What a week!
Not only was President Trump brought up on impeachment charges of abuse of power and obstruction of congress (whatever that is) by Jerry Nadler's gutless judiciary committee, it came on the heels of a crushing conservative victory for Boris Johnson in England. And that came just after the Federal Reserve's FOMC decided to keep the federal funds interest rate right where it was, at 1.50-1.75%.
All of this happened on Wednesday, Thursday, and Friday. There was little time, in between, for the United States and China to announce, denounce, defer, define, defend, and eventually demystify the outlines of some vague phase one trade deal, which still hasn't happened, but is supposed to, any time, any day now.
So there it was, except for a few details that may have slipped over the transom or under the proverbial rug, like the Federal Reserve supplying $500 billion in liquidity to REPO markets to handle "the turn" from December 31, 2019 to January 1, 2020.
That little nugget came and went. Everybody was too much involved over impeachment and Boris and the trade deal to notice. Such an amount of money just to get from 2019 to 2020? It sounded absurd, spending half a trillion dollars to change the calendar. Remember, there was $700 billion in TARP, back in 2009, and that supposedly rescued the entire global financial system. This amount is more than two thirds of that.
In a related story, Lee Adler of The Wall Street Examiner purports that the Federal Reserve has bought up 90% of the government's issuance of treasury bills, notes, and bonds since September 16, effectively monetizing the debt.
So, this $500 billion of liquidity from the benevolent Fed, is it a precursor of more debt monetization, or simply a safeguard against some hedge fund or larger institution crashing as one year turns to the next? Its hard to say. Like recessions, the world will likely have to wait until after the fact to find out.
On a weekly basis, the Dow has gained in seven of the last 10 weeks. The S&P was up nine of the last 10, the NASDAQ moved higher nine of the last 11, and the Composite Index finished higher nine out of the last 10 and this week closed at an all-time high, proving, once again, that it's folly to fight the Fed.
As a footnote to the coming week, the full house is expected to vote on articles of impeachment on Wednesday.
At the Close, Friday, December 13, 2019:
Dow Jones Industrial Average: 28,135.38, +3.28 (+0.01%)
NASDAQ: 8,734.88, +17.56 (+0.20%)
S&P 500: 3,168.80, +0.23 (+0.01%)
NYSE Composite: 13,697.34, -0.06 (-0.00%)
For the Week:
Dow: +120.32 (+0.43%)
NASDAQ: +78.35 (+0.91%)
S&P 500: +22.89 (+0.73%)
NYSE Composite: +109.05 (+0.80%)
Showing posts with label Boris Johnson. Show all posts
Showing posts with label Boris Johnson. Show all posts
Monday, December 16, 2019
Friday, December 13, 2019
Britons Vote In Conservatives As Boris Johnson Rides Populist Landslide To Majority
"We broke the deadlock, we've ended the gridlock, we've smashed the roadblock - we did it!"
Those were the words Britain's Boris Johnson used to describe his his Tory party victory in Thursday's UK general election, as the conservative party was swept into power with a commanding majority in the House of Commons, crushing the liberal Labor party and others.
Johnson's resounding message during the campaign was to "get Brexit done," and it appears the path is now clear, nearly four years after the general population voted in a referendum to leave the European Union. With not all of the districts reporting, the conservatives hold 364 seats to Labor's 202. 325 votes are needed for an outright, one-party majority and the Tories have it.
The size of the majority was of a magnitude not seen since the 1980s when Margaret Thatcher ruled over decade of conservatism. Some of the Labor seats that were lost had been voting for liberals since the 1930s. The sweep and scope of the landslide is historic.
Johnson, party leader and Prime Minister, has been pushing for a resolution to the Brexit problem over the past six months and finally was pushed into a general election, a move that eventually backfired on his opponents and has now paved the way for Britain to regain its independence and restrain or reverse the liberal spending and immigration policies that the country so desperately needs.
