19Jan2017 Pre-Market Commentary: Wall Street To Open Flat, Building Permits Down, Philadelphia Fed Manufacturing Up, Jobless Claims Down

Here is the current market situation from CNN Money

European markets are lower today with shares in London off the most. The FTSE 100 is down 0.52% while Germany’s DAX is off 0.09% and France’s CAC 40 is lower by 0.09%.

Futures flat as countdown to Trump’s inauguration begins

(Reuters) – U.S. stock index futures were little changed on Thursday, with investors seemingly wary of taking on risk ahead of Donald Trump’s swearing-in as U.S. president on Friday.

China says can resolve trade disputes with new U.S. government

BEIJING (Reuters) – China and the United States can resolve any trade disputes through talks, the government said on Thursday, as a Chinese newspaper warned U.S. business could be targets for retaliation in any trade war ushered in by President-elect Donald Trump.

Exclusive: Pentagon, Lockheed near deal on $9 billion F-35 contract – sources

WASHINGTON (Reuters) – The U.S. Department of Defense and Lockheed Martin Corp are close to deal for a contract worth almost $9 billion as negotiations are poised to bring the price per F-35 below $100 million for the first time, people familiar with the talks said Wednesday.

Ex-Volkswagen CEO denies early knowledge of diesel emissions cheating

BERLIN (Reuters) – Former Volkswagen Chief Executive Martin Winterkorn on Thursday declined to tell German lawmakers when he first learned about systematic exhaust emissions cheating but said it was no earlier than VW has officially admitted.

Banks put ‘hard’ Brexit move plans into action

LONDON (Reuters) – Global banks have begun signaling how they will put plans into action to cope with a “hard” exit by Britain from the European Union.

ECB maintains stimulus as growth picks up speed

FRANKFURT (Reuters) – The European Central Bank kept its super-easy monetary policy unchanged as expected on Thursday, maintaining extraordinary stimulus to aid a tepid recovery in growth after nearly a decade in the doldrums.

Indian government wants Apple, but not all officials are biting

NEW DELHI (Reuters) – Some Indian officials have balked at Apple’s demands for concessions before it assembles iPhones there, raising doubts about a spring deadline to launch a key project in Prime Minister Narendra Modi’s campaign to lure foreign investors.

Davos CEOs ‘go local’ on supply chain in Trump era

DAVOS, Switzerland (Reuters) – Business leaders in Davos, traditionally the high priests of globalization, are talking up the benefits of local production this week to shield themselves from criticism from incoming U.S. President Donald Trump.

Saudi’s SABIC still keen on Exxon Mobile venture in U.S., looking for more

RIYADH (Reuters) – Saudi Basic Industries Corp (SABIC) remains upbeat on a proposed petrochemical venture in the United States with Exxon Mobil and a preliminary investment decision could be made within months, SABIC’s chief executive said on Thursday.

Will ‘Dull Draghi’ Talk Up Downside Risks? – ECB Press Conference Live Feed

With Yellen hell-bent on tightening into Trump’s fiscal stimulus, and inflationary impulses popping up all around the world, ECB president Mario Draghi better note some serious downside looming (after leaving rates/taper unchanged) that opens the door to his un-tapering or the stagflationary pressures building everywhere willcome back to bite his precious asset prices.

As we noted earlier, with the market not expecting any changes from the ECB this morning, so far that is precisely what it got, when moments ago the ECB announced that it kept all of its rates unchanged as expected, keeping the rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility at 0.00%, 0.25% and -0.40%, respectively.

In additional language relating to non-standard measures, the ECB also said that “it will continue to make purchases under the asset purchase programme (APP) at the current monthly pace of 80 billion until the end of March 2017 and that, from April 2017, the net asset purchases are intended to continue at a monthly pace of 60 billion until the end of December 2017, or beyond, if necessary” and “in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim.”

It also said that “the net purchases will be made alongside reinvestments of the principal payments from maturing securities purchased under the APP” and cautioned that “if the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the programme in terms of size and/or duration.”

In other words, it may move QE up or down, depending on what happens with inflation, in line with the ECB’s December announcement.

