02Feb2017 Pre-Market Commentary: Wall Street To Open Fractionally Lower, The US Dollar Sinks, Gold Prices Have Rallied And WTI Crude Trading In The 54 Handle

Here is the current market situation from CNN Money

European markets are mixed today. The FTSE 100 is up 0.66% while the CAC 40 gains 0.15%. The DAX is off 0.13%.

Futures fall as Fed gives no clarity on next rate hike

(Reuters) – U.S. stock index futures fell on Thursday after the Federal Reserve gave little insight into whether it would raise interest rates at its next meeting, even as the central bank painted an upbeat picture of the economy.

Exclusive: Snap’s secrecy frustrates banks’ pursuit of IPO glory

(Reuters) – Some investment banks seeking to be added as underwriters to Snapchat owner Snap Inc’s initial public offering registration document have been denied access to review it before it is made public this week, according to people familiar with the matter.

Dan Loeb: Trump will make hedge funds great again

NEW YORK (Reuters) – U.S. hedge fund manager Dan Loeb is betting President Donald Trump will be good for investments thanks to his planned mix of tax cuts, reduced regulation and infrastructure spending.

Exclusive: Japan considers buying more U.S. energy as Abe prepares to meet Trump

TOKYO (Reuters) – Japanese Prime Minister Shinzo Abe is considering increasing energy imports from the United States, two sources familiar with the plan told Reuters, as he prepares to meet President Donald Trump, who has complained about Japan’s trade surplus.

Samsung Electronics may build U.S. plant for home appliances: source

SEOUL (Reuters) – Samsung Electronics Co Ltd may build a U.S. plant for its home appliances business, a person familiar with the matter said, the latest global firm to consider a response to criticism about imports from new U.S. President Donald Trump.

Irish calculation similar to EU on Apple tax estimate: minister

DUBLIN (Reuters) – The European Commission’s estimate that Apple owes Ireland up to 13 billion euros ($14 billion) in a disputed tax ruling is unlikely to be altered greatly by Dublin’s calculations, the Irish finance minister said on Thursday.

Oil up as OPEC cuts outweigh rise in U.S. stocks

LONDON (Reuters) – Oil prices rose on Thursday as evidence that OPEC and other big exporters were cutting production outweighed a sharp rise in U.S. crude and gasoline stockpiles.

Sony rules out pictures biz sale, committed to turnaround

TOKYO (Reuters) – Sony Corp on Thursday said it does not plan to sell its pictures business after suffering a $1 billion writedown, and instead aims to turn it around by adding sales channels and making more use of movie characters.

Panasonic says its avionics business being probed by U.S. authorities

TOKYO (Reuters) – Panasonic Corp said on Thursday its avionics unit is being investigated by U.S. authorities under the Foreign Corrupt Practices Act (FCPA) and that it has recently began talks with U.S. officials to resolve the matter.

Trump Doubles Down: “Iran Has Been Formally Put On Notice”

Echoing comments made yesterday by his national security advisor Michael Flynn, Trump started his Thursday morning on Twitter by first threatening to pull UC Berkeley’s funding and congratulating Rex Tillerson, and then stating that Iran is now formally “on notice” for firing a ballistic missile.

“Iran has been formally PUT ON NOTICE for firing a ballistic missile.Should have been thankful for the terrible deal the U.S. made with them!” he tweeted, without providing any other details.

Iran has been formally PUT ON NOTICE for firing a ballistic missile.Should have been thankful for the terrible deal the U.S. made with them!

— Donald J. Trump (@realDonaldTrump) February 2, 2017

Trump then added that “Iran was on its last legs and ready to collapse until the U.S. came along and gave it a life-line in the form of the Iran Deal: $150 billion.”

Iran was on its last legs and ready to collapse until the U.S. came along and gave it a life-line in the form of the Iran Deal: $150 billion

— Donald J. Trump (@realDonaldTrump) February 2, 2017

During a surprise appearance in the White House briefing room on Wednesday, Michael Flynn vowed a forceful U.S. response to Iran’s “destabilizing behavior across the Middle East.” Flynn said Iran “continues to threaten U.S. friends and allies in the region,” with a ballistic missile test launch over the weekend and other actions. Flynn also accused Barack Obama for allowing Iran to become “emboldened.”

