Here is the current market situation from CNN Money

North and South American markets are broadly higher today with shares in Brazil leading the region. The Bovespa is up 1.91% while U.S.’s S&P 500 is up 1.38% and Mexico’s IPC is up 0.27%.

Energy, banks fuel Wall Street’s rebound, S&P 500 erases losses

(Reuters) – U.S. stocks rose on Wednesday, with a surge in energy stocks helping Wall Street recover from a steep selloff in the previous session that was driven by political turmoil in Italy.

China vows to protect its interests from ‘reckless’ U.S. trade threats

BEIJING (Reuters) – China lashed out on Wednesday at renewed threats from the White House on trade, warning that it was ready to fight back if Washington was looking for a trade war, days ahead of a planned visit by U.S. Commerce Secretary Wilbur Ross.

Trump’s auto tariff plan threatens GM’s $7 billion South Korea rescue

SEOUL (Reuters) – Fresh off a $7 billion rescue for its loss-making South Korean operation, General Motors faces a new threat as U.S. President Donald Trump considers higher vehicle import tariffs that could “make or break” its Asian subsidiary.

How Kinder Morgan won a billion-dollar bailout on Canada pipeline

OTTAWA/HOUSTON (Reuters) – U.S. energy firm Kinder Morgan’s C$4.5 billion sale of an oil pipeline to Canada’s government marked an extraordinary escape from months of fraught negotiations among warring camps of Canadian officials.

Fox sets Disney deal vote for July 10

(Reuters) – Twenty-First Century Fox Inc will hold a special meeting on July 10th for its stockholders to vote on a proposed merger with Walt Disney Co , the company said on Wednesday.

U.S. first-quarter growth trimmed on weak consumer spending

WASHINGTON (Reuters) – U.S. economic growth slowed slightly more than initially thought in the first quarter as consumer spending rose at its weakest pace in nearly five years, but activity is already picking up against the backdrop of a tightening labor market and tax cuts.

Exxon CEO urges New York prosecutor to rethink climate change probe

DALLAS (Reuters) – Exxon Mobil Corp’s chief executive said on Wednesday that he hopes the new attorney general in New York “comes to a different conclusion” than predecessor Eric Schneiderman on a climate change probe into the world’s largest publicly traded oil producer.

Uber seeks to cut pricing on $1.13 billion term loan

NEW YORK (LPC) – Ride-hailing service Uber Technologies Inc is asking lenders to lower pricing on its $1.13 billion term loan due in 2023, sources said.

Consumer Reports recommends Tesla’s Model 3 after braking fix

(Reuters) – Influential U.S. magazine Consumer Reports said on Wednesday that it now recommended Tesla Inc’s Model 3 after its testers found that a recent firmware update improved the car’s braking distance by nearly 20 feet.

US Congress Set To Fund New Low-Yield Nuclear Warhead

Authored by Arkady Savitsky via The Strategic Culture Foundation,

There had been a long fight with fiery speeches, long-winded discussions presenting opposing views, publications and statements in support of “resolute steps” on the one hand as well as the calls for carefully weighing pros and cons on the other. Finally, the concept of “racing headlong into the unknown” has prevailed.

On May 23, the US House of Representatives turned down a measure that would limit the fiscal 2019 funding for the new 6.5 kt W76-2 low-yield (LY) or “flexible” nuclear warhead. The ordnance is to be installed on Trident II submarine-launched ballistic missiles (SLBMs), which normally carry 100 kt W76 warheads. The nuclear weapon (NW) is to be developed in accordance with the provisions of Nuclear Posture Review (NPR).

Before the vote, 32 former top security officials opposed the idea of low-yield nuclear warhead in a let …

For Italian Bonds, These Are The 12 Charts That Matter The Most

Despite today’s relent in the panicked Italian bond liquidation which started several days ago and culminated yesterday with a record drop in 2Y Italian bonds, some analysts remain unconvinced that any bounce or relief rally will stick.

Unlike BBG’s Mark Cudmore, who as we noted earlier, flipped from bearish to bullish on the hope that Italian bonds had sold off too far, too fast, BofA’s Barnaby Martin writes that while for much of this year, he had pinned his bullish credit stance on a continuation of the very strong retail inflow story that was such a powerful support for the market in ’17, flows have, of late, been elusive given the rise in global policy uncertainty and geopolitics, but nonetheless, “he had remained confident of their return given the record low level of rates vol in Europe, NIRP and rising household savings rates.”

