Written by Gary
Plunge In Consumer Credit Continues As Americans Repay Record Amounts Of Credit Card Debt (SPY +0.8%). Treasury yields hold ground as 10-year note auction fetches lowest rate on record.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Universal shuffles horror movie slate as coronavirus pandemic worsensAs the coronavirus pandemic continues to worsen in the U.S., Universal Pictures is pushing a number of its upcoming horror films to new dates. |
| New Jersey issues statewide order to wear face masks outdoorsNew Jersey Gov. Phil Murphy ordered people to wear face coverings outdoors when social distancing is not possible. |
| United warns 36,000 employees of potential job cuts as pandemic roils travel demandUnited is warning some 36,000 front-line employees about potential job cuts as the pandemic hinders a return to travel. |
| New York Gov. Cuomo blasts Trump on school reopenings: ‘It’s not up to the president’New York Gov. Andrew Cuomo blasted President Donald Trump on Wednesday for pressuring state officials to reopen schools this fall, saying the federal government doesn’t have any authority over the matter. |
| Walmart quietly registers insurance business in its latest move into health careThe big-box retailer has opened primary-care clinics, made health-care acquisitions and spoken about its broader ambitions. |
| Coronavirus cases surge among younger CaliforniansThe recent surge in the spread of the coronavirus in California is hitting younger people harder than the initial outbreak earlier this year, according to the latest data from the California Department of Public Health. Like many states, California is seeing a resurgence of new coronavirus cases in recent weeks. Confirmed cases have more than doubled in the last month, according to the latest data from Johns Hopkins University. |
| U.S. reports record single-day spike of 60,000 new coronavirus casesCases are growing, on average, by at least 5% in 37 states as of Tuesday, according to a CNBC analysis of data collected by Johns Hopkins. |
| Coronavirus live updates: U.S. surpasses 3 million cases, Phoenix mayor calls for testing surgeThe coronavirus has now killed at least 131,666 people in the U.S. |
| Storied apparel brand Brooks Brothers files for bankruptcy as it seeks a buyer and closes dozens of storesThe 202-year-old retailer has dressed U.S. presidents and countless investment bankers. |
| Black-owned businesses report boost in sales and interest on Blackout Day“Anytime you can bring in new customers to Black-owned businesses, it’s a great thing,” Michael De Los Santos, owner of Mike D’s BBQ, said. |
| Former Fox News anchor Shepard Smith joins CNBC as chief general news anchor with new evening showNine months after leaving Fox News, Shepard Smith is joining CNBC and will host a weekday one-hour program starting at 7 p.m. ET |
| Covid-19 hit July 4th travel harder in some states, study findsTravel during the July 4 weekend was busier than predicted, but states’ Covid-19 infection rates impacted whether they saw increases or decreases in activity over the Independence Day holiday. |
| CDC director says there’s no data children drive coronavirus spread ” but the U.S. isn’t testing many kidsThe question of whether kids might be a driver of transmission is key, especially as local officials decide whether and how to reopen schools in the fall. |
| Bullion, Bitcoin, & Big-Tech Bid As Dollar DumpedBullion, Bitcoin, & Big-Tech Bid As Dollar Dumped Tyler Durden Wed, 07/08/2020 – 16:00 The dollar was dumped overnight (following chatter of US attacks on the HKD peg) and extended losses during the day… |
| Biden Embraces ‘Green New Deal’ In Newly Released “Biden-Sanders” Policy PlatformBiden Embraces ‘Green New Deal’ In Newly Released “Biden-Sanders” Policy Platform Tyler Durden Wed, 07/08/2020 – 15:48 While Joe Biden was hanging out in the basement, his team was hard at work liaising with the remnants of the Bernie Sanders campaign people to craft a policy agenda that, they hope, will motivate the young people who came out in droves for Bernie to come out and vote for Biden. And unsurprisingly, Biden’s plan is a hodge-podge of mostly incompatible ideas obviously intended to pander to the white working class swing voters in the Midwest, and the young AOC-worshipping DSA members and crypto-marxists who powered Sanders to his second straight second-place finish in a Democratic presidential primary. According to information released by the campaign, the outline of Biden’s plan covers four areas: A push to ‘buy American’ and incentivizing American jobs, as well as embracing ‘clean energy’ (mostly via extreme policy proposals outlined in the Green New Deal), while also working to boost the “caring” economy – whatever that means. The Biden campaign said it would commit to bolstering child care and elder care, as well as racial equity. Here’s one quote from the policy paper released by the campaign:
