23Jan2019 Pre-Market Commentary: Wall Street On Track To Recover From Its Second Biggest Decline In 2019, Stocks Reverse Losses, US Dollar Climbs In Fragile Rebound

Here is the current market situation from CNN Money

European markets are mixed today. The CAC 40 is up 0.45% while the DAX gains 0.20%. The FTSE 100 is off 0.26%.

Madrid taxis block access to tourist fair in anti-Uber protests

Hundreds of taxi drivers protested outside one of Madrid’s largest tourist fairs on Wednesday, using their cabs to block access roads and burning rubbish as part of an open-ended strike against Uber and other ride-hailing services.

EU competition chief signals caution over Siemens-Alstom rail merger

Europe’s competition commissioner has signaled her scepticism about the merger of Siemens’s and Alstom’s rail businesses by describing both companies as world champions that can compete globally.

Russia says oil price war with U.S. would be too costly

Russia should not unleash an oil price war against the United States but rather stick with output cuts even at the cost of losing market share in the medium term, one of the main Russian architects of a production pact with OPEC said.

Stocks reverse losses, U.S. dollar climbs in fragile rebound

Global markets recovered from earlier losses on Wednesday as investors made a cautious return to riskier assets, with the dollar rising and U.S. futures higher though worries about corporate and economic growth lingered.

U.S. bank Citi to shrink Russia branch network, but expects to do more business

The Russian arm of U.S. bank Citi said on Wednesday it planned to reduce the number of its offices in the country, but expected to do more business this year.

Subaru halts bulk of global car output over part defect

Subaru Corp said its sole car factory in Japan, accounting for roughly 60 percent of global production, could be out of action for almost two weeks after it discovered a suspected defect in a power-steering component.

Einhorn’s Greenlight Capital up 11 percent in year to date: source

David Einhorn’s Greenlight Capital, which turned in one of last year’s worst performance, is up 11 percent in early 2019 and the fund will soon be open to take in new cash, a source familiar with the matter said on Wednesday.

Johnson & Johnson eyeing surgical robotics firm Auris Health: Bloomberg

Johnson & Johnson is pursuing an acquisition of surgical robotics firm Auris Health Inc, Bloomberg reported on Wednesday, citing people with knowledge of the matter.

BOJ maintains massive stimulus as Kuroda warns of growing risks

The Bank of Japan cut its inflation forecasts on Wednesday but maintained its massive stimulus program, with Governor Haruhiko Kuroda warning of growing risks to the economy from trade protectionism and faltering global demand.

Blain: “It’s January And We Are All Miserably Miserable”

Blain’s Morning Porridge submitted by Bill Blain

I’ve just seen the surest sign economic apocalypse lies around the corner: Holiday sales in the UK are up 5% on a like for like basis, confirming we are so miserable about the B-word and everything else that we’re going to collectively max out the credit cards on a few extra days in Torremolinos… Hurrah! Ole for Spain…

A quick glance at the markets – miserable.

A quick review of the Davos bullsh*t – miserable (although full points to David Attenborough and Mr Cambridge for daring to chat about the wretched mess we’re making of the planet… (I can guarantee a chum of mine at Morgan Stanley will send me a blistering riposte telling me Climate Change is fake..))

US-China trade talks – miserable.

US Housing market – miserable.

European Elections in May – miserably populist.

European numbers – miserable.

IMF global growth outlook – miserable.

Prospects for Japan – miserable.

US Government Shutdown – miserable.

B-Word compromise in UK – Miserable and NFC.

Outlook for bank earnings, and Deutsche Bank as investigators sniff round Danske Bank trades – Miserable.

Corporate earnings – miserable.

Tech sector – suicidal.

I’m sure you get the drift. It’s January and we are all miserably miserable. And since everyone is so miserable I shall be enthusiastic – from Feb 3rd when I get back from a Ski trip. Things are probably not as bad as they look. They never are.

On Brexit, we’ve got Angel Gurria, head of the OECD, saying a No-Deal would not be the end of the world. Gosh – that sounds like heresy! A member of the establishment saying its nothing more than a storm in tea-cup?? Surely not!

But it’s a view I’ve heard many time …

Prof Goes After Covington Kid And “Smiling Face Of Whiteness”

Authored by Celine Ryan via Campus Reform,

An Ivy League professor bashed “the smiling face of Whiteness” in response to the recent controversy involving an interaction between a Native American man and a Catholic teenage supporter of President Donald Trump.

“Whiteness endlessly forgives its own transgressions,” University of Pennsylvania associate professor Ebony Elizabeth Thomaswrote on Sunday about the confrontation between Covington Catholic High School student Nick Sandmann and Native American Nathan Phillips.

“It rarely, if ever, gives those of us it harms and maims and kills time to process our motions [sic].”

Thomas teaches in UPenn’s Graduate School of Education.

“‘You forgive us, right? You have to forgive us! Understanding will make it better! Reconciliation! Diversity! Inclusion!'” she continued, conveying what she suggests to be the attitude of most white people.

According to Thom …

Fed Probing Deutsche Bank’s Role In Largest-Ever Money Laundering Scandal

As rumors about a possible Deutsche Bank merger with rival troubled German lender Commerzbank continue to swirl despite the seemingly never-ending investigations into a suite of alleged misdeeds by the bank, Bloomberg has given would be merger arbs weighing whether to buy the German lender’s battered shares one more reason to hold off.

In a follow-up to a report late last year that the Department of Justice had expanded its probe into what could be the largest money laundering scandal in history – that is, the infamous Danske Bank money laundering scandal, which involved some $230 billion of suspicious money flowing into Western Europe from shadowy sources in the former Soviet Union – by looking into the role played by the various correspondent banks that cleared many of these transactions (a group that included DB, BofA and JPM), Bloomberg reported on Wednesday that the Federal Reserve is examining how DB moved billions of dollars on behalf of Danske’s Estonian branch, the epicenter of the fraud.

Jared Kushner Pushing “Big Idea” To End Shutdown: Green Cards For DACA Recipients

Jared Kushner is pushing a novel idea to break the Congressional deadlock and end the government shutdown according to Axios: Put green cards for DACA recipients on the table.

A new immigration idea has been circulating over the past 24 hours at senior levels inside the White House and on Capitol Hill: Give a path to green cards to the 700,000 current DACA recipients, three sources familiar with the conversations tell Axios.

Though the idea is anathema to many Republicans (as well as conservative talking heads like Anne Coulter), Kushner believes it could be a workable option for winning support from Democrats for an immigration compromise bill being pushed by his father-in-law. Over the weekend, Trump said he would be open to a three-year extension of DACA protections as part of the compromise plan – something that Democratic leaders almost immediately rejected.

Some Republican senators, including James Lankford of Oklahoma, have advocated for th …

The Tell: Political drama is putting a lid on the stock market, Goldman analysts say

Goldman analysts say that policy mistakes are piling up.

Need to Know: Investors have seen the best Netflix and Amazon shares have to offer, says this money manager

Our call of the day offers some food for thought on a couple of the market’s biggest and most popular players: what if stocks have peaked and are now headed for the ‘dead’ zone.

Currencies: Dollar continues slide as risk-sensitive currencies recover

Risk-sensitive currencies recovered some on Wednesday, a day after risk appetite faded on the back of further worries about the possibility of a U.S.-China trade deal, as well as global growth.