This election, viewed on a global basis, is an extraordinary victory for conservatives and working-class populism, mush as Donal Trump's election in 2016 was in the United States. The wave of populism just got another boost, sending the worn-out, fear-ridden policies of the left screaming for cover.
Even as the results were being tabulated Thursday night in Great Britain, voices of the losing liberals were heard using words and phrases such as "devastating," "disastrous," and "dangerous for our country," to describe the stunning victory for the right, with the general public sending a loud mandate to fix what's broken and move on.
No doubt, the liberal politicians will moan and wail, just as they have in the United States, but, in the end, the handwriting is on the wall. People want less government intervention into their lives, less meddling, and more positive, clear-headed solutions.
While many in America will have little understanding of the importance of the British elections, they send a clear message and make the case for Trump in a very distinct way.
Here is Johnson's victory speech:
At the Close, Thursday, December 12, 2019
NASDAQ: 8,717.32, +63.27 (+0.73%)
S&P 500: 3,168.57, +26.94 (+0.86%)
NYSE Composite: 13,697.41, +117.48 (+0.87%)
Tuesday, September 10, 2019
Stocks Flat; Britain Should Leave The EU ASAP
Markets - whatever is left of them - seemed to be running on fumes Monday, as no Trump tweets nor economic news were sufficient to move stocks in general either way.
This kind of quiet may be just what investors are seeking: less volatility, less media madness, a more sanguine environment and some degree of security and safety. With all the talk of recession, the past few months have spooked some of the more ardent longs, but the market is still not conducive to short trades in any form.
One could conclude from recent action that stocks will hold their ground and move to new highs, as has been the case throughout the run from 2009 (buy the dip philosophy), and with another 1/4 point rate cut from the Fed a sure thing next week, that is the likely trading strategy for the day-trader and short-termer. Long term investors should be seeking value or growth, best, a combination of the two. With interest rates so low, dividend-yielding stocks with long track records are the safest and surest, plus, many will survive well under difficult conditions, should a recession actually arrive.
Central banks still have control of markets, a condition that may persist for quite a long time. It should serve memory well to reconsider the aftermath of the 2008 crash, wherein central banks coordinated to save everything, even unworthy companies, from default.
This might be a prime time to move from passive to active investing, with individual stocks preferred over ETFs or mutuals. Expect some noisy ups and downs over the next few months, though the next major event is Brexit, with a hard-line, no-deal escape from the EU by Great Britain set for October 31 by Boris Johnson, the most recent Prime Minister of the country.
It's been more than three years since jolly ole' England voted to leave the EU. Parliamentarians and stubborn bureaucrats have delayed the wishes of the people for too long and the wait may soon be over. Anything short of England removing itself from the EU - without onerous conditions - will be very bad for markets. The hyperbole of the media and those on the "remain" side of the issue have played the hysterics card for all it's worth.
Time is up. Populism should prevail in England and the result of leaving the EU, while dramatic, does not have to be traumatic.
At the Close, Monday, September 9, 2019:
Dow Jones Industrial Average: 26,835.51, +38.05 (+0.14%)
NASDAQ: 8,087.44, -15.64 (-0.19%)
S&P 500: 2,978.43, -0.28 (-0.01%)
NYSE Composite: 12,960.72, +27.34 (+0.21%)
This kind of quiet may be just what investors are seeking: less volatility, less media madness, a more sanguine environment and some degree of security and safety. With all the talk of recession, the past few months have spooked some of the more ardent longs, but the market is still not conducive to short trades in any form.
One could conclude from recent action that stocks will hold their ground and move to new highs, as has been the case throughout the run from 2009 (buy the dip philosophy), and with another 1/4 point rate cut from the Fed a sure thing next week, that is the likely trading strategy for the day-trader and short-termer. Long term investors should be seeking value or growth, best, a combination of the two. With interest rates so low, dividend-yielding stocks with long track records are the safest and surest, plus, many will survive well under difficult conditions, should a recession actually arrive.
