Author: admin

Jared Kushner is pushing a novel idea to break the Congressional deadlock and end the government shutdown according to Axios: Put green cards for DACA recipients on the table.

A new immigration idea has been circulating over the past 24 hours at senior levels inside the White House and on Capitol Hill: Give a path to green cards to the 700,000 current DACA recipients, three sources familiar with the conversations tell Axios.

Though the idea is anathema to many Republicans (as well as conservative talking heads like Anne Coulter), Kushner believes it could be a workable option for winning support from Democrats for an immigration compromise bill being pushed by his father-in-law. Over the weekend, Trump said he would be open to a three-year extension of DACA protections as part of the compromise plan – something that Democratic leaders almost immediately rejected.

Some Republican senators, including James Lankford of Oklahoma, have advocated for this idea, but White House aides worry that it could turn off President Trump’s No. 1 supporter: Fox News host Sean Hannity. Yet, there are few other workable options on the table. Few believe Trump’s current immigration plan has a prayer of gaining the 60 votes needed to pass the Senate when Mitch McConnell brings it up for a vote on Thursday. And even if it does somehow pass, it would be effectively DOA in the House.

“Trump can withstand Ann Coulter. He can’t lose Hannity and the rest,” the senator said.

One Republican involved in the negotiating process told Axios that Kushner “wants to go big.” But there’s one problem: “Now isn’t the time to go big.”

“If you throw green cards onto the table, this whole coalition will fall over on the right,” the senator told Axios on Tuesday night. “If you start putting citizenship on the table in any meaningful way, Democrats will have to give more, and they’re not ready to give more.”

Another source said Kushner was merely canvassing lawmakers about ideas that they would support, and that he isn’t committed to the green cards for DACA idea. He’s trying to “find where the market is” on immigration reform.

The source said Kushner has been trying to “figure out what bigger immigration reform looks like.”

“You need to have some idea of where you’re going…That doesn’t mean in this current context you can go bigger…because it’s not well defined what people want.”

But a third source derided the DACA green card idea as “insanity”. And that’s likely how many other White House advisors and Republican lawmakers would see it too.

via ZeroHedge News http://bit.ly/2RIuPgh Tyler Durden

One day after the biggest S&P drop in a month, stocks have regained their composure putting trade and global growth concerns on the backburner, and global stock indices are generally a sea of green this morning.

Trading was initially choppy overnight as hopes of more stimulus measures from China to shore up economic growth clashed with worries over progress between Washington and Beijing to resolve a trade spat between the world’s top two economies. The MSCI world equity index was down 0.1 percent, with Asian equity markets choppy as the region attempted to shrug off the headwinds from the US, where stocks slumped on Tuesday as the risk averse tone and lingering global growth concerns caught up with the major US indices on return from their extended weekend.

The FT reported that the US turned down China’s offer for preparatory trade talks, which was later denied by NEC Director Larry Kudlow helping U.S. equities pare some losses though the fresh concerns about U.S.-China relations kept share prices in check. Early trade jitters pushed the MSCI index of Asia-Pacific shares ex-Japan lower by 0.2%, stalling after climbing to a seven-week high on Monday.

“The main culprit for the risk-off tone this morning is the change in sentiment around U.S.-China trade talks …. That seeped into Asia overnight and Europe this morning,” said Edward Park, deputy chief investment officer at Brooks MacDonald.

Australia’s ASX 200 (-0.3%) was subdued with underperformance in the energy sector after crude prices slipped by over 2% and Nikkei 225 (-0.1%) was dampened by disappointing trade data including the sharpest drop in exports since October 2016.

However, sentiment in Tokyo was propped up by a weaker currency after the BOJ cut its inflationary outlook slashing 2019 core CPI from 1.4% to 0.9%, even as it kept its monetary policy, sending the USDJPY to new highs and boosting local stocks while Japan Display shares surged on reports it is in investment discussions with TPK and Silk Road Fund. 10yr JGBs traded sideways throughout most the session amid the indecisive risk tone in stocks and then saw choppy trade in reflection of sentiment in the region and following an unsurprising BoJ decision to keep policy setting unchanged.

Elsewhere, Hang Seng and Shanghai Composite confirmed trader indecisiveness after mixed actions by the PBoC as it conducted a Targeted Medium-term Lending Facility for the first time ever which was at a lower rate than MLF rates and is aimed at spurring lending to small firms, but conversely refrained from reverse repo operations which resulted to a daily drain of CNY 350bln.

A fresh batch of disappointing corporate updates from European companies further knocked confidence about fourth-quarter earnings, pushing European stocks lower for a third session at the start of trading, with the Stoxx 600 down as much as 0.5%, with bourses all across Europe losing ground as a profit warning by Ingenico sent the French payment group down over 12 percent and hit the whole European tech sector.

However, sentiment reversed sharply just after the open, with most European equities trading mostly higher [Euro Stoxx 50 +0.2%], after recovering from opening losses, taking the lead from Wall Street.

Echoing the rebound in Europe, U.S. futures pointed to a positive start for Wall Street after the S&P 500, Nasdaq and the Dow all posted their biggest one-day percentage drops since Jan. 3 on Tuesday.

Still, despite a modest return of bullish sentiment, the ride ahead will be bumpy: Justin Onuekwusi, a fund manager at Legal & General said central banks’ stimulus unwinding, China’s slowdown, the broader impact of trade wars and populist rhetoric from politicians were all keeping markets on edge. “All these issues have an impact on markets. Every time you have an increase in rhetoric, markets react. It feels like there is a greater political risk premium. The biggest near-term risk is that as you see markets fall, confidence drops and you get people not spending which becomes self-perpetuating. The near-term probability of that has increased.”

In FX, the U.S. dollar slumped to session lows having trading near a three-week high earlier after the Bank of Japan left monetary policy unchanged as expected, boosting risk appetite and sending the yen lower.  The Bloomberg Dollar Spot Index fell for the first time in seven days in a rather muted session in currencies, with short-term positioning dictating price action. The yen weakened as the BOJ lowered its inflation outlook, while the kiwi advanced as consumer-price data beat estimates. Treasuries slipped as oil prices rose, while euro-area bonds were mixed as stocks in Europe and U.S. equity futures rebounded. Sterling rose as the U.K. parliament moved closer to ruling out a no-deal Brexit. The euro was a shade lower at $1.1358 but remained in close reach of a three-week low of $1.1336 set on Tuesday, weighed by recent weakness in the euro zone economy and worries about fallout from Brexit.

