The holiday shortened, and very busy, week includes the following highlights: [on Monday] US Chicago PMI; [on Tuesday] US ISM Manufacturing, Construction Spending, and Vehicle Sales, in addition to a host of PMI Manufacturing in various countries; [on Wednesday] US ADP Employment, Factory Orders; [on Thursday] US Non-farm Payrolls and Unemployment, MP Decisions by ECB and Riksbank, in addition to various Services and Composite PMIs; [on Friday] US holiday, Germany Factory Orders and Sweden IP.
One hundred years ago today the world was shook loose of its moorings. Every school boy knows that the assassination of the archduke of Austria at Sarajevo was the trigger that incited the bloody, destructive conflagration of the world’s nations known as the Great War. But this senseless eruption of unprecedented industrial state violence did not end with the armistice four years later. In fact, 1914 is the fulcrum of modern history. It is the year the Fed opened-up for business just as the carnage in northern France closed-down the prior magnificent half-century era of liberal internationalism and honest gold-backed money. So it was the Great War’s terrible aftermath - a century of drift toward statism, militarism and fiat money - that was actually triggered by the events at Sarajevo.
- Yellen Spending Recipe Lacking Key Ingredient: Bigger Wage Gains (BBG)
- Ukraine signs trade agreement with EU, draws Russian threat (Reuters)
- GM Documents Show Senior Executive Had Role in Switch (WSJ)
- Australian Report Postulates Malaysia Airlines Flight 370 Lost Oxygen (WSJ)
- World’s Biggest Debt Load Lures Distressed Funds to China (BBG)
- GPIF Rushing Into Riskier Assets Before Ready, Okina Says (BBG)
- Japan Prices Rise Most Since ’82 on Tax, Utility Fees (BBG)
- Italian Debt Swells to Rival Germany as Bond Yields Slide (BBG)
- China’s Manhattan Project Marred by Ghost Buildings (BBG)
- BOE's Carney Says Rates Won't Rise to Levels Previously Considered Normal (WSJ)
Abe's honeymoon is over. Following nearly two years of having free reign to crush the Japanese economy with his idiotic monetary and fiscal policies - but, but the Nikkei is up - the market may have finally pulled its head out of its, well, sand, and after last night's abysmal economic data from Japan which saw not only the highest (cost-push) inflation rate since 1982, in everything but wages (hence, zero demand-pull) - after wages dropped for 23 consecutive months, disposable income imploded - but a total collapse in household spending, the USDJPY appears to have finally been dislodged from its rigged resting place just around 102. As a result the 50 pip overnight drop to 101.4 was the biggest drop in over a month. And since the Nikkei is nothing but the USDJPY (same for the S&P), Japan stocks tumbled 1.4%, their biggest drop in weeks, as suddenly the days of the grand Keynesian ninja out of Tokyo appear numbered. Unless Nomura manages to stabilize USDJPY and push it higher, look for the USDJPY to slide back to double digits in the coming weeks.
The number of SWAT team raids in the United States every year is now more than 25 times higher than it was back in 1980. As America has conducted wars overseas in recent years, our police forces have become increasingly militarized as well. And without a doubt, many of our cities have become much more dangerous places. Once upon a time, police in America were helpful and friendly and the public generally trusted them. But now our police forces are being transformed into military-style units that often act like they are in the middle of Iraq or Afghanistan. The following are 10 facts about the SWATification of America that everyone should know…
Anyone saying "the Fedeal Reserve Act is bad" in Germany is, according to Lars Maehrholz, looked upon by the mainstream as being a Nazi. The organizer of the widespread "End The Fed" rallies that we discussed previously, explained that he is not only under attack by the main stream media and political system in Germany but also physical threats that resulted in a car he was in getting fire bombed by an anonymous perp.
The typically more dovish Jim Bullard unleashed a torrent of "markets are wrong" this morning and along with dismal macro data sent stock reeling out of the gate - catching down to Treasury yields divergence since the Fed last week. Stocks stabilized as the hevay volume dump dried up and staggered sideways after POMO and Europe's close. Then USA went 1-0 down against Germany and VIX was dumped and stocks pumped and then double-pumped again to almost back to unchanged in the last hour. During all this excitment, bond yields slid lower (to 3-week lows); gold and silver pushed higher (though gold ended modestly lower on the day after China gold loans news); and credit entirely ignored the exuberant bounce...VIX closed unch along with stocks as indices were rescued from a notable red day via an epic AUDJPY lift and VIX slam on negligible volume.
It seems that the American investing public needed a desparate morale boost after USA went 1-0 down against Germany in the FIFA World Cup... coincidence or "hand of god"?
It appears Germany has come out swinging ahead of today's FIFA World Cup match:
*GERMANY ENDING VERIZON CONTRACT, CITING NSA: AP
Is this the "boomerang" that Putin warned Obama about?
UPDATE: FIFA bites back and bans Uruguay's Luis Suarez for 4 months
As 12ET rolls around and USA's soccer team prepares to engage zee Germans with the goal of advancing to the FIFA World Cup's knockout stage, Bloomberg undertook an 'economic' face off to see just how the two powerhouse nations stack up. The result - a 4-0 win for Germany does not bode well for the soccer...
Putin Scores Another Historic Victory: Austria Signs South Stream Pipeline Deal In Defiance Of EuropeSubmitted by Tyler Durden on 06/25/2014 07:23 -0400
In the great chess-vs-checkers game, Putin just keeps steamrolling his clueless opposition.
The S&P500 has now gone 47 days without a gain or loss of more than 1% - a feat unmatched since 1995, according to AP. Overnight markets are having a weaker session across the board (except the US of course). Even the Nikkei is trading with a weak tone (-0.7%) seemingly unimpressed by the Third Arrow reform announcements from Prime Minister Abe yesterday (and considering in Japan the market is entirely dictated by the BOJ, perhaps they could have at least coordinated a "happy" reception of the revised Abe plan). Either that or they have largely been priced in following the sizable rally in Japanese stocks over the past month or so. Abe outlined about a dozen reforms yesterday including changes to the GPIF investment allocations and a reduction in the corporate tax rate to below 30% from the current level of 35%+. Separately, the Hang Seng Index (-0.06%) and the Shanghai Composite (-0.41%) 98closed lower as traders cited dilutive IPOs as a concern for future equity gains.
"Does society ever wake up?"
An overview of the chess game being played out in Europe.