Written by Gary
US stocks dipped in a broad, sharp sell-off today (SPY -1.2%) as rising geopolitical tensions spooked investors away from equities and of a impending global recession.
The Market in Perspective
Here are the headlines moving the markets. | |
Barrick doesn’t have ‘for-sale’ sign on Tongon, Massawa, but open to options: CEOBarrick Gold Corp is not actively seeking to sell its Tongon mine in Ivory Coast and the Massawa project in Senegal but will consider various options for both, Chief Executive Mark Bristow told Reuters on Monday. | |
Oil steadies as Saudi, Kuwait signals offset demand fearsOil prices were little changed on Monday as expectations that major producers would continue to reduce global supplies ran into worries about sluggish growth in crude demand due to the U.S.-China trade war. | |
Morgan Stanley analysts say Fed to cut U.S. rates in SeptemberMorgan Stanley analysts said on Monday that they now expect the U.S. Federal Reserve to cut rates in September and then again in October. | |
Wall Street slides on geopolitical, recession fearsU.S. stocks dipped in a broad sell-off on Monday as rising geopolitical tensions spooked investors away from equities and the extended U.S.-China trade war stoked fears of impending global recession. | |
Colombia fines Uber more than $629,000 for obstructing regulatory visitColombia’s commerce regulator said on Monday it would fine ride-hailing company Uber Technologies Inc more than $629,000 for obstructing a regulatory visit in 2017. | |
U.S. transportation chief asks new FAA head to review agency in wake of 737 MAX crashesU.S. Transportation Secretary Elaine Chao said on Monday she has asked the new head of the Federal Aviation Administration (FAA) to assess the agency’s performance in the wake of two fatal crashes of Boeing Co’s 737 MAX planes since October. | |
Yen, gold gain on trade war angst; Argentine peso sinksInvestors piled into gold, safe-haven yen and bonds on Monday over nagging concerns about a prolonged U.S.-China trade war and global growth, while Argentina’s peso plunged 22% after voters handed its president an election mauling. | |
Tyson to rebuild plant after fire, assures weekly pay for full-time workersU.S. meat processor Tyson Foods Inc said on Monday it will rebuild a Kansas beef plant after a fire heavily damaged the facility last week and that full-time, active employees would be paid weekly until production resumes. | |
Oregon joins states’ lawsuit to block T-Mobile, Sprint mergerOregon has joined a multistate lawsuit to block the merger of U.S. wireless carriers T-Mobile US Inc and Sprint Corp , the New York attorney general’s office, which is leading the lawsuit along with California, said on Monday. | |
Geopolitical Chaos Slams Stocks As Traders Flood Into Safe-HavensWith ‘everyone’ on vacation, geopolitical chaos drove risk-off today China trade war Hong Kong revolt PLA buildup German recession Italeave Epstein farce Argentina’s ARS pounded Kashmir chaos Russian nuke explosion Iran tanker safari Sending gold above stocks for the year… | |
China Trolls US Over Epstein “Suicide”Perhaps entirely to be expected, Chinese state-run media is trolling Washington days after the “apparent suicide” of billionaire convicted pedophile Jeffrey Epstein in his “high security” Manhattan jail cell, calling the truly bizarre episode a “perfect example” of the supposed evils of capitalism. The Epstein affair is a “perfect example demonstrating how capital permeates the US system and affects governing parties’ policies,” according to Communist party owned Global Times. | |
Why The Fed Has To Cut 100bps, But Will Only Do So After A Market CrashVia Strategic Macro blog, I have previously argued that QE repatriation, which I thought would be driven by QT, is a new Plaza Accord that would put the Yen and probably the Euro into 2-3 year structural bull markets. It seems we are now there, via a different driver. With USD Libor above the yields of Treasuries and other fixed income securities, financial and other investors are incentivised/ forced to take profits and it seems repatriation is going on. This is also causing the Euro to now rally in risk off days and the USD to sell off. That’s the opposite of prior relationships and shows just how much the US has been dependent on external funding in this cycle and on an ongoing basis, given Trump’s deficits. You can clearly see the repatriation in the Yen. The Yen bottomed in Q4 as US 10 year yields peaked and has tracked the US 10 year lower (stronger Yen). Recently the US 10 yield going below USD Libor has accelerated both the Yen rally and the fall in yields; they seem to be reinforcing themselves on a reflexive basis. | |
Israel Would “Spark War” By Joining US Flotilla In Gulf: Iran’s Navy ChiefDays ago we reported that Israel’s leaders were in discussions over the possibility of joining the recently proposed US maritime coalition in the Persian Gulf to escort international tankers to ward off threats from Iran, which could involve direct Israeli naval participation, or more likely would be limited to intelligence-sharing. Following the initial Reuters and Israeli media reports of top cabinet level meetings taking place, Tehran warned on Sunday that any Israeli presence in waters near Iran would lead to war.
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With Jio’s entry, a cloud war in India may be on the horizonWith Jio’s entry, a cloud war in India may be on the horizonAmbani’s move could spark a price war in the Indian cloud market, expected to grow to $5.6-bn in next 5 years. | |
The American dream is about to get tougherThe American dream is about to get tougherTrump has unveiled a new rule that could deny visas and permanent residency to people for being too poor. | |
Why restrictions on the Big Four is a bad ideaWhy restrictions on the Big Four is a bad ideaAny restriction on the Big 4 could have a serious impact both on equity and debt flows into the country. | |
Green Sheet: ‘Flight shame’ by Greta Thunberg boosts carbon-offset programs, and Frontier Airlines holds a ‘Green’ ticket giveawayDispatches from the business of climate change. | |
Market Extra: The 30-year Treasury bond yield is on the brink of falling to an all-time lowThe longest-dated Treasury bond is a hair’s breadth away from plumbing its lowest level in history. | |
Walmart mass shooting in El Paso puts focus on new risk to retailersThe deadly mass shooting at a Walmart Inc. El Paso store has sparked questions about the risk of violence at the nation’s brick-and-mortar retail locations, with one expert expressing confidence that there will be progress on safety measures, even if the move is minimal. |
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