02Aug2017 Pre-Market Commentary: DOW To Set New Records At The Opening, Former Fed Chairman Warns Of Bond Bubble, Stagflation, Crude Prices Fractionally Higher Ahead Of Inventory Report

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 0.37% while France’s CAC 40 is off 0.19% and Germany’s DAX is lower by 0.15%.

Apple gains could power Dow past 22,000

(Reuters) – Apple Inc’s surprisingly strong quarterly results and forecast pushed the iPhone maker’s shares to a record high, putting the Dow Jones Industrial Average on track to breach the 22,000 mark when the market opens.

Tech stocks bask in Apple glow, Dow eyeing 22,000

LONDON (Reuters) – Asian technology stocks hit 17-year peaks and Wall Street’s Dow index looked set to break 22,000 points later on Wednesday, as blockbuster earnings from Apple rippled out to component makers globally.

‘Wonder Woman’ lifts Time Warner’s profit

(Reuters) – Time Warner Inc , which is in the process of being bought by AT&T Inc , reported a better-than-expected 11.6 percent jump in quarterly profit, helped by the success of its latest superhero movie “Wonder Woman”.

Mondelez appoints Dirk Van de Put to succeed Irene Rosenfeld as CEO

(Reuters) – Oreo cookies maker Mondelez International Inc said it appointed Dirk Van de Put, the current chief executive of Canadian frozen foods maker McCain Foods, to succeed Irene Rosenfeld as the company’s chief executive from November 2017.

U.S. bosses throw weight behind new drive to court India

NEW DELHI (Reuters) – Top U.S. bosses are backing a new effort to build strategic ties with India, following Prime Minister Narendra Modi’s recent first meeting with President Donald Trump.

How Toshiba’s sale of $18 billion chip unit stalled, and what’s next

TOKYO (Reuters) – Japanese conglomerate Toshiba Corp’s talks to sell its prized memory chip business have stalled, raising concerns over how fast the company can plug a multi-billion-dollar balance sheet hole left by the collapse of its U.S. nuclear business.

Exclusive: Venezuelan oil supply to Phillips 66 falls amid quality issues

HOUSTON (Reuters) – Venezuela’s supply of heavy crude to U.S. independent refiner Phillips 66 has dropped by more than two-thirds this year in part due to quality problems, and the company has cancelled at least one cargo in recent months, according to sources from state-run oil company PDVSA.

CME sees dollars in data sales, but struggles to grow

NEW YORK (Reuters) – CME Group Inc, the world’s biggest exchange operator by market value, is looking to the lucrative business of selling data to boost revenue, spawn new financial products, and change the way many futures contracts trade.

Israeli taxman seeks $45 million from Coca Cola over royalties: report

JERUSALEM (Reuters) – Israel’s Tax Authority wants Coca-Cola to pay some 160 million shekels ($45 million) in taxes on royalties that the global beverage giant receives from its local franchise for use of the brand name in Israel, local newspapers reported.

Trump Set To Retaliate To China’s “Unfair Trade Practices”

President Trump has given China six months to prove that it is committed to preventing a nuclear-armed North Korea, and it seems his tolerance for China’s dithering has finally reached its limit. Now that President Xi Jinping has established that his government is unwilling to engage in a meaningful crackdown on its neighbor, the era of using carrots like improving trade relations to coax China into helping solve the “North Korea problem” has ended. It is now time for the stick.

According to reports in the New York Times, Wall Street Journal and Associated Press, the Trump administration is planning to use an obscure 1970s law to launch a “broad-based” investigation into whether China’s trade-related intellectual property policies constitute “unfair trade practices.

The US inquiry could become an obstacle for one of the Communist Party’s top economic priorities: the Made in China 2025 initiative, while calls for China to become a “global leader” in ten industries with the help of huge infusions of state money.

In the coming days, the US trade rep will launch a “Section 301” investigation, named after a portion of the 1974 Trade Act. Here’s a breakdown of the likely timeline for the investigation, as well as possible outcomes, courtesy of the

Greenspan Warns Moving Into “Stagflation Not Seen Since the 1970s”

Greenspan Warns Moving Into “Stagflation Not Seen Since the 1970s”

– Former Fed Chairman warns of bond bubble, stagflation
– “Moving into a … stagflation not seen since the 1970s”
– This will not be “good for asset prices”
– 10 Yr Gov bond yields fell from 15.8% in 1981 to 2.3%
– Interest rates will not stay low, will rise ‘reasonably fast’
– “Normal” interest rates in 4%-5% range
– Inflation will not stay at historically low levels
– Gold “protects savings” and is “store of value”
– Gold is the “ultimate insurance policy” says Greenspan

Editor: Mark O’Byrne

Greenspan warns of B …

Frontrunning: August 2

Trump close to decision on addressing Chinese trade practices (Reuters); White House Weighs Trade Measures Against China (WSJ)

Republicans Pivot to Tax Cuts Amid Frustration at Lack of Detail (BBG)

Russian losses in Syria jump in 2017, estimates show (Reuters)

Market Paradox: Firms Get Punished for Posting Earnings (WSJ)

OPEC’s ‘Catch-22’: How to Unwind Its Deal to Cut Oil Output (WSJ)

Trump’s CEO Brain Trust Hasn’t Done Much (BBG)

How the World’s Biggest Buyout Deal Crashed and Burned (BBG)

Some Insurers Seek ACA Premium Increases of 30% and Higher (WSJ)

Investor Einhorn sees cash burn at Tesla, sticks with short bet (Reuters)

Peltz and P&G Expect to Spend $60 Million on Record Proxy Fight (BBG)

Thera …

Seth Rich Investigator Accusations Debunked By Own Interviews As Seymour Hersh Leak Kills Russia Story

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Rio Tinto Can’t Just Mine The Current Rich Vein Forever

Rio Tinto’s results were impressive, but the current favorable environment won’t last forever.

Indexers Push Back Against Wall Street

Give a small cheer to the index nerds at S&P. Their decision to ban companies that have different classes of stock is a rare instance of Wall Street protecting investors.

The Calm Before the iPhone Boosts Wireless Industry

Judging by second-quarter earnings of wireless companies, it might appear like the industry has turned a corner after a couple of dismal years. The truth is, the industry benefited from an Apple-induced calm as customers waited for the new iPhone before dumping their carriers.

July 2017 ADP Job Growth Is 178,000 – At Expectations

Written by Steven Hansen

ADP reported non-farm private jobs growth at 178,000. Last month’s employment growth was significantly revised upward.

June 2017 Leading Index Review: Growth Trends Remain Mixed

Written by Steven Hansen

This post is a review of all major leading indicators follows – and their trends remain mixed.

There are precious few neighborhoods in New York City where even a couple can afford a two-bedroom apartment

Even wealthy people are being priced out of their neighborhoods.

Outside the Box: This is why U.S. investors should be worried about China

China’s debt level has exploded while the rest of the word has deleveraged — and its next big export could be a recession, writes Jonathan Rochford.

Apple’s Tim Cook sidesteps question about Trump claim of new manufacturing plants

President Donald Trump has said that Apple Chief Executive Tim Cook promised him “three big, beautiful plants” will be built in the U.S., but when asked for specifics in Tuesday’s earnings call with analysts, Cook shifted the conversation to jobs instead.