Central banks still have control of markets, a condition that may persist for quite a long time. It should serve memory well to reconsider the aftermath of the 2008 crash, wherein central banks coordinated to save everything, even unworthy companies, from default.
This might be a prime time to move from passive to active investing, with individual stocks preferred over ETFs or mutuals. Expect some noisy ups and downs over the next few months, though the next major event is Brexit, with a hard-line, no-deal escape from the EU by Great Britain set for October 31 by Boris Johnson, the most recent Prime Minister of the country.
It's been more than three years since jolly ole' England voted to leave the EU. Parliamentarians and stubborn bureaucrats have delayed the wishes of the people for too long and the wait may soon be over. Anything short of England removing itself from the EU - without onerous conditions - will be very bad for markets. The hyperbole of the media and those on the "remain" side of the issue have played the hysterics card for all it's worth.
Time is up. Populism should prevail in England and the result of leaving the EU, while dramatic, does not have to be traumatic.
At the Close, Monday, September 9, 2019:
Dow Jones Industrial Average: 26,835.51, +38.05 (+0.14%)
NASDAQ: 8,087.44, -15.64 (-0.19%)
S&P 500: 2,978.43, -0.28 (-0.01%)
NYSE Composite: 12,960.72, +27.34 (+0.21%)
Friday, June 24, 2016
As Britain Votes To Leave European Union, The Establishment Is Losing Control
Just a few days ago, our Fearless Editor, Rick Gagliano, penned a post here at Money Daily espousing the belief that the Brexit/Bremain vote and the US presidential election were sideshows and being overblown in importance by the media. Perhaps it was a faux pas or even a veiled negotiation maneuver designed to keep "remain" voters away from the polls (we doubt the latter to be true). In any case, voters in Great Britain did - in establishment terms - the unthinkable, voted to depart from the European Union, and quite possibly delivered a verdict on the perilous future of the EU.
We now present the post mortem.
All hail Nigel Farage, head of the UKIP party and leader of the "Brexit" movement in Great Britain, for he has brought the nation out from under the Orwellian totalitarianism that is essentially the bloated bureaucracy of the European Union, and unshackled the common Briton from enslavement to the status quo.
Here is what Farage said as the tally was coming in, looking favorable for Britain exit from the EU:
Having fought the good fight as an MEP and a representative to the European Parliament for nearly two decades and yesterday, Farege's unwavering rhetoric for freedom and against oppression struck the first salvo for the people against the leading technocratic superstate of the EU, headquartered in Brussels.
For Farage, the victory may have greater consequences. With PM David Cameron admitting defeat and promising to step down come October, Farage figures to be a natural candidate for the vacated post of Prime Minister. Already the mainstream press has put the face of Boris Johnson, former mayor of London, front and center, ahead of Farage, who has said openly that he doesn't want to be Britain's PM.
That battle has a long way to go, but, for now, a rundown of just what Brexit has meant to markets around the world.
The Final Tally:
Leave
Vote share 51.9%
Votes 17,410,742 Votes
Remain
Vote share 48.1%
Votes 16,141,241 Votes
Stocks indices around the world were pounded:
ASIA:
Nikkei 225: 14,952.02, -1,286.33 (-7.92%)
Hang Seng Index: 20,259.13, -609.21 (-2.92%)
SSE Composite Index: 2,854.29, -37.67 (-1.30%)
Straits Times Index: 2,735.39, -58.46 (-2.09%)
S&P/ASX 200: 5,113.20, -167.50 (-3.17%)
EUROPE:
FTSE 100: 6,138.69, -199.41 (-3.15%)
DAX: 9,557.16, -699.87 (-6.82%)
CAC 40: 4,106.73, -359.17 (-8.04%)
EURO STOXX 50 Index: 2,776.09, -261.77 (-8.62%)
EURONEXT 100: 819.99, -59.09 (-6.72%)
Some other interesting notes from early after the voting:
British pound falls as much as 11 percent to $1.3229, weakest since 1985
Yield on 10-year Treasuries drops 29 basis points to 1.46 percent, set for biggest daily decline since 2009
New York crude oil retreats 5.1 percent to $47.56 a barrel, poised for biggest loss since February
Gold rallies as much as 8.1 percent to $1,358.54 an ounce, highest since March 2014
By the end of trading in the US, the day's damage had been assessed, though it was hardly what anybody would call a bloodbath. After all, this was only the first salvo against the establishment, though it does set in motion a complete disintegration of the EU and all of its strictures, laws, rules, regulations and burdensome bureaucracy.
