Sheriff Wonders Whether Beyonce’s Super Bowl Show Inspired Violence Against Police

Someone fired several shots at the home of a sheriff in Tennessee Monday night. Rutherford County Sheriff Robert Arnold held a press conference Tuesday morning, and openly wondered whether Beyonce’s Super Bowl halftime show might have had something to do with it.

“We all know, as soon as you put your uniform on, you’re a target,” Arnold said, according to The Daily News Journal. “You make people mad when you’re just doing your job.”

According to The Daily News Journal, Arnold said at the press conference he wondered whether the shots were inspired by the Super Bowl half-time show. “You know, Beyonce’s video.”

By yesterday afternoon, the sheriff was seeking to clarify his comments, releasing a statement that referred to the string of shootings of police officers in the week and a half since the Super Bowl. “My comments are an observation of the violence that has occurred but in no way is meant to offend anyone.”

Beyonce’s Super Bowl halftime show featured a performance of the song “Formation” and included tributes to the Black Panthers, an organization founded in the Bay Area (where the Super Bowl was held this year) 50 years ago, Malcolm X, and Black Lives Matter.

A similar string of shootings last summer led to renewed hysteria about a “war on cops.” One of those shootings ended up being a suicide. A large-scale manhunt was launched after the death of Joseph Gliniewicz, who committed suicide in a way as to make it appear to be a killing. 2015 ended up being one of the safest years on records for cops. There’s not enough of a sample yet this year to assume anything different. The highest number of police killings in recent years came in 2007—there was no police reform movement to blame for the uptick back then.

As Jack Hunter wrote at Rare, much of the white dread over Beyonce’s Super Bowl performance (and later Lamar Kendrick’s Grammy performance) comes from a lack of understanding that black people might have a distinct American experience.

“These are African American artists who share the same history we all do, but also their own distinct history as black Americans—including their own heroes, tragedies and complex experience that won’t always mirror everyone else’s,” Hunter wrote. “There’s nothing wrong with that.”

There is something wrong with blaming violent acts on speech, whether it comes from the left or the right, from civilian politicians or police officials.

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Crude Confused – WTI Rallies As Iran ‘Supports’ OPEC Freeze But Won’t Cut Production

The algos are happy. Headlines proclaim Iran “supports” the Doha proposal to “freeze” oil production levels (at record levels) and oil spikes. However, what they failed to grasp was Iran’s lack of commitment to actual production levels… i.e. Iran fully supports production cuts for everyone else… but will not freeze its own production.

 



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China Puts Missiles On Disputed Islands, Says West Should Ignore Them, Focus On Lighthouses

China may not have troops or planes in Syria but that doesn’t mean it won’t be a part of World War III.

Even as the eyes of the world are now trained squarely on the Mid-East where the Russian and Iranian assault on Aleppo is set to draw the Saudis and the Turks into a ground war, the dispute over a tiny chain of islands in the South China Sea is still simmering.

Beijing has built some 3,000 acres of new sovereign territory atop reefs in the Spratlys, in what is now a long-running effort to expand the country’s maritime capabilities in waters China claims as its own.

The world began to take notice early last year and before you knew it, Washington’s regional allies were exceptionally upset with China’s “sandcastle” construction, which some view as an illegitimate attempt to militarize the island chain at the expense of peace and stability.

For its part, China says it has every right to do as it pleases in the Spratlys and in fact, at least one Chinese official has said that the PLA would be well within its rights to forcibly expel any country who seeks to occupy islands China doesn’t control.

Tensions escalated in May when China threatened a Poseidon spy plane with a CNN crew aboard and the situation was exacerbated further in October when the US finally “went there” and sent a warship to the islands in what the US dubbed a “freedom of navigation” exercise.

Through it all, China has indicated that it may establish what amounts to a no-fly zone over the islands and now, it appears the PLA is ready to make good on that threat because as Fox News first reported (yes, that’s right, Fox News somehow managed to get an exclusive) last night, China has deployed surface-to-air missile system on Woody Island.

