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23Sep2016 Pre-Market Commentary: Wall Street To Open Lower For Some Profit Taking, Crude Prices Remain High, Gold Climbing And The US Dollar Steady

Written by Gary

US stock future indexes are pointing down this morning (SPY -0.2%) after the Fed-fuelled rally that catapulted equities out of the summer doldrums this week is showing some signs of fatigue. Indicators are fractionally bearish.

Here is the current market situation from CNN Money

European markets are lower today with shares in France off the most. The CAC 40 is down 0.62% while Germany's DAX is off 0.42% and London's FTSE 100 is lower by 0.21%.

Today's Markets

In Asia, Japan -0.3% to 16754. Hong Kong -0.3% to 23686. China -0.3% to 3033. India -0.4% to 28668.
In Europe, at midday, London -0.1%. Paris -0.5%. Frankfurt -0.3%.
Futures at 8:45, Dow -0.08%. S&P -0.14%%. Nasdaq -0.16%%. Crude +0.12% to $46.24. Gold -0.3% to $1341.30.
Ten-year Treasury Yield -2 bps to 1.61%

What Is Moving the Markets

Here are the headlines moving the markets.

Saudis offer oil cut for OPEC deal if Iran freezes output: sources

DUBAI/LONDON (Reuters) - Saudi Arabia has offered to reduce oil production if rival Iran agrees to cap its own output this year, in a major compromise ahead of talks in Algeria next week, three sources familiar with the discussions told Reuters.

Exclusive: Japan's antitrust watchdog considers action against Apple, carriers - sources

TOKYO (Reuters) - Japanese regulators are considering taking action against Apple Inc over possible antitrust violations that may have helped it dominate the nation's smartphone sales, government sources said, a move that could hit the company's profit margins in one of its most profitable markets.

Global stocks head for best week since July despite mixed mood

LONDON (Reuters) - Stock markets headed for their biggest weekly gain in two months on Friday after a week of central bank meetings that left investors still unconvinced that U.S. policymakers intend to put an end to an era of ultra-low interest rates.

Yahoo says hackers stole data from 500 million accounts in 2014

(Reuters) - Yahoo Inc said on Thursday that at least 500 million of its accounts were hacked in 2014 by what it believed was a state-sponsored actor, a theft that appeared to be the world's biggest known cyber breach by far.

HSBC walks U.S. regulatory tightrope over $10 billion of 'trapped' capital

LONDON (Reuters) - Britain's HSBC is seeking to release billions of dollars of capital tied up in the United States without upsetting the country's politicians and regulators, senior sources at the bank said.

Parent bloggers question role in Mylan's EpiPen schools push

CHICAGO (Reuters) - When Mylan NV recruited food allergy bloggers to learn about its campaign to get allergic shock antidotes into schools, many were eager to join the maker of the EpiPens they carry in purses and stash in book bags to protect their children against potentially lethal attacks.

UPS launches U.S. drone test flights for urgent medical deliveries

BEVERLY, Mass. (Reuters) - United Parcel Service Inc said it began testing the use of drones for emergency deliveries of medical supplies this week with a flight in rural Massachusetts, which the company hopes will eventually lead to federal approval of drones as a regular delivery option.

EU seeks to save Canada trade deal as prospects for deal with U.S. fade

BRATISLAVA (Reuters) - EU ministers took steps on Friday to approve a contentious free trade deal with Canada, while a growing number said talks towards a similar agreement with the United States should stop.

Uber rival Grab partners with driverless car firm in Singapore

SINGAPORE (Reuters) - Users of ride-hailing firm Grab will be able to book driverless cars from Friday as it partners with a start-up testing the technology in Singapore, just days after rival Uber [UBER.UL] debuted its self-driving vehicles in the United States.

What If We're In A Depression But Don't Know It?

Submitted by Charles Hugh-Smith via OfTwoMinds blog,

If it isn't a Depression, it's a very close relative of a Depression.

Just for the sake of argument, let's ask: what if we're in a Depression but don't know it? How could we possibly be in a Depression and not know it, you ask? Well, there are several ways we could be in a Depression and not know it:

1. The official statistics for "growth" (GDP), inflation, unemployment, and household income/ wealth have been engineered to mask the reality

2. The top 5% of households that dominate government, Corporate America, finance, the Deep State and the media have been doing extraordinarily well during the past eight years of stock market bubble (oops, I mean boom) and "recovery," and so they report that the economy is doing splendidly because they've done splendidly.

