22Mar2019 Midday Update: Wall Street Opened Down, DOW Off Over 400 Points, US Existing Home Sales Surge, WTI Slips To The Mid 58 Handle

Here is the current market situation from CNN Money

North and South American markets are sharply lower today with shares in Brazil off the most. The Bovespa is down 2.46% while Mexico’s IPC is off 1.78% and U.S.’s S&P 500 is lower by 1.53%.

Change to 737 MAX controls may have imperiled planes, experts say

Much like tapping the brake pedal in a car to disengage cruise control, a sharp tug on the controls of older models of Boeing Co’s 737 used to shut off an automatic trim system that keeps the plane flying level, giving the pilot control.

Nokia plays down compliance issues after shares drop

Nokia sought to play down the risks of an investigation into compliance issues at its Alcatel-Lucent business after its shares fell sharply on Friday.

American Airlines pilots will test 737 MAX software fix in Boeing simulator

American Airlines pilots will test Boeing Co’s 737 MAX software fix on simulators this weekend, the pilots’ union told Reuters on Thursday, a key step in restoring confidence in the jet after two fatal crashes.

Indonesia’s Garuda asks to cancel 737 MAX order it had been reconsidering before Ethiopia crash

Garuda Indonesia has asked to cancel an order for 49 Boeing Co 737 MAX 8 jets, citing a loss of passenger trust following two crashes, although it had been reconsidering the order before the latest disaster in Ethiopia last week.

U.S. existing home sales surge, boosted by Fed’s signal on rates

U.S. home sales surged in February to their highest level in 11 months, a sign that a pause in interest rate hikes by the Federal Reserve was starting to boost the U.S. economy.

U.S. Treasury curve inverts after PMI data misses estimates

The spread between three-month Treasury bills and 10-year note yields inverted on Friday for the first time since 2007 after U.S. manufacturing data missed estimates.

Deutsche Bank chief paid $8 million as top bosses gain first bonuses for four years

Deutsche Bank paid its management board members their first bonuses in four years in 2018, with Christian Sewing’s 7 million euro ($8 million) total package making him one of the best paid chief executives in European banking.

Commerzbank CEO sees strong investment bank as good fit: source

Commerzbank’s chief executive believes a strong and focused investment bank would be a good addition to the lender, according to a person familiar with his thinking on Friday.

Take Five: Take it easy, central banks – World markets themes for the week ahead

Following are five big themes likely to dominate thinking of investors and traders in the coming week and the Reuters stories related to them.

New Zealand Police Interviewed Mosque Shooter Before Granting Gun License

New Zealand police revealed on Friday that they met with accused Christchurch mosque shooter Brenton Tarrant in October 2017 as part of a routine home inspection connected to his purchase of the guns used in the March 15 attacks that left 50 dead.

Trump Nominates His Former Campaign Advisor To Fed Board

Update: it’s official.

TRUMP SAYS HE WILL NOMINATE STEPHEN MOORE TO FED BOARD

And now cue howls of outrage that Trump is stacking the Fed board with even more… doves?

* * *

President Trump has just enlisted a key ally in his battle of wills with Fed Chairman Jerome Powell.

Though Powell and the Fed have already capitulated to Trump’s demands to end QT, the president has reportedly tapped his former campaign advisor and former Wall Street Journal editorial board member Stephen Moore to fill one of the two remaining vacancies on the Federal Reserve Board of Governors.

One Last Warning For The U.S. Shale Patch

Authored by Arthur Berman via OilPrice.com,

Oil price lost 44% of its value late last year. That price collapse was a signal to tight oil companies to stop over-producing. The message will be repeated until action results.

To Avoid Trump’s Wrath GM Announces $300 Million Ohio Investment

Days after being slammed by president Donald Trump for its domestic capital spending plans, General Motors has given in to the criticism and announced that it’ll make a $300 million investment in its electric car plant in Orion, north of Detroit, according to Bloomberg.

The bailed out automaker which stopped reporting monthly sales roughly the same time the US auto sector peaked, said that the company is making “major new investment[s] focused on the development of GM future technologies” at the facility that builds its fully electric Chevy Bolt cars. The news is expected to be officially announced with the United Auto Workers and the expectation is that the investment will come in the form of a new electric car.

Jeff Schuster, a forecasting analyst at LMC Automotive said: “It’s probably an electric car. It’s essentially an all-electric story with an investment in EVs across several brands.”

15 March 2019 ECRI’s WLI Growth Rate Index Again Marginally Improves

Written by Steven Hansen

ECRI’s WLI Growth Index which forecasts economic growth six months forward improved but remains in contraction.

January 2018 Headline Wholesale Sales Improved With Inventories Very High

Written by Steven Hansen

The headlines say wholesale sales improved month-over-month with inventory levels worsening and very elevated. Our analysis shows a deceleration of the rate of growth for the rolling averages.

Currencies: Dollar boosted as economic worries undercut euro

The U.S. dollar climbed modestly in early Friday trading, with the euro under pressure following a round of disappointing economic data.

This is the safe way to drink hot tea

A new study suggests drinking piping hot tea can almost double the risk of esophageal cancer.

Bond Report: Treasury yield curve inverts for first time since 2007, underlining recession worries

A closely watched measure of the U.S. Treasury yield curve inverted Friday, with the yield on the 10-year Treasury note falling below the 3-month yield, stoking investor worries over a potential recession.