Written by Gary
U.S. stock markets pointed to fractional gains (SPY +0.2%) at the open this morning, with the blue-chip Dow futures rising 55 points on continued hopes that the policies of Trump will deliver economic growth. Global bond prices have tumbled, the U.S. dollar rallied to an 11-month high (100.03) and WTI crude has slipped to the 42 handle.
Here is the current market situation from CNN Money | |
 | European markets are higher today with shares in Germany leading the region. The DAX is up 0.36% while London’s FTSE 100 is up 0.24% and France’s CAC 40 is up 0.12%. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
 | Dollar soars as U.S. yields spike; shares dividedLONDON (Reuters) – The U.S. dollar hit an 11-month peak on Monday as the risk of faster inflation and wider budget deficits, if president-elect Donald Trump should go on a U.S. spending spree, sent Treasury and other benchmark global bond yields shooting higher. |
| Election over, Congress pivots to lame-duck debate over spendingWASHINGTON (Reuters) – With a bitter election campaign finally over, the Congress will reconvene this week to try to set aside its partisan differences long enough to keep the government from closing. |
| ‘Trump Thump’ whacks bond market for $1 trillion lossNEW YORK (Reuters) – Donald Trump’s stunning victory for the White House may mark the long-awaited end to the more than 30-year-old bull run in bonds, as bets on faster U.S. growth and inflation lead investors to favor stocks over bonds. |
| Oil pinned near three-month lows as gloom grows over OPECLONDON (Reuters) – Oil fell to its lowest in three months on Monday, as the prospect of another year of oversupply and weak prices overshadowed chances that OPEC will reach a deal to cut output. |
| Samsung to buy car tech firm Harman for $8 billion, South Korea’s biggest overseas dealSEOUL (Reuters) – Samsung Electronics announced an $8 billion deal on Monday to buy Harman International Industries, marking a major push into the auto electronics market and the biggest overseas acquisition ever by a South Korean firm. |
| Siemens to buy Mentor Graphics in $4.5 billion dealFRANKFURT (Reuters) – Siemens agreed to buy U.S.-based Mentor Graphics in a $4.5 billion cash deal that will further enhance the German engineering group’s industrial software capabilities. |
| UniCredit, SocGen decline to comment on merger rumorMILAN/PARIS (Reuters) – UniCredit and Societe Generale declined to comment on talk of a possible merger between them after their shares rose on speculation about a tie-up. |
| China data point to steadier economy for now, but Trump victory adds to risksBEIJING (Reuters) – China’s economy largely showed further signs of steadying in October as expected, but disappointing retail sales growth and fears of U.S. trade frictions under incoming President Donald Trump are increasingly clouding the outlook. |
| Deutsche Bank needs to finish homework before any M&A: CFOFRANKFURT (Reuters) – Deutsche Bank must work on resolving its own problems before it can consider making any acquisitions, its Chief Financial Officer Marcus Schenck said on Monday. |
| Hundreds Of Former Bernie Sanders DNC Delegates Launch Campaign For Donna Brazile To ResignNow that the election is over, as are the fake pleasantries and pre-election alliances, the time for payback has arrived, and according to a press release issued moments ago by the Bernie Delegate Network, hundreds of former Bernie Sanders delegates to the Democratic National Convention have voted overwhelmingly in a straw poll to “call for the immediate resignation of Donna Brazile as chair of the Democratic National Committee.” As a reminder, Brazile was recently sacked by CNN following revelations in the leaked Podesta emails that she had forwarded questions to Hillary Clinton against policy. The vote, 337 to 13, was 96 percent in favor of urging Brazile to resign. It came in a straw poll by the independent Bernie Delegates Network, which is sponsored by the online activist group RootsAction.org in partnership with Progressive Democrats of America. On Monday, hours after the delegates’ votes were tallied, RootsAction launched a nationwide petition calling for Brazile to immediately resign. The petition campaign was sparked by the revelation that, as a political analyst for CNN, Brazile gave the Clinton campaign advance notice of questions that would be asked during a CNN debate between Sanders and Clinton. At the time, Brazile was publicly claiming to be neutral about the Sanders-Clinton race. The Washington Post reported on Nov. 7: “Donna Brazile is not apologizing for leaking CNN debate questions and topics to the Hillary Clinton campaign during the Democratic primary. Her only regret, it seems, is that she got caught.” The executive director of Progressive Democrats of America, Donna Smith, said today: “We believe the DNC chair must reflect the base of the Democratic Party and the mission for which this party long stood. Clearly, when the party leadership failed to conduct itself impartially during the primary season and then failed to defeat the Republican candidate who is the most dangerous demagog … |
