- Rivals rip Trump but promise support if he is the nominee (Reuters)
- Employment gains seen accelerating in February (Reuters)
- Brazil's Lula Targeted in Police Raid Into Corruption Scandal (BBG)
- Economist: For The ECB, It's No Longer About Oil (BBG)
- China's premier says economy faces greater difficulties in 2016 (Reuters)
- Copper Stockpiles in China Surge to Record as Metal Flows East (BBG)
There is an odd feeling of Deja QEu this morning, when with two hours to go until the February payrolls, global stocks are modestly higher, US equity futures are likewise slightly higher on the back of a weaker dollar (or perhaps stronger Euro following a Market News report according to which the ECB may disappoint, more on that shortly), but it is gold that is breaking out, and after entering a bull market yesterday when it rallied 20% from its December lows gold has continued to surge, rising as high as @1,274 in early trading a price last seen in January 2015.
"central bankers seem ever intent on going lower, ignorant in my view of the harm being done to a classical economic model that has driven prosperity – until it reached a negative interest rate dead end and could drive no more."
While Asian stocks continued their longest rally since August overnight, led higher for the third consecutive day on the back of Japan (+1.3%), Australia (+1.2%) and China (+0.4%) strength, European stocks have as of this moment halted their longest rally since October (Stoxx -0.1%) and U.S. index futures are little changed. Oil slipped from an eight-week high despite yesterday's massive rise in US oil inventories on hopes Saudi Arabia may be forced to cut production as its budget strains grow actue and the kingdom is forced to seek a $10 billion loan, its first material borrowing in a decade.
Could it be that America's ruling classes, its Imperial state and the Federal Reserve, no longer rule their own destiny? Could their smug confidence be their undoing? Only two things could upset the ruling class apple cart: a financial crash that the Fed can't stop, much less reverse, and Donald Trump winning the presidency.
While the market has had its share of bogeymen to worry about so far in 2016, mostly along the lines of the "Four Cs", namely China, Crude, Credit and Currencies, it has so far largely ignored one letter: the Big D, for Donald, as in how would a Trump presidency affect the market. And, as Reuters writes, it is time for Wall Street to add "the juggernaut that is Donald J. Trump to the list of what-ifs that is worrying Wall Street."
The most valuable company on the planet is set to square off against the FBI on Tuesday before the House Judiciary Committee in a highly publicized dispute regarding the iPhone that belonged to Syed Farook who, along with his wife, murdered more than a dozen people in December at a San Bernardino county holiday party.
- Trump, Clinton poised for big wins on Super Tuesday (Reuters)
- U.S. Index Futures Signal Equities to Rebound After Monthly Drop (BBG)
- Barclays Plummets as Bank Slashes Dividend in Plan to Shrink (BBG)
- Glencore Tumbles to Loss, Promises Accelerated Debt Reduction (WSJ)
- The Angry Americans: Trump, Sanders and the Aftershocks of 2008 (BBG)
"We should support Apple’s refusal to bow to the FBI’s dangerous demands, and we should join forces to defend of our precious liberties without compromise. If the people lead, the leaders will follow."
With lithium prices skyrocketing beyond wildest expectations, talk heating up about acquisitions and mergers in this space and a fast-brewing war among electric car rivals, it’s no wonder everyone’s bullish on this golden commodity that promises to become the ‘’new gasoline”.
In his annual newsletter to shareholders, Buffett makes the argument that $56,000 today is six times better (even after his adjustment for inflation) than the $858 of GDP per Capita each US Citizen earned in 1929 but forgets to mention that $858 in 1929 was equivalent to 41.5 Troy Ounces of Gold in 1929. When measuring on an apple to apples comparison, there has been little to no gain in GDP per capita over the last 86 years in the United States. We show you the math.
- Shares fall on G20 disappointment, Fed hike worries (Reuters)
- China cuts reserve requirement ratio for fifth time since Feb. 2015 (Reuters)
- China Stocks Tumble Toward 15-Month Low as Stimulus Bets Unwind (BBG)
- S&P 500 Futures Signal 2nd Day of Stock Losses; Valeant Slides (BBG)
- Valeant fundamental risks are too severe to suggest the stock is poised for a lasting rebound (WSJ)
The populist revolt fueling non-mainstream political movements in both Europe and the US flows from a single source: you can not fool all the people all the time. The central lie of our time is that governments can and should forcibly assume control of individuals’ lives, in the name of vague and always shifting greater goods. The Command and Control Futility Principle holds that governments and central banks can control one, but not all variables in a multi-variable system. The number of variables global governments and central banks have arrogated to their purported control has grown beyond measure. Breakdowns are visible everywhere, and as those failures exact their ever-increasing toll on the masses, the masses are pushing back.
It happens at the top of every tech cycle – everyone wants to be a tech company. We’re there now. Tech is clubby - if you’re not inside, you’re outside. But before you try to argue for a higher valuation for a public company just because it claims to be 'Tech', consider our seven point checklist – "You might be a tech company if..."
The U.S. government wants nothing short of total control. Tech executives who met with the Pentagon team [this week, said] that some of their requests have been “jarring.” In at least one case, the Pentagon spoke with several companies about tweaking their algorithms to promote certain types of content. “This is a Pandora’s box we won’t open.." said one Google representative.
America: This is Your Government.