The imagery from ImageSat International (ISI) shows two batteries of eight surface-to-air missile launchers as well as a radar system on Woody Island, part of the Paracel Island chain in the South China Sea,” Fox said, adding that “the missiles arrived over the past week [as] the beach on the island was empty on Feb. 3, but the missiles were visible by Feb. 14.”

“A U.S. official confirmed the accuracy of the photos,” Fox goes on to claim. “The official said the imagery viewed appears to show the HQ-9 air defense system, which closely resembles Russia’s S-300 missile system [and] has a range of 125 miles.”

Here are the images:

“Asked about the missiles at a briefing in Beijing, Foreign Minister Wang Yi said that limited self-defense facilities on Woody Island are consistent with China’s self-protection policies and international law,” Bloomberg reports. “He described the report as Western media hype.” He also said the West should focus more on the lighthouses China has built on the islands which should help to protect the $5 trillion in shipping that moves through the region each year.

Right. It’s all “Western media hype.” This is just the PLA putting air defense systems in place on islands that China is definitely not militarizing. Nothing to see here, move along…

“This calls into direct question the seriousness of President Xi’s statement [that China doesn’t seek to militarize The South China Sea],” U.S. Pacific Command chief Harry Harris said. 

Yes, it most certainly does and now that the HQ-9s are in place, you can expect to see more incidents like the one recorded below. 


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Biggest Short Squeeze Since Black Monday Sends Dow Up 900 Points Since Thursday

The last 3 days have been a face-ripper as US equities have soared most since August amid (oil) rumors, (banking system) hope, and (bad news is good news) dismal data. The Dow is up 900 points from Thursday’s lows…

 

but Trannies 8% surge off the lows is the most stunning…

 

This is all happening as “Most Shorted” stocks spike 11% off Thursday lows – the biggest squeeze since Black Monday.

 

And we know what happened after that dip was bought.


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“Who Do They Think They Are?” – Donald Trump Slams Apple Decision To Refuse Hacking Of iPhone

Earlier we reported that in a sign of “defiance”, Tim Cook said he would oppose the “chilling” government demand to help the FBI hack its own phones, and that it vehemently opposes the government’s intention to implement a back door in iPhones. Just hours later Donald Trump has decided to join the fray in the biggest topic of the day, by insisting that Apple should unlock the iPhone of one of the San Bernardino shooters.

To think that Apple won’t allow us to get into her cell phone,” Trump said on Fox and Friends Wednesday morning. “Who do they think they are? No, we have to open it up.

As the Hill reports, Trump argued vehemently that Apple should help investigators crack the phone’s encryption system.

Apple, this is one case, this is a case that certainly we should be able to get into the phone,” he said. “And we should find out what happened, why it happened, and maybe there’s other people involved and we have to do that.”

To be sure, this is not Apple’s first time standing up for encryption and personal security: Cook has repeatedly argued that building any guaranteed access for law enforcement into devices — what has been short-handed as a “back door” — would undermine the overall security of the device.

“There have been people that suggest that we should have a backdoor. But the reality is if you put a backdoor in, that backdoor’s for everybody, for good guys and bad guys,” Cook said in a December interview with “60 Minutes.”

Trump disagreed stridently on Wednesday, calling it a matter of “common sense.”

“I agree 100% with the courts,” the business mogul said. “In that case, we should open it up. I think security over all — we have to open it up, and we have to use our heads. We have to use common sense.”

However, as we further showed earlier, it would appear that both sides of the argument are merely padding on theatrics to an issue that has long ago been resolved in favor of the government. Once again, this is what we reported back in September 2013 in, when the revelations from Edward Snowden’s whistleblowing campaign emerged:

NSA Mocks Apple’s “Zombie” Customers; Asks “Your Target Is Using A BlackBerry? Now What?”