| “Tolerant” Educators Exile Trump Voters From CampusAuthored by Glenn Harlan Reynolds, first posted in USA Today With puppies, Play-doh and coloring books, safe spaces and therapy sessions turn universities into a joke. One of the more amusing bits of fallout from last week’s election has been the safe-space response of many colleges and universities to the election of the “wrong” candidate. But on closer examination, this response isn’t really amusing. In fact, it’s downright mean. Trump’s substantial victory, when most progressives expected a Hillary landslide, came as a shock to many. That shock seems to have been multiplied in academe, where few people seem to know any Trump supporters — or, at least, any Trump supporters who’ll admit to it. The response to the shock has been to turn campuses into kindergarten. The University of Michigan Law School announced a “post-election self-care” event with “food and play,” including “coloring sheets, play dough [sic], positive card-making, Legos and bubbles with your fellow law students.” (Embarrassed by the attention, UM Law scrubbed the announcement from its website, perhaps concerned that people would wonder if its graduates would require Legos and bubbles in the event of stressful litigation.) Stanford emailed its students and faculty that psychological counseling was available for those experiencing “uncertainty, anger, anxiety and/or fear” following the election. So did the University of Michigan’s F … |
| “A Barrage Of Fed Speakers”: The Key Events In The Coming Very Busy WeekThe key economic releases this week are retail sales on Tuesday, PPI on Wednesday and CPI on Thursday. There are several scheduled speaking engagements from Fed officials this week, including Chair Yellen’s testimony before Congress on Thursday. As markets continue to digest the implications of the US election outcome, there is a host of data and Central Bank communication adding to the running narrative with Fed speakers appearing on every single day of the week. In addition to barrage of daily Fed speakers, including Chair Yellen, we get US inflation data, retail sales, housing data, empire manufacturing, industrial production and the Philly Fed.
But it’s not the data that will be the primary focus this week, it’s the Fed speakers who are as follows: Monday: Kaplan; Lacker; Williams Tuesday: Rosengren; Tarullo; Fischer Wednesday: Bullard; Kashkari; Harker Thursday: Dudley; Yellen; Brainard; Evans Friday: Bullard; George; Kaplan; Powell In data: In the US focus will be on inflation data and retail sales, while across the pond we get labor market, inflation and retail sales data from the UK. The Euro area releases are more backward looking so focus will tilt towards ECB communication. Meanwhile in Australia, while the RBA Minutes are unlikely to add much new information, the labor market report will likely show employment growth falling for the third consecutive quarter. This should be an … |
| President Trump – Why Market Loves Him and Experts WrongPresident Trump – Why Market Loves Him and Experts Wrong by John Stepek, Editor of Money Week “If the question is when markets will recover, a first-pass answer is never.” I have to feel sorry for Paul Krugman. The Nobel prizewinning economist was clearly gutted by Donald Trump’s victory. |
| Samsung-Harman: Getting in an Automotive GrooveSamsung’s $8 billion deal for automotive tech player Harman International looks like a ride worth taking |
| India’s Black-Money Experiment Shines Bright for BondsDraining cash from an economy, like drawing blood, is a delicate procedure. As India is finding out, it can be very painful. |
| Big Tobacco’s Consolidation Endgame Is Drawing NearerA BAT-Reynolds deal would be another nail in the coffin for the “everywhere but America” model of Philip Morris International. |
| How Neo-Fisherism Differs From Conventional Central Banking Wisdomfrom the St Louis Fed A recemt blog post discussed the conventional central banking wisdom regarding inflation control. Namely, raising the nominal interest rate target should lead to lower inflation and cutting the nominal interest rate target should lead to higher inflation. This post discusses Neo-Fisherian ideas, which suggest the opposite would hold.
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| Deep Dive: Here’s an Apple supplier whose stock may soar in 2017A manager of the Villere Balanced Fund names an iPhone 8 play and two other growth stock picks. |
| Europe Markets: Drop in oil prices, Italian shares force European stocks to pare gainsEuropean shares came off session highs Monday, as oil prices swung lower, while Italian stocks fell as investors gauged risks stemming from next month’s referendum. |
| What President-elect Trump means for every U.S. industryTrump has pledged to roll back regulations in some key areas of the economy. |
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