World’s #1 Golfer Tossed Against Car, Arrested In Kentucky — Calls “Very Chaotic Situation”

World’s #1 Golfer Tossed Against Car, Arrested In Kentucky — Calls “Very Chaotic Situation”

The world’s #1 golfer Scottie Scheffler was arrested and taken to jail on several charges – including a felony charge of assaulting a police officer, after he tried to bypass a massive traffic backup to enter the Valhalla Golf Club in Louisville Kentucky.

Scheffler was set to tee off for his second round of the PGA Championship at 8:48 ET alongside Wyndham Clark and Brian Harman, when he was detained and booked.

In viral footage, Scheffler was seen being led into the police car in handcuffs.

“Can you please help me?” he was heard asking a nearby journalist.

Scheffler reportedly thought he was bypassing security staff, when it was in fact cops who told him to stop due to an earlier traffic accident that he was not involved in. When he didn’t, the officer attached himself to the golfer’s car – which Scheffler drove approximately 30 feet before stopping, ESPN reports.

The officer is then said to have grabbed at Scheffler’s car, attempting to pull him out before Scheffler opened the door – after which he was dragged out of the vehicle, thrown up against it, and placed in handcuffs. 

The 27-year-old golfer was later booked into jail and released by the Louisiana Department of Corrections.

He’s been charged with:

  •     Second-degree assault of a police officer, which is a felony
  •     Third-degree criminal mischief
  •     Reckless driving
  •     Disregarding traffic signals from an officer directing traffic

Following the arrest, ESPN reporter Jeff Darlington said “One police officer came up to me with his pad and said – pen in hand – “Can you tell me the name of the person we’ve just arrested?””

Earlier, when Darlington tried to get the attention of the officers, he was warned “Back up or you’re going to jail also!”

“Right now, he’s going to jail,” another officer said. “He’s going to jail and there’s nothing you can do about it. Period.”

Update: Scheffler, meanwhile, has described the arrest as a “big misunderstanding” following “a very chaotic situation.”

This morning, I was proceeding as directed by police officers.  It was a very chaotic situation, understandably so considering the tragic accident that had occurred earlier, and there was a big misunderstanding of what I thought I was being asked to do.  I never intended to disregard any of the instructions.  I’m hopeful to put this to the side and focus on golf today.

Tyler Durden
Fri, 05/17/2024 – 09:40

via ZeroHedge News https://ift.tt/IuSM64G Tyler Durden

Turley: Will The Trump Jury Realize They Are Being Played By The Prosecution

Turley: Will The Trump Jury Realize They Are Being Played By The Prosecution

Authored by Jonathan Turley,

Below is my column in Fox.com on the approaching end of the Trump trial in Manhattan. With the dramatic implosion of Michael Cohen on the stand on Thursday with the exposure of another alleged lie told under oath, even hosts and commentators on CNN are now criticizing the prosecution and doubting the basis for any conviction. CNN anchor Anderson Cooper admitted that he would “absolutely” have doubts after Cohen’s testimony.

CNN’s legal analyst Elie Honig declared “I don’t think I’ve ever seen a star cooperating witness get his knees chopped out quite as clearly and dramatically.”

He previously stated that this case would never have been brought outside of a deep blue, anti-Trump district. Other legal experts, including on CNN and MSNBC, admitted that they did not get the legal theory of the prosecution or understand the still mysterious crime that was being concealed by the alleged book-keeping errors.  The question is whether the jury itself is realizing that they are being played by the prosecution.

Here is the column:

In the movie “Quiz Show,” about the rigging of a 1950s television game show, the character Mark Van Doren warns his corrupted son that “if you look around the table and you can’t tell who the sucker is, it’s you.”

As the trial of former President Donald Trump careens toward its conclusion, one has to wonder if the jurors are wondering the same question.

For any discerning juror, the trial has been conspicuously lacking any clear statement from the prosecutors of what crime Trump was attempting to commit by allegedly mischaracterizing payments as “legal expenses.” Even liberal legal experts have continued to express doubt over what crime is being alleged as the government rests its case.

There is also the failure of the prosecutors to establish that Trump even knew of how payments were denoted or that these denotations were actually fraudulent in denoting payments to a lawyer as legal expenses.

The judge has allowed this dangerously undefined case to proceed without demanding greater clarity from the prosecution.

Jurors may also suspect that there is more to meet the eye about the players themselves. While the jurors are likely unaware of these facts, everyone “around the table” has controversial connections. Indeed, for many, the judge, prosecutors, and witnesses seem as random or coincidental as the cast from “Ocean’s Eleven.” Let’s look at three key things.

1. The Prosecutors

First, there are the prosecutors. Manhattan District Attorney Alvin Bragg originally (as did his predecessor) rejected this ridiculous legal theory and further stated that he could not imagine ever bringing a case where he would call former Trump personal attorney Michael Cohen, let alone make him the entirety of a prosecution.

Bragg’s suspension of the case led prosecutor Mark F. Pomerantz to resign. Pomerantz then wrote a book on the prosecution despite his colleagues objecting that he was undermining their work. Many of us viewed the book as unethical and unprofessional, but it worked. The pressure campaign forced Bragg to green-light the prosecution.