The following slide comes from a secret presentation called “Your target isusing a BlackBerry? Now what?” It shows an email from a Mexican government agency which was sent using BlackBerry encryption technology — and intercepted by the NSA nonetheless.

 

 

 

But the kicker is when, in another secret presentation, the NSA itself mocks Orwell, using a reference from the iconic Apple “1984” advertisement

 

… As it says the man who has become “Big Brother” is none other than AAPL’s deceased visionary leader Steve Jobs…

 

… And is so very grateful for Apple’s paying client “Zombies” who make its job so much easier

 

In other words, not only does the government already have easy access to any iPhone it seeks to “enter”, but today’s dramatic and vocal defense by Cook, and the likewise just as dramatic theatrics by Donald Trump are just that.


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Oil Tumbles Under $30 As Iran Refuses Doha Proposal, Goldman Warns “Freeze Doesn’t Help”

Oil prices limped higher overnight in their ubiquitous carry-driven way, only to tumble quickly this morning as the reality that, as Goldman says "at record levels, this production freeze doesn't help at all") and clear indications from the meetings in Tehran that Iran will do 'whatever it takes' to increase its production to pre-sanctions levels. WTI is back below $30.

 

 

As Bloomberg notes,

Any output-freeze agreement among key oil producers is being dismissed out of hand by oil bears.

 

William Edwards, a Katy, Texas-based consultant, who has said since late 2014 prices will go low and stay low for years, says this latest proposal wouldn't even cut production, which he says must happen for price recovery.

 

"For OPEC, the sequence is as follows," Edwards tells WSJ. "It spends a year or two saying 'you cut," meaning everyone except OPEC. Then it'll spend another year or two saying 'We all should cut.' Finally, when prices are so low it has no choice, OPEC will say 'we've agreed to cut, starting in six months."

And as Goldman's Damien Courvalin warns, keeping output at record levels doesn't help…

Saudi Arabia, Russia, Qatar and Venezuela announced today, February 16, that they agreed to freeze oil production at their January level – if other producers committed as well. This would be the first coordinated production decision between OPEC and non-OPEC members in fifteen years, with Saudi Oil Minister Ali Al-Naimi stating that this was “beginning of a process” that could require “other steps to stabilize and improve the market”.

 

The details of this agreement suggest however that such a freeze will have little impact on the oil market as proposed, while there remains high uncertainty that it even materializes, in our view. As a result, our oil supply and demand estimates remain unchanged and we reiterate our view that oil prices will remain volatile but range bound in coming months until inventories stop building.

  • The proposal to freeze production at January levels would keep OPEC and Russian output at 43.1 mb/d, using IEA January production levels (excluding Indonesia and OPEC NGLs). This would only be 115 kb/d lower than our annual average 2016 production forecasts, assuming Iran grows by 285 kb/d this year. As a result, the implementation of such an agreement would have no impact on our expected balances for the year and would leave the global surplus in place in 1H16. Implementation of such a deal would be further complicated by the uncertainty around production levels, with a wide range of estimates for January Iraqi production for example, ranging from 4.2 mb/d (OPEC) to 4.5 mb/d (Ministry). Further vessel tracking suggests that Iraqi exports have continued to rise so far in February.
  • The freeze is conditional on other nations agreeing to participate, Russia’s Energy Ministry said in a statement. While Venezuela and Algeria have been championing such an agreement for some time, with Iraq also willing to join, the participation of Iran seems unlikely. Iran has continued to comment that it is committed to growing production and regaining market share, suggesting that any deal involving Iran would likely need to allow for some production growth. As an aside, we remain conservative on our Iranian production growth forecast given the only limited increase in exports achieved so far and the limitation that the remaining US sanctions (banning US equipment use in Iran) create in ramping up output.
  • Support for such coordination has been most evident from n countries where output is already declining. In that respect, Russia’s participation is noteworthy. On the one hand, its participation may not imply a shift in stance as our Russian energy analyst, Geydar Mamedov, did not expect production to increase sequentially from January levels following the launch. On the other hand, the strain of low oil prices is visible at the government level with current prices raising the risk of a potential increase in oil taxation and in turn lower production. Should a change in taxes occur, with such a proposal considered by MinFin, this would be an incentive to have other countries limit output at the same time. Importantly though, the impact on Russian oil production would only occur once such policy passes which could be months away given the need for legislative changes in order to institute tax changes.
  • While an agreement could create the perception that more could be achieved, such as production cuts, we believe this would not be sufficient to set a floor on prices as they will only stabilize once inventories stop building, which at current proposed output levels only occurs in 2H16. We illustrate this below with the oil price trajectory of 1998-99 when the first two OPEC cuts only provided shortterm support to prices as the market remained in surplus. Finally, the proposed freeze seems to be only for a short period, to help stabilize the market, allowing for production growth to resume once inventories stop building, likely in 2H.

