15May2019 Pre-Market Commentary: Another Day In The U.S.-China Trade Dispute

Here is the current market situation from CNN Money

European markets are mixed to lower. Shares in Germany are off as the DAX drops 0.48%. The CAC 40 is down 0.40% while the FTSE 100 in London is unchanged.

Exclusive: Trump expected to sign order paving way for U.S. telecoms ban on Huawei

President Donald Trump is expected to sign an executive order this week barring U.S. companies from using telecommunications equipment made by firms posing a national security risk, paving the way for a ban on doing business with China’s Huawei, three U.S. officials familiar with the plan told Reuters.

No easy options for China as trade war, U.S. pressure bite

China is running out of options to hit back at the United States without hurting its own interests, as Washington intensifies pressure on Beijing to correct trade imbalances in a challenge to China’s state-led economic model.

Fears of flying Boeing’s 737 MAX won’t get in way of price conscious ticket shoppers: Reuters/IPSOS poll

U.S. fliers still consider ticket prices the most important factor when choosing a flight, according to a Reuters/Ipsos poll, suggesting two fatal crashes of Boeing Co 737 MAX jets have had little impact on consumer sentiment.

SoftBank leads $200 million investment in India’s Grofers

Japan’s SoftBank Group Corp has led an investment round of more than $200 million in online grocery startup Grofers India through its Vision Fund, the New Delhi-based company said on Wednesday, upping competition in a hotly chased market in the country.

Tencent first quarter profit beats estimates as FinTech trumps mobile gaming

Tencent Holdings Ltd booked a 17% profit rise for the three months ended March, and revealed it made more revenue from FinTech and business services than smartphones games for the first time as it bore the brunt of regulatory setbacks in its mainstay games business.

Rising U.S. oil output helps fill gap left by Iran, Venezuela: IEA

The world will require very little extra oil from OPEC this year as booming U.S. output will offset falling exports from Iran and Venezuela, the International Energy Agency said on Wednesday.

China says it is only taking actions in self defense in U.S. trade dispute

China’s Foreign Ministry said on Wednesday the United States was defining the two countries’ dispute over trade as a trade war, and China was only taking action in self-defense.

French fashion group Kering pledges to hire only over-18 models

Kering, the French fashion group whose brands include Gucci and Saint Laurent, said it would only work with models aged over 18, as the fashion industry aims to tighten up its ethical guidelines.

Global stocks bounce fades on grim China data, Italy woes

A global equity bounce stemming from softer rhetoric by U.S. President Donald Trump on the trade dispute with Beijing waned on Wednesday as grim China data and fresh Italian debt woes cast a shadow over global markets.

Theresa May To Bring Back Brexit Deal For 4th Vote Next Month

The Tories are headed for what looks to be one of the most embarrassing electoral showings in recent memory during May’s EU Parliament elections, even though they technically shouldn’t matter since the UK is still – at least on paper – supposed to leave the EU at some point in the hopefully not-too-distant future. But the broader political implications are clear. Theresa May’s mismanagement of the Brexit process has triggered a backlash that will affect her entire party, and with Nigel Farage’s new Brexit Party surging in the polls, frustrated Tories are once again imploring their PM to step aside and let the party find a new leader to drive the UK over the Brexit cliff.

State Department Evacuates Employees From Baghdad Embassy Over Unspecified Iranian Threats

President Trump may have denied a “fake news” New York Times report about a Pentagon plan involving the deployment of 120,000 troops to the Middle East to contain Iran, but elsewhere, the US government’s contingency planning for an armed conflict with Iran continues apace.

According to the RT, Washington has ordered all “non emergency” government staff to leave the US embassy in Baghdad as tensions between the US and Iran escalate. Employees will leave the Baghdad embassy and the US consulate in Erbil.

China Calls For “People’s War” Against The US, Vows To “Fight For A New World”

While market mood has shifted diametrically from yesterday, with stocks sharply higher on Tuesday following what has widely been interpreted as conciliatory comments from both president Trump and various members of China’s ruling elite, one would be hard pressed to find any de-escalation amid the Chinese press commentaries written in the aftermath of the latest escalation in trade war between the US and China.

In a series of editorials and op-ed articles published Monday and Tuesday, Chinese state media slammed what it labeled the Trump administration’s “greed and arrogance”, called for a “people’s war” targeting the US “with precision” as China begins a “fight for a new world.”

“The most important thing is that in the China-US trade war, the US side fights for greed and arrogance … and morale will break at any point. The Chinese side is fighting back to protect its legitimate interests,” the nationalist, state-owned Global Times tabloid wrote .

Brexit Party Surge: Tories Tumble To 5th Place In European Parliament Polls

Authored by Mike Shedlock via MishTalk,

The European Parliament polls rate to be a disaster for the Tories. But Labour is not the beneficiary.

Cars and shampoo tell a tale of India’s slowing consumption

Cars and shampoo tell a tale of India’s slowing consumptionSlowing demand comes at a time when companies are holding back investments, posing a double-whammy.

A new generation is shaking up Indian politics

A new generation is shaking up Indian politics. Young disruptors are offering an alternative brand of politics centered on improving lives of the poor.

Payback time for IL&FS bosses may’ve arrived

Payback time for IL&FS bosses may’ve arrived. The board may invoke clawback option for bonus and benefits, file charges for fraud.

Mortgage Originations Declined – Lowest Level Seen Since 3Q2014

from the New York Fed

The Federal Reserve Bank of New York’s Center for Microeconomic Data today issued its Quarterly Report on Household Debt and Credit, which shows that total household debt increased by $124 billion (0.9%) to $13.67 trillion in the first quarter of 2019. It was the 19th consecutive quarter with an increase, and the total is now $993 billion higher than the previous peak of $12.68 trillion in the third quarter of 2008.

Early Headlines: Asia Stocks And Dollar Up, Oil And Gold Down, Dev. Economies’ Demographics, US Youth Unfit, France Employment, German Rebound, Iran Tensions Build, Trade No Deal, And More

Written by Econintersect

Early Bird Headlines 15 May 2019

Econintersect: Here are some of the headlines we found to help you start your day. For more headlines see our afternoon feature for GEI members, What We Read Today, published Monday, Wednesday and Friday, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.

There’s a ‘truth decay’ in American journalism — study says media has become more biased over the last 30 years

U.S. news has shifted to opinion-based content that appeals to emotion according to a new RAND Corporation report.

Europe Markets: Receding Chinese economy weighs on European markets

Weak Chinese economic data for April dragged European markets down on Wednesday, hitting some of the gains made during Tuesday’s rebound.

Tim Mullaney: How to play the bounce back in the stock market when the trade war ends

These stock market nose dives do end, and there’s a pretty clear template for what to do at the bottom — buy the stocks that have been hammered most.