Apple

The Destabilizing Consequences Of Globalization

This globalization of price - for goods, services, credit and currencies - continually creates imbalances that fuel a perpetual instability that gradually impoverishes every sector other than global capital, which being mobile, can exploit the imbalances for its own profit. Who benefits over the longer term from the permanent instability and boom-and-bust cycles of this arrangement? Only those close to the credit spigots of central banks.

Frontrunning: May 13

  • Nerves dominate before U.S. retail numbers (Reuters)
  • Stocks Give Up Week’s Gains as Commodities Fall; Yen, Bonds Rise (BBG)
  • Apple Invests $1 Billion in Didi, Uber’s Rival in China (WSJ)
  • Dollar hits two-week high, posts best fortnight since February (Reuters)
  • OPEC Sees Rival Oil Production Declining as Markets Rebalance (WSJ)
  • Trump on best behavior as he woos Republicans but differences remain (Reuters)

Bloody Start To Friday The 13th For Global Markets

Global stocks have started Friday the 13th on the wrong foot, with not only Hong Kong GDP unexpectedly tumbling by 0.4%, the worst print in years while retail sales fell for a thirteenth straight month in March, the longest stretch since 1999 as the Chinese hard landing spreads to the wealthy enclave, but also following a predicted collapse in Chinese new loan creation, which will reverberate not only in China but around the globe in the coming weeks. The latest overnight drop in the Yuan hinted that should the recent USD strength continue, China will have no choice but to repeat its devaluation from last summer and winter. 

Socialism Is An Immoral System

The American economic system, and in fact the world’s economic system is failing, and that failure is being attributed by many on the left (and some on the right) as a failure of capitalism. This false notion has given rise to Bernie Sanders and his preaching of social democracy. How has this happened?

AAPL Tumbles After Report Of 70-80% Plunge In iPhone Chip Shipments

Apple share are tumbling (as are the entire complex of suppliers) following a report from Nikkei that Taiwan Seminconductor's shipments of iPhone 6s, iPhone 7 chips for June-Dec. period will likely shrink 70%-80% vs year earlier. As one anayst noted, a decline of more than 20-30% is not in consensus estimates. As Bloomberg reports, of particular interest is that this cut to orders is about upcoming iPhone 7, not about the well-publicized iPhone 6 slowdown.

Frontrunning: May 12

  • Trump’s Early Backers on Capitol Hill See Their Profile Raised (WSJ)
  • Oil prices rise toward six-month high, tightening supply (Reuters)
  • EIA says outlook for oil brightens as output disruptions erode surplus (Reuters)
  • Investors Fleeing $9 Trillion of Negative Yields Fuel Bond Binge (BBG)
  • Beaten-Up Hedge Fund Billionaires Reminisce About 'Golden Age' (BBG)

Frontrunning: May 11

  • Clinton loss in West Virginia signals trouble in Rust Belt (Reuters)
  • GOP hopefuls struggle with support of Trump (Hill)
  • Brazil Impeachment Vote May Spell Rousseff's Last Day on Job (BBG)
  • Staples-Office Depot Merger Collapses After Block by Judge (BBG)
  • Tumbling Banco Popolare leads Italian bank shares lower  (Reuters)

Obama's Toilet Revolution

As a Western revolutionary, Obama has been relentless in his efforts over the last seven years to use all the machinery and influence of government, whether illegally (since 2012, the U.S. Supreme Court has unanimously ruled 13 times that Obama’s actions have been unconstitutional) or legally, to fundamentally transform America into the neo-Marxist democracy he and his father have long dreamed about.

Frontrunning: May 10

  • World stock markets rise while yen falls back (Reuters)
  • Yen Falls a Second Day as Japan Reiterates Ability to Intervene (BBG)
  • Say goodbye to OPEC, Russia’s Sechin says (Reuters)
  • European Stocks Buoyed by Banks (WSJ)
  • Fed's Dudley: More Reserve Currencies Would Make for Stronger Financial System (WSJ)
  • Dead-of-Night Reversal Puts Brazil Impeachment Back on Track (BBG)

Frontrunning: May 9

  • China stocks plunge again as hopes for economic recovery fade (Reuters)
  • European Stock Gains Defy China Data That Hurt Metals; Oil Rises (BBG)
  • Yen falls after Tokyo warning (Reuters)
  • Soros Chart Signals BOJ Bond Buying Already Enough to Weaken Yen (BBG)
  • Dollar Jump Catches Traders Short in One More Currency Calamity (BBG)
  • Even China's Party Mouthpiece Is Warning About Debt (BBG)

US Futures, Europe Stocks Jump On Oil, USDJPY Surge; Ignore Poor China Data, Iron Ore Plunge

The overnight session has been one of alternative weakness and strength: it started in China where stocks tumbled 2.8% to a two month low following some unexpected warnings in the official People's Daily newspaper and poor trade data. Concerns about China, however, were promptly forgotten and certainly not enough to keep global assets lower, with European stocks gapping higher at the open and rallying from a one-month low, driven by a "surprising" surge in the USDJPY which has moved nearly 200 pips higher since its post-payrolls low. Another driver is the jump in oil, which rallied just shy of $46 a barrel, buoyed by Canadian wildfires that are curbing production and speculation that the Saudi Arabian oil minister succession will be bullish for oil prices.

If Everything Is So Great, Where Are The Unicorn IPOs?

Over the course of the last week it seemed no matter where we turned in the business media one meme was being pushed above all others: It’s still a great time to be a private tech unicorn. Implying, that funding rounds were still “robust.” What wasn’t said, so we will, is this: It’s a great time to be a private “unicorn” rather, than take the chance and become the poster-child for the IPO apocalypse. For it’s better to be assumed a $BILLION dollar success story rather, than IPO and officially open the books to the market and remove all doubt – that you’re not.