In the key central bank event overnight, the BoJ kept monetary policy settings unchanged as expected with NIRP held at -0.1% and 10yr JGB yield target at around 0%. Furthermore, the BoJ extended its lending scheme for 1 year and stated that economic momentum for reaching price goal is sustained but lacking strength, while it added that risks to price and economic outlooks are skewed to the downside. BoJ reduced Real GDP forecasts for FY18 but raised Real GDP forecasts for FY19 and FY20, while it reduced Core CPI forecasts on all years through to FY20. BoJ Governor Kuroda said the downward revision to price outlook is due to the temporary decline in oil prices, Kuroda expects inflation to pick up towards the 2% target. Adding that downside risks from overseas are heightening due to US-China trade friction and European problems.

In the latest Brexit developments, PM May is reportedly set to force ministers to keep a no deal Brexit on the table despite threats of ministerial resignations. This has been seen as a defence mechanism against the Labour Party’s potential support for the Cooper-Boles Brexit delay plan.  UK Tory party Brexiteers concerned about prospects of a delay, have suggested they could be won over if UK PM May can get a serious concession from the EU on backstop. Following this, ITV’s Paul Brand tweets “Jacob Rees-Mogg will say in a speech today that the backstop remains “the one absolute obstacle” to backing PM’s deal BUT he’s “encouraged by signs of movement”. Sun’s Steve Hawkes reports “Labour has told second referendum campaigners it is backing the Cooper-Boles Amendment”. Has subsequently been confirmed by a Labour party source, stating it is ‘highly likely’ they will back the amendment.

In commodities, Brent (+0.8%) and WTI (+0.8%) prices have nursed initial losses and moved into positive territory due a turnaround in risk sentiment. Following on from Saudi Energy Minister Al Falih’s withdrawal from the WEF at Davos, Russian Energy Minister Novak has also cancelled his trip; Novak was due to speak on Friday on the Great Energy Race alongside IEA’s Birol. Separately, IEA’s Birol has stated that oil demand will grow by at least 1mln BPD. In terms of forecasting DNB have cut their 2019 Brent forecast to USD 70/bbl vs. Prev. USD 75/bbl. Of note API’s have been rescheduled to today due to Monday’s US market holiday.

Gold has marginally benefitted from the risk sentiment, with the yellow metal trading at the top of it’s narrow USD 4/oz range; currently just under USD 1285/oz. Elsewhere, China’s December scrap metals imports increased to 510k tonnes, their highest figure since May, ahead of China tightening waste imports in 2019.

Expected data include mortgage applications. Abbott, Comcast, P&G, and Ford are among companies reporting earnings.

Market Snapshot

• S&P 500 futures up 0.2% to 2,636.25
• STOXX Europe 600 down 0.05% to 354.91
• MXAP down 0.3% to 152.23
• MXAPJ down 0.1% to 494.65
• Nikkei down 0.1% to 20,593.72
• Topix down 0.6% to 1,547.03
• Hang Seng Index up 0.01% to 27,008.20
• Shanghai Composite up 0.05% to 2,581.00
• Sensex down 0.6% to 36,217.48
• Australia S&P/ASX 200 down 0.3% to 5,843.72
• Kospi up 0.5% to 2,127.78
• German 10Y yield rose 0.3 bps to 0.239%
• Euro down 0.01% to $1.1359
• Italian 10Y yield fell 1.7 bps to 2.383%
• Spanish 10Y yield fell 1.3 bps to 1.321%
• Brent futures up 0.7% to $61.94/bbl
• Gold spot little changed at $1,285.00
• U.S. Dollar Index little changed at 96.36

Top Overnight News from Bloomberg

• The European Union is prepared to hit 20 billion euros ($22.7 billion) of U.S. goods with tariffs should President Donald Trump follow through on a threat to impose duties on EU cars and auto parts, said a senior trade official for the bloc
• The European Commission is pushing the Irish government to lay out its plans for the border in the event of a no-deal Brexit, a person familiar with the matter said
• The U.K. parliament is inching toward a plan to delay Brexit to prevent Britain dropping out of the European Union without a deal, with the opposition Labour Party now increasingly likely to support the proposal
• Debt levels in the U.K. aren’t necessarily a cause for concern, according to Bank of England Deputy Governor Ben Broadbent
• Investors are seeking record amounts of bonds from Southern Europe, emerging from the sidelines after last year’s political turmoil in Italy. Sovereign bond offerings from Italy, Spain and Portugal this month have all drawn unprecedented bidding for a total of 106 billion euros ($120 billion), up 14 percent from a year ago. That has helped drive a slide in peripheral euro-area yields in the past two weeks
• The chairman of Thailand’s Election Commission says a general election is to be held on March 24

Asian equity markets were choppy as the region attempted to shrug off the headwinds from Wall St, where stocks declined as the risk averse tone and lingering global growth concerns caught up with the major US indices on return from their extended weekend. Furthermore, it was also reported that the US turned down China’s offer for preparatory trade talks, which was later denied by NEC Director Kudlow. Nonetheless, ASX 200 (-0.3%) was subdued with underperformance in the energy sector after crude prices slipped by over 2% and Nikkei 225 (-0.1%) was dampened by disappointing trade data including the sharpest drop in exports since October 2016. However, sentiment in Tokyo was later propped up by a weaker currency, while Japan Display shares surged on reports it is in investment discussions with TPK and Silk Road Fund. Hang Seng (U/C) and Shanghai Comp. (U/C) conformed to the indecisiveness after mixed actions by the PBoC as it conducted a Targeted Medium-term Lending Facility for the first time ever which was at a lower rate than MLF rates and is aimed at spurring lending to small firms, but conversely refrained from reverse repo operations which resulted to a daily drain of CNY 350bln. Finally, 10yr JGBs traded sideways throughout most the session amid the indecisive risk tone in stocks and with participants side-lined prior to the BoJ policy announcement, but then saw  choppy trade in reflection of sentiment in the region and following an unsurprising BoJ decision to keep policy setting unchanged.