More broadly, we remain of the view that a broader production cut would be selfdefeating given the short-cycle nature of shale production and the only nascent non-OPEC supply response to OPEC’s November 2014 decision to maximize longterm revenues. We think it would likely require a period of weak economic and oil demand growth to see a broader agreement to curtail production.

And now we get headlines from Tehran…confirming Iran would increase production and not listen to OPEC

 

 

But they tried to be friendlly…

And this…

LIBYAN OPEC DELEGATE SAYS LIBYA WOULD LIKE TO PRODUCE ITS SHARE OF OPEC OUTPUT WHEN CONDITIONS IN THE COUNTRY IMPROVE

Good luck with that.


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Industrial Production Post Third Consecutive Annual Decline: 90% Chance Of Recession

In 17 of the 19 times in the last 100 years that Industrial Production has contracted for 3 consecutive months, the US economy has entered recession. Today 0.7% drop YoY is the 3rd month of declines.

 

The only times in the last 100 years that 3 months of US Industrial Production contraction has not coincided with a recession was in 1934 and 1952… (and the current decline is larger than 1952’s in aggregate)

 

While the MoM rise of 0.9% (against a revised 0.7% drop in December) was the “strong US economy” headline du jour, a simple scratch below the surface shows most of the surge was from Utilities:

  • *U.S. JANUARY UTILITY PRODUCTION RISES 5.4%; MINING UNCHANGED
  • *U.S. UTILITY OUTPUT SHOWS BIGGEST GAIN SINCE DECEMBER 2009

So we suggest not getting too excited about that being sustainable.


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Morgan Stanley Admits “Our Advice Has Been Horrendous”, Blames “Bizarro World”

While we have generally disagreed with Morgan Stanley’s Adam Parker flipflopping on stocks some two years ago, or just as the market was topping out, we can’t find fault with his latest note released today in which he openly admits that “our portfolio advice has been pretty horrendous lately. As my 90-year old Latin teacher used to tell the class in 1985, “son, you are in left field, without a glove, with the sun in your eyes.”

For those who follow our portfolio, we did quite well over the five years from 2011-2015. But, our portfolio just had its worst month in 61 months in January, and things have not improved in February. The market is down more than we thought it would be. Our biggest sector bet has been financials (particularly credit cards). As an investor recently said to us at a conference, “I am doing a lot of things, just nothing with confidence”. Doing the opposite of what we recommended would have been better. Bizarro World. Or at least hopefully not the real world.

Why has said advice been horrendous? In three words, blame “bizarro world.” Here’s why:

Martin Marietta reported last week, and they and a couple of other materials companies have blamed their poor quarters on the rain. Even Milli Vanilli’s success with this line turned out to be fake. The rain? Oh, the stock went up a lot that day. Bizarro World. The credit card companies are discounting a consumer recession. The banks are discounting an industrials recession. But, Visa said volumes were good in January, and jobs, housing, delinquencies, confidence, and other metrics appear to belie the market price action. Bizarro World. Companies with good results are being hammered. Companies with bad results have stopped going down, with freight, WMT, and other  prior losers outperforming. Bizarro World.