Pomerantz also met with Cohen in pushing the case.

Bragg then selected Matthew Colangelo to lead the case. Colangelo was third in command of the Justice Department and gave up that plum position to lead the case against Trump. Colangelo was also paid by the Democratic National Committee for “political consulting.” So a former high-ranking official in the Biden Justice Department and a past consultant to the DNC is leading the prosecution.

2. The Judge

Judge Juan Merchan has been criticized not only because he is a political donor to President Biden but his daughter is a high-ranking Democratic political operative who has raised millions in campaigns against Trump and the GOP.

Merchan, however, was not randomly selected. He was specifically selected for the case due to his handling of an earlier Trump-related case.

3. The Star Witness

Michael Cohen’s checkered history as a convicted, disbarred serial perjurer is well known. Now, Rep. Dan Goldman, D-N.Y., is under fire after disclosing that “I have met with [Cohen] a number of times to prepare him.”

Goldman in turn paid Merchan’s daughter, Loren Merchan, more than $157,000 dollars for political consulting.

Outside the courtroom, there is little effort to avoid or hide such conflicts. While Democrats would be outraged if the situation were flipped in a prosecution of Biden, the cross-pollination between the DOJ, DNC, and Democratic operatives is dismissed as irrelevant by many in the media.

Moreover, there is little outrage in New York that, in a presidential campaign where the weaponization of the legal system is a major issue, Trump is not allowed to discuss Cohen, Colangelo, or these conflicts. A New York Supreme Court judge is literally controlling what Trump can say in a presidential campaign about the alleged lawfare being waged against him.

The most striking aspect of these controversial associations is how little was done to avoid even the appearance of conflicts of interests. There were many judges available who were not donors or have children with such prominent political interests in the case. Bragg could have selected someone who was not imported by the Biden administration or someone who had not been paid by the DNC.

There was no concern over the obvious appearance of a politically motivated and stacked criminal case. Whether or not these figures are conflicted or compromised, no effort was taken to assure citizens that any such controversies are avoided in the selection of the key players in this case.

What will be interesting is how the jury will react when, after casting its verdict, the members learn of these undisclosed associations. This entire production was constructed for their benefit to get them to convict Trump despite the absence of a clear crime or direct evidence.

They were the marks and, like any good grift, the prosecutors were counting that their desire for a Trump conviction would blind them to the con.

Bragg, Colangelo and others may be wrong. Putting aside the chance that Judge Merchan could summon up the courage to end this case before it goes to the jury, the grift may have been a bit too obvious.

New Yorkers are a curious breed. Yes, they overwhelmingly hate Trump, but they also universally hate being treated like chumps. When they get this case, they just might look around the courtroom and decide that they are the suckers in a crooked game.

Tyler Durden
Fri, 05/17/2024 – 09:25

via ZeroHedge News https://ift.tt/EnPLo1Z Tyler Durden

Is US Copper Sowing The Seeds Of Its Own Return To Earth?

Is US Copper Sowing The Seeds Of Its Own Return To Earth?

Authored by Simon White, Bloomberg macro strategist,

Copper’s recent rally has been most pronounced in the US, taking the futures curve there into extreme backwardation. That typically precedes a supply response and lower prices. Nonetheless, the long-term bullish case for copper is intact.

Copper trades in three main exchanges:

  1. Comex in the US,
  2. the London Metal Exchange and
  3. the Shanghai Futures Exchange.

It has risen globally in recent weeks, but the rally at Comex has eclipsed the other two.

While stocks in Shanghai have risen sharply this year, and in London they have fallen but remain well above zero, at Comex warehouses they have fallen to near zero. This has led to massive short squeeze in US copper, with the metal trading at its highest ever premium to LME copper at over $800 per tonne (and much higher on an intraday basis).

This has pushed the Comex copper futures curve into massive backwardation, i.e. spot prices trading well above futures prices.

However, this often eventually leads to a self-correction. High spot prices encourage more supply to come on to the market, depressing the spot price and normalizing the curve. Today’s level of backwardation suggests this could be more pronounced than normal.

It’s ironic this comes at a time of ultra-bullish copper calls. Even though the thesis is sound – there is likely to be huge demand for copper from AI and green capex (with plenty of global fiscal stimulus as support – there will probably be a better time to start to set longs.)

Also, as noted Thursday, copper might face medium-term headwinds from the US economy potentially looking more recessionary, although this should be taken in consideration with China’s recovery, which is finally gaining some momentum.

Tyler Durden
Fri, 05/17/2024 – 08:50

via ZeroHedge News https://ift.tt/SMreDPq Tyler Durden

Take-Two Shares Drop After Grand Theft Auto VI Delayed Again

Take-Two Shares Drop After Grand Theft Auto VI Delayed Again

Take-Two Interactive Software fell in premarket trading in New York after lowering its fiscal 2025 bookings forecast on Thursday evening and announcing a release date for Grand Theft Auto VI in the autumn of 2025. Some Wall Street desks viewed the release date as a “delay.” 