Top Asian News

• China Meat Giant Surges as Founder Returns After Vanishing
• China Companies Suspected of Buying Own Bonds to Spur Demand
• Thailand to Hold First General Election Since Coup in 2014
• BOJ Leaves Stimulus Unchanged as It Cuts Inflation Outlook Again
• The January Rally Is Waning in Asia Stocks, Just Like Last Year

Major European equities are mostly higher [Euro Stoxx 50 +0.2%], after recovering from opening losses, taking the lead from Wall Street. US stocks were affected by growth concerns, alongside subsequently denied reports that the US turned down an offer by two Chinese vice-ministers to attend preparatory trade talks in the US. Sectors have strengthened somewhat from their negative opening, and are now mixed with underperformance in energy names and outperformance in utilities. Tech names have been underperforming following ASML (-1.8%) cutting Q1 sales guidance, with the likes of STMicroelectronics (-1.4%) down in sympathy. Other notable movers include Carrefour (+6.7%) are at the top of the Stoxx 600 following earnings where they confirmed all targets for their 2022 transformation plan. Separately, RPC Group (+4.6%) are firmly in the green after recommending a final cash offering of GBP 7.82/shr; with Co’s directors seeing the acquisition terms as fair and reasonable. In contrast, at the bottom of the Stoxx 600 are Ingenico (-13.2%) after reporting a FY18 EBITDA miss.

Top European News

• Still Here? Brexit Delay Might Worsen EU’s Election Headache; Fox Warns No-Deal Exit Is ‘Real Possibility’: Brexit Update
• Record Bidding for Southern Europe’s Debt Shows Pent-Up Demand
• Salvini Takes a Swing at Merkel and Forecasts Losses for Macron
• Apollo Seals $4 Billion Deal for Ketchup-to-Lotions Packager RPC
• Patisserie Valerie Collapses as Luke Johnson’s Rescue Fails

In FX, a relatively muted session for the Dollar thus far with the index hovering around the middle of a tight 96.268-378 range after NEC Director Kudlow dismissed reports that US turned down an offer from China for trade talks. The US government shutdown is now rolling onto its 33rd day, although there were reports overnight that US Senate are to vote on two separate bills on Thursday which could potentially bring an end to the shutdown. Meanwhile, BLS stated the January 2019 Employment Situation will be published as scheduled on February 1, 2019, at 1330GMT. ING noted that the 800k workers affected by the shutdown represent only 0.5% of the total US NFP, noting that the impact to the US economy will be modest but noticeable.

• JPY – On the backfoot in early EU trade following the BoJ rate decision in which the Central Bank kept the NIRP at -0.1% and the 10yr JGB yield target around 0% as expected while also reducing inflation forecasts, which was widely touted beforehand. Furthermore, Japan logged the first trade annual deficit in three years, as the cost of energy imports surged. As such USD/JPY breached its 100 and 50 HMAs (at 109.45 and 109.53 respectively) to a high of 109.73 (vs low of 109.33) with little to report on the options expiry front.
• GBP, EUR – The Pound continues on its upwards trajectory amid ongoing hopes of an Article 50 extension despite the UK Governments constant dismissal of the option, though the latest suggests that support for the Cooper amendment (to give Parliament power to extend Article 50) is stacking up, with reports of the Labour party also supporting the amendment. Lloyd’s notes that the recent Sterling strength was more than they anticipated, though a clean break through 1.3000 is still needed for “re-energised momentum” to the upside. GBP/USD  remains closer to the top of a 1.2945-1.3000 range ahead of its 200 DMA at 1.3081. Meanwhile the EUR remains flat within

In commodities, Brent (+0.8%) and WTI (+0.8%) prices have nursed initial losses and moved into positive territory due a turnaround in risk sentiment. Following on from Saudi Energy Minister Al Falih’s withdrawal from the WEF at Davos, Russian Energy Minister Novak has also cancelled his trip; Novak was due to speak on Friday on the Great Energy Race alongside IEA’s Birol. Separately, IEA’s Birol has stated that oil demand will grow by at least 1mln BPD. In terms of forecasting DNB have cut their 2019 Brent forecast to USD 70/bbl vs. Prev. USD 75/bbl. Of note API’s have been rescheduled to today due to Monday’s US market holiday. Gold (Unch) has marginally benefitted from the risk sentiment, with the yellow metal trading at the top of it’s narrow USD 4/oz range; currently just under USD 1285/oz. Elsewhere, China’s December scrap metals imports increased to 510k tonnes, their highest figure since May, ahead of China tightening waste imports in 2019.

US Event Calendar

• 7am: MBA Mortgage Applications, prior 13.5%
• 9am: FHFA House Price Index MoM, est. 0.3%, prior 0.3%
• 10am: Richmond Fed Manufact. Index, est. -2, prior -8

DB’s Jim Reid concludes the overnight wrap

Good morning from the highest city in Europe. Davos is very cold and please expect lots of Canada Goose jackets if you catch up with events on the telly over the rest of this week. I looked at buying one before I came out so as to fit in with the Davos set. When I saw how much they cost I realised I would rather not fit in. Actually, I got there late last night and the only non-restaurant places I found to eat were a kebab shop and a Co-op supermarket. I was wondering whether Bono has ever had a similar dilemma between the two choices. As I’m staying in a self-catering apartment and after much deliberation I opted for the latter and cooked myself a pizza. In nearly a quarter of a century it’s probably the first business trip that I’ve cooked for myself. I quite enjoyed it. Anyway, if you’re in town let me know, especially if you want to attend one of my sessions.

The cold air has obviously also infiltrated markets this week. US bourses reopening yesterday failed to stem the reversal of some of the new year optimism. Indeed, the latest headlines on the earnings and trade fronts weighed on sentiment. Equity markets failed to recover from heavy falls at the open with the S&P 500, DOW and NASDAQ closing down -1.42%, -1.22% and -1.91% respectively. The NYFANG index dropped -3.38% as Amazon and Netflix posted their worst days of the year.