The End Of The Obama World Order

Submitted by Michael Snyder via The Economic Collapse blog,

For the past eight years, Barack Obama has been using the power of the U.S. presidency to impose his vision of a progressive world order on the entire globe. As a result, much of the planet will greatly celebrate once the Obama era officially ends on Friday. The Obama years brought us the Arab Spring, Benghazi, ISIS, civil war in Syria, civil war in Ukraine and the Iran nuclear deal. On the home front, we have had to deal with Obamacare, “Fast and Furious”, IRS targeting of conservative groups, Solyndra, the VA scandal, NSA spying and the worst “economic recovery” since the end of World War II. And right at the end of his presidency, Barack Obama has committed the greatest betrayal of Israel in U.S. history and has brought us dangerously close to war with Russia.

So is the end of the Obama world order worth celebrating?

You better believe it is.

Of course Obama and his minions are in a great deal of distress that much of their hard work over the past eight years is about to be undone by Donald Trump. On Wednesday, Vice President Joe Biden warned the elitists gathered at the Worl …

ECB Leaves Rates Unchanged, Keeps QE At 60BN But May Revise It Higher Or Lower

With the market not expecting any changes from the ECB this morning, so far that is precisely what it got, when moments ago the ECB announced that it kept all of its rates unchanged as expected, keeping the rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility at 0.00%, 0.25% and -0.40%, respectively.

In additional language relating to non-standard measures, the ECB also said that “it will continue to make purchases under the asset purchase programme (APP) at the current monthly pace of 80 billion until the end of March 2017 and that, from April 2017, the net asset purchases are intended to continue at a monthly pace of 60 billion until the end of December 2017, or beyond, if necessary” and “in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim.”

It also said that “the net purchases will be made alongside reinvestments of the principal payments from maturing securities purchased under the APP” and cautioned that “if the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the programme in terms of size and/or duration.”

In other words, it may move QE up or down, depending on what happens with inflation, in line with the ECB’s December announcement.

Full ECB statement below.

Monetary policy decisions

At today’s meeting the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the depos …

Frontrunning: January 19

Yellen speech bolsters dollar after Trump’s mixed messages (Reuters)

Draghi Set to Face Questions on ECB Bond Purchases (WSJ)

Davos CEOs ‘go local’ on supply chain in Trump era (Reuters)

Oil and Trump: Russians full of optimism (Reuters)

Biggest Opposition Party Ready to Topple Swedish Government (BBG)

The Mortgage Market’s $1 Trillion Pocket of Worry (WSJ)

Ex-VW CEO Winterkorn Deflects Blame for Diesel-Cheating Scandal (BBG)

George Soros, Mastercard to partner to aid migrants, refugees (Reuters)

Don’t Assume Canada Will Rally With U.S., Poloz Warns Investors (BBG)

Mnuchin to Address IndyMac, Tax Policy at Senate Hearing (WSJ)

On Davos sidelines, banks expecting three-year transition after Brexit (Reuters)

Safran to Buy Zodiac for $10 Billion in All-French Aero Deal (

IBM: Paying Now for Work in Progress

IBM’s stock has risen sharply in the past year, raising the stakes for a continuing transition.

The Dollar and the Donald

No matter what Donald Trump says about the dollar being “too strong,” if he is able to deliver the sort of economic growth investors are hoping for, the currency will probably rise further.

Shale Rebound Will Cramp OPEC’s Style

U.S. shale oil production is rising too quickly for OPEC’s and Russia’s comfort.

14 January 2017 Initial Unemployment Claims Rolling Average Improvement Continues

The market expectations for weekly initial unemployment claims (from Bloomberg / Econoday) were 252 K to 260 K (consensus 255,000), and the Department of Labor reported 234,000 new claims. The more important (because of the volatility in the weekly reported claims and seasonality errors in adjusting the data) 4 week moving average moved from 257,000 (reported last week as 256,500) to 246,750. The rolling averages generally have been equal to or under 300,000 since August 2014.

Bond Report: U.S., European government-bond yields remain higher after ECB decision

European and U.S. bond yields remained higher on Thursday after the European Central Bank left its benchmark interest rate unchanged.

Market Extra: Forget about the dollar — collapsed sterling is your best bet, says top U.K. fund manager

Afraid of buying sterling? Don’t be, says Coutts CIO Alan Higgins who believes the pound will bounce back, even as the U.K. leaves the EU.

Chuck Jaffe: You’re not going to like these predictions for mutual funds

These 7 industry developments will rattle investors in 2017, predicts Chuck Jaffe.