We truly find it amusing how increasingly more “serious people” allign with our cynical view of the “market”, one in which nothing makes sense and merely reporting on day-to-day centrally-planned events, which have zero logical continuity or cause and effect, is grounds for constant entertainment.

What is Adam Parker’s recommendation?

Are we on a cube-shaped planet? Should “Us do opposite of all Earthly things?” Everything seems backwards. Sell winners, buy losers, own staples in both up and down markets. Just do the opposite of what makes sense. Bizzaro World.

In other words, this:

No Adam, not Bizarro world world, a world taken over by central planners. And yes, even the most rigged markets can go down as well as up. Enjoy.

And we hope our readers enjoy some of the excerpts from Parker’s full note because it is truly an amusing admission of just how broken everything is.

Bizarro World

 

What are the other major client concerns?

 

China economy and currency devaluation: We are definitely concerned about the China economic slowdown and the tighter financial conditions that ensue from the currency depreciation. Morgan Stanley’s house view is that the depreciation will continue (6% more this year and 11% more through year-end 2017), and it is hard to argue this won’t continue to impact emerging markets and therefore demand for US exporters as these countries’ currencies weaken. From the US equity perspective, we are generally avoiding stocks with exposure to the Old Economy – no metals and mining, no materials, less than the benchweight in industrials, underweight energy. In our judgment clarity on the trajectory of the Chinese economy and stabilization in major economic factors seem like prerequisites to get backlog growth and higher book-to-bill ratios for the exposed US companies in industrials and technology. Among the items we are concerned about, after a slowdown in the US consumer, next on the list is further Chinese economic deceleration or currency depreciation.

 

Fed impotence: Many investors have been suggesting that the Fed and frankly all monetary policy makers globally have run out of power. There are roughly 15 countries with negative yields out seven years on the curve. So, investors are asking about monetary policy efficacy, cuts not hikes, the zero bound, and QE4. Is 4 bigger than infinity? It is definitely true that the bubble is in the belief in the policy makers. Investors are worried that US economic conditions need to really deteriorate for the Fed to admit the hike was wrong, so markets will likely continue to go lower if economic news is bad, and another group of investors worry that if the Fed acts, it won’t be  effective. We don’t think lowering the front end to zero will be good for stocks. We do think a QE4 would be, or at least we won’t fight it. Last week we received an article about negative CORPORATE bond yields from an investor. That being forwarded to us just about summarizes where people’s heads are right now. In the end, Morgan Stanley’s economic base case is still slow economic growth and slow retrenchment from the Fed, but our judgment is that bad economic news won’t be rewarded. We are not as concerned that the Fed will make a mistake in terms of raising the front end, but it is Bizarro World.

 

Earnings season and outlook: We had thought the EPS season would assuage fears that formed and grew in early January. The disturbing development is the price action this year, where the rewards for beating estimates has been small, and the penalty for missing has been harsh. This is new from last quarter, where there were high rewards for beating and big penalties for missing – but of similar magnitude. (Remember the Thursday night in October of last year when Amazon, Google, and Microsoft all beat expectations and collectively added roughly $100 billion of market capitalization before the open the next morning?) The big reward for beating expectations hasn’t continued this quarter. So, if beating isn’t rewarded and missing is punished – isn’t that also called a down market? EPS season in aggregate has been fine – 85% of the market cap has reported and there’s been 4.1% upside to the embedded consensus numbers, about average for the last 27 quarters, all of which have shown upside for the US market. Forward guidance has come down sharply, possibly a negative harbinger but also making 2016 expectations really low relative to history and potentially too low in absolute  terms. The long-term average for the bottom-up estimates is for 14% growth at this time of year, and it is currently around 3% for this year. That seems pretty low to us. Earnings will end up about $118 in 2015, with $5 in energy. They were $119 with $13 in energy in 2014. The current consensus is $122 for 2016 with $2.30 in energy. So, there is a diminishing impact of the lower oil price. Moreover, earnings in 2015 grew around 6% ex-energy. Expectations don’t seem that high to us right now for the full year 2016. We are at $125.9 – above the bottom-up number, a place we have never been before at this time of the year.