Markets took another leg lower in the US afternoon session, after headlines broke that US negotiators declined a proposed meeting between with mid-level Chinese officials, apparently citing lack of progress on China’s industrial policies, especially the alleged forced technology transfers. The meeting would have been with Vice-Minister of Commerce Wang and Vice-Minister of Finance Liao, to lay groundwork for next week’s planned meeting between senior officials namely Vice-Premier Liu, US Trade Representative Lighthizer, and Treasury Secretary Mnuchin. Those talks are still scheduled to take place, but expectations for a breakthrough have now fallen. Late in the day, Trump Administration officials formally denied the reports however head of the National Economic Council Kudlow did add that “enforcement is absolutely crucial to the success of these talks. In any case the damage to markets had been done.

Earnings also played a part in the sogginess, as poor results from Halliburton, Johnson & Johnson and Stanley Black & Decker weighed on the industrials and consumer discretionary sectors (down -2.07% and -1.79% respectively). All three companies declined following their latest quarterly reports with the common denominator being management comments about a challenging outlook ahead, highlighted by Black & Decker CEO Loree saying “economic growth is slowing”. This more than offset gains to eBay (+6.13%) which rallied after one of its bigger shareholders, Elliot Management, proposed a five-step plan which in their view could result in eBay’s share price almost doubling. The energy sector also suffered (-2.20%), as WTI oil tumbled -1.91% however did at least pare a sharper slide earlier in the session. That move came despite there not really being an obvious catalyst aside from the various growth concerns which have been highlighted in recent days – none of which are particularly new news.

Meanwhile, here in Europe UBS also missed at both the earnings and sales lines following its quarterly report which resulted in shares falling -3.17% in Switzerland – albeit off the early lows. That weighed on the wider European Banks index which closed down -1.03% and for the fifth time in the last seven sessions while the STOXX 600 ended -0.36%. HY credit spreads widened +4bps and +12bps in Europe and the US respectively. In contrast bonds were slightly stronger, albeit only modestly so, with Bunds ending -2.0bps lower and Treasuries -4.5bps. The 2s10s curve also flattened -1.6 bps but the reality is that it still remains rooted in the 10-20bp range that it’s been in since the end of November.

Overnight the focus has turned to the BoJ where, as expected, there have been no changes to policy. Also as expected are the lower inflation forecasts in the BoJ’s outlook, the fourth consecutive quarter they have done so. For the fiscal year starting April, core CPI is expected to be 0.9% compared to 1.4% previously. With the backdrop of lower inflation and with the consumption tax looming, the hurdle to the BoJ contemplating adjusting policy continues to look high. JGBs are slightly weaker this morning post the decision with the 10y up less than a basis point to -0.004% with Kuroda due to speak shortly. The Yen has weakened -0.25% while the Nikkei (+0.04%) is broadly flat. That’s the case also for the Hang Seng (+0.06%) and Shanghai Comp (+0.07%) with the Kospi (+0.24%) outperforming. The good news is that the slide for US equity futures also appears to have come to an end with S&P 500 contracts up +0.15%. That may reflect the news that lawmakers in the Senate have agreed to hold separate votes today on rival proposals in order to reopen the government.

Moving on. There was some interest in the ECB’s bank lending survey yesterday which was softer compared to recent surveys. The net percentage of banks reporting tightening standards to enterprises was closer to even with -1 in Q4 compared to -6 in Q3. Demand for loans also continued its slowing trend from recent quarters with the net balance to enterprises falling to +9 versus +12 in Q3. It was a similar story for housing loans although demand for the latter did pick up. At a country level the softness was mostly reserved for Italy and Spain. Notably the outlook for Q1 also implies further moderation which fits in with lower growth expectations for the Euro Area this year. At a minimum the data should add to the anticipation levels for tomorrow’s PMIs and ECB policy meeting. Our economists’ preview for the meeting is available here. They don’t think any big policy changes are imminent, but think the council could shift its characterisation of the balance of risks to the downside. Apart from that, they’ll focus on any hints regarding new TLTROs and/or any discussion of a potential one-off deposit rate hike.

Here in the UK it was nice to get some rare positive news in the form of the latest labour report. Indeed there were positive surprises for the November unemployment rate (down one-tenth to 4.0% vs. 4.1% expected), average weekly earnings (up one-tenth to +3.4% 3m/yoy vs. +3.3% expected) and employment change (141k 3m/3m vs. 87k expected) prints. That of course compares to what have been weaker PMIs in the UK recently and the ongoing Brexit saga so this somewhat complicates the picture for the BoE with the supply side narrative of a tighter UK labour market very much intact. A hike by August is less than 50% priced however it will challenge the BoE not to sound overly dovish given the strength in the hard data.

The only other data worth flagging yesterday in Europe was the January ZEW survey in Germany where there was a big slump in the current situations component to 27.6 (vs. 43.0 expected) compared to 45.3 in December. However the expectations component did climb 2.5pts to -15.0 and bettered expectations for a fall to -18.5.

In the US, monthly existing home sales fell short of expectations, rising by 4.99 million in December compared to expectations for 5.25 million, the slowest pace and biggest downside miss since November 2015. Mortgage applications have picked up over the last couple weeks as long end interest rates have fallen, so there could be scope for a rebound in the near future. We’ll get the latest MBA mortgage application data later today.

In terms of the day ahead, this morning in Europe we’ll get January confidence indicators out of France followed later on by the January CBI survey in the UK. In the US this afternoon it’ll be worth keeping an eye on the January Richmond Fed manufacturing survey (-2 expected vs. -8 previously) in light of some weak regional Fed surveys so far this month, while the November FHFA house price index is also due out. This afternoon we’ll also get the January consumer confidence reading for the Euro Area. Away from that we’re due to hear from the BoE’s Broadbent while the second day of the Davos forum gets underway. Earnings wise we’re due to get quarterly reports from United Technology, Proctor & Gamble and Ford.

via ZeroHedge News http://bit.ly/2CBJn7g Tyler Durden

The Porsche Taycan is widely considered to be the “mainstream” luxury automobile market’s most potent threat to the Tesla Model S. The specs for the vehicle look to be extremely impressive, not just from an EV standpoint, but from any type of “street legal” standpoint. It is said to accelerate from 0 to 62 mph in 3.5 seconds and it’ll have a top speed of over 155 mph. Its range will come in at 310 miles and it will be chargeable up to 250 miles in just over 20 minutes at a Porsche high-voltage supercharger.