Take-Two now expects fiscal 2025 bookings between $5.55 billion and $5.65 billion, down from the Bloomberg estimate of $6.92 billion.  

Here’s a snapshot of the 2025 outlook:

  • Sees net bookings $5.55 billion to $5.65 billion, estimate $6.92 billion (Bloomberg Consensus)
  • Sees adjusted EPS $2.34 to $2.59, estimate $5.86
  • Sees adjusted Ebitda $746 million to $800 million, estimate $1.23 billion

Besides the outlook, Wall Street analysts focused on Take-Two’s Rockstar Games release of GTA6. Some desks say this date is considered a “delay.” 

Morgan Stanley, Matthew Cost (overweight)

  • The delay to Grand Theft Auto VI removes a “major overhang” from the shares, which Cost says had weighed on the stock since 3Q results in February
  • Not surprised by limited EPS growth in the guidance, though notes management had “pointed to a significant planned increase in marketing around Zynga titles, which we would hope to see generate meaningful incremental profitability in FY26”

Raymond James, Andrew Marok (outperform)

  • Results came slightly ahead of expectations, though Take-Two put the “final nail in the coffin” for expectations of Grand Theft Auto VI releasing in FY25
  • “The new FY25 guide suggests seven immersive core titles: the already-released TopSpin 2K25, the dependable iterations of NBA 2K and WWE 2K, a new iteration of a sizable 2K franchises (we estimate Civilization VII), and three others (one of which we expect is PGA Tour 2K25)”

Citi, Jason Bazinet (buy)

  • The Grand Theft Auto date “will place the release in FY 2026 and likely be the main driver behind today’s lower FY 2025 outlook”
  •  “Some investors might view this latest GTA VI delay as a clearing event for the stock, limiting potential downside”

Deutsche Bank, Benjamin Soff (buy)

  • While Grand Theft Auto VI has been delayed, the long-term opportunity in the stock remains intact
  • Bookings outperformance during 4Q was driven by strength from NBA 2K24, Take-Two’s mobile business and GTA

Bloomberg Intelligence, Nathan Naidu and Kevin Tsao

  • “Take-Two’s updated launch timing for Grand Theft Auto VI means its release will take place after end-fiscal 2025, overshadowing its fiscal 4Q consensus earnings beat”
  • “Net bookings in fiscal 1Q ending June is expected to grow by a low-single digit, as a full quarter from new games offsets softness in the GTA franchise’s multiplayer game, with likely upside from the completion of Gearbox acquisition”

Vital Knowledge

  • The outlook is “downbeat” but the company is “still upbeat on sales growth over the coming years, and “this optimism should help mitigate the knee-jerk slump that will accompany the F25 guide”

This is not the first time analysts have feared delays

Some gamers have been waiting a decade for GTA 6. 

Take-Two shares have surged in recent quarters on the anticipation of the GTA 6 release. Shares have hit resistance between the $160-$170 levels. In premarket trading, shares are down 2%. 

“We do feel highly confident that we’ll deliver [Grand Theft Auto VI] in fall of 2025,” Take-Two CEO Strauss Zelnick told video game website IGN when asked about rumors GTA 6 could be delayed into 2026. 

Tyler Durden
Fri, 05/17/2024 – 08:30

via ZeroHedge News https://ift.tt/09VQYlj Tyler Durden

Watch: Chief Economic Adviser Refuses To Admit Biden Is Lying About Inflation

Watch: Chief Economic Adviser Refuses To Admit Biden Is Lying About Inflation

Authored by Steve Watson via Modernity.news,

Joe Biden’s chief economic advisor refused to admit Thursday that the president keeps telling a huge lie by claiming that inflation was at 9 percent when he took office when it was really at 1.4 percent and shot up to 9 percent under Biden himself.

During an interview on Fox Business, host Neil Cavuto grilled Jared Bernstein, and told him directly “you’re lying,” and “just as bad” as Biden when he tried to dodge the matter.

After Biden took office inflation surged to rates unseen since the early 1980s, peaking at an annual rate of 9.1 percent in June 2022, a full 17 months after he became president.

Yet, he keeps claiming it was ALREADY at 9 percent and that he inherited a weakened economy from Trump.

“Jared, why does he keep saying that?” Cavuto asked, following up “You’re the head of the Council of Economic Advisers. Do you ever whisper in his ear, ‘Mr. President, just to be technical about it, it wasn’t at 9% when you assumed office, it was 1.4%. It got as high as 9% in 2022, you brought it down from that, but it was never ever ever 9% when you came into office.’ So why does he keep saying it?”

Bernstein responded “Well, first of all, let me point out that in that very quote you played, the president talked about how concerned he was, uh, for households struggling with prices that he consistently—”

“That’s not what I asked you. That’s not what I asked you,” Cavuto interjected, again asking “Why does he keep misrepresenting this?”

“He’s making the point, uh, that that factors that caused inflation to climb to 9% were in place when he took office,” Bernstein claimed.

Credit to Cavuto, he was having none of it.

“No, that’s not what he said! He said it was at 9%… So if I can’t trust him with quoting data in real-time, why should I believe what he’s talking about now?”