 

The oil price…: We interpreted the energy sector news during this earnings season as worse for the oil price recovery in the short term. Why? Most of the big companies reporting aren’t really guiding for that much of a US production cut. Hess, Noble, Anadarko, and others are guiding to big capital spending cuts but to production being barely down. Anadarko would rather cut their dividend than more dramatically reduce production. Imagine if we told you 18 months ago that oil would be down 75%, the rig count would be down 75%, capital spending would be down 20%, and production would be relatively unchanged. Wow! The technology improvement has been massive. Exxon announced they will do a 25% capital spending reduction and will now only do $23.2 billion this year! That still seems like a huge number in absolute dollars.

 

Fixed income guys are smarter than equity guys: Personally, we are not quite as worried about this issue as others. Fixed income guys are always negative and many of them were advising SPX puts early in 2013. Nonetheless, they are now in all their glory, even if they will get paid less. There are frequent periods in the past where high yield and equity didn’t move in tandem (tights in 1997 and equity market peak in March of 2000). The energy patch obviously explains part of it (SMID-cap E&P are different from XOM). The consumer patch explains part of it (the companies that are growing OK have no debt or have investment grade debt). The financials are in far better condition than prior cycles. The fraction of corporate debt that is long-term relative to short-term is at an all-time high – companies took advantage of the market and termed out. Interest coverage (particularly ex-energy) is in WAY better shape (several turns higher) than prior cycles. So, maybe both equities and high yield will be correlated for now, but ultimately we resist the notion that we hear all the time (internally and externally) that the bond guys are much smarter than the equity guys and high yield leads. We are both equally wrong at times. Why did financial stocks in Europe seem to lead the financial credit in Europe?

 

Europe: for vacation but not for stocks? One thing we worry about is that US investors are not mentioning Europe very much as a risk . It seems odd to see the Euro Stoxx down 16% in local currency year to date (about 7% worse than the S&P500) and to also think people are pretty complacent about Europe. Investors have said to us lately, “I am worried that the US banks stocks are telling you the US is in big trouble economically,” but they seem less worried that DB being down 54% (from its 52-week high) is a bad sign for Europe. In our  meetings in the US the last few weeks, no investor asked about Europe as a risk factor. This reminds us of a year ago when no one was asking about China as a potential risk. When we articulated in our year-ahead outlook we preferred US to European equities, we had thought the US would be up 4% and Europe maybe just 1-2% this year. We did not envision a down 9% vs. a down 16% scenario.

Parker’s conclusion: buy because, well, there is no reason to buy.

What’s the bull case? The positives are this: no one is articulating a bull case for US equities with conviction. Earnings expectations are potentially low. There is some fiscal stimulus this year (vs. drag previous years). The Presidential candidates don’t appear to be multiple expanders now, but they will get more centrist and the riffraff will be removed in a few more weeks. Sentiment is low (two weeks ago an investor on a panel we moderated said “It is a multi-variable world and every variable is negative”.) The US probably looks relatively better than other parts of the world. So maybe, the bull case is just that no one can articulate a bull case.

Or perhaps, just perphaps, if no bull case can be made, sell?


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#BernieBrosSoWhite? Real Gap in Sanders Support Not from Gender but Race, Ethnicity

The youth appeal of septuagenarian Sen. Bernie Sanders has been the big story of the Democratic primary so far. But is this another instance of pollsters and pundits overlooking minority millennials? Several recent polls show that among young non-white Democrats, Hillary Clinton is still the top candidate. 

Put another way, it’s simply not true that “Sanders dominates among younger voters in nearly every racial and gender category,” as NBC reported a few weeks ago.   