Oh, and it also happens to rather impressive. 

There has been an air of intrigue surrounding the Taycan since it was announced in late 2015 and it’ll finally be going on sale at the end of the year this year. As we get closer to that date, we’re also getting our first look at potential demand, which seems to be far exceeding Porsche’s expectations.

BGR is reporting that demand is so strong that Porsche is actually doubling production to meet it. The article reveals that Porsche is going to manufacture 40,000 units per year, which is twice its initial plan of 20,000 vehicles.

The article cites a report from Automobilwoche which states: “Porsche has doubled the planned quantities for its first purely electric sports car Taycan because of the foreseeable strong demand.”

Recall that just weeks ago, we wrote about how the Taycan was reportedly cannibalizing from Tesla with its initial set of reservations. More than half of the people that are signing up to pre-order the Porsche aren’t already Porsche owners. In fact, the number one brand owned by those who are pre-ordering the Porsche is Tesla.

Porsche North America President and CEO Klaus Zellmer told CNET at the time: “More than half of the people that are signing up for the Taycan have not owned or do not own a Porsche. Typically, if we look at our source of business, people coming from other brands, it’s Audi, BMW, or Mercedes. The no. 1 brand now is Tesla. That’s pretty interesting, to see that people that were curious about the Tesla for very good reasons obviously don’t stop being curious.”

We followed up that report by noting that Porsche was one of several brands to nail down a 3 minute charge (alongside BMW) a task that has still eluded Tesla. Porsche recently unveiled a charging station that can give electric vehicles enough power to drive about 62 miles on less than three minutes’ charge, putting it ahead of Tesla. The prototype charger is said to have a capacity of 450 kW, which is more than triple Tesla’s Superchargers. Vehicles that were tested at this power were brought to 80% capacity in 15 minutes. According to Tesla’s website, it needs about 30 minutes for a similar charge.

Look out Elon, the big boys appear to have officially made their way into your sandbox.

via ZeroHedge News http://bit.ly/2AYvEqO Tyler Durden

The British pound vaulted back above $1.30 Wednesday morning as it rose for a third day, returning to its highs from November, on reports that the Labour Party was on the cusp of backing a proposal put forth by one of its members that would force the government to seek a delay of Brexit until the end of the year.

With the next big parliamentary vote on Theresa May’s Brexit deal (this time, the “Plan B” iteration) coming next week, on Tuesday night, those who want to amend the government motion calling for the vote to force the government to rule out a no-deal Brexit, received some good news. Amid the crush of plans hoping to delay or derail Brexit, Labour MP Yvette Cooper put forth an amendment that would require May to seek a delay of Brexit if a deal isn’t passed by Feb. 26.

Yvette Cooper

During an interview on the BBC’s Newsnight last night, Shadow Chancellor John McDonnell all but announced that Labour would support the Cooper amendment, calling it a “sensible proposal” and adding that it was “increasingly likely” that Labour would vote for it. Given the number of rebel Tories who have said they would support the Cooper amendment, it has a high likelihood of passing if it’s called for a vote.

“Yvette Cooper has put an amendment down, which I think is sensible,” says Labour shadow chancellor John McDonnell adding “it’s increasingly likely” Labour would back her amendment@johnmcdonnellMP | #newsnight pic.twitter.com/HoeCAK7TA1

— BBC Newsnight (@BBCNewsnight) January 22, 2019

Analysts said the amendment is leading to intensifying optimism that no deal will be avoided.

The rally in GBP “reflects building optimism that a ‘no-deal’ Brexit will be avoided,” said Lee Hardman, an analyst at MUFG. “There have been some encouraging signs that the risk of delaying Brexit could prompt rebel Conservative MPs and the DUP to consider backing an amended version of PM May’s deal.”

Tories have tried to portray the amendment as unconstitutional, though the Guardian reported that there is precedent for legislation being proposed by backbenchers being called for a vote. Liam Fox, a Brexiteer and May’s international trade secretary, claimed that the amendment was constitutionally improper. He said that amendments that call for “taking control” of the “initiation of legislation” pose “a real danger.”

Sterling climbed 0.3% to $1.2986, on Wednesday after advancing 0.6% in previous two days.

As the prime minister tries to rally support for her revise deal, May will face off with Labour leader Jeremy Corbyn on Wednesday during another session of PMQs.

via ZeroHedge News http://bit.ly/2R3zN29 Tyler Durden

Authored by Nicholas Mirzoeff via The Nation,

The European country is isolating and excluding asylum seekers until they disappear from society completely…

Think of Denmark and you probably conjure up a mix of mid-century design, hygge, and people riding bikes. But as viewers of the noir TV series The Bridge know, it’s also a country marred by institutional xenophobia. Denmark has a network of camps and detention centers for asylum seekers. It has legally defined ghettoes, meaning urban areas with populations of “non-Western immigrants.”

But while something is clearly rotten in the state of Denmark, it’s far from an exception in Western politics. What’s happening in this former bastion of liberalism is the normalizing of white hostility to immigration. Denmark is building on Australian and Israeli tactics to form a new strategy: to disappear the refugee from society.

The Danish immigration minister Inger Støjberg has said that she intends to make conditions for people in the asylum system unbearable. And if my recent visit to Sjælsmark Detention Center, outside Copenhagen, is anything to judge by, she’s succeeding.

Sjælsmark contains people whose applications for asylum have been rejected but cannot be returned to their country of origin (technically “non-deportable rejected asylum seekers,” according to EU law). The upscale suburb has no shops or other amenities for the detainees. It is suitably remote from the city, nearly two hours by two buses and a train. By car, it’s just 30 minutes, but no one has a car.

