No mass shooting incident today, but moments ago BNO news reported that the stuiod of Fox 45, also known as FOX Baltimore, has been evacuated after a man dressed in a hedgehog suit entered the building and claimed to have a bomb strapped to his chest.
- Trump, Clinton press closer to general election showdown (AP)
- Acela primaries: Winners, losers (Hill)
- Trump Says He's `Presumptive Nominee' as Clinton Wins Four (BBG)
- In the battle for Hollywood endorsements - and cash - Clinton rules (Reuters)
- U.S. Oil Rises Above $45 a Barrel for First Time Since November (BBG)
- Spin: Near-Zero Growth Happens Often in Slow-Motion U.S. Economy (BBG)
It's not just Halliburton ("What we are experiencing today is far beyond headwinds; it is unsustainable") and Intel (12,000 layoffs amid re-evaluation of programs) that are facing up to a new normal very different from expectations. As Avondale Asset Management notes, having poured over 100s of earnings transcripts, while most CEOs don’t see signs of an imminent downturn, the environment still feels a little fragile. It seems that almost everyone is on high alert for a macro curve-ball...
The market is standing at the proverbial “crossroads” of bull and bear. From a “fundamental” perspective there is not much good news. The past week we saw numerous companies beating extremely beaten down estimates. However, while JPM and C got a boost to their stock price, the actual earnings, revenue and profits trends were clearly negative. But that is the new normal. We live in an environment where Central Banking has taken control of financial markets by leaving investors “no option” for a return on cash. Therefore, the “hope” remains that asset prices can remain detached from underlying fundamentals long enough for them to catch up.
As the trumpets sound to signal the start of earnings season, the battle between fundamentals and “hope” begins.
Hillary Clinton’s paid speeches are not relevant because of anything that they said, but because the organizations that paid typically $225,000 to her, for each of them, were paying a servant, for extremely valuable services that that servant is being expected to provide to the owners and top executives of that organization if that servant becomes the U.S. President (or, in the case of her husband Bill) for valuable services that already were provided by that servant when he was a President. They’re pay-offs, for services that are anticipated, or else that have already been provided. They are not (such as the author was assuming) for “the speech.”
"Unprecedented Leak" Exposes The Criminal Financial Dealings Of Some Of The World's Wealthiest PeopleSubmitted by Tyler Durden on 04/03/2016 22:35 -0400
An unprecedented leak of more than 11 million documents has revealed the hidden financial dealings of some of the world's wealthiest people, as well as 12 current and former world leaders and 128 more politicians and public officials around the world. The data allows a never-before-seen view inside the offshore world — providing a day-to-day, decade-by-decade look at how dark money flows through the global financial system, breeding crime and stripping national treasuries of tax revenues.
"Jurgen Mossack’s family landed here in the 1960s. During World War II, his father had served in the Nazi Party’s Waffen-SS, according to U.S. Army intelligence files obtained by the ICIJ. Once in Panama, the elder Mossack offered to spy on communists in Cuba for the CIA." And yes, Mossack Fonseca may now be history, and its countless uberwealthy clients exposed, but none other than Rothschild is now delighted to be able to fill its rather large shoes.
Home prices are rising faster than wages in most of the United States, making homeownership increasingly difficult for average Americans in some of the most populous areas of the country, according to a report released on Thursday. The report found that home price growth exceeded wage growth in nearly two thirds of the nation's housing markets so far this year, with urban centers like San Francisco and New York City among the least affordable.
“There have been three great inventions since the beginning of time: fire, the wheel, and Central Banking.” – Will Rogers
"The issue is not whether margin debt will matter, it is just 'when'. Unfortunately, for many unwitting investors, when that time comes margin debt will matter 'a lot.'" And we suspect The Fed knows it...
"Keynesianism has always been at war with savings since its principle tenet is that savings are bad, consumption is good. The Keynesian central planning authorities at the Fed and elsewhere would like to see a cashless society because keeping cash can be a form of savings instead of consumption. I think we are headed toward a cashless society unless the public wakes up and begins to protest this... which is why the establishment despises Trump as the figurehead for this awakening...If I were Donald Trump I would also double or triple my personal security detail."
Over the past month, as expected, the CLO rout has gone from bad to worse, and according to the latest Morgan Stanley CLO tracker, as of the end of February, the median US CLO 2.0 equity NAV stood at -1.99 with the number of CLO 2.0 deals’ equity tranches currently having NAV below zero soaring by 30% from 348 to 453.
U.S. elections used to be simpler. They were battles between zombies and cronies. Traditionally, Democrats represent the zombies – the little guys who want more little payoffs and bribes. Republicans are supposed to represent the cronies – fewer in number but with more money – looking for tax breaks, contracts, subsidies, and ways to keep the zombies in their place... But politics is fluid. But while the cultural conservatives were at war with the cultural liberals... the Deep State grew. Today, it’s hard to tell the two parties apart.
As global stock markets have soared in recent weeks, accelerating most recently after the dud of the G-20 meeting, gold has also rallied, strongly suggesting there is anything but confidence in this ramp.