31May2018 Midday Update: Wall Street Down Fractionally, DOW Down Over 200 Points, Crude Prices Volatile

Here is the current market situation from CNN Money

North and South American markets are mixed. The Bovespa is higher by 1.85%, while the S&P 500 is leading the IPC lower. They are down 0.38% and 0.16% respectively.

U.S. hits allies with tariffs as trade war fears rise

WASHINGTON/PARIS (Reuters) – The United States on Thursday said it will impose tariffs on aluminum and steel imports from Canada, Mexico and the European Union, ending months of uncertainty about potential exemptions and reigniting fears of a global trade war.

Wall St. lower as fresh tariffs rekindle trade war fears

(Reuters) – U.S. stocks fell on Thursday after the United States decided to impose tariffs on aluminum and steel imports from Canada, Mexico and the European Union, sparking fresh worries over a trade war with its top allies.

U.S. consumer spending accelerates; job market strengthening

WASHINGTON (Reuters) – U.S. consumer spending posted its biggest gain in five months in April, a further sign that economic growth was regaining momentum early in the second quarter, while inflation continued to rise steadily.

As Trump talks of trade losses, China is a win for U.S. East Coast ports

CHARLESTON, S.C. (Reuters) – For America’s fastest growing East Coast ports, trade with China equals billions of dollars of investment and thousands of well-paid jobs in the heart of Trump country and not, as the president portrays it, the death knell for America’s middle class.

SoftBank joins GM in self-driving car push; GM shares soar

(Reuters) – Japan’s SoftBank Group Corp will invest $2.25 billion in General Motors Co’s autonomous vehicle unit Cruise, the companies said on Thursday, a deal that validates the venerable Detroit automaker’s leadership in self-driving cars and sent GM shares up more than 10 percent.

U.S. Commerce Department to announce section 232 tariff changes

WASHINGTON (Reuters) – U.S. Commerce Secretary Wilbur Ross will hold a news briefing at 9 a.m. (1300 GMT) to announce “Section 232” national security-related tariff modifications, the U.S. Commerce Department said in a statement on Thursday.

Exclusive: Russia’s Deripaska empire bets on mid-summer plan to escape U.S. sanctions

LONDON (Reuters) – The aluminum empire of Russian magnate Oleg Deripaska is in close contact with the U.S. Treasury, but needs until mid-summer to come up with a plan to meet U.S. requirements to escape sanctions, the chairman of its holding company told Reuters.

Workers to vote on ‘micro union’ at Boeing South Carolina plant

NORTH CHARLESTON, S.C. (Reuters) – A small group of workers at Boeing Co’s South Carolina jetliner factory is voting on Thursday on whether to form a “micro union,” despite efforts by Boeing to challenge the election.

Deutsche Bank’s U.S. operations deemed ‘troubled’ by Fed a year ago: WSJ

FRANKFURT (Reuters) – The United States Federal Reserve last year designated Deutsche Bank AG’s U.S. operations to be in “troubled condition”, The Wall Street Journal reported, citing people familiar with the matter.

Socialist Leader Sanchez Set To Become New Spanish PM As Rajoy Defeat Inevitable

Update: Spanish Prime Minister Rajoy refuses to resign ahead of tomorrow’s ‘done deal’ vote of no confidence in his administration (given that the opposition apparently has the votes) and Maria Cospedal has confirmed that centre-left Socialist party leader Pedro Sanchez is set to become the new Spanish prime minister.

“Are you ready to resign? Resign today and leave by your own will,” Sanchez told Rajoy. “You are part of the past, of a chapter the country is about to close.”

* * *

Mariano Rajoy became prime minister of Spain on December 20, 2011 and barring some miracle, his political career will end on June 1, 2018, because moments ago it appears that the required number of votes to ouster the premier in tomorrow’s vote of no-confidence was reached.

As we reported earlier, Socialist leader Pedro Sanchez who is spearheading the vote against the unpopular premier, already had the backing of the anti-establishment group Podemos, and Catalan separatists Esquerra Republicana and PdeCat. He only needed the support of Basque Nationalists to clinch it.