Sjælsmark is administered by the Danish Prison and Probation Service. Visitors can enter the government centers only when invited by a resident. My visit was organized by Trampoline House, a community-based resource center for refugees (where I’ve also curated an exhibition called “Decolonizing Appearance,” on view until March 2019.)

Thirty-year-old Lily was born in a territory that was Ethiopia and is now Eritrea; she and her 7-year-old son, Liam, showed me around (their names have been changed at their request.) The camp is accessed through a formidable gate, which is locked every night at 10 pm, even to residents. Families live in former military barracks. The residents call it a “camp,” and it is newly surrounded by 10-foot-high security fences. Although residents can leave whenever they want, the goal is to create the effect of imprisonment.

Rejected asylum seekers are in legal limbo. Some of them are stateless and deprived of what Hannah Arendt called “the right to have rights.” They are denied as citizens by their “home” countries and the EU refuses to recognize them as refugees, so they have no legal status anywhere. Like many others, Lily was denied leave to remain in Denmark because her fingerprints were first taken in Greece. Under the EU’s Dublin Regulation, the first country where an asylum seeker is fingerprinted must process them for asylum.

If the Danish settler colony once wanted to extract labor from its colonial subjects in the Caribbean, Africa, and Asia, all it wants now from their descendants is that they go away. To that end, Sjælsmark residents cannot work or claim benefits. They are not allowed to cook, to have furniture (other than a bed, one table, and hard chairs), or to decorate their rooms. No carpets or rugs are allowed. There is no television or Internet service. Residents live in cold, spare rooms with very high ceilings. Having committed no crime, the asylum seekers are nonetheless being punished.

When I entered her room, Lily had arranged hot water to make tea or instant coffee and spread a paper plate with a packet of saltines. It was heartbreaking: Not because she had relatively little to offer, but because it made clear that the intent of the Danish state was to deny her the human impulse to hospitality.

Like many prisoners, the residents are above all concerned about food. The Prison and Probation Service provides food that is prepared off-site and reheated. It was described to me by everyone as inedible. Conditions in the cafeteria are so bad that all visitors are banned. No food is brought to people who are sick or pregnant and so cannot walk to the cafeteria. No allowance is made for dietary preference. In the Danish prison system, and the reception camps where asylum seekers are first sent, cooking is allowed. Not here.

The Jamaican sociologist Orlando Patterson coined the term “social death” to refer to enslavement. It equally applies to what the Danish state is trying to do to asylum seekers. A Palestinian visitor was sufficiently shocked by what he saw to say that conditions were worse than in the Israeli prison where he had been incarcerated.

This condition of social death even extends to the more than 100 children in the camp. They cannot play on the grass or anywhere outside but a tiny playground. They are not allowed to attend Danish schools but must go to a kindergarten-level facility organized by the Red Cross no matter what their age. The only activity offered there is coloring.

And so Lily accurately called the refugees’ situation “torture.” It is not physical torture intended to extract information; it is psychological torture designed to humiliate and produce action. Lily and other residents thought that the state wanted them either to go underground or “run”—meaning seek an inevitable rejection for asylum elsewhere. Although both actions are illegal, they would fulfill the state mission of having refugees disappear.

From within this social death, the refugees have nonetheless organized. They are holding weekly demonstrations against their conditions, including a hunger strike. At a rally in Copenhagen on December 5, Lily spoke out: “We have a right to seek asylum in Denmark and we also have the right to live a normal life until solutions are found for our cases.” Denmark seeks to deny those rights. More exactly, it denies that they exist.

There is proposed legislation to mitigate the worst of these conditions. It will require 50,000 signatures in a country of 5 million. It would still require asylum seekers to spend two years in Sjælsmark, which is unacceptable: The only way to end social death is the abolition of such camps.

In response to this opposition, the Danish government has taken more aggressive steps still. Adopting the Australian strategy of intercepting and offshoring refugees on Nauru, it now intends to house failed asylum seekers on the remote island of Lindholm. Denmark, then, is refining its psychological torture by subjecting asylum-seekers to isolation and exclusion.

From the US perspective, Trump’s clownish brutality is bad enough, but the Europeans are devising something arguably worse; abolishing detention camps completely is the only way out.

via ZeroHedge News http://bit.ly/2DsG8jY Tyler Durden

Germany is about to become a lot less fun if a new series of draft proposals aimed at combating climate change would eliminate segments of the autobahn famous for no speed limit, instead capping drivers at 130 km/h (80 MPH), according to Reuters. 

So no more of this:

The proposals would also eliminate a tax break for diesels, raise fuel taxes by 2023, and set quotas on the sale of electric and hybrid cars. 

The proposals, outlined in a draft paper seen by Reuters, could prove controversial in car-mad Germany, whose decades-old motorway network is famous for “no limits” sections where drivers can put even the fastest cars through their paces.

Germany could be hit with heavy EU fines if it fails to reduce emissions of greenhouse gases and poisonous nitrogen oxides. Transport emissions, which have not fallen since 1990, are a particular target for reductions.

The government is torn between the need to protect Germany’s crucial car industry, buffeted by a series of costly emissions cheating scandals in recent years, and the need to act to protect a rapidly deteriorating climate. –Reuters

The proposals – which are still in their infancy, aim to cut greenhouse gas emissions in half. The National Platform on the FUture of Mobility is due to reports its findings at the end of March, which German legislators will then incorporate into a climate change law to be enacted later this year. 

“Not every instrument and every measure will be accepted,” the draft report acknowledges. “It will take political deftness, diplomatic skill and a willingness to compromise to achieve the climate change goals.”

Ask Macron how hiking fuel taxes have been working out…

via ZeroHedge News http://bit.ly/2FIn17Q Tyler Durden

Authored by Judith Bergman via The Gatestone Institute,

• Keeping the Sweden Democrats away from any kind of political influence seemingly became the main reason the government crisis lasted so long. Swedish political leaders are especially opposed to the policies of the Sweden Democrats concerning immigration.

• “Sweden needs to build a migration policy from scratch, with fixed rules, and respect for the country’s borders, citizens and laws… Fire brigades and ambulances cannot move into immigrant-dominated areas without armed escort. Those who live and work in our suburbs get their stores robbed, broken or taken over by criminals. The few perpetrators who are actually sentenced for serious crimes escape with mild punishment, while their victims do not receive support or redress. As a result of the uncontrolled immigration, terrorists… walk freely on the streets and squares and utilize our welfare and asylum systems.” – Sweden Democrats.

