US markets remain lower (SPY _0.4%) after KSA does not see any deal on output agreement. Crude Prices Fall 3% after did not expect a decision at Algiers next week. Traders and investors were also awaiting a U.S. oil rig count report (+2) to ascertain if more drillers were returning to the well pad. Indicators fractionally bearish.
Here is the current market situation from CNN Money
North and South American markets are mixed today. The IPC is up 3.91% while the Bovespa gains 0.62%. The S&P 500 is off 0.42%.
NEW YORK (Reuters) - Oil prices fell about 3 percent on Friday, paring weekly gains, on a report that Saudi Arabia did not expect an agreement at talks next week among major crude exporters aimed at freezing production.
(Reuters) - Twitter Inc has initiated talks with several technology companies to explore selling itself, a person familiar with the matter said on Friday, as the social media company grapples with its slowest revenue growth since going public in 2013.
(Reuters) - Wall Street was lower in early afternoon trading on Friday as investors assess valuations after a three-day rally spurred by optimism that the Federal Reserve will hold off from raising interest rates in the near term.
NEW YORK (Reuters) - The New York Federal Reserve on Friday lowered its forecast on U.S. economic growth in the third quarter and fourth quarters from what it estimated a week earlier following weaker-than-expected housing starts data for August.
DUBAI/LONDON (Reuters) - Saudi Arabia has offered to reduce oil production if rival Iran caps its own output this year, four sources familiar with the discussions told Reuters, as Riyadh tries to strike an elusive OPEC deal to curtail supply and boost prices.
LONDON (Reuters) - Goldman Sachs is cutting almost 30 percent of its 300 investment banking jobs in Asia outside Japan in response to a slowdown in activity in the region, two sources familiar with the matter told Reuters.
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.
WASHINGTON (Reuters) - The Federal Reserve on Friday outlined a plan to limit Wall Street bets on the energy sector by forcing enterprises like Goldman Sachs and Morgan Stanley to hold more capital against such investments.
WASHINGTON (Reuters) - Senior Republican U.S. House of Representatives lawmakers made clear on Friday they will keep campaigning against Boeing and Airbus jetliner sales to Iran, despite the Treasury Department's announcement that it had begun issuing licenses for the exports.
Just in case the Fed needed an "out" to its "hawkishly holdish" December rate hike, it got it moments ago when the NY Fed slashed its Q3 and Q4 GDP estimates, and now expects just 2.3% annualized growth in Q3 and 1.2% Q4, down 0.5% each from the previous forecasts of 2.8% and 1.7%.
In its latest report, the NY Fed explained that "negative news since the report was last published two weeks ago pushed the Nowcast down 0.5 percentage point for both Q3 and Q4. The largest negative contributions over the last two weeks came from manufacturing, retail sales, and housing and construction data." So, pretty much everything.
As usual, the forecast was overly optimistic, and as a result has been sharply dragged down for both Q3...
.... and Q4.
But what is most troubling is not that in the quarter in which the Fed is expected to hike rates for only the second time since the financial crisis, the US economy is now expected to grow only 1.2%, but that when taking into account the already abysmal Q1 and Q2 GDP prints of 0.8% and 1.1%,, US GDP - according to the NY Fed - is set to grow a paltry 1.4% for the entire year. This would be the lowest growth rate since the financial crisis.
Earlier this week, a twitter user named "Katica" seemingly proved the "intent" of the Hillary campaign to destroy and/or tamper with federal records by revealing the Reddit thread of Paul Combetta (aka the "Oh Shit" guy; aka "stonetear"). But what's most crazy about this story is that "Katica" was able to discover the greatest "bombshell" of the entire Hillary email scandal with just a couple of internet searches while the FBI, with unlimited access to government records, spent months "investigating" this case and missed it all. The only question now is whether the FBI "missed" this evidence because of gross incompetence or because of other motivating factors?
Now, courtesy of an opinion piece posted on The Daily Caller, we know exactly how "Katica" pieced her "bombshell" discovery together...the folks at the FBI may want to take some notes.
Per the twitter discussion below with @RepStevenSmith, "Katica" discovered Combetta's Reddit thread on September 16th. But while she suspected that Paul Combetta and the Reddit user known as "stonetear" were, in fact, the same person, she had to prove it...
...which she was able to do easily enough with a couple of extra searches. First there is this FaceBook pic which refers to Combetta ...
We hinted earlier and now Saudi Arabia has confirmed that it "doesn't expect any decision" next week when oil producers meet in Algiers. Oil's reaction was swift with WTI tumbling to a $44 handle very quickly:
SAUDI ARABIA SAID TO SEE ALGIERS MEETING AS CONSULTATION
SAUDI ARABIA DOESN'T EXPECT DECISION AT ALGIERS: DELEGATE
This move was exaggerated by the report that The Fed is clamping down on bank holdings of commodities:
FED PROPOSES AGGRESSIVE RULE ON WALL STREET COMMODITY HOLDINGS
As we detailed previously...
1) the ban on 'investing in non-financial companies', which is highly ironic given that other central banks are directly buying massive stakes in the world's corporate entities; and
2) restrictions on physical ownership of commodities, which raises eyebrows on both oil manipulation and the hoarding of precious metals ahead of The Fed losing control.
But The Fed expanded it today:
The Federal Reserve Board on Friday invited public comment on a proposed rule that would strengthen existing requirements and limitations on the physical commodity activities of financial holding companies. The proposal would help reduce the catastrophic, legal, reputational, and financial risks that physical commodity activities pose to financial holding companies.
A limited number of firms supervised by the Board engage in physical commodity activities and investments. Some firms are permitted by law to engage in a broad range of physi ...
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