In a January USA Today/Rock the Vote poll, for instance, Sanders was the preferred liberal candidate among millennial Democrats and independents overall, leading with 46 percent to Clinton’s 35 percent. Among millennials of color, however, Sanders beat Clinton by a mere one point (42 percent to 41 percent).

In a national poll conducted January 19-24 by the Beck Research for the American Federation for Children, Democratic millennials as a whole were again drawn strongly to Sanders (64 percent to 29 percent). But among young Hispanic Democrats, Clinton led 52 percent to Sanders’ 38 percent. 

And in the latest NBC News|SurveyMonkey poll—conducted online from Feb 8-14—Sanders was the top candidate for 47 percent of white Democrats, but just 20 percent of black Democrats chose Sanders, with 75 percent supporting Clinton. This racial divide held true for millennials, with 64 percent of young black Democrats in Clinton’s camp, while just 25 percent favored Sanders. Among young white Democrats nearly the exact opposite was true, with Sanders the top choice of 75 percent and Clinton just 22 percent.

While America may have “millennial fatigue,” the generation is just starting to reach its peak political power. Now that nearly all millennials have reached voting age (by the widest parameters, the last of this cohort were born in the year 2000), they stand to rival boomers for political impact in the upcoming election. The current crop of 18- to 35-year-olds will make up 31 percent of all eligible U.S. voters in 2016, the same percentage of the electorate populated by boomers. (Gen X represents a quarter of eligible voters this year and pre-boomers 13 percent.)

Because young voters tend to turn out in lower numbers than the olds, boomers are still likely to outpace millennials at the 2016 ballot box. But any candidate who can harness the millennial vote still stands to gain significantly. And among millennial voters, Latinos are the biggest force to reckon with. They make up 44 percent of the eligible millennial voting population, more than any other racial or ethnic group. Whites account for just 27 percent of eligible millennial voters, blacks for 35 percent, and Asians for 30 percent. 

Yet the electoral influence of Latino millennials may be minimized by their concentration in a few geographic locales. While Latinos do make up a sizable portion of voters in some key areas—including Florida (18 percent), Nevada (17 percent), Colorado (14.5 percent), and Illinois (10.5 percent)—more than half of all eligible Latino voters can currently be found in just three states: California, Texas, and New York.

Low voter turnout may also dampen Latino political impact. In the 2012 elections, Latinos had significantly lower turnout than whites or blacks, at 48 percent versus 64 and 66.6 percent, respectively.

While young Latino turnout may be low, however—and white youth turnout has been flat—young black voters have been hitting the polls in increasing numbers (though there is some skepticism among black millennials that this will continue). Black voters as a whole, including black millennials, tend to lean overwhelmingly Democrat. And among these black Democrats, Clinton has a significant edge.

A national survey conducted by Public Policy Polling (PPP) at the beginning of February found Clinton besting Sanders among Democrat-leaning voters as a whole, with 53 percent support to his 32 percent. But this difference was especially stark among black voters, with whom Clinton’s support sprung to 82 percent. She was also rated favorably by 79 percent of black voters, with just 9 percent rating her unfavorably, while only 27 percent of black voters rated Sanders favorably and 23 viewed him in a negative light. 

“Bernie Sanders continues to make in roads with most segments of the Democratic electorate,” said Dean Debnam, president of PPP. “But his continued struggles with African Americans could give him a lot of trouble when the contest moves beyond New Hampshire to states where there’s racial diversity.” 

Indeed, Sanders seems to be in for a rough patch ahead in the Southern and Mid-Atlantic primaries.

In South Carolina, which will hold its primary on February 27, PPP this week found Clinton leading 55 percent to 34 percent over Sanders among all likely Democra#mce_temp_url#tic-primary voters, propelled largely by support from the black electorate. In fact, Clinton and Sanders were tied among white Democrats in South Carolina. But blacks make up more than half of likely Democratic voters, and they prefer Clinton by 40 percentage points (63 percent to 23 percent). 

