Saturday, November 12, 2016

Today's Headlines

  • It’s All Bullish in the End as Stocks Post Best Week Since 2014. (video) A stretch that goes down as the best week for U.S. stocks in two years has been anything but easy money for the traders who had to navigate it. Three distinct narratives have driven trading, combining to lift the S&P 500 Index more than any time since 2014 and give the Dow Jones Industrial Average its best week in five years. Stocks rallied on Monday and Tuesday on speculation Hillary Clinton would win the presidency, then posted almost equally big gains Wednesday and Thursday as investors warmed to Donald Trump’s fiscal stimulus policies. The week ended on a down note for the S&P 500, as gains in banks and drug stocks were pared. In the middle was an hour-long election night plunge that would’ve lopped $1 trillion from the S&P 500 had it come during regular trading hours.
  • Worst Week for Bonds Since 2013 Seen Overstating Trump Policies. After Treasuries plunged this week on expectations that President-elect Donald Trump will boost government spending and stoke inflation, some of the bond market’s biggest dealers and investors say the economic optimism may be short-lived. Benchmark 10-year yields surged by the most in three years after Trump’s shock election victory on investor views that the Republican would pursue stimulative fiscal policies. A bond-market gauge of inflation expectations rose to highest since July 2015.
  • These Charts Show the Huge Stampede out of Emerging Markets. EM bond and equity funds see enormous outflows following the U.S. election.
  • Dollar’s Trump-Inspired Surge Sets Off Intervention Across Asia. (video) The dollar had its best week since 2011, spurring central banks from India to Indonesia to step in to stabilize their currencies on concern that U.S. President-elect Donald Trump will pursue policies that spur capital outflows from developing economies. The Indonesian rupiah and South Korean won were among the day’s worst performers against the greenback on speculation Trump’s policies will weaken exports from emerging nations. Trump has signaled he’ll adopt more protectionist trade policies, while introducing fiscal stimulus that has potential to hasten interest-rate increases by the Federal Reserve.
  • Trump Adviser Takes Aim at Conservatives’ Budgetary Restraint. Don’t expect President-elect Donald Trump to adhere consistently to traditional Republican economic policy, or even to positions Trump staked out during his election campaign. That’s the message in an opinion piece written in the Financial Times by Trump economic adviser Anthony Scaramucci that took a swipe at the budgetary discipline promoted for years by fiscal conservatives in the U.S. and Europe. It may point to a coming rift between the new executive branch and the Republican-controlled Congress. “Mr. Trump is a different type of leader not burdened by rigid ideology,” Scaramucci said. “He is not dogmatic about policy positions. Rather, he has set bold targets from which to begin negotiations.” “While easy-money monetary policies have exacerbated the income divide, central bankers handcuffed by political dysfunction have had little choice but to provide extraordinary accommodation,” he said. “Business people like Mr. Trump understand you can grow yourself out of excessive debt.” Scaramucci repeated Trump’s pledge to spend $1 trillion on infrastructure “financed by historically cheap debt and public-private partnerships,” and said the plan would lower long-term deficits. He sounded a softer note on trade than Trump had declared on the campaign trail, suggesting the president-elect is open to negotiations before slapping barriers on imports.
Wall Street Journal:
  • Had bullish commentary on (JEC), (ABBV), (TMO), (MRK), (LLY), (GILD), (AMGN), (PFE), (NKE), (PG), (AVD), (DFS), (CAT), (V), (MA) and (MLM).
Fox News:
  • Voters target Electoral College members to switch their Trump ballots, elect Clinton. (video) Voters upset that Republican Donald Trump had been elected president -- or think that the presidency was unfairly taken from Democratic rival Hillary Clinton -- are scrambling for ways to change the results. Their major focus is trying to get members of the U.S. Electoral College to change their vote, arguing that Clinton should be the next president because 60.47 Americans voted for her, compared to 60 million for Trump. The college is part of the Constitution and is composed of 538 members, with each state and the District of Columbia having one member, or electorate, for every senator or House lawmaker. Trump won 290 of the so-called electoral votes, in the race to get a minimum 270.
Zero Hedge:
Financial Times:
The Telegraph:
Mehr News Agency: 
  • Iran eyes inking new oil deals worth $130bn. Deputy oil minister has estimated that Iran will sign into 11 projects worth 130 billion dollars with international companies in the upstream oil sector. Iranian Deputy Oil Minister for International Affairs Amir Hossein Zamaninia said negotiations with several foreign firms are underway parallel to the talks with France’s Total over finalization of the $4.8bn contract for development of South Pars Phase 11.

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