Not anymore.

However, we think the political ructions in the European periphery over the last 72hrs will close the gate on this inflow narrative for a while now. After all, retail flows have shown a high level of sensitivity to Eurozone developments since 2011.

Therefore, to the BofA credit strategist it is the absence of inflows into Euro credit spreads that means they will likely stumble wider the foreseeable future: “Think of the “glue” of the market disappearing. Yes, relief rallies may well punctuate the gloom, simply given how violent and quick the move in Italian risk premiums has been.”

There is another reason why Martin sees the staying power of rallies as very limited: think aggressive supply.

Any period of relative market calm over the weeks ahead will be met with a wall of new issuance as corporates bring forward refinancing plans, given the rise in unc …

Housing Bubble Pathologies Start To Bite – Yet Another Sign The Cycle Has Peaked

Authored by John Rubino via DollarCollapse.com,

The early stages of a housing bubble are fun for pretty much everyone. Homeowners see their equity start to rise and feel smart for having bought, home seekers have to pay up, but not too much, and fully expect their new home to keep appreciating. People with modest incomes feel a bit of pinch but can still afford to stick around.

But later on the bad starts to outweigh the good. Existing homeowners still enjoy the ride but would-be buyers find themselves priced out of their top-choice neighborhoods. And residents who aren’t tech millionaires find that they can no longer afford to live where they work. Consider the plight of a teacher or cop pretty much anywhere in California these days:

Housing prices drive Davis teachers out of town. Legislators could give them a break from parcel taxes.

Drew Barclay has a master’s degree in education and three years of experience as an English teacher, but, like most new teachers in Davis, he can’t afford to live there.

Instead, Barclay, 31, shares a rental in Sacramento that costs him …

Puerto Rico’s Hurricane Maria Death Toll Could Be “More Than 70 Times” Official Estimate

An estimated 4,645 people perished when Hurricane Maria slammed into Peurto Rico, a territory of the United States, on September 20, 2017, and in the months after, according to an academic report published Tuesday in the New England Journal of Medicine. This shocking estimate dwarfs Puerto Rico’s official death toll of 64, which the researchers called a “substantial underestimate,” mostly due to delayed or interrupted medical services.

Maria caused an estimated $90 billion in damages across the island, making it one of the most expensive hurricanes for the United States since 1900. Tens of thousands of people were displaced from their homes, seeking shelter on higher ground or in the Continental United States. Accurate estimates of deaths, injuries, illness, and displacement have been extremely difficult to evaluate in the aftermath because infrastructure and healthcare systems were severely damaged.

“These numbers will serve as an important independent comparison to official statistics from death-registry data, which are currently being reevaluated, and underscore the inattention of the U.S. government to the frail inf …

The Real End Game for CBS-Viacom

A little-noticed part of lawsuit says Redstone could sell a combined company and give up control.

Hong Kong’s Stock Market Is Running Short of Integrity

Leading lights of the hedge fund world have gathered in Hong Kong to float their big bets on stocks at the annual Sohn conference. One of their biggest challenges: The local market’s setup.

Red Flags Are Suddenly Rampant in Markets

Europe’s deepening troubles and disappointing global growth signals are sparking a sudden rally in haven bonds like U.S. Treasurys: Risk aversion is back.

May 2018 Beige Book: Reading Between The Lines – Rate Of Economic Expansion Improved

Written by Steven Hansen

The consolidated economic report from the 12 Federal Reserve Districts (Beige Book) stated “Economic activity expanded moderately in late April and early May with few shifts in the pattern of growth”. The previous report stated “Economic activity continued to expand at a modest to moderate pace across the 12 Federal Reserve Districts in March and early April”.

The Fed: Upbeat ‘Beige Book’ prognosis of economy keeps Fed on track for June rate hike

The Federal Reserve said the U.S. grew “moderately” from late April to early May in its latest evaluation of the economy, indicating the central bank remains firmly on track to raise interest rates next month.

‘Roseanne’ canceled by ABC after its star attacks Obama ally Valerie Jarrett with racist tweet

“Roseanne” star and vocal Trump supporter Roseanne Barr attacked a former White House adviser for former President Barack Obama on Tuesday in a since-deleted tweet that many have called racist.

The Tell: Why bulls are betting on small-cap stocks to continue their winning ways

So far in 2018, small-caps are the best way to earn solid stock-market returns without suffering excess volatility. History suggests the pattern can continue, one analyst says.