“As of today, we are officially putting Iran on not …

Buy Gold Because of Uncertainty not Doomsday

• Doomsday Clock moves closer to midnight

  World not been as close to self-destruction since 1953

  Threat of nuclear powers, climate change and technology all considered heightened risks

  First time the Bulletin of Atomic Scientists have singled out an individual – President Trump

  Doom-mongering is arguably distracting and uncertainties should be more considered

  Gold and silver perform well during times of uncertainty and provide a safe-haven

  Wall Street’s largest fund managers have bet on gold in face of growing uncertainty

  

  Buy gold because of uncertainty not Doomsday

  It is two and a half minutes to midnight, the Clock is ticking, global danger looms. Wise public officials should act immediately, guiding humanity away from the brink. If they do not, wise citizens must step forward and lead the way.

Frontrunning: February 2

Futures fall as Fed gives no clarity on next rate hike (Reuters)

Yellen Eyes Commercial Real-Estate Froth as Fed Weighs ’17 Risks (BBG)

Trump Slams ‘Dumb Deal’ With Ally Australia After Testy Call (BBG)

For Many Firms, Trump Dominates Earnings Calls (WSJ)

Trump’s Blue-Collar Populism Is Dividing Unions (BBG)

Trump’s defense chief, in Seoul, takes stock of North Korea threat (Reuters)

Tillerson’s Vow to Keep Away From Exxon Runs Into a World of Oil (BBG)

Deutsche Bank Posts Loss as Litigation Costs Bite (WSJ)

Syrian army says it will press on against Islamic State near Aleppo (Reuters)

Seven Cases Where the Supreme Court Sided With Neil Gorsuch (And One Time It Didn’t) (BBG)

Factory Skills Gap Could Spell Trouble for Trump’s Jobs Plan (

Deutsche Bank Capital Recovery Looks Short-Lived

Deutsche Bank’s capital ratio and profitability face the threat of heavy new demands from global capital rule changes.

Shell’s Big Bet on Gas Still Up in the Air

The oil giant is looking healthier after large asset sales, but its future earnings are tied to volatile Asian gas prices—and China.

Have We Seen Peak Facebook?

Facebook posted impressive growth in the fourth quarter, but that growth may increasingly struggle to support its valuation.

January 2017 Job Cuts Surge

from Challenger Gray and Christmas

The new year started with an increase in corporate downsizing, as the nation’s employers announced plans to cut payrolls by 45,934 in January.

Mexico’s Cartels Will Continue To Splinter In 2017

from STRATFOR

— this post authored by Scott Stewart

Stratfor has tracked Mexico’s drug cartels for over a decade. For most of that time, our annual forecasts focused on the fortunes and prospects of each trafficking organization. But as Mexican organized crime groups have gradually fractured and fallen apart – a process we refer to as balkanization – we have had to refine the way we think about them. The cartels are no longer a handful of large groups carving out territory across Mexico, but a collection of many different smaller, regionally based networks. So, rather than exploring the outlook of every individual faction, we now take them as loose gatherings centered on certain core areas of operation: Tamaulipas, Tierra Caliente and Sinaloa.

Market Extra: Stock-market trading is changing in the age of passive investing

Equity investors—especially passive investors—are executing an increasing percentage of their trades during so-called stock auctions held by the major exchanges at the beginning and end of each market day, according to a study conducted by Greenwich Associates and Nasdaq Inc.roup.

Overworked Americans are stuck in a financial groundhog day

Long work hours, little vacation and not much to show for it.

The Wall Street Journal: Uber stops its ride-hailing service in Taiwan

Months after selling its ride-hailing services in mainland China, Uber Technologies Inc. said Thursday it will halt its services in Taiwan due to an escalating dispute with the government over the legality of its operations.