“No it wasn’t — it was not at that! You’re almost as bad as he is,” Cavuto further charged when Bernstein attempted to claim that the annual inflation in 2021 was “about 9 percent.”

“Why can’t you just say, ‘It was high, it got as high as 9%’ — you’d be accurate in saying that — And we have now brought it down, or were struggling around the 3% area, but it’s better than it was,’” Cavuto continued.

“But instead to hang it on his predecessor that you inherited something that was through the roof when we were in the middle of Covid, it just seems to the American people whether you’re a Republican or a Democrat — you’re lying!The host concluded.

Biden really seems to believe that he has rescued the economy, when in reality he’s overseen an unmitigated disaster.

*  *  *

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Tyler Durden
Fri, 05/17/2024 – 08:10

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PBOC Unveils $42 Billion Monetary Cannon To Boost Debt-Stricken Housing Market

PBOC Unveils $42 Billion Monetary Cannon To Boost Debt-Stricken Housing Market

China’s struggling housing market is set to receive a boost from a new nationwide program funded by the People’s Bank of China to address oversupplied conditions. As a critical driver of the domestic economy, the nation’s housing market has been in a multi-year slump. This latest initiative by policymakers aims to stabilize the housing market and stimulate the broader economy. 

Bloomberg reports that PBoC Deputy Governor Tao Ling announced the new 300 billion yuan ($41.5 billion) nationwide program of cheap funding to allow state-owned companies to purchase unsold homes. 

Ling said the funding will be directed at 21 providers, including policy banks, state-owned commercial lenders, and joint-stock banks. A rate of 1.75% will be offered. The low-cost loans have a one-year term and can be rolled over four times. 

The new program powerfully signals that policymakers are pushing for property policy easing and measures to balance the supply-heavy housing market, which casts a dark cloud over the world’s second-largest economy. This announcement appears to be a step in the right direction in a national-level policy. 

Bloomberg first leaked the new rescue policies days earlier. We titled the note “Fiscal Bazooka: China Considers Buying Millions Of Homes To Save Property Market.”

Also, on Friday, policymakers eased mortgage rules and removed the mortgage rate floors for first and second homes. PBoC also lowered the minimum downpayment ratio for first-time homebuyers to 15%. The downpayment ratio for second-home purchases was lowered to 25%. 

Chinese Vice Premier He Lifeng said that authorities in cities with excess home inventories should purchase unsold properties and convert them into affordable housing. He also urged local governments to repurpose inactive land parcels held by property developers to alleviate their financial troubles.

This was a very policy-heavy week to save the debt-stricken real estate market. Data showed that property investment and new home sales in April experienced larger contractions, while housing prices slid even further. 

China’s ailing property sector is a drag on GDP. 

Housing sales are tumbling.

And apartment and commercial property sales are sliding. 

In markets, the CSI 300 Real Estate Index closed up 9%, with gains from April 24 totaling about 36%. Yet the latest gains in the property index are still 68% below the early 2018 peak. 

The index’s weekly gain was the most since early December 2015. 

Will the intervention be enough? 

Tyler Durden
Fri, 05/17/2024 – 07:45

via ZeroHedge News https://ift.tt/oaqOv5N Tyler Durden

Futures Flat In Quiet End To Torrid Week

Futures Flat In Quiet End To Torrid Week

US equity futures are flat to end a torrid week which saw all indexes hit a fresh all-time high while the terminally anachronistic Dow Jones briefly topped 40,000. Pre-market, MegaCap Tech are mixed: AMZN +20bp, MSFT +20bp, META -22bp, GOOGL -18bp. WMT is down 27bps pre-mkt, after its +7.0% rally post-earnings yesterday. As of 7:00am S&P and Nasdaq futures are unchanged while bond yields are largely flat. Commodities are mixed: oil is lower; metals/ags are higher. Overnight, China reported mixed April macro data (IP beat, Retail Sales miss) and also announced a new rescue plan to support housing; as a result base metals rallied (Copper +2.0%; Iron Ore +1.4%). Today, key macro focus will be on comments from the Fed’s Christopher Waller, Neel Kashkari and Mary Daly for further clues about the path for interest rates as well as the data from the leading index due at 10:00am (est -0.3%).

In premarket trading, GameStop and AMC rebounded following two sessions of losses, as the meme-stock rally shows fresh signs of life. While GameStop shares rise as much as 9.2% in premarket trading on Friday, AMC jumps as much as 9.5% — both stocks pared some of those early gains. Reddit shares rise 14% after the firm partnered with OpenAI to bring its content to the popular ChatGPT chatbot. Analysts note that this deal will boost the social media company’s data licensing business. Here are the other notable premarket movers:

  • Applied Materials share edge lower, falling 0.9% as the largest US maker of chipmaking machinery’s forecast failed to live up to high investor expectations following the stock’s 32% year-to-date rally.
  • Baidu ADRs tick up 0.4% in premarket trading, after rising 1.7% on Thursday. The search engine operator is set for weak growth in advertising revenue for coming quarters, Morgan Stanley says in a note that downgrades the stock to equal-weight from overweight.
  • Cracker Barrel shares trade 11% lower after the restaurant chain reduced its quarterly dividend as the company increases investment in its business. Additionally, the company also sees third- and fourth-quarter results coming below prior expectations, citing weaker-than-anticipated customer traffic as the main driver.
  • Doximity shares rise 14% after the application software company gave a first-quarter forecast that is stronger than expected. It also reported fourth-quarter results that beat expectations.
  • DXC Technology shares sink 23% after the IT services company gave a full-year forecast that was weaker than expected for both revenue and adjusted earnings. It also reported its fourth-quarter results.
  • Snowflake shares slip 1.3% after Bloomberg reported that the software firm is in talks to acquire startup Reka AI for more than $1 billion, according to people familiar with the matter.
  • Take-Two shares drop 2.8% after the video-game giant issued a weak full-year forecast, reflecting a later release date for the highly-anticipated Grand Theft Auto VI video game. The Rockstar Games title is now expected to release in fall 2025, which is in fiscal year 2026 rather than fiscal year 2025 as some analysts had expected.

Friday’s tentative mood reflected a repricing of US rate cut expectations to only one reduction in 2024. Several Fed policymakers said the the central should keep borrowing costs higher for longer as they await more evidence that inflation is easing.

“The markets are now at a bit of a crossroads,” said Stuart Cole, head macro economist at Equiti Capital. “With the central banks all very much in a data-dependence mode, the markets will be also adjusting expectations to each piece of relevant data that comes out.”

Investors will be tracking comments from the Fed’s Christopher Waller, Neel Kashkari and Mary Daly due later Friday for further clues about the path for interest rates.

European stocks slid for a second day weighed down by rates-sensitive sectors such as tech and real estate as traders pared back bets for policy easing after several Fed speakers suggested interest rates should stay high for longer. The Stoxx 600 dropped 0.4% but was off its worst levels, as construction, industrials and tech underperformed after ECB Executive Board member Isabel Schnabel warned against back-to-back interest rate cuts in June and July. Swap traders continue to price in three ECB rate cuts this year, with a first reduction likely next month. Luxury group Here are Europe’s top movers:

  • Richemont shares rise as much as 6.9%, the most in four months, after the Swiss watch and jewelery maker’s full-year sales beat estimates.
  • Bavarian Nordic shares jump as much as 5.6%, the most in 10 weeks, after US authorities warned that cases of a new clade of the Monkeypox virus are increasing in the Democratic Republic of the Congo.
  • Siemens shares fall as much as 2.4%, declining for a second day after the German industrial giant’s earnings on Thursday disappointed investors.
  • Lanxess shares decline by as much as 5.3% after both Jefferies and BNP Paribas Exane cut stock to underperform, with the former citing risks around demand recovery and also cutting Ebitda outlook.
  • Azelis shares decline by as much as 13%, the most on record, after EQT and PSP Investments Holding Europe offered to sell shares worth approximately 11% of total outstanding in the chemicals distributor, according to terms seen by Bloomberg.
  • Scor shares tumble as much as 13% after the French reinsurer’s first-quarter net income fell short of expectations, with analysts flagging a hit from one-offs including an impact on the firm’s L&H reinsurance division from volatility in US mortality claims.
  • Auto Trader shares slide as much as 5.3% as Morgan Stanley analysts cut their rating on the stock to underweight, saying the market is expecting too much too soon from the online auto marketplace’s Deal Builder product.
  • Engie shares fall as much as 2.2% after the French utility reported a miss in results that was somewhat expected after a warm winter pushed energy prices lower.
  • Haleon shares slip as much as 1.7% after GSK agreed to sell its remaining stake in the consumer health company for £1.25 billion, completing the drugmaker’s separation from the company.

Earlier in the session, property stocks in mainland China rose to the highest since November after the government announced a rescue package — its most forceful attempt yet to shore up the troubled sector. Elsewhere, Asian markets saw mild losses, though still on pace for weekly gains, as a late rally in Chinese stocks was not enough to offset weakness in tech-heavy markets of South Korea and Taiwan. The MSCI Asia Pacific Index declined 0.1%, to cut its weekly gains to 2.2%. Chipmakers TSMC and Samsung Electronics were among the biggest drags Friday. Benchmarks in South Korea, Taiwan and Australia posted among the largest declines in the region.

China’s mainland shares rallied to close at their highest level since Oct. 12 after the world’s second-largest economy announced its most forceful attempt yet to shore up the beleaguered property market, easing mortgage rules and encouraging local governments to buy unsold homes from developers for conversion into affordable housing. The new measures sent a Bloomberg index of Chinese property developers to its highest level since November.

“The lowering of down-payment ratio is beyond market expectations, while scrapping the minimum mortgage rate is well expected by the market,” said Shujin Chen, head of China financial and property research at Jefferies Hong Kong Ltd. “Investors are more willing to chase property stocks on speculation of a series of upcoming supportive policies before the Third Plenary Session in July,” she said.

