Monday, April 24, 2017

Economic News , Data & Views .... April 24 , 2017.....Quick Hits For Monday - 1) Markets : Asia Calendar For Tuesday & Market Moving Data And News ; US Markets Simply Stated - Sunday's French Election First Round Results Spur Risk On Day For US Stock Indexes , Gold Driven Down In Price , US Crude Down 39 Cents , US Treasuries Pushed Higher In Yields Today. 2) US Political Round Up For Monday Including : Trump Tax Plan & 15% Corporate Tax Rate Component ; White House Wants To Send Infrastructure Plan To Congress By Summer Or Fall ; State Of Play On 100 Day Agenda ; State Of Play Of Healthcare Reform ; Foreign Policy Regarding North Korea And Syria ; Gov't Shutdown / Budget Updates / Border Wall Sticking Point ; Additional News Of Note. 3) France Presidential Election Updates : Le Pen Temporarily Steps Down As Head Of National Front Party To Broaden Appeal ; Second Round Could Be Very Problematic For Le Pen As Game Of Numbers Cuts Against Her ; Macron - Le Pen Debate Set For May 3rd ; Additional Items Of Note. 4) UK News : EU Wants UK To Pay 2Bn Related To Allegations UK Failed To Tackle Customs Fraud ; Tories Tipped To Win Commons Majority Of 150 ; Sturgeon Suggested Ulterior Motives Regarding Timing Of PM May's Call For A General Election. 4) Greece In Focus - Items Touching On Economy & Markets , Privitaztions & Creditor Talks . 5) Odds & Ends - Chile Earthquake , Libya ( Political Updates / Battlefield Reports ) & Afghanistan Defense Minister Resigns After Taliban Deadly Assault , Occurs As US DoD Head Mattis Arrives.




Markets......



Asia....



On the economic calendar due from Asia today (very little)






Markets Reel as $1.7 Trillion in Shadow Funds Unwinds - Bloomberg -
 








's Hidden Debt Stirs Investor Angst as Defaults Rise - Bloomberg -







Bad Loans, Capital Outflows Stabilize, 's Yi Says - Bloomberg





Asian Stocks Extend Global Rally; Yen, Gold Weaken: Markets Wrap - Bloomberg -







North Korea conducts large scale live fire drills





Nikkei 225 closes up +1.08% at 19,079.33






More from China: Rising defaults, hidden debt, banks pull out of investments





S.Korea joint cheifs of staff say the country hasn't seen any N.Korean provocation so far






Japan will be selling an additional 550bn JPY f debt today; on 2/May, will sell 200bn JPY






China fixed Yuan at 6.8833, vs 6.8673, weakens most since March 7






Japan PPI (Services) for March: 0.8% y/y (expected 0.7%, prior 0.8%)




Watch this today. Shanghai Composite closed below its 200-DMA Monday. Last time that happened, it tanked 22% over the next 6 days.




US.....





Nasdaq closes at record levels. Major indices end the with strong gains.






1 hour ago
Forexlive Americas forex news wrap: Today was about France and risk off




BBG pre-API/EIA survey: Crude -1.75mb Gasoline +1mb Distillates -1.5mb Refinery Runs -0.45%





U.S. crude futures settle at $49.23/bbl. ⬇$0.39. -0.79%. _M7 volume: ~475k







US Politics......






April 26th has lots of moving pieces. 1st-Operation Gotham Shield concludes. 2nd-full Senate briefing by WH Team on NK. 3rd-DC Terror Drill.






S. Korea, U.S scheduled to stage a combined tactical operation and live-fire drill April 25th.








US clear "redlines" : NK attacks US or Allies military base ; and NK launches ICBM. Murky redline seems another test of nuclear device.







: USS Michigan (SSBN-727), an Ohio-class submarine, is heading to for a "show of force."






Well , if that is the position of POTUS , Russian sanctions will never be lifted.









1 hour ago
Border wall funding looks like it may be pushed back to September.....





Canada Minister Freland & Carr condemn unfair, punitive duties on lumber






1 hour ago
Ross: It's been a bad week for US/Canada trade relations






1 hour ago
- DJ COMMERCE SECRETARY WILBUR ROSS INFORMED CANADIANS OF PLANNED TARIFF ON MONDAY







1 hour ago
- DJ TRUMP ADMINISTRATION PLANS TO IMPOSE 20% TARIFF ON CANADIAN SOFT LUMBER IMPORTS






Canadian companies targeted by tariff are West Fraser Mills, Canfor, J.D. Irving, Resolute FP Canada, and Tolko Marketing and Sales







This is a surprise !





