05Nov2019 Midday Update: Wall Street Takes A Breather After Trade-fueled Rally, DOW Up 35 Points, WTI Up To 57.14, US Dollar Rises, Gold Slips To 1472

Here is the current market situation from CNN Money

North and South American markets are lower today with shares in Mexico off the most. The IPC is down 0.89% while Brazil’s Bovespa is off 0.14% and U.S.’s S&P 500 is lower by 0.07%.

Air France-KLM plans sales and efficiency drive to lift profit

Air France-KLM outlined plans to expand its budget Transavia business and push the core French carrier upmarket, while overhauling its fleet in pursuit of improved sales and profitability.

JPMorgan CEO says lessons learned from failed WeWork IPO

JPMorgan Chase & Co Chief Executive Officer Jamie Dimon defended the bank’s work advising WeWork on its failed effort to go public, but added that the bank learned lessons from the experience.

Oil gains 1% as China pushes Trump for more tariff roll-backs

Oil prices rose more than 1% on Tuesday on hopes for a U.S.-China trade agreement and optimism that Washington could roll back some of the tariffs it has imposed on Chinese imports.

Aramco share sale curb rules out overseas listing for at least a year

The Saudi government plans to sell 2% of state oil giant Aramco in a domestic listing on Dec. 11, three sources familiar with the matter said, but restrictions on future share sales mean an international IPO is ruled out for at least a year.

Wall Street takes a breather after trade-fueled rally

U.S. stocks took a breather on Tuesday, weighed down partially by losses in healthcare stocks, after a rally driven by hopes of a trade truce between Washington and Beijing propelled the three main indexes to record highs a day earlier.

Coach powers Tapestry profit beat, tariffs to weigh on Kate Spade brand

Tapestry Inc reported quarterly profit above market expectations on Tuesday, but warned of weakness at its Kate Spade business due to tariffs on apparel and jewelry imported from China.

Domestic focus a ‘better choice’ for many Chinese companies: Harvest Global CIO

Focusing on domestic consumers would be a “better choice” for many Chinese companies, even if the shift is forced by trade tariffs and weak worldwide growth, said Thomas Kwan, chief investment officer at Harvest Global Investments.

Lufthansa invites unions for talks ahead of planned strike

Lufthansa said its Chief Executive Carsten Spohr had invited representatives of three unions for talks on a wage dispute that threatens to ground the airline’s German fleet for 48 hours from late on Wednesday.

How will Apple, Disney, AT&T and Netflix retain streaming subscribers?

When Apple Inc’s video streaming service made its debut on Friday, it came with $2 billion worth of original programming – a feature widely considered to be the most powerful magnet for new subscribers.

Bitcoin Flash-Crash Renews Manipulation Fears As Study Suggests One Whale Was Behind 2017 Bull Run

Bitcoin Flash-Crash Renews Manipulation Fears As Study Suggests One Whale Was Behind 2017 Bull Run

Bitcoin Futures flash-crashed this morning – plunging $1000 in seconds on massive volume…

CTAs To Turn Short Treasuries As Crowded “Everything Duration” Unwind Accelerates

CTAs To Turn Short Treasuries As Crowded “Everything Duration” Unwind Accelerates

Since Fed Chair Powell dropped his dovish ‘not hiking until inflation explodes’ comments at last week’s press conference, the long-end of the US Treasury curve has seen a massive round-trip.

Initially tumbling 20bps on the lower-for-longer-er comments, the last few days have seen that unwind entirely as trade optimism dominated sentiment.

Modern Central Banking Is More Vulnerable Than We Think

Modern Central Banking Is More Vulnerable Than We Think

Authored by John Mauldin via MauldinEconomics.com,

Banks are a place where you store your cash, right? Not exactly.

When you deposit money in a checking or savings account, you aren’t just letting the bank hold it on your behalf. You are lending the bank that money and the bank is borrowing it.

That’s why deposits show as a liability on the bank’s balance sheet.

We think of banks as lenders, and they are, but they’re also borrowers. They make money by lending at higher rates than they pay as borrowers, and by leveraging their deposits via fractional reserves.

Modern Central Banking

This is obvious if you think about it.

How can your bank simultaneously a) promise you can withdraw your cash on demand and b) lend that same cash to someone else?

That’s possible only because they know only a few people will want their cash back on any given day. And if cash requirements are more than expected, they can borrow from other banks or the Federal Reserve, as needed.

Modern central banking and regulatory practices have practically eliminated the old-fashioned bank run. It still happens occasionally, but the system can absorb it.

That’s because, while depositors can withdraw cash from a given bank, it is hard to withdraw from the banking system. Even if you buy gold, the gold dealer will probably deposit your cash in their bank, leaving the system exactly where it was before.

The System I …

Job Openings Plunge To 18 Month Low As Slide In Quits Confirms Job Market Slowdown

Job Openings Plunge To 18 Month Low As Slide In Quits Confirms Job Market Slowdown

Two months ago we concluded our analysis of the July Jolts by reminding readers that “JOLTS is 2 months delayed, so we wouldn’t be surprised if the next few months JOLTs is where the real ugliness lies.” That’s precisely what happened.

Just in case the last few declining payrolls reports weren’t sufficient to indicate that the US labor market is cooling rapidly, the latest JOLTS released today by the BLS confirmed that US workers are going through a decidedly rough patch, as the total number of job openings tumbled, and after last month’s 7.051 million total was revised sharply higher to 7.301 million, it tumbled again, sliding by 277K to 7.024 million, below the 7.063 million expected, and the lowest number in 17 months, since March 2018.

RCEP: Why splendid isolation is not an option for India

RCEP: Why splendid isolation is not an option for IndiaThe point is to negotiate efficiently, and gain more than we lose in a large, multilateral bargain.

What’s next on FM’s longlist of reforms

What’s next on FM’s longlist of reformsThe government and Reserve Bank are working to resolve the issues being faced by realty sector.

Tepid Maruti sales put Suzuki in slow lane

Tepid Maruti sales put Suzuki in slow laneMaruti’s 25% drop in volumes in the 1st half ended Sept has pulled Suzuki’s global sales down by 17%.

September 2019 Headline JOLTS Job Openings Rate Continues To Predict Slowing Employment Growth

Written by Steven Hansen

The BLS Job Openings and Labor Turnover Survey (JOLTS) can be used as a predictor of future job growth, and the predictive elements show that the year-over-year growth rate of unadjusted private non-farm job openings declined further in contraction.

The Ratings Game: Shake Shack stock tanks after it says it will temporarily shutter locations in 2020 for upgrades

Shack Shack is investing in remodeling, new locations, technology upgrades and a move to a single delivery provider, Grubhub.

On track? This is how much it costs to retire comfortably in each state

The œfattest state in the country is apparently also a pretty great place to retire, if bang for your buck is the priority.

Market Snapshot: Stocks slip after setting new records on trade deal optimism

U.S. stocks slipped Tuesday morning, despite better-than-expected data on the service sector, and after the three main U.S. equity benchmarks hit new records on Monday on fresh hopes for a U.S – China trade deal.