For Americans, it's a good day to be a supporter of Donald Trump for the presidency. Much of what Mr. Trump has been campaigned for was contained in the Brexit platform: an end to open immigration, more civil liberties for common people, smaller federal government, less regulation, lower taxes, more power to people and localities (state's rights in the US).
While the damage to stocks was minimized, the press fell all about itself in once again over-hyping the damage. Britain and her people will not vanish from the earth. New trade arrangements will be made with the countries still remaining in the EU, but it is notable that more than a few EU member states are now calling for exit votes by the people, especially in France, Spain, Italy, the Czeck Republic, Hungary, and elsewhere.
The word on the European Union: Done. It's now become not a matter of if the EU will disintegrate, but when, and how. Those will be the real fireworks. But, between then and now, expect the establishment status quo to fight like mad dogs to retain and enhance their positions of power and prestige. In the end, they too will fail.
US stocks got mangled, with a hefty drop at the open and further displeasure for bulls in the late afternoon, with the Dow - just one day after it broke through the 18,000 upper barrier - closing below 17,500, the long-standing support threshold, on heavy volume. Losses were widespread; banks and financial stocks took the worst of it.
The Dow finished the week lower for the third time in the last four; the S&P and NASDAQ each notched their third straight week of decline.
US Stocks Got Socked:
S&P 500: 2,037.41, -75.91 (3.59%)
Dow: 17,400.75, -610.32 (3.39%)
NASDAQ: 4,707.98, -202.06 (4.12%)
Crude Oil 47.57 -5.07% Gold 1,319.10 +4.43% EUR/USD 1.1118 +0.13% 10-Yr Bond 1.58 -9.20% Corn 391.50 -1.57% Copper 2.11 -2.27% Silver 17.77 +2.40% Natural Gas 2.70 -1.32% Russell 2000 1,127.54 -3.81% VIX 25.76 +49.33% BATS 1000 20,677.17 0.00% GBP/USD 1.3684 +0.06% USD/JPY 102.2550 0.00%
For the Week:
Dow: -274.41 (-1.55%)
S&P 500: -33.81 (-1.63)
NASDAQ: -92.36 (1.92)
We now present the post mortem.
All hail Nigel Farage, head of the UKIP party and leader of the "Brexit" movement in Great Britain, for he has brought the nation out from under the Orwellian totalitarianism that is essentially the bloated bureaucracy of the European Union, and unshackled the common Briton from enslavement to the status quo.
Here is what Farage said as the tally was coming in, looking favorable for Britain exit from the EU:
If the predictions now are right, this will be a victory for real people, a victory for ordinary people, a victory for decent people. We have fought against the multinationals, we have fought against the big merchant banks, we have fought against big politics, we have fought against lies, corruption and deceit. And today honesty, decency and belief in nation, I think now is going to win. And we will have done it without having to fight, without a single bullet being fired…. Win or lose this battle tonight, we will win this war, we will get our country back, we will get our independence back and we will get our borders back.
Having fought the good fight as an MEP and a representative to the European Parliament for nearly two decades and yesterday, Farege's unwavering rhetoric for freedom and against oppression struck the first salvo for the people against the leading technocratic superstate of the EU, headquartered in Brussels.
For Farage, the victory may have greater consequences. With PM David Cameron admitting defeat and promising to step down come October, Farage figures to be a natural candidate for the vacated post of Prime Minister. Already the mainstream press has put the face of Boris Johnson, former mayor of London, front and center, ahead of Farage, who has said openly that he doesn't want to be Britain's PM.