Moments ago the Basques officially sided with Sanchez, when the Basque Nationalists informed both Rajoy’s People’s Party and the Socialists that they’ve decided to vote against the prime minister, according to state broadcaster Television Espanola. With the Catalans of PdeCat also expected to support Sanchez, that would be enough to defeat Rajoy, as there are now 177 votes against Rajoy with 176 needed.

Ukraine Faces International Fury Over Staged “Fake News” Murder Of Russian Journalist

On Tuesday, headlines were filled with reports out of Ukraine – which not a single journalist decided to fact-check – that a prominent anti-Putin journalist, Arkady Babachenko, had been murdered in his Kiev apartment – “shot three times in the back” after returning from the store to buy bread. Immediately, the echo chamber shouted “Putin’s fault.”

The next day, Babachenko showed up at a press conference, where Ukrainian authorities announced that his death had been an elaborate hoax in order to catch his actual assassins who they claim are now in custody.

WATCH: Russian journalist Arkady Babchenko, reported to have been killed, appears at a news conference, as Ukrainian Security Service says the agency faked his death to catch those who were trying to kill him – @MSNBC pic.twitter.com/WnhAkVSls2

— NBC News (@NBCNews)

Comedian Wins Award For “Social Change”, Calls Ivanka Trump A “Feckless C**t”

On the same day as President Trump (and Sarah Sanders) highlight the utter hypocrisy of the liberal media, TBS comedian Samantha Bee ‘jumped the shark’.

Samantha Bee to @IvankaTrump on Full Frontal tonight:

“Let me just say, one mother to another, do something about your dad’s immigration practices you feckless cunt!” pic.twitter.com/S8BhRYNYxD

— Jon Levine (@LevineJonathan) May 31, 2018

On the night before she is set to receive an award from the Television Academy for “advancing social change,” The Daily Caller’s Derek Hunter reports that the so-called comedian called presidential adviser (and first daughter) Ivanka Trump a “feckless c**t” in her show’s monologue.

“You know, Ivanka, that’s a beautiful photo of you and your child,” Bee said,

“but let me just say, one mother to another, do something about your dad’s immigration practices you feckless cunt!”

The crowd then screamed and cheered.

“He listens to you,” Bee continued.

“Put on something tight and low-cut and tell your father to fucking stop it,” she said.

And here is the …

5-Star, League Reach Agreement On Government: Savona To Be Minister Of EU Affairs

The Italian political crisis may be (almost) over (for now).

According to La Stampa, Italy’s populist ruling parties, the 5-Star and the League, have reached an agreement in which the controversial nominee for finance minister, 82-year-old euroskeptic Paolo Savona, will instead become EU affairs minister while the pro-Euro public servant, Giovanni Tria who is currently President of the Italian National School of Public Administration, will take the sensitive post of finance minister. Enzo Moavero-Milanesi, who previously served Minister of European Affairs in the Monti Cabinet and the Letta Cabinet, will become Foreign Minister.

Paolo Savona

The Real End Game for CBS-Viacom

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

Clean Bill of Health for Insurance Deals

WellCare’s planned acquisition of Meridian shows why small health insurers should bulk up.

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.

April 2018 Pending Home Sales Seasonally Adjusted Index Remains In Contraction Year-over-Year

Written by Steven Hansen

The National Association of Realtors (NAR) seasonally adjusted pending home sales index improved. Our analysis says pending home sales is in contraction year-over-year. The quote of the day from this NAR release:

… The combination of paying extra at the pump, while also needing to save more for a down payment because of higher rates and home prices, may weigh on the psyche of those looking to buy …

Currencies: Dollar struggles for direction as trade war fears back in focus

The dollar holds steady with inflation data due later.

Market Extra: Here’s why the euro stands to lose as ECB weighs Italy woes, inflation pickup

Eurozone inflation that’s creeping up toward the European Central Bank’s target and Italy’s political turmoil could pull policy makers in opposite directions, and the struggle could spell further weakness for the euro.

Caroline Baum: The Fed’s verbal gymnastics include loads of back flips

The Federal Reserve has a hard time communicating with the public, especially when theory and reality diverge, writes Caroline Baum.