• There is not a word in the new agreement about terrorism and internal security, even though the Swedish Security Service (Säpo), in a January 15 press release, stated, “The level of the terror threat remains elevated, a three on a five-point scale. This means that a terrorist act is likely to occur”.

Pictured: Sweden’s House of Parliament (Riksdagshuset) in Stockholm. (Image source: Holger.Ellgaard/Wikimedia Commons)

On January 18, more than four months after Sweden’s September elections, Social Democrat leader Stefan Löfven became prime minister for a second term, when he won the backing of the Swedish parliament: 115 parliamentarians from his own party and its coalition partner (the environmentalist Green Party) voted for his proposed government coalition, while 77 parliamentarians abstained and 153 voted against. There are 349 seats in the parliament.

Under Swedish parliamentary rules, a prospective prime minister can form a government even if he has not secured a majority of votes, as long as there is not a majority against him in parliament. Löfven was far from winning a majority of votes, prompting the question whether, despite becoming prime minister for a second term, he actually won the election.

The question is actually debatable: Löfven’s Social Democratic party experienced its worst election result ever, gaining only 28.3 % of the vote. It is the first time the party has ever received less than 30% of the vote; its government coalition partner, the Green Party, barely made it above the electoral threshhold, with only 4.4 % of the vote. (The electoral threshhold is 4%).

The prolonged coalition wrangling began after the results of the September 9 elections made it clear that Sweden’s traditional center-left and center-right blocs had each gained around 40% of the vote, yet were unable to find ways to build a government coalition without either involving the opposing bloc or the Sweden Democrats (SD). Keeping the Sweden Democrats away from any kind of political influence, seemingly became the main reason the government crisis lasted so long. Throughout the government’s negotiations, the Sweden Democrats, with 17.5 % of the vote, and now the third-largest party in parliament, representing the more than one million people who voted for them (out of 6.5 million votes in total) remained an isolated outsider, shunned by all political leaders.

“It is … about decency, a decent democracy. A government led by the Social Democrats guarantees that the Sweden Democrats — an extremist and racist party — do not get influence”, Löfven said on September 9, as he was casting his vote.

“My values are not SD’s”, said the leader of the center-right bloc, Ulf Kristersson, a year ago, about whether he would be willing to talk to the Sweden Democrats. “I will not cooperate, converse, collaborate, [or] co-ordinate with SD”. He repeatedthe same message in November, two months after the September 9 elections: “I do not speak to, or negotiate with, the Sweden Democrats”, he told Swedish television. “That is not because I do not respect their voters but I want to talk to those with whom I would like to cooperate.”

Swedish political leaders are especially opposed to the policies of the Sweden Democrats concerning immigration. According to the Sweden Democrats election platform:

“For decades Sweden’s migration policy has been handled in an irresponsible and ignorant way, with serious consequences for Swedish society A very high number of asylum seekers and their relatives has divided society, cultivated exclusion and eroded welfare state. At the same time, safety has been compromised… Today tens of thousands of people are staying illegally within the country’s borders and Sweden is internationally known for unrest and citizens who are active in terrorist networks… Sweden needs to build a migration policy from scratch, with fixed rules, and respect for the country’s borders, citizens and laws”.

As part of such a policy, the Sweden Democrats say they want “to stop receiving asylum seekers in Sweden”, as well as “sharpen the requirements to become Swedish citizens” and “enable revocation of citizenship that has been granted in error”. They also say they want to give the police “tools and resources to search for people who are staying in the country illegally… and allow for longer stays in detention if expulsion cannot be enforced immediately”. In addition, they say they would “Strive for agreements with other countries to be able to expel more people…”

The Sweden Democrats also note that they want a tougher approach to law and order:

“Current and former governments have seriously harmed confidence in the judicial system. Police quit [their jobs] as a result of poor working conditions and growing threats. Fire brigades and ambulances cannot move into immigrant-dominated areas without armed escort. Those who live and work in our suburbs get their stores robbed, broken or taken over by criminals. The few perpetrators who are actually sentenced for serious crimes escape with mild punishment, while their victims do not receive support or redress. As a result of the uncontrolled immigration, terrorists… walk freely on the streets and squares and utilize our welfare and asylum systems. Jews flee Swedish cities while anti-Semitism grows stronger. The social contract is about to be broken on the part of public Sweden”.

To counter this, the Sweden Democrats want to introduce, among other things, “wide-ranging penalties and, in particular, raise the minimum penalty for repeated and serious crimes”. They also want to introduce “compulsory expulsion of grossly criminal foreigners and the possibility to recall citizenship in case of terrorist offenses”. The Sweden Democrats would also like Sweden to leave the EU, and to have a referendum on the issue, something to which almost all the other political parties are strongly opposed.

None of the other parties wants even to consider a dialogue about these issues with the Sweden Democrats. Prime Minister Löfven, in fact, on January 18, spoke as if Sweden’s political leaders, in keeping the Sweden Democrats politically isolated, had just pulled back from the edge of an abyss, the extreme irony of his words clearly lost on himself:

“More and more governments around the world are becoming dependent on parties with an anti-democratic agenda. In the 2018 election, Sweden stood before a similar threat: getting a small right-wing government in the hands of the Swedish Democrats. But in Sweden we stand up for democracy and the equality of people. Sweden chooses a different path and it is historic.

“It has not been easy, but Sweden’s centrist parties have gathered and done what is required. Through the January agreement, Sweden gets a new government based on collaboration in the center of Swedish politics. Sweden gets a powerful government that is not dependent on the Sweden Democrats… The biggest winner is Sweden”.

