chocolate, mayonnaise, potato chips and household appliances" helping lift the Tokyo market according to the WSJ. The now daily Asian euphoria however did not last long in the European session, and after opening higher, the Stoxx Europe 600 slipped into negative territory just an hour into trading, and was down 0.4% by midmorning, lead by a near 1% decline on Athens' mains stock index, which has since recouped losses stemming from the overnight report that the ECB is considering an up to 50% haircut on Greek bank collateral, a move that would wipe out the Greek financial sector with ease.

Having generously (if not obliviously) stepped up to the plate to bail out Ukraine (with open-ended bond guarantees), US taxpayers are opening their wallets again - this time for Iraq. As Reuters reports, cheap oil has ravage Iraq's state finances just as the government faces rising military spending from the war it is waging against ISIS; and so it has decided to issue $5 billion in international bonds. However, Iraq is considering other ways to cover its budget deficit, including asking the IMF (i.e. US taxpayers) for relief funding and also requesting the controversial U.S. Export-Import Bank (US Taxpayers) finance the purchase of 10 planes from Boeing Co, which cost the government $500 million.

Update: *LOCKDOWN LIFTED AT U.S. CAPITOL AFTER GYRO COPTER ARREST

US Capitol Police have locked-down buildings after a man landed a gyrocopter on the lawn. As The Tampa Bay Times reports, the man is a mailman from Ruskin named Doug Hughes who was attempting to deliver campaign reform messages to Congress.

• Shale Oil Boom Could End in May After Price Collapse (BBG)
• Oil above $58 on U.S. shale output report, Mideast (Reuters)
• Ackman Says Student Loans Are the Biggest Risk in the Credit Market (BBG)
• Alibaba Disputes U.S. Group’s Claim it Tolerates Fake Goods on Taobao (WSJ)
• Petrobras takes steps to avert a technical default (FT)
• Yen’s Drop Is Approaching Its Limit, Says Abe Adviser Hamada (BBG)
• 'Slicing and dicing': How some U.S. firms could win big in 2016 elections (Reuters)
• Fed official warns ‘flash crash’ could be repeatedv (FT)

As the world awaits the outcome of next Iran "deadline"- the June 30 conclusion of the finalization of the Iran deal - the US is already hedging its bets. According to the WSJ, the Pentagon has "upgraded and tested the largest bunker-buster bomb in the U.S. arsenal, senior U.S. officials said, readying a weapon that could destroy or disable Iran’s most heavily fortified nuclear facilities should a nuclear deal fall apart and the White House decide to take military action."

Did Reuters fabricate a key part of its story about the downing of flight MH-17 in which the media outlet revealed "new evidence on downing of Malaysian plane over Ukraine." According to the main witness Reuters supposedly interviewed, the answer is yes: “When we talked about the Boeing on camera, I explained everything as I saw it. The things that I allegedly said off-camera, all this nonsense, was made up by the journalist himself. It's all lies, because off-camera, we never discussed the Boeing, and just spoke about life, about the current situation, so to speak.”

The Sunlight is Fading … and America Is Falling Into Darkness

• Saudi Arabia, allies launch air strikes in Yemen against Houthi fighters (Reuters)
• Pilot on Crashed Jet Was Locked Out of Cockpit, NY Times Says (BBG)
• Why Bombing This Tiny Oil Producer Is Roiling the Energy Market (BBG)
• U.S.-led coalition, Iraqis pound Islamic State in Tikrit (Reuters)
• Munger Says Prepare for Harder World as Buying Power Slides (BBG),Mocks Greek ‘Idiotic Idea’ You Can Vote Yourself Rich (BBG)
• The Central Banker Who Saved the Russian Economy From the Abyss (BBG)
• Bank of Canada says foreign buyers complicate housing market (Reuters)
• Investors Scoop Up Companies’ Bonds (WSJ)
• Espirito Santo Probe Turns Mariana Mortagua Into Portuguese Star (BBG)

• Israelis vote as 'King Bibi's' reign hangs in the balance (Reuters), Factbox: Main candidates in Israel's election (Reuters)
• Iran Can Add Million Barrels a Day of Oil If Sanctions Halt (BBG)
• Kremlin rules out handing back Crimea to Ukraine (Reuters)
• Saudi Arabia Needs More Oil to Feed Local Refinery Expansion (BBG)
• How Lafarge’s CEO Went From Holcim Merger Architect to Obstacle (BBG)
• When Yellen Gets Less Predictable She’s Getting Back to Normal (BBG)
• Iran nuclear talks intensify as sides face tough issues (Reuters)
• Debunking $1.4 Trillion Europe Debt Myth in Post-Heta Age (BBG)

Between 2007 and 2012, 200 of America’s most politically active corporations spent a combined $5.8 Billion on federal lobbying and campaign contributions. What they gave pales compared to what those same corporations got: $4.4 Trillion in federal business and support. Here is the visual representation of this stunning finding: for every dollar spent on influencing politics, the nation’s most politically active corporations received $760 from the government.

Will Europe ever see its money back?

Today's most under the radar news, just as Citigroup was to Congress, and the swaps push out language, so Boeing, that primary recipients of the generosity of America's Export-Import (Ex-Im) Bank, has been caught red-handed drafting the rules of none other than the Ex-Im bank itself! According to the WSJ: "when the Export-Import Bank sought to respond to critics with tighter rules for aircraft sales, it reached out to a company with a vested interest in the outcome: Boeing Co., the biggest beneficiary of the bank’s assistance." Or nothing more than a criminal conflict of interest, which, once again, is at the expense of America's infinite bailout piggybank: it's taxpayers.

• Again as first reported here: Record U.S. Oil Glut May Fill Storage, Cut Prices (BBG)
• IEA sees renewed pressure on oil prices as glut worsens (Reuters)
• No EU unanimity on renewing Russia economic sanctions (Reuters)
• Tsipras says Greece doing its part in euro zone deal (Reuters)
• ECB Set to Buy Fewer Bonds as Price Gains Ease Crunch (BBG)
• These Americans Are Getting Rich Trading Derivatives Banned in the U.S. (BBG)
• U.S. 2015 profits forecast to grow 1.7 percent; oil, dollar are concerns (Reuters) - in a month this will say "decline"
• Manhunt for shooting suspects grinds on in Ferguson, Missouri (Reuters)