In FX, the Bloomberg Dollar Spot Index rose 0.2%, but was still on track to end the week 0.5% lower after US CPI data earlier in the week cemented the view that the Fed will cut rates later this year. ING strategists say markets may have oversold the greenback following this week’s CPI and PPI data.  “We still think there is not enough thrust from US data to justify a significantly weaker greenback just yet,” they wrote in a note. USD/JPY climbed as much as 0.4% as the Bank of Japan left the amount of debt purchases unchanged. Leveraged-currency accounts bought dollars against the yen after the BOJ kept debt purchases unchanged in its regular operations Friday following a surprise reduction on Monday, according to an Asia-based FX trader.

In rates, the 10-year Treasury yield inched up 1bp to 4.39%, bouncing off 4.31% hit on Thursday, its lowest in nearly six weeks. Swaps imply a 76% chance of a quarter-point rate cut from the Fed in September, compared with 73% earlier in the week; around 44bps of cuts are priced in total through the end of the year, from around 40bps at the start of the week. Meanwhile in Europe, money markets trimmed ECB interest rate-cut wagers after policymaker Isabel Schnabel warned against back-to-back rate cuts.

In commodities, WTI trades within Thursday’s range at around $79.31. Most base metals trade in the green; LME nickel outperforms peers. Spot gold rises roughly $8 to trade near $2,385/oz.

Market Snapshot

  • S&P 500 futures down 0.1% to 5,314.00
  • STOXX Europe 600 down 0.4% to 521.29
  • German 10Y yield little changed at 2.48%
  • Euro down 0.2% to $1.0842
  • Brent Futures up 0.4% to $83.57/bbl
  • Gold spot up 0.3% to $2,383.06
  • US Dollar Index up 0.29% to 104.76
  • MXAP down 0.1% to 181.46
  • MXAPJ down 0.1% to 569.53
  • Nikkei down 0.3% to 38,787.38
  • Topix up 0.3% to 2,745.62
  • Hang Seng Index up 0.9% to 19,553.61
  • Shanghai Composite up 1.0% to 3,154.03
  • Sensex up 0.4% to 73,983.35
  • Australia S&P/ASX 200 down 0.8% to 7,814.37
  • Kospi down 1.0% to 2,724.62

Top Overnight News

  • European stocks retreated for a second day as dialed-down bets for Federal Reserve policy easing weighed on risk sentiment.
  • China announced its most forceful attempt yet to shore up the beleaguered property market, easing mortgage rules and encouraging local governments to buy unsold homes from developers for conversion into affordable housing.
  • Investors are divided on the likelihood of the Bank of Japan repeating its surprise move earlier this week by reducing purchases of government bonds in a regular buying operation this morning.
  • China’s economic recovery tilted even further toward manufacturing, leaving it more vulnerable to trade barriers and highlighting the stakes of a new bid to shore up domestic demand.

A more detailed look at global markets courtesy of Newsquawk

APAC stocks were mostly subdued following the mild losses on Wall St where the major indices pulled back after printing fresh record levels, while participants also digested mixed activity data from China. ASX 200 was pressured as losses across most industries overshadowed the gains in the mining and materials. Nikkei 225 declined but was off worst levels amid a weaker currency and after the BoJ refrained from further cutting its bond purchases. Hang Seng and Shanghai Comp were indecisive with early outperformance in Hong Kong owing to tech strength before briefly wiping out all of its gains, while the mainland was constrained as the focus centred on a slew of data including a further deterioration in Home prices which saw the steepest monthly drop in 9 years, while activity data was mixed as Industrial Production topped forecasts but Retail Sales disappointed. Modest extension of/return of strength in the Hang Seng and Shanghai Composite on the announcement of various Chinese property support measures, incl. a cut to the housing fund loan level.

Top Asian News

  • China’s Vice Premier He Lifeng says must effectively ensure the delivery of homes, adds local governments can purchase some homes for affordable housing at ‘reasonable’ prices, according to Xinhua.
  • PBoC announces it will lower interest rates on provident housing fund loans by 25bps and China will abolish the lower limit of interest rates for housing provident fund for first and second homes at the national level.
  • PBoC to create a CNY 300bln relending loan for affordable housing, expected to drive bank lending of CNY 500bln.
  • China stats bureau spokesperson said complexities and uncertainties in the external environment grew outstandingly and continued economic recovery and improvement still face many challenges, while April economic operations were stable even though some indicators slowed due to a high base and holiday factors. China’s stats bureau said with macro policies taking effect and economic momentum recovering, China’s economic improvement will be further consolidated and strengthened but also noted that China’s property sector continues to be under adjustments.
  • BoJ Governor Ueda said there is no immediate plan to sell BoJ’s ETF holdings and must spend time deciding the fate of BoJ’s holdings including whether to unload them in the future, according to Reuters.
  • BoJ may raise rates as many as three more times this year with the next move potentially coming as early as June given how much room there is to adjust its “excessively” easy settings, according to former BoJ chief economist Sekine cited by Bloomberg.

European bourses, Stoxx600 (-0.2%) are mostly on the back foot, continuing the broad weakness seen in APAC trade overnight. European sectors are mostly lower; Telecoms are found at the top of the pile, building on the prior day’s outperformance; Tech lags.
US Equity Futures (ES -0.1%, NQ -0.1%, RTY -0.1%) are flat, with price action circulating on either side of the unchanged mark.