The January agreement to which Löfven is referring formed the basis of a new political alliance between Löfven’s party and his environmental coalition partner on one hand, and two small parties from the center-right bloc, which decided to break with traditional bloc politics and support the Social Democratic government. It will also form the basis for the new government’s policies. Annie Lööf, the leader of the Center Party (one of the two breakout center-right parties), explained why she had chosen to support Löfven’s government, which, during the elections, she had campaigned to replace:

“The 2018 election was a choice of values. The Center Party chose to stand up for humanity, equality and tolerance. We fought against xenophobia… With this agreement we stand up for our values, while at the same time putting a government in place. It is a solution where neither the Sweden Democrats nor the [far-left] Left Party is given influence over politics.”

Swedish voters appear unimpressed with the way the collective of Swedish political leaders have handled this period of coalition squabbling. A January opinion pollrevealed that if elections were to take place now, the Sweden Democrats would go from 17.5% to 19.9% of the vote, becoming the second-largest party in Sweden. The Green Party, the Social Democratic Party’s government coalition partner, would not even make the electoral threshold; neither would one of the two breakout center-right parties that supported Löfven’s government. The other center-right party would lose 30% of its voters.

A different January poll showed that 70% of the Swedes have lost confidence in politicians. “The low level of confidence is startling but not completely unexpected”, said Torbjörn Sjöström, from Novus, the company behind the poll.

“There has been a crisis of confidence for quite some time. The high voter mobility that we have had during the last mandate periods and that SD [Sweden Democrats] has increased so strongly is a sign of a reduced confidence in the political system.

“During the four months that have passed, politics has shown that power seems to be most important, and that political solutions are subordinate. [Politicians] talked about a fateful election but then the country managed and kept on managing for four months without a government, so [politicians] have also shown that politics is not as important as they claimed”.

The loss of confidence in politicians was particularly high — 93% — among people who had voted for the Sweden Democrats. “They think they have seen evidence that democracy does not work. They are the third-largest party, but have been completely outmaneuvered,” said Sjöström, referring to the fact that every single political leader in Swedish politics refused even to talk to the Sweden Democrats.

So, what does the new government promise to do on the most pressing issues, such as immigration and law and order? According to the January agreement between the Social Democratic government and its center-right supporters:

“Sweden is a fantastic country but we are facing great challenges together: climate change, lack of integration, segregation and dependency, globalization, which continues to test our competitiveness… increased polarization and racism, gang crime… housing shortages … The proposals in this agreement can vigorously meet these challenges by untying old knots and bringing about systemic changes… Our parties have different ideological starting points but are united in the defense of the liberal foundations of democracy; a strong rule of law, an unwavering protection of the individual’s freedom and rights, resistance to xenophobia, independent free media, equality and equal conditions regardless of background”.

The agreement mentions the issue of migration on page 15 of its 16 pages. It does not, however, mention any of the problematic issues that migration has brought upon Sweden — although it does talk about ideas to get more immigrants into the job market and learning Swedish, as well as proposals to deal with honor killings. Ironically, it actually creates a basis for even more immigration. According to the agreement, Sweden will reintroduce the right to family reunion for those people granted asylum in Sweden who do not have refugee status. This means that they will be able to bring their spouses and children to Sweden, while unaccompanied children will be able to bring their parents. This repatriation is estimated to bring at least 8,000 more people to Sweden in the coming three years. According to Henrik Emilsson, Ph.D of international migration at Malmö University, the change will affect asylum immigration:

“Family reunification is something that is very important for people seeking asylum. The information about which countries have which rules spreads quickly and affects where people apply”.

The issues of “safety, security and democracy” are mentioned only on the last page of the agreement, perhaps indicative of the assigned priority. (By comparison, there are two pages about climate change and the environment).

Here is what the new government plans, but without a word as to how it intends to do it:

“Security throughout Sweden will increase… We take action against organized crime, strengthen the police and combat both crimes and causes of crimes. Democracy must be safeguarded, both here and in the world. The work against violent extremism, anti-gypsyism, antisemitism, Islamophobia, and any other forms of racism must be strengthened”.

The agreement also promises “ten thousand more police officers” and pledges, “Sweden’s [foreign] aid will be raised to 1% of the gross national income”.

There is not a word in the agreement about the threat from Islamic terrorism, even though the Swedish Security Service’s (Säpo) January 15 press release stated, “Violence-promoting Islamist extremism currently constitutes the biggest threat to Sweden” and, “The level of the terror threat remains elevated, a three on a five-point scale. This means that a terrorist act is likely to occur”.

via ZeroHedge News http://bit.ly/2S0YVew Tyler Durden

Cristiano Ronaldo’s yearslong tax evasion saga finally came to an end on Tuesday when the football superstar cut a deal with a Madrid court over tax evasion charges, accepting an €18.8 million ($21.32 million) fine.

After a judge refused Ronaldo’s request to appear via video conference, he was greeted by a large media presence outside the court. Unfazed, he arrived with a wide grin on his face, even giving the “thumbs up” to the cameras.

Así ha llegado Cristiano Ronaldo a la Audiencia Provincial. De la mano de Georgina, firmando autógrafos y sonriente: “Estoy perfecto” pic.twitter.com/zandMqqMGm

— Rubén Cañizares (@Ruben_Canizares) January 22, 2019

The deal also includes a 23-month jail sentence for Ronaldo. But fortunately for the Juventus star, in Spain, convicts do not usually do time for sentences under two years. The non-violent nature of Ronaldo’s offenses means he is unlikely to spend any time at all in jail, and will instead serve 23 months of probation, according to the BBC.

As part of the deal, Ronaldo acknowledged that he owed €5.7 million euros ($6.5 million) earned from lucrative image-use rights deals. Ronaldo allegedly used shell corporations based offshore to avoid paying taxes. Prosecutors described the tax dodge as a “voluntary and conscious” breach of tax laws, while Ronaldo’s lawyer has characterized it as a “mistake” and a “misunderstanding”.

Ronaldo’s court appearance lasted only a few minutes as he swiftly accepted the prosecutors’ deal.

The five-time winner of Europe’s Ballon d’Or – often cited as one of the world’s best players – was accused of avoiding paying tax in Spain between 2010 and 2014, when he was playing for Real Madrid, and living in Madrid. Forbes has listed Ronaldo as the third-wealthiest athlete in the world. He is estimated to earn some $108 million annually.

via ZeroHedge News http://bit.ly/2Mq6WUW Tyler Durden