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| Plunge In Consumer Credit Continues As Americans Repay Record Amounts Of Credit Card DebtPlunge In Consumer Credit Continues As Americans Repay Record Amounts Of Credit Card Debt Tyler Durden Wed, 07/08/2020 – 15:28 One of the striking changes to US consumer behavior spawned by the economic shutdowns from the coronavirus pandemic, was the unprecedented surge in personal savings which exploded to a record 32% of disposable personal income before easing modestly last month to 23.2%. Now, thanks to the latest consumer credit data released by the Fed, we know what much of that saving went to: paying down debt. |
| BofA Calculates That Today Marks The Day Of Peak US Coronavirus HospitalizationsBofA Calculates That Today Marks The Day Of Peak US Coronavirus Hospitalizations Tyler Durden Wed, 07/08/2020 – 15:16 Several months ago, the coronavirus pandemic mutated from a purely epidemiological phenomenon and became a full-blown political issue, with clear ideological divisions forming along the lines of whether or not to pursue strict shutdowns (and in some cases, whether to engage in another round of economic closures) all the way down to whether masks should be worn. The drivers here were self-evident: opponents of Trump and the current administration demanded even more caution, in some cases arguably in pursuit self-serving hopes of further economic pain (and more stimulus payments) that would make a Trump re-election difficult; in light of this it is understandable why the president hoped to put the pandemic in the rearview mirror and to accelerate the reopening of the economy which has cost tens of millions in jobs and trillions in new debt. In recent weeks, a similar divide has also emerged on Wall Street, where bears such as Goldman have been emphasizing the recent surge in new cases across sunbelt states, warning that these would result in another spike in deaths, as well as reduction in mobility and overall cosumption and thus a fresh hit to the economy, as a new round of shutdowns – either mandatory or voluntary – were enacted. Bulls, meanwhile, woul … |
| Chancellor gives diners 50% off on eating outChancellor Rishi Sunak has unveiled an “eat out to help out” discount as part of wider measures. |
| £1,000 bonus ‘may not be enough to protect jobs’Employers and unions say more needs to be done to support firms and protect employment. |
| Stamp duty holiday: The winners and the losersThe chancellor has announced a stamp duty holiday until next March, pleasing some but angering others. |
| Work from home is putting some techies on cloud nineWork from home is putting some techies on cloud nineWork-from-home scenario, induced by the Covid-19 crisis, has led to a scramble for talent in cloud technology. |
| Trump’s student visa order is a gift to UKTrump’s student visa order is a gift to UKThe UK is faced with the prospect of large losses if foreign student enrolments drop as a result of the pandemic. |
| Why ‘Buffer Zones’ on the LAC is a bad ideaWhy ‘Buffer Zones’ on the LAC is a bad ideaA buffer zone gives a misleading impression that some kind of a neutral area is being created. |
| May 2020 Headline Consumer Credit Again ContractsWritten by Steven Hansen Consumer credit contracted and is again below expectations. Our analysis of the unadjusted data shows annual growth did decline and is barely in expansion year-over-year. This is the third month of consumer credit data which shows the coronavirus impact.
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| Bond Report: Treasury yields hold ground as 10-year note auction fetches lowest rate on recordU.S. Treasury yields struggle for direction on Wednesday as even a bond auction fails to inspire trading during the bond market’s summer doldrums. |
| Market Extra: Forget earnings season. What’s the rest of 2020 going to look like?There will be very little useful guidance from U.S. corporations in the earnings reporting season starting mid-July on what the rest of 2020 will look like for the stock market and analysts are very divided on the outlook |
| British grocers reject U.S. chlorine-washed chicken as row over welfare standards deepenSeveral of the U.K.’s leading grocers have vowed never to sell chlorine-washed chicken and hormone-injected beef as the U.K. negotiates a free-trade agreement with th U.S. |
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