Top European News

  • ECB’s de Guindos sees inflation moving toward the 2% goal in 2025. Favourable stance on cross-border consolidation in the banking sector.
  • Riksbank’s Thedeen says recent data does not change the picture for rate cuts.
  • UK Chancellor Hunt will claim that only the Conservative Party will cut the tax burden after the election, according to FT.
  • ECB’s Schnabel said depending on incoming data, a rate cut in June may be appropriate, but the path beyond June is much more uncertain, while she added that a rate cut in July does not seem warranted based on current data. Schnabel also stated that with inflation risks still being tilted to the upside, front-loading of the easing process would come with a risk of easing prematurely and cannot pre-commit to any particular rate path due to very high uncertainty, according to Nikkei.

FX

  • DXY is firmer, continuing to reclaim lost ground following the dovish US CPI report on Wednesday, which led the index as low as 104.07. The index currently sits towards the upper end of a 104.77-49 range.
  • EUR is modestly softer vs USD, and overall unreactive to the final EZ inflation figures. EUR/USD dips beyond the lows of Thursday, printing a trough at 1.0842.
  • GBP is slightly softer vs the Dollar, largely a factor of broader Greenback strength, rather than UK-related newsflow; trading towards the bottom end of today’s 1.267-264 range.
  • JPY continues to trundle lower, with USD/JPY going as high as 155.98, just shy of the round 156.0 level. USD/JPY was supported after the BoJ refrained from making any further reductions in Rinban purchase amounts.
  • Antipodeans are both softer vs the Dollar, with the Aussie the G10 underperformer. Chinese activity data overnight was mixed, and subsequent support measures which lifted the Yuan failed to prop up the Antipodes.
  • PBoC set USD/CNY mid-point at 7.1045 vs exp. 7.2222 (prev. 7.1020)

Fixed Income

  • USTs are modestly softer, and to a lesser degree than EGBs; bullish-impetus from the BoJ maintaining its Rinban purchase amount is weighed up against hawkish commentary from ECB’s Schnabel. Currently only a handful of ticks lower at around 109-14.
  • Bunds are weighed on by remarks from ECB’s Schnabel overnight who said that the data does not currently point to a cut in July. Bunds down to a 131.01 base, but with someway to go before the WTD trough from Tuesday at 130.24.
  • Gilts are taking impetus from EGBs and as such are at session lows of 98.08 but again well above Tuesday’s WTD base at 97.23; potential focus on extensive fiscal commentary from Chancellor Hunt, though nothing fundamentally new just yet.

Commodites

  • Crude benchmarks were incrementally firmer but have been drifting from best levels as the USD picks up; WTI & Brent Jul’24 at the low-end of the day’s range at USD 78.80/bbl and USD 83.37/bbl respectively.
  • Precious metals are a touch firmer, torn between the stronger USD/somewhat higher yields and a general downtick in risk appetite. XAU at USD 2380/oz, still yet to test USD 2400/oz.
  • Base metals are in the green, support derived from the extensive Chinese property support measures announced across the APAC/European sessions transition, despite the mixed read from the region’s data overnight.

Geopolitics

  • US Official says the US will agree to the Rafah operation but on conditions, via Al Arabiya; adds, the US’ warnings to Israel about the operation in Rafah are serious. “The Biden administration will accept a full Israeli attack in Rafah aimed at liquidating Hamas”.
  • Iraqi armed factions said they targeted a “vital target” in Eilat, southern Israel, according to Asharq News.
  • Israel presented a proposal to Egypt to reopen the Rafah crossing with the participation of Palestinians from Gaza and UN personnel, according to Israeli media cited by Asharq News.
  • US Defence Secretary Austin reinforced to Israeli counterpart in a phone call the necessity to protect civilians and ensure uninterrupted aid flow before any potential Israeli military operation in Rafah.
  • Yemen’s Houthis say they downed US MQ9 plane on Thursday evening Maareb Governorate.
  • North Korean leader Kim’s sister denied arms exchanges with Russia and said North Korea has no intention to export its arms, while she added that rocket launchers and missiles recently unveiled are for defence against South Korea, according to KCNA.
  • South Korea said North Korea fired at least one ballistic missile towards the Sea of Japan.

US Event Calendar

  • 10:00: April Leading Index, est. -0.3%, prior -0.3%

Central Bank Speakers

  • 10:15: Fed’s Waller Speaks on Payments Innovation
  • 10:15: Fed’s Kashkari Gives Brief Introduction of Waller
  • 12:15: Fed’s Daly Gives Commencement Speech

Tyler Durden
Fri, 05/17/2024 – 06:50

via ZeroHedge News https://ift.tt/Qfm3aeM Tyler Durden

Left’s “Sue-Till-Green” Strategy Comes To PA

Left’s “Sue-Till-Green” Strategy Comes To PA

Authored by André Béliveau via RealClearPennsylvania,

When climate activists use the term “environmental justice,” they mean it literally. Rather than legislating and passing laws (as is customary in a constitutional republic), they’ve turned to the courts to fight their quixotic battles.

