tyb
Morning Market Report
'''Some Headlines in Business and Finance:==
SEC poised to adopt rules aimed at preventing broker conflicts, boosting disclosure
this is a MUCH needed step in the right direction-keep these people honest, may take some time but NEEDED-hopefully it's not just moar rhetoric.
WASHINGTON (Reuters) - The U.S. Securities and Exchange Commission (SEC) on Wednesday will vote to adopt a package of rules mandating brokerage firms disclose potential conflicts in the fees investors pay and the commission brokers earn when giving financial advice.
https://www.reuters.com/article/us-usa-sec-bestinterest/sec-poised-to-adopt-rules-aimed-at-preventing-broker-conflicts-boosting-disclosure-idUSKCN1T617O
European markets rise as central banks come to the rescue
https://www.marketwatch.com/story/european-markets-rise-as-central-banks-come-to-the-rescue-2019-06-05
Gold prices jump, head for longest win streak in 1 ½ years
see cap#4-muted for sure but trend continues.
https://www.marketwatch.com/story/gold-prices-jump-head-for-longest-win-streak-in-1-12-years-2019-06-05
Global Markets Roar Higher After Powell Spikes The Koolaid
Global stocks gained for a third straight day on Wednesday, paradoxically bolstered by growing hopes that the global economy is deteriorating fast enough so that the Fed will cut interest rates this year - perhaps as soon as this month - to avert a recession, while the dollar languished near seven-week lows.
Seems the scramble for the dollar has abated, perhaps this has to do with the recent rise in crypto's but those would still need to be converted into dollar's.
And while Powell made 'terrible news great again', as observed late last night when the China Caixin Services PMI dropped again by 1.8 to 52.7 in May, below consensus expectations (the sub-indexes suggest slow down in the growth of services exports orders, new business and employment, though inflationary pressures were reduced slightly in the services sector).
Sum Ting Wong.
Sending futures even higher, the overnight rally has cooled somewhat amid lingering trade-war concerns.
Futures are up quite a bit from last night-were fairly flat to up.
Asian stocks gained, led by industrials and IT sectors. Japan and Hong Kong led the rally, while markets in Singapore, India, Philippines, Malaysia and Indonesia were shut today for public holidays. Japan’s Topix Index closed 2.1% higher. Hong Kong’s Hang Seng Index snapped its five-day losing streak, with Techtronic Industries Co. and WH Group Ltd. contributing most of the gains. Australia’s S&P/ASX 200 Index rose 0.4% after its central bank chief strongly suggested he could follow up Tuesday’s interest-rate cut with another reduction.
Overnight, the IMF cut its 2019 economic growth forecast for China to 6.2% on heightened uncertainty around trade frictions, saying that more monetary policy easing would be warranted if the Sino-U.S. trade war escalates.
Ten-year Treasuries were little changed.
In commodities, WTI (-0.7%) and Brent (-0.6%) prices are back on the decline as a surprise build in last night’s API exacerbated the recent downside seen amidst demand concerns. Stockpiles last week increased by 3.5mln barrels vs. an expected decline of 800k barrels. On the OPEC front, Russian Energy Minister Novak will be meeting his Saudi counterpart, Al-Falih, on June 10th to potentially discuss a date for the OPEC/OPEC+ meeting with no confirmation as of yet to whether it will take place at the end of June or early July.
See Cap#3
US Event Calendar-Data
8:15am: ADP Employment Change, est.
185,000, prior 275,000
9:45am: Markit US Services PMI, est. 50.9,
prior 50.9; Composite PMI, prior 50.9
10am: ISM Non-Manufacturing Index, est.
55.4, prior 55.5
2pm: U.S. Federal Reserve Releases Beige
Book-(don't expect anything meaningful
here as it's just the rhetoric put in a report to
back up the talking).
The BoE’s Ramsden is also due to speak this morning. Away from that China’s Xi Jinping departs for a two-day visit to Russia while President Trump is due to meet Irish PM Varadkar.
https://www.zerohedge.com/news/2019-06-05/global-markets-roar-higher-after-powell-spikes-koolaid
https://www.bloomberg.com/markets/stocks/futures
https://www.dailyfx.com/crude-oil
https://www.kitco.com/charts/livegold.html
o7
Not so fast — interest-rate cuts are not a done deal, experts at Fed conference say
they get ONE day of up and now they don't want to cut rates or not take the yield curve seriously??
Never in the history of finance has there been one entity that says so many words with out actually saying anything of substance.'
Doubts about easing emerge on sidelines of Fed’s strategy conference even as rate-cut expectations buoyed markets
The Federal Reserve gathered experts in Chicago this week to talk about the long-term strategy of monetary policy.
But the short-term view took over the chatter from the sidelines of the conference, specifically the next few months and whether market expectations of interest-rate cuts will be self-fulfilling.
Financial markets are now pricing in three rate cuts by January, according to CME Group’s Fed Watch tool, a view that sent stocks sharply higher on Tuesday and left stock futures pointing to additional gains Wednesday.
pepe has used the CME Fed Watch tool for a very long time-this is where the call for the rate cuts came from a few weeks ago-data doesn't lie…people do.
See Cap#2-this suggests a 30% chance of .25 at June 18-19 FOMC meeting-this also has a summary of economic projections associated with it-done 4x a year.
Some experts at the Chicago conference think the market is overstating the downside risks to the economy from the trade tensions.