I have explained exactly how official metrics are engineered to reflect a rosy picture that is far from reality.:

What's the Real Unemployment Rate? That's the Wrong Question September 14, 2016

Fun with Fake Statistics: The 5% "Increase" in Median Household Income Is Pure Illusion September 19, 2016

Here's Why Wages Have Stagnated--and Will Continue to Stagnate August 15, 2016

Could Inflation Break the Back of the Status Quo? August 5, 2016

So Much For The Saudi "Proposal" - Iran Refuses To Cap Output, Clashes With Saudis Over Freeze

After oil spiked earlier on an anonymously-sourced Reuters "report" that Saudi Arabia has offered to cut production in exchange for an Iran production freeze, a proposal which was promptly shut down by third party observes, moments ago WSJ reporter Summari Said effectively killed this particular attempt to spike the price of oil when she reported - also citing sources - that Saudis and Iranians have clshed over output freeze levels, and that Iran has refused to cap output.

This is what she tweeted in its entirety:

Saudis, Iranians Clash Over Output Freeze Level--Sources

Saudis Want to Use Secondary Sources for Output Freeze Levels--Sources

Iran Wants to Use Govt Projections for Freeze Levels--Sources

Disagreements in Vienna Go Unresolved Ahead of Algiers Meeting-- Sources

Iraq Won't Cap Output Until It Reaches 4.75M B/D to 5M B/D--Statement

Iraq Output Cap Implies Boost of 150,000B/D to 400,000 B/D Vs August

Oil has recouped some of its gain, but is still well above the intraday lows. We expect many more such headline headfakes in the coming days and especially early next week during the Algiers OPEC meeting.

Former Goldman Chief Economist Jim O'Neill Quits UK Government

While the UK has so far avoided to implode in a depressionary supernova in the aftermath of Brexit contrary to what most of the "experts" and Tokyo-owned UK journalists had predicted, changes are taking place, mostly among the top echelons of power. Earlier today, the latest political fallout from the Brexit vote was the news that former Goldman economist, and BRIC acornym creator, Lord Jim O'Neill, resigned from the U.K. government, weeks after newspaper reports suggested he was disappointed with Prime Minister Theresa May's policy toward China.

In a letter to May released on Friday, the Manchester native who was a key advocate of the UK forging strong links with China and was commercial secretary for 18 months, said he joined the government in 2015 to help improve the economy of northern England and to boost ties with emerging markets such as China. Admitting that David Cameron's and the BOE's forecasts for a post-Brexit apocalypse were wrong, As Bloomberg reports, O'Neill wrote to the new Prime Minister that "the case for both to be at the heart of British economic policy is even stronger following the referendum, and I am pleased that, despite speculation to the contrary, both appear to be commanding your personal attention."

The Financial Times reported in July that O'Neill was threatening to quit as the U.K. Treasury's commercial secretary because he was irritated by May's decision to postpone approval of a deal with China to build Britain's first atomic plant in 20 years. May subsequently endorsed the Hinkley Point project.

Bloomberg adds that ...

Frontrunning: September 23

Futures slip after three-day rally as oil dips (Reuters)

Charlotte protests diminish early on Friday as family views video (Reuters)

Undecided Voters Are Proving a Tough Sell for Clinton and Trump (BBG)

Facebook Overestimated Key Video Metric For Two Years (WSJ)

Trump received $1.6 million from Secret Service (Politico)

How Bond Yields Got This Low (WSJ)

Fiercest airstrikes yet on Aleppo after Syria declares offensive (Reuters)

The Man Who May Inherit the Mess at Wells Fargo (BBG)

Kingdom Comedown: Falling Oil Prices Shock Saudi Middle Class (WSJ)

HSBC walks U.S. regulatory tightrope over $10 billion of 'trapped' capital (Reuters)

Treasury minister Lord O'Neill quits government (BBC)

Leon Cooperman's Man in Shale Patch Goes From Hero to Headache (

Don't Fade the Fed

Investors are skeptical about whether the Federal Reserve will raise rates at all this year. There is reason enough for that, but it is also dangerous.

The Looming Storm in Insurance

The question for property and casualty insurers isn't only whether reinsurance pricing will find a floor, but also how much the industry is now starting to amplify financial and actuarial risks.

Wanda-Sony Pictures: China Is Coming to Theater Near You

Dalian Wanda's tie-up with Sony Pictures is about something bigger than bringing Hollywood to China.

FedEx expects to have a case of the Mondays this holiday season

FedEx says there are four Mondays during the peak holiday season that are especially busy for deliveries.

UPS completes drone test for urgent commercial delivery

UPS and drone maker CyPhy Works completed their first test using a drone for urgent commercial delivery, as they completed the mock delivery of an asthma inhaler to a child on Massachusetts island that isn't accessible by car.

Need to Know: How to navigate this ridiculous 'SpongeBob' stock market

This market has taken on cartoon-like qualities, and that means investors have to tread ever carefully. Our call of the day looks at the places in the market that have gotten wildly unpopular.

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