Thursday, June 2, 2016

Economic News , Data & Views ( June 2, 2016 ) Quick Hits For Thursday (1. Markets and Market Moving Items : Crude Oil Ignores Failure ONCE AGAIN , Of OPEC To Cut Production , Focusing On US Supply Data And Gasoline ; Credit In Focus - ECB Won't Automatically Toss Out Corp Bonds Cut To Junk , Risky Credit Is The New Black AS EM and Leveraged Loans Shine ; Stocks Shining As Well - Everyone Buying Everything It Would Appear . 2. An All Around Bad Day For Turkey - Tourism Hit , Armenia Resolution In Germany , US State Department Doesn't See Gulen Movement As Terror Group , Losing Sway & Influence Over Events In Syria , Not A "Safe Country" For Refugees 3. UK In Focus , Brexit , Economic Items. 4. Brazil In Focus - Zika , Political Corruption , Economy. 5. France In Focus - Seine Floods , Protests Continue To Roil France , French Come Up Small As Far As Taking In Refugees . 6. Odds & Ends For Today. )



Markets & Market Moving News....






Rules Out Automatic Sales of Corporate Bonds Cut to Junk.







Keeps Status Quo as Rally Brings New-Found Harmony.







Emerging Market High Yield Index at new all-time high. MSCI EM equity index still 26% below its all-time high in '07






Another all-time high in Leveraged Loans, up in 95 out of the past 99 trading days. Historic rally in credit.







New all-time high (total return) for the SPDR S&P 500 ETF, up 260% from the March 2009 low.







First time in 2016: all 9 S&P 500 Sector ETFs positive YTD and above their 200-day moving average.







Brent prices up after US stocks drop and gasoline demand rises strongly -- a happy (SUV) passanger








The best friend of is the US driver: gasoline demand at 9.7m b/d in late May; level akin to peak summer








US Yield curve at flattest level since November 2007, 91 bps spread b/t 10s and 2s.






Turkey In Focus .....






Leading Turkish tourism player expects $15 bln loss in revenue in 2016







Reprehensible statement - and this comes from Turkey's Justice Minister.








Erdogan not going to be pleased this statement. Not a good Thursday for Erdogan.










ANALYSIS: From master to observer - how Turkey became irrelevant in Manbij







As expected , Turkey extremely upset by Germany passing the Resolution. Now we wait for the blowback.







Turkey found to be an unsafe country -ten such decisions now.









UK In Focus , Brexit Items







David Miliband: our financial services are a "showcase of success"—but Brexit would threaten them









Military think-tank warns on Brexit shock















Imagine that ?








11,000 jobs hang in the balance...








Pimco comment on Brexit. .






Brazil ......
















Temer team say that Brazil economy will only improve when impeachment process complete. Sounds like excuses to me








OECD slashes Brazil growth forecast, citing political uncertainty and corruption worries.










Suspended president Rousseff finally got the Brazil economy moving. Well, sort of.








Zika not the only reason Rio Olympics need to be moved or postponed.






France.......






Euro 2016 starts in a week , right ? Let's see how long PM Vallas stands by his words.








Less than 5,000 a year.....France leaving the heavy lifting to Germany.








High water levels very obvious under Pont Charles de Gaulle









Just ahead of Euro 2016, strikes paralyze France in ongoing labor market battle - trains, planes & fuel impacted.








Odds & Ends....






ECB holds key rates steady, makes no announcement on Greece








Rioting at Greek camp in Lesbos leaves 4 injured. Violence broke out between & . Majority of camp being sent to Turkey








Donald Tusk urged Europeans to abandon dreams of federal Europe as these will stoke the rise of anti-EU populists.









Makes sense. Institutions need to assess new clauses to be voted in Greek parliament today & then give report to EWG






China imported 4.81 mln ton of Russian crude in April and to settle in RMB, more than Saudi.





Residents desperate as anti-IS forces move on Manbij