Senate Finance Chair Orrin Hatch, asked by press about Trump goal of 15% corporate tax rate: “You can’t very well balance a budget that way”







1 hour ago
Trump administration wants to have infrastructure plan to Congress by summer or fall, Elaine Chao said in Ohio today.









Told Trump is "0 for 10" on his 1st-100-days agenda, Spicer said: "Right." Added "done a significant amount" on issues Trump campaigned on







Spicer declined numerous times to say if they expect a vote on health care reform this week. Three questions from alone.






All 100 senators invited to White House campus on Weds for a briefing on North Korea by Tillerson, Mattis, Dunford, Coats, Spicer said.






WHITE HOUSE SAYS NEGOTIATIONS CONTINUE WITH CONGRESSIONAL LEADERS OVER BORDER WALL FUNDING, EXPECTS ANNOUNCEMENT SOON: RTRS





WHITE HOUSE SAYS HEALTHCARE PLAN VOTE IN CONGRESS COULD COME IN FOLLOWING WEEKS





President Trump-Chancellor Merkel on the phone/ discussed Syria, Yemen, N Korea and Ukraine according to the White House





If our healthcare plan is approved, you will see real healthcare and premiums will start tumbling down. ObamaCare is in a death spiral!





TRUMP ON SYRIA: "Council failed again this month to respond to Syria's use of chemical weapons. Great disappointment."






TRUMP ON KOREA: "Status quo in North Korea is also unacceptable & the council must be prepared to impose additional and stronger sanctions"






It appears House Intel Committee's investigation is much further along than Senate Intel Committee's investigation.





Tit for tat responses very likely...





France....






A look at the issues that distinguish Macron and Le Pen....









UPDATE — Le Pen steps down as head of National Front party in attempt to appeal to a wide range of potential voters






Le Pen: Tonight, I am no longer the president of NF. I am the presidential candidate. More free, and above partisan considerations.'







Le Pen certainly appears to have a steep , uphill climb - but we shall see how the votes fall on May 7th !






Elabe Poll: Macron 64% vs. Le Pen 36%



CENTRIST MACRON SEEN BEATING LE PEN IN 2ND ROUND OF FRENCH ELECTION BY 60 PCT TO 40 PCT: IFOP.






France 5 year CDS shows extreme collapse ( 40 % at one point ) , after Sunday's first round results.







Le Pen has a plausible path to victory in France. Arrogance would be Macron’s worst enemy.






Macron - Le Pen TV Debate set for May 3rd. Should be "must see" television for French voters.






UK....






UK Times (4/25/17) - EU wants €2bn from UK to settle claims the UK failed to tackle customs fraud. The EU wants the cash before trade talks.









Tories tipped to win Commons majority of 150 --Tele









So what has he urged?







Tonight's blogpost: UKIP's "Integration Agenda" is a masterclass in legal ignorance and shameless racism










Latest Guardian/ICM poll has Tories on a 'stunning' 48% vs 31% in those seats currently held by Labour on a majority of less than 15%.





Greece....





Greek bond yields tumbled on Monday








Indirect tax takings compromise Q1 revenues







Confiscations of debtors’ assets grow, as do fresh debts







We have seen this movie before..







Athens aims for quick review wrap in bid to change agenda







Nursing staff is overstretched, union warns







67% stake in Thessaloniki port goes to Deutsche Invest Equity Partners & co for €231.9 million






Death toll from migrant boat sinking in Aegean rises to 16







7 more bodies reportedly recovered by Turkish coast guard from same shipwreck ; at least 16 dead; search & rescue operation continues





SAYS PRIMARY SURPLUS 4.2% - BBG






SAYS TALKS TO BEGIN TOMORROW - BBG *EU SAYS MISSION RETURNS TO ATHENS TODAY






Odds & Ends.....





Chile Quake...





Quake upgraded to 7.1





CHILE'S NAVY SAYS QUAKE HAS NOT GENERATED CONDITIONS LIKELY TO LEAD TO A TSUNAMI ON CHILE'S COAST




Libya....





Situation really tense around airport. Tanks out on the streets, gunfire being heard and nobody knows whats going





In south Libya, LNA AF carried out airstrikes against 3rd force & allies in a camp near Sabha airport. No reliable reports about casualties.




Airstrikes and unknown armed forces gathered just on the outskirts of today.













1 hour ago




















Afghanistan...





Car bomb detonated at one of the gates to Camp Chapman , a facility used by US soldiers and miltary contractors.