Pennsylvania is no stranger to litigating climate-related policies.

The Keystone State’s history with the Regional Greenhouse Gas Initiative (RGGI), for example, has been nothing but litigious. The legal battle began when Governor Tom Wolf unconstitutionally entered Pennsylvania into the multistate compact. A Commonwealth Court ruled that Wolf’s executive order constituted an illegal tax, but Wolf’s successor, Governor Josh Shapiro, appealed the decision, prolonging the legal limbo.

RGGI is part of a larger “sue-till-green” strategy sweeping the nation and gaining momentum in Pennsylvania. The strategy began to take shape in 2012, when the Climate Accountability Institute hosted a pivotal conference in La Jolla, California. The gathering discussed a new approach to climate activism, mirroring the campaign against Big Tobacco—but this time targeting the oil and gas industry.

The goal: to effectively revoke the oil and gas industry’s “social license to operate.” Ultimately, this approach inundates oil and gas companies with legal fees and, together with other “green” policies, artificially raises the cost of reliable energy and subsidizes the production of less-reliable alternative energy sources.

Since then, climate radicals have created a centralized, interconnected network of operatives to file suits against the gas and oil industry nationwide. More than two dozen local and state government jurisdictions filed lawsuits on purely ideological grounds, seeking hundreds of billions of dollars in damages.

This legal onslaught has become a cash cow for law firms. The Center for Climate Integrity (CCI), which offers an array of environmental-centric advocacy services, attracts deep-pocket donors, including the Rockefeller Brothers Fund, Hewlett Foundation, and JPB Foundation. Together, these organizations grant money through the Collective Action Fund for Accountability, Resilience, and Adaptation, a donor-advised fund established to support cases by law firms focused on climate alarmism.

CCI isn’t alone. Local activist groups—Penn Environment, Breathe Project, Conservation Voters of PA, and Clean Air Council—make up a sophisticated network, with many linked to national organizations. These larger organizations start and fund the local-level subsidiaries, creating the appearance of grassroots engagement.

Increasingly, activists target swing states with significant gas and oil production. In July 2023, CCI published “Pennsylvania’s Looming Climate Cost Crisis.” This report attempts to attach a price tag (or quantifiable damage claim) on supposed climate change impacts in the Keystone State.

CCI doesn’t shy away from its intent to sue. CCI President Richard Wiles said that filing a climate-damages lawsuit in Pennsylvania would be a “cherry on top.”

One Pennsylvania community, Bucks County, took the bait. In March 2024, Bucks became the first county in Pennsylvania to sue a group of oil companies for “their alleged role in global warming.”

Wiles sees the Bucks County lawsuit as just the sounding whistle, hinting to local news that “it likely won’t be the last.” In April, CCI pitched ideas to the Allegheny County Council and the Pittsburgh City Council.

The sue-till-green strategy is gaining popularity on the political stump. Eugene DePasquale, a candidate for Pennsylvania attorney general, campaigns as the climate-action candidate who will take on “corporate polluters.”

The advocacy also pushes convoluted legal theories in Pennsylvania. Philadelphia district attorney Larry Krasner recently expressed concern about “climate homicide,” a fringe concept that suggests prosecuting fossil-fuel companies for “killing members of the public at an accelerating rate.”

What’s really endangered here is Pennsylvanians’ livelihoods. When it comes to energy, Pennsylvania is the “Saudi Arabia of the Northeast.” Criminalizing one of the commonwealth’s largest industries will lead only to higher energy costs, fewer jobs, reduced exports, and an unreliable power grid.

The self-proclaimed champion of democracy, the Left intentionally violates the “democratic norms” it claims to cherish by bypassing the deliberative processes where public issues belong. Climate radicals increasingly abuse the courts as an arena to penalize and shut down America’s energy sector, employing judges—not elected representatives—to codify their fever dreams of a future without hydrocarbons.

Tyler Durden
Fri, 05/17/2024 – 06:30

via ZeroHedge News https://ift.tt/nDRiKEe Tyler Durden

VW The Latest Automaker To Step Back From All-Electric Plans To Embrace Hybrids

VW The Latest Automaker To Step Back From All-Electric Plans To Embrace Hybrids

Not to be left behind by the rest of the industry, Volkswagen is the latest auto manufacturer to walk back its plans to go all-electric.

The move should come as no surprise to Zero Hedge readers, as we have been writing non-stop about the industry’s shift from BEVs back to a more common sense (and cost efficient) model, hybrids, over the last year. 

Volkswagen was once heavily invested in promoting its ID line of electric vehicles as the future, Bloomberg wrote this week. But now it has admitted it needs more plug-in hybrids due to slowing EV sales.

This shift is part of a broader reworking of VW’s electrification plans, following botched model releases and falling behind in China, the report says. The company has abandoned efforts to seek outside investment for its battery unit and canceled plans for a €2 billion EV factory in Germany.

Despite its pivot to electric cars, VW is still selling many combustion engine vehicles and is likely to exceed its emissions allowance next year. CEO Oliver Blume has requested leniency from European regulators, