05Mar2019 Pre-Market Commentary: Wall Street Futures Fractionally Higher, DOW Up 0.1%, US Dollar Gains, China Lowered Its 2019 GDP

Here is the current market situation from CNN Money

European markets are mixed. The FTSE 100 is higher by 0.67%, while the DAX is leading the CAC 40 lower. They are down 0.14% and 0.11% respectively.

Trump scraps trade privilege for India; Delhi plays down impact

U.S. President Donald Trump looked set to open a new front in his trade wars on Monday with a plan to end preferential trade treatment for India that allows duty-free entry for up to $5.6 billion worth of its exports to the United States.

Pompeo says Trump will walk if China trade deal isn’t perfect: interview

U.S. President Trump will reject any U.S.-China trade deal that is not perfect but that the United States will still keep working on an agreement, U.S. Secretary of State Mike Pompeo said in a media interview.

Dueling superminis distract from auto industry troubles

Two of Europe’s best-selling cars, the Renault Clio and Peugeot 208, go head-to-head at the Geneva motor show on Tuesday, as the auto market they dominate faces transformative pressures on its future profits and jobs.

Fiat Chrysler mulls mergers but rules out sale of Maserati

Fiat Chrysler is open to pursuing alliances and merger opportunities if they make sense but a sale of its luxury brand Maserati is not an option, Chief Executive Mike Manley said in Geneva on Tuesday.

Harley-Davidson scoots into kids electric two-wheelers with StaCyc deal

Harley-Davidson Inc on Tuesday acquired StaCyc Inc, which makes electric two-wheelers for kids, the U.S. motorcycle maker said.

BMW could shift some UK engine, Mini output if no orderly Brexit

BMW could move some production of engines and its Mini model out of Britain if the country does not secure an orderly departure from the European Union, the German carmaker said on Tuesday, in the latest Brexit warning from the auto industry.

Holiday sales boost Target forecasts, shares jump

Target Corp forecast 2019 profit above Wall Street estimates on Tuesday as strong online sales and higher footfall at stores drove better-than-expected holiday sales, sending its shares up 6 percent.

Stocks stall, dollar stands tall as China trims growth targets

World shares stalled near a five-month high on Tuesday as China cut its growth targets to a 30-year low but added more stimulus, and a revived dollar headed for a fifth day of gains in the currency markets.

Ford discussing closure of two Russian plants: sources

Ford Motor Co is considering closing two major plants in Russia as part of its global plan to restructure operations in unprofitable regions, three industry sources told Reuters.

Trump Blasts Dem’s Latest ‘Witch Hunt’: They’ve “Gone Stone Cold Crazy”

A day after the House Judiciary Committee fired off 81 document requests in their sweeping investigation of the President and his inner circle, Trump has responded with an angry tweet or two.

Trump initialy said:

“It’s all a hoax,” said President Trump on Monday when asked if he would cooperate with the investigation led by Committee Chairman Jerrold Nadler (D-NY).

“I cooperate all the time with everybody. You know, the beautiful thing, no collusion,” said Trump – who has also referred to the ongoing investigations a “witch hunt.”

Overnight he retweeted some comments from Fox’s Sean Hannity:

“We the people will now be subjected to the biggest display of modern day McCathyism….which is the widest fishing net expedition….every aspect of the presidents life….all in order to get power back so they can institute Socialism.”

And this morning, he has come out swinging: “Nadler, Schiff and the Dem heads of …

China Blocks Tesla Model 3 Sales After Suspending Customs Clearance

Tesla’s awful start to 2019 is getting worse, with the latest bad news hitting the company in its most important “growth” market: China.

Chinese customs have suspended clearance procedures for Tesla’s Model 3, according to Reuters which cites Chinese financial publication Caixin. The customs authority in Shanghai found “various irregularities” in 1,600 imported Model 3 vehicles, including improper labeling of the vehicles.

As a result, China has effectively put a block on Model 3 sales, telling Tesla not to sell or use Model 3 vehicles that have already been cleared in the country. Inspectors at ports in China have also been directed by authorities to “step up inspections” of other imported Tesla models and suspend their release if similar problems are uncovered.

This news comes after a sizable fall in Tesla’s stock over the last two trading days, as the market continues to digest last Thursday’s $35,000 Model 3 unveiling – and the subsequent …

There Are Big Problems With China’s Annual Policy Report

Submitted by Michael Every of Rabobank

No Good (Start the Dance)

Despite trade war apparently being behind us, and the Fed having already thrown in the towel, equities stumbled and bond yields moved lower yesterday, while USD spiked. Perhaps that’s because markets are just starting to realize why the Fed has thrown in the towel and the trade-war can might be being kicked. Let’s have a refresher for those who aren’t following: China’s manufacturing PMI is below 50; so is Japan’s; so is South Korea’s; so is the Eurozone’s; so is Australia’s services PMI; and Taiwan’s new export orders PMI sub-index suggest the US ISM is going to head below 50 ahead. That is called a synchronized global manufacturing downturn. Moreover, NowCast estimates of US Q1 GDP from the Atlanta Fed are 0.3% q/q annualized. A lot of that downturn is shut-down related, but it’s still very low.

Against that background we have just seen what the alphabetti-spaghetti of China’s NPC and CPPCC have produced so far. The main headline is this: CHINA SETS 2019 GDP GROWTH TARGET AT 6%-6.5%, which sounds reassuring. Yet Chinese GDP growth is not a measure of what the economy actually does, but of how many empty apartments they are prepared to add to their inventory pile of 65 million. The details of what 2019 will apparently also promise looks equally good on the surface very much the opposite underneath:

CPI growth of 3% (how, with deflation looming?);

11m urban jobs to be created (when there are reports of a softer labour market);

M2 growth will be the same as nominal GDP growth, which implies around 9% – are FX reserves going to rise 9% too?;

CNY2trn of tax cuts, including a 1 to 3ppt cut to VAT rates to try to boost spending, along with stimulus measures on autos and appliances;

Fiscal policy will be “PROACTIVE, STRONGER, MORE EFFECTIV …

Dems Plan Resolution Condemning Anti-Semitism After 2nd Ilhan Omar Outburst

Following yet another reportedly “anti-semitic” remark by Minnesota Congresswoman Ilhan Omar, one of two Muslim women elected to Congress last fall, Democrats in the House are reportedly planning a resolution to officially condemn anti-semitism (which these days seems to be any form of Israel bashing), and could vote on the measure as soon as Wednesday, according to Bloomberg.

The resolution was written over the weekend in a collaboration between staffers from the offices of Nancy Pelosi, Steny Hoyer Eliot Engel and Jerry Nadler, though one aid said the text hadn’t been finalized, and another aid no final decisions about the measure had been made.

Omar was first accused of using an anti-semitic trope in a now-deleted tweet about pro-Israel money in US politics. During the fallout from that tweet, Omar was widely condemned by Republicans and Democrats, and P …

Metals Stocks: Weaker gold at risk of seventh straight decline

Gold futures were marginally in the red again on Tuesday, setting the bruised market up for a seventh straight loss as its latest tumble has already marked the longest streak of daily declines in about two years.

The Moneyist: My fiancé works at the family firm — and his father has a strong hold over his finances

This woman wants to know how her boyfriend can persuade his father to relinquish custodianship of his IRA.

Need to Know: Love Netflix? Then this stock is a no-brainer, says wealth manager Ross Gerber

Our call of the day is looking at you Walt Disney, a company that with the “best reward deal” that Gerber Kawasaki’s Ross Gerber has seen in a long time.time.