Volatility is the word for today in the commodities as crude, gold and the US dollar made wide swings this morning. The major stock indexes have steadily melted upwards (SPY + 0.7%) and have been trading sideways going into the afternoon session. Short-term indicators are moderately bullish, but could turn bearish at the drop of a hat.
Here is the current market situation from CNN Money
North and South American markets are broadly higher today with shares in Brazil leading the region. The Bovespa is up 1.47% while U.S.'s S&P 500 is up 0.74% and Mexico's IPC is up 0.38%.
WASHINGTON (Reuters) - The Obama administration on Thursday took action to limit the use of foreign tax credits by American multinational companies to reduce their U.S. tax bills, a move that followed an EU order that Apple Inc pay back taxes to Ireland.
(Reuters) - The Federal Reserve may have violated the law in adopting key parts of the bank stress tests, according to a study released on Thursday from a group whose members include large Wall Street banks.
SAN FRANCISCO (Reuters) - Apple extended its Wall Street rally on Thursday, with enthusiasm over demand for its newest iPhone putting the stock on track for its strongest four-day streak in over two years and clobbering short sellers who bet against it.
WASHINGTON (Reuters) - U.S. retail sales fell more than expected in August amid weak purchases of automobiles and a range of other goods, pointing to cooling domestic demand that further diminishes expectations of a Federal Reserve interest rate increase next week.
NEW YORK/LONDON (Reuters) - The world's major central banks, stung by this year's $81-million heist in Bangladesh, have launched a task force to consider setting broad rules to protect the vast network of cross-border banking from cyber attacks, according to two sources with knowledge of the matter.
BOSTON (Reuters) - Activist investor Needmor Fund said on Thursday it filed a shareholder resolution with Wells Fargo & Co calling on the bank to split the roles of Chairman and Chief Executive, saying management needs strong oversight from the board "in light of the recent scandal" involving fake accounts.
(Reuters) - Chances the U.S. Federal Reserve will raise interest rates in December have shot up in the past month, according to a Reuters poll that showed economists are more convinced a move is on its way despite weak inflation and wage growth.
"The Fed is being totally controlled politically," exclaimed Donald Trump. Interest rates will remain low until January 1st, Trump went on, "because Obama wants to go out with no stock market disruptions." The stock market "will remain at artificially high levels," until the end of the year.
"If it was a choice between the right decision and a political decision... The Fed would choose the political decision"
"The Fed has become very political... beyond anything I would have thought possible..."
Two minutes in: (apologies for sound quality)
And while there are those conventional "Keynesians" who will loudly proclaim that you have to be insane to be hiking rates as the economy is sliding, we will ask: with the Fed having prioritized capital markets over the economy for over a century, perhaps it is conventional thought that is wrong, and it is time to try something that may work, because ZIRP, and whatever the Fed is doing, clearly is not.
It's been a bad couple of months for German Chancellor Angela Merkel, whose approval ratings have fallen sharply over her continued support of open-border immigration policies that have allowed over 1 million refugees to flow into the country since 2015. Increasingly more Germans have blamed Merkel for the surge in refugee terrorist attacks over the past couple of months and have shifted their support to more nationalist-leaning political parties. In fact, just a few weeks ago Merkel suffered a massive, embarrassing defeat in her home state to her nemesis, the anti-immigation AfD party (see "Merkel Stunned By Defeat To Anti-Immigrant Party In Her Home State"). Alas, despite calls from voters for a shift in Germany's immigration policies, Merkel continues to double down.
One of the original selling points for accepting migrants from the Middle East was the apparent economic "benefits" associated with adding 100,000s of new, young consumers/laborers to the German economy. In fact, the wave of new immigrants was sold as the perfect solution for Germany's demographic dilemma which is expected to see its working-age population shrink by 6 million people by 2030.
While it sounded like a great plan, it doesn't really work that well if new migrants fail to find jobs and become economically productive members of society which, according to Reuters, is exactly what is happening. Apparently, German companies have only been able to find jobs for about 100 of the 1 million migrants that have recently found their way into the country.
According to the latest figures from the German Labor Office, about 346,000 people with asylum status were seeking jobs in Germany in August.&nb ...
Earlier this month, YouTube, the behemoth video-sharing website was accused of censoring users.
Claiming some of their videos had been barred from making money through the company's ad services, YouTube hosts like Philip DeFranco spoke out against the policy, claiming over "a dozen of his videos had been flagged as inappropriate for advertising, including one dinged for 'graphic content or excessive strong language.'"
In a video entitled "YouTube Is Shutting Down My Channel and I'm Not Sure What To Do," DeFranco called YouTube's policy "censorship with a different name," since users touching on what the company considers to be controversial subjects end up losing money. "If you do this on the regular, and you have no advertising," DeFranco added, "it's not sustainable."
While YouTube has already confirmed its policy regarding what it considers unfit for monetization hasn't changed, the issue might lie elsewhere now that the company seems more efficient in enforcing its own rules. As a matter of fact, the content policy
Mark Carney said last week he was "absolutely serene" about the BOE's downbeat judgments of the impact of Brexit, and serenity prevailed Thursday as the BOE left policy unchanged. But policy makers still have plenty to chew on.
Econintersect's analysis of final business sales data (retail plus wholesale plus manufacturing) shows unadjusted sales decelerated compared to the previous month - and the rolling averages declined. Inventories shrunk relative to the previous month but inventory-to-sales ratios remain at recessionary levels.
Millennial and youth voters in America care more than any other generation about the legalization of marijuana, but it's not clear if that will be enough to drive them to the polls for November's pivotal election.
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