Another poll of South Carolina voters, this one conducted from February 10-12, also put Clinton ahead overall, with 59 percent of the likely Democratic vote compared to Sanders’ 40 percent. White Democrats in this poll preferred Sanders by nearly 30 percentage points, but blacks broke for Hillary 73 percent to 26 percent.

In North Carolina, a PPP poll from mid-January found that Clinton also enjoys hefty support from black Democrats, who make up about a third of the primary electorate, in the Tar Heel state. Just 12 percent of black Democrats preferred Sanders, while 77 percent said they would vote for Clinton. Meanwhile, 81 percent of black Democrats said they have a favorable opinion of Clinton, while only 43 percent felt favorably about Sanders. 

The former secretary of state also outshines Sanders in Georgia, which will hold its primary on Super Tuesday (March 1), and Maryland, which votes in April. In Maryland, black Democrats prefered Clinton 10-to-1 over Sanders when polled in January, while white Democrats preferred Sanders by a little less than 2-to-1. Overall, 40 percent of Maryland Democrats said they would vote for Clinton, 27 percent for Sanders, and 5 percent for Martin O’Malley, while 28 percent were undecided. 

In Georgia—where blacks make up more than half of the electorate—a poll from Atlanta’s Channel 2 Action News found Clinton favored by 63 percent of likely Democratic voters, with just 21.5 supporting Sanders and 15 percent undecided. “Clinton far and away locks up the African-American vote,” the station noted, with nearly 77 percent favoring Clinton and just 11 percent choosing Sanders. Among white Georgia Democrats, Clinton only led by about 15 percentage points. 

Little presidential-polling data exists on Asian-Americans specifically. This is a group that has tended to lean Democrat for the past several decades, although nearly half of Asian-Americans now describe themselves as politically independent and, in 2014, Republicans won the overall Asian vote by one percentage point nationwide.

Both the Republican and Democratic National Committees have been making plays to court Asian-American voters recently. Asians are the fastest-growing racial group in the United States, but also the least likely to vote. They accounted for just 3 percent of the electorate in 2012, and are expected to make up 4 percent of the electorate this year. Asian-American political organizers say they’re currently focusing efforts on Nevada, where 8.3 percent of the total population and 7.3 percent of eligible voters identify as Asian or Pacific Islander. The most recent polls show Sanders and Clinton tied among likely Democratic voters there. 

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Apple Refuses to Build iPhone ‘Backdoor,’ South Dakota Passes Bathroom Bill, No Celiac Disease in Ted Cruz’s Army: A.M. Links

  • Apple will refuse a federal court order saying it must unlock an iPhone used by one of the San Bernardino shooters. “We have great respect for the professionals at the FBI, and we believe their intentions are good,” Apple CEO Tim Cook said in a letter. But in requesting the company build a backdoor to the iPhone, the agency has “asked us for something we simply do not have, and something we consider too dangerous to create.” 
  • Ted Cruz scoffs at the idea of providing members of the military with gluten-free meals.
  • Celinda Lake, Democratic strategist, says young liberals aren’t that fazed by the possibility of a female president but would really like to back a gay or transgender candidate. 
  • Celebrities take selfies in refugee blankets. You know, for art.
  • “The Constitution is pretty clear about what’s supposed to happen now,” said President Obama, chiding Republican senators for suggesting they would refuse to confirm any Supreme Court nominee he offers. 
  • The South Dakota legislature has passed a bill that would prohibit public-school students from using bathrooms that do not correspond to their biological sex. 
  • A former student at the University of Montana has been awarded $245,000 over the university’s “unfair and biased” rape investigation.
  • Carnegie Mellon researchers have attempted to quantify the amount of sex-trafficking that takes place around major events such as the Super Bowl. To do so, they classified every online escort ad stating “new to town” or “first appearance” as an obvious sex slave. 

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