21Jan2020 Open Market Commentary: Wall Street Opened Lower And Not Because Of The China Virus, DOW Down Almost 70 Points At The Opening, WTI Slipped To The 57 Handle, Gold And US Dollar Slipping

Here is the current market situation from CNN Money

European markets are lower today with shares in London off the most. The FTSE 100 is down 0.94% while France’s CAC 40 is off 0.80% and Germany’s DAX is lower by 0.13%.

China virus sends chill through markets as risks rise

Global stock markets took a hit on Tuesday as mounting concern about a new strain of coronavirus in China sent a ripple of risk aversion through markets.

Oil market shrugs off Libya crisis

Oil prices fell more than 1% on Tuesday on expectations that a well-supplied market would be able to absorb disruptions that have cut Libya’s crude production to a trickle.

Futures lower as China virus outbreak, growth fears sour mood

U.S. stock index futures followed Asian and European markets lower on Tuesday as worries about the fallout from a deadly virus outbreak in China and a gloomy growth outlook from the IMF looked set to stall a record rally on Wall Street.

Air France-KLM proposes buying 49% of Malaysia Airlines, JAL seeks smaller stake: sources

Proposals to invest in ailing Malaysia Airlines include one from Air France-KLM which wants as much as 49% while Japan Airlines is looking at a 25% stake, people with knowledge of the matter said.

Air France-KLM says not involved in Malaysia Airlines sale talks

Air France-KLM said on Tuesday it had previously held talks with the owners of Malaysia Airlines but was not engaged in current efforts to find new investors for the carrier.

Uber cuts losses from Eats business in India with sale to Zomato

Uber has sold its loss-making online food-ordering business in India to local rival Zomato in exchange for a 9.99% stake in the startup backed by China’s Ant Financial.

Halliburton beats estimate on international demand; takes $2.2 billion charge

Halliburton Co beat analysts’ estimates for quarterly profit on Tuesday, as higher drilling activity in international markets helped the oilfield services provider blunt a hit from slowing North America that led to a charge of $2.2 billion.

Boeing plans to stage first flight of 777X plane this week: sources

Boeing plans to carry out the first test flight of its delayed 777X airplane later this week, said two people familiar with the matter on Tuesday.

Exclusive: Apple dropped plan for encrypting backups after FBI complained – sources

Apple Inc dropped plans to let iPhone users fully encrypt backups of their devices in the company’s iCloud service after the FBI complained that the move would harm investigations, six sources familiar with the matter told Reuters.

Is Mass Civil Disobedience Our Future?

Is Mass Civil Disobedience Our Future?

Authored by Patrick Buchanan via The Unz Review,

On the holiday set aside in 2020 to honor Martin Luther King, the premier advocate of nonviolent Gandhian civil disobedience, thousands of gun owners gathered in Richmond to petition peacefully for their rights.

King had preached that there was a higher law that justified breaking existing laws that mandated racial segregation.

When Rosa Parks refused to give up her seat in the front of the bus in Montgomery, when Freedom Riders integrated bus terminals, when black students sat at segregated lunch counters in North Carolina, they challenged state law in the name of what they said was a higher law.

And Virginia gun owners believe their moral obligation to protect families, friends and themselves in a violent society justifies their right to keep and carry firearms, no matter what the Virginia legislature says.

“Reminds Me Of 1999”: Paul Tudor Jones Warns This Is The “Craziest Policy Mix In History”

“Reminds Me Of 1999”: Paul Tudor Jones Warns This Is The “Craziest Policy Mix In History”

While President Trump was touting the economy during his speech at Davos on Tuesday — Billionaire investor Paul Tudor Jones sat down with CNBC’s Squawk Box at the conference and warned: “We are in the craziest monetary fiscal mix in history. It’s so explosive. It defines imagination.”

“We are in the craziest monetary fiscal mix in history. It’s so explosive. It defines imagination,” says Paul Tudor Jones. “It reminds me of early 1999.” pic.twitter.com/0WplFvQtbT

” Squawk Box (@SquawkCNBC) January 21, 2020

Jones went onto say, “it reminds me a lot of the early ’99. Early ’99 we had 1.6% PCE, 2.3% CPI. We have the exact same metrics today. The difference is fed funds rate 4.75% today 1.62%, and back then we had budget surplus and we’ve got a 5% budget deficit … Crazy times.”

“Crazy times” indeed ” if Tudor Jones is right, the market is in the final blow-off stage as ‘Not QE’ propels markets to new highs. It will only be when the Federal Reserve winds down its unprecedented monetary accommodations that will trigger a top in the market (just as it did in 1999 after supplying liquidity to tamp down Y2K anxieties).

Extreme Deviations & Eventual Outcomes

Extreme Deviations & Eventual Outcomes

Authored by Lance Roberts via RealInvestmentAdvice.com,

The good news is that with the market closed yesterday, the extreme extensions of the market did not get any more extreme. Also, it doesn’t change our analysis much from this past weekend’s missive either:

œThis week, the market pushed those deviations even further as the S&P 500 has now pushed into 3-standard deviation territory above the 200-WEEK moving average.

UBS Tumbles After Biggest Swiss Bank Misses Key Targets As Investors Pull Money

UBS Tumbles After Biggest Swiss Bank Misses Key Targets As Investors Pull Money

The rift between the US (where rates are still positive) and European banks (where rates have never been more negative) continues to grow.

While US banks have so far reported mostly better than expected results for Q4, the same can not be said for Europe, where UBS shares are down 5% as the bank misses fiscal year profitability and cost targets in addition to trimming its mid-term goals. As Saxobank notes, “UBS has been hit by wealth management outflows, negative rates and poor performance in its investment banking division” and notes that “this obviously sends a warning to investors if they thought overweight European banks was a good idea.” To be sure, negative rates will continue to haunt European banks until the ECB changes its mind on negative rates.

It’s not just NIRP though: the great conundrum of 2019 struck again, because even as stocks hit all time highs, the largest Swiss bank missed key targets for 2019 as investors pulled money late in the year when stocks were soaring, underscoring the challenge for new wealth management co-head Iqbal Khan as he seeks to turn around its most important business.

As Bloomberg reports, the Swiss bank failed to meet several metrics set during a revamp of its goals just over a year ago, highlighting mounting headwinds for European lenders while U.S. rivals post record profits. The downgrades were across the board – on profit, cost efficiency and dividend growth – while the private bank unexpectedly saw $4.7 billion of outflows last quarter.

The lower targets, and higher outflows overshadowed a strong finish to the yea …

Ambani has answer to Exxon, AT&T, Amazon, all rolled into one

Ambani has answer to Exxon, AT&T, Amazon, all rolled into oneRIL has disrupted the energy and telecoms industry and could soon do the same to retail, fintech, and media.

From Wall Street, a 6-point guide for Modi

From Wall Street, a 6-point guide for ModiNothing is more important than dealing with the unfolding slowdown of the Indian economy.

Why a tax cut in Budget is not a great idea

Why a tax cut in Budget is not a great ideaTo reverse the ongoing economic slowdown, the immediate priority is to stimulate demand in the system.

Market Snapshot: Dow futures pull back as stock market stages pause from record-setting rise

U.S. stock-index futures headed lower on Tuesday, as investors returned from a holiday, but found few reasons to take equities higher following a brisk, record-setting run-up for the major benchmarks.

Outside the Box: Here’s some good news for parents struggling to save enough for retirement

You may need to save less than you think to maintain your lifestyle because so much of your costs today are for kids.

Mark Hulbert: January gains point to strong 2020 for stocks ” but don’t get too excited

If you follow stock market patterns, make sure they pass the test, writes Mark Hulbert.