That battle has a long way to go, but, for now, a rundown of just what Brexit has meant to markets around the world.
The Final Tally:
Leave
Vote share 51.9%
Votes 17,410,742 Votes
Remain
Vote share 48.1%
Votes 16,141,241 Votes
Stocks indices around the world were pounded:
ASIA:
Nikkei 225: 14,952.02, -1,286.33 (-7.92%)
Hang Seng Index: 20,259.13, -609.21 (-2.92%)
SSE Composite Index: 2,854.29, -37.67 (-1.30%)
Straits Times Index: 2,735.39, -58.46 (-2.09%)
S&P/ASX 200: 5,113.20, -167.50 (-3.17%)
EUROPE:
FTSE 100: 6,138.69, -199.41 (-3.15%)
DAX: 9,557.16, -699.87 (-6.82%)
CAC 40: 4,106.73, -359.17 (-8.04%)
EURO STOXX 50 Index: 2,776.09, -261.77 (-8.62%)
EURONEXT 100: 819.99, -59.09 (-6.72%)
Some other interesting notes from early after the voting:
British pound falls as much as 11 percent to $1.3229, weakest since 1985
Yield on 10-year Treasuries drops 29 basis points to 1.46 percent, set for biggest daily decline since 2009
New York crude oil retreats 5.1 percent to $47.56 a barrel, poised for biggest loss since February
Gold rallies as much as 8.1 percent to $1,358.54 an ounce, highest since March 2014
By the end of trading in the US, the day's damage had been assessed, though it was hardly what anybody would call a bloodbath. After all, this was only the first salvo against the establishment, though it does set in motion a complete disintegration of the EU and all of its strictures, laws, rules, regulations and burdensome bureaucracy.
For Americans, it's a good day to be a supporter of Donald Trump for the presidency. Much of what Mr. Trump has been campaigned for was contained in the Brexit platform: an end to open immigration, more civil liberties for common people, smaller federal government, less regulation, lower taxes, more power to people and localities (state's rights in the US).
While the damage to stocks was minimized, the press fell all about itself in once again over-hyping the damage. Britain and her people will not vanish from the earth. New trade arrangements will be made with the countries still remaining in the EU, but it is notable that more than a few EU member states are now calling for exit votes by the people, especially in France, Spain, Italy, the Czeck Republic, Hungary, and elsewhere.
The word on the European Union: Done. It's now become not a matter of if the EU will disintegrate, but when, and how. Those will be the real fireworks. But, between then and now, expect the establishment status quo to fight like mad dogs to retain and enhance their positions of power and prestige. In the end, they too will fail.
US stocks got mangled, with a hefty drop at the open and further displeasure for bulls in the late afternoon, with the Dow - just one day after it broke through the 18,000 upper barrier - closing below 17,500, the long-standing support threshold, on heavy volume. Losses were widespread; banks and financial stocks took the worst of it.
The Dow finished the week lower for the third time in the last four; the S&P and NASDAQ each notched their third straight week of decline.
US Stocks Got Socked:
S&P 500: 2,037.41, -75.91 (3.59%)
Dow: 17,400.75, -610.32 (3.39%)
NASDAQ: 4,707.98, -202.06 (4.12%)
Crude Oil 47.57 -5.07% Gold 1,319.10 +4.43% EUR/USD 1.1118 +0.13% 10-Yr Bond 1.58 -9.20% Corn 391.50 -1.57% Copper 2.11 -2.27% Silver 17.77 +2.40% Natural Gas 2.70 -1.32% Russell 2000 1,127.54 -3.81% VIX 25.76 +49.33% BATS 1000 20,677.17 0.00% GBP/USD 1.3684 +0.06% USD/JPY 102.2550 0.00%
For the Week:
Dow: -274.41 (-1.55%)
S&P 500: -33.81 (-1.63)
NASDAQ: -92.36 (1.92)
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