The S&P 500 and the Nasdaq Composite logged modest gains today, but the DOW ended lower as a slide in crude futures weighed on Wall Street. The Dow closed down 35 points, or 0.2% lower at 17,783. Crude oil prices erased all of Friday's gains and more, as June futures ended the pit session 2.7% lower to $43.55 bbl even as the wildfires in Canada's oil sands continue to spread. The sacking of Ali al-Naimi as head of Saudi Arabia's oil ministry also may be a reason why oil prices failed to maintain early gains.
MINNEAPOLIS (Reuters) - Minneapolis Federal Reserve Bank President Neel Kashkari on Monday signaled his support for the cautious and patient approach to rate hikes laid out by Fed Chair Janet Yellen, saying the current stance of monetary policy is "about right."
(Reuters) - Newspaper publisher Tribune Publishing Co said its board had adopted a shareholder rights plan - popularly known as a "poison pill" - in a bid to thwart Gannett Co Inc's unsolicited takeover offer.
(Reuters) - U.S. cancer drug maker Medivation Inc has decided to explore a sale following a $9.3 billion acquisition offer from France's Sanofi SA and interest from other companies, people familiar with the matter said on Monday.
NEW YORK (Reuters) - The Federal Reserve on Monday awarded $23.24 billion of one-day, fixed-rate reverse repurchase agreements to 17 bidders at an interest rate of 0.25 percent, the New York Fed said on its website.
LONDON (Reuters) - The U.S. economy's fundamentals are solid and growth this year should pick up to around 2.5 percent, but the Federal Reserve's current 'wait and see' approach to monetary policy is appropriate, a Fed policymaker said on Monday.
(Reuters) - SWIFT on Monday rejected allegations by officials in Bangladesh that technicians with the global messaging system made the nation's central bank more vulnerable to hacking before an $81 million cyber heist in February.
(Reuters) - Renaud Laplanche, founder and chief executive of online lender Lending Club Corp , resigned after an internal probe found that the company had knowingly sold an investor $22 million of loans that the investor did not want, the company said on Monday.
The following brief comment by Morgan Stanley's chief FX strategist Hans Redeker is one of the best summaries of the sad state the centrally-planned world finds itself in after 7 years of constant central bank manipulation to push risk assets higher no matter the cost.
Global imbalances have stayed strong but these imbalances are no longer expressed by current account differences and worries concerning foreign funding needs. Instead, current account differentials have developed into output gap differentials. Concretely, Asia's current account surpluses have converged into supply, which within a world of demand deficiency has created overcapacity and falling investment returns.
Theoretically, there are three possible outcomes to deal with overcapacity. Austrian School-like destruction, increasing exports and finally providing debt-funded domestic demand. Creative destruction, once the backbone of a functioning capitalist system, is no longer seriously considered as the social costs of this approach appear unacceptably high. What remains are adjustments via exports and increasing local demand against ever-rising balance sheets.
Translation: since politicians are spineless cowards (and would much rather have the Fed do their work for them) and will never agree to kill zombie companies (or capital markets) and be exposed to the ire of their newly unemployed constituents, the only options are currency devaluation (exports) and even recorder debt, which makes the original problem even worse.
Oh, and next time Deutsche Bank laments that "capitalism is in a crisis", please first read the bolded sen ...
A few years ago we asked why anyone would exclude litigation charges from bank EPS. While we are still waiting for someone to explain that to us, we'd like to show an update on just how dilutive to shareholder value these "one-time, non-recurring" litigation charges have been over the past six years.
The top three banks alone have taken $107.7 billion in litigation charges from 2010-2015, with Bank of America head and shoulders above its competition in the race to see just how much legal expense can be incurred before anyone other than Zero Hedge cares.
Chart: Goldman Sachs
Unsurprisingly, Citigroup, JP Morgan, and Bank of America all decided to reward their CEOs for the uncanny ability to erode shareholder value, by giving significant raises in 2015.
Citigroup's Michael Corbat received a 27% raise in 2015, bringing his total compensation to $16.5 million.
JP Morgan gave Jamie Dimon a 35% raise, bringing his total comp to $27 million in 2015.
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