“I don’t have a recession in my outlook. I don’t think the data supports that,” one added
“If you put the blinders on and ignore financial markets and just focus on the data,” you wouldn’t be expecting rate cuts.
this is the fallacy of most analysts as they refuse to see what has habbeened instead only focusing on data-a good trader or analyst uses bits of both to arrive at a reality-based conclusion-you may not always be right but at least it's based.
But the drumbeat for Fed easing continues to build.
Former Treasury Secretary Larry Summers, writing in the Washington Post, said that if the Fed moves slowly on rate cuts, it would be “a grave error.” He called for the Fed to cut interest rates by 50 basis points over the summer and “by more if necessary” in the fall.
Fuck me this is from Larry "no comment" Summers??? and I agree with it-staggered this is coming from him.
Economists who think the Fed will cut interest rates generally don’t believe the central bank will move at its next meeting on June 18-19.
Nothing is off the table at this point-can see a surprise of .25 but would not make a bet on it.
https://www.marketwatch.com/story/fed-interest-rate-cuts-are-not-a-done-deal-experts-say-2019-06-05
https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html
welcome anon…it's getting good as the cracks in the systems rhetoric are really showing now.
Always been this relationship between oil and gold since the petrodollar introduced,one rise's the other drops. Still seeing that to a certain extent but the correlation oil had to equity's that existed in the first two qtrs of this year seems to be abating.
chek'em
that is the big fallacy of her. Great reads but take them with a dose of caution. Ahead of her time on some things but lacking in others. greenscum seemed to take the one-sided approach with that as well.
China's Central Bank: “Everyone, Please Don’t Worry"
Unsurprisingly, the Xi Jinping-led government has little interest in commemorating the event, or in allowing others to pause and remember. Domestic social media platforms have “barred users from changing their profile photos and other information,” Bloomberg says, while financial data company Refinitiv has blocked all Tiananmen-related stories from its Eikon terminals, after the Cyberspace Administration of China “threatened to suspend the company’s service,” according to Reuters.
While Refinitiv may suffer a reputational knock in the West for this evident kowtow, its social credit score looks poised for an upgrade.
If only the recent trouble in China’s banking system could be so easily suppressed. Following the government’s takeover of distressed Baoshang Bank Co., the People’s Bank of China tried to calm the situation by assuring investors that no further such interventions were in the cards: “Everyone,” says a message on the PBOC website: “please don’t worry. At present we don’t have this plan.” But Bloomberg reports today that a pair of smaller institutions, Guilin Bank Co., Ltd. and Jincheng Bank Co., Ltd., have delayed plans to sell RMB 1 billion ($140 million) in tier-2 bond sales following the Baoshang news.
Over the weekend, Bank of Jinzhou, which holds $113 billion and $53 billion of assets and deposits, respectively, saw its auditor Ernst & Young Hua Ming LLP resign due to “indications that some loans to institutional customers weren’t used in ways consistent with the purposes stated in documents,” per Bloomberg. In response, the bank’s 5.5% dollar-pay perpetual bonds fell below 65 from 81 a week ago, for a 19.2% yield-to-call.
https://www.zerohedge.com/news/2019-06-05/chinas-central-bank-everyone-please-dont-worry
see here:
There are 3 reasons China just took over a bank for the first time in 20 years, and 2 of them are a huge deal
https://www.businessinsider.com/china-baoshang-bank-takeover-why-it-matters-2019-5
Teva Director buys $2m in shares-June 3-4
Teva Pharmaceutical Industries Limited is a pharmaceutical company. The Company is engaged in developing, producing and marketing generic medicines and a portfolio of specialty medicines. The Company operates through two segments: Generic medicines and Specialty medicines. The Company develops, manufactures and sells generic medicines in a range of dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments and creams. Its specialty medicines business focuses on delivering a range of solutions to patients and providers through medicines, devices and services in various regions and markets around the world. Its specialty medicines business includes its core therapeutic areas of central nervous system (CNS) and respiratory medicines with a focus on asthma and chronic obstructive pulmonary disease. It also has specialty products in oncology, women's health and selected other areas.
https://www.marketscreener.com/TEVA-PHARMACEUTICAL-INDUS-56537293/company/
https://www.secform4.com/insider-trading/818686.htm
from february
Why Warren Buffett’s Berkshire Hathaway loves loathed Israeli drug stock Teva
On Wednesday, Warren Buffett’s Berkshire Hathaway disclosed a $358 million stake in Israeli generic drug company Teva Pharmaceutical Industries.
https://www.cnbc.com/2018/02/15/why-warren-buffetts-berkshire-loves-loathed-israeli-drug-stock-teva.html
it's from late april and someone is pushing it either because they can't read or are new.
covered extensively at time.
Disney does not own them.
The Australian Broadcasting Corporation (ABC) is Australia's national broadcaster founded in 1929. It is currently principally funded by direct grants from the Australian government, but is expressly independent of government and partisan politics. The ABC plays a leading role in journalistic independence and is fundamental in the history of broadcasting in Australia.
Modelled on the BBC in the United Kingdom, it was originally financed by consumer licence fees on broadcasting receivers. Licence fees were abolished in 1973 and replaced principally by direct government grants, as well as revenue from commercial activities related to its core broadcasting mission.
https://en.wikipedia.org/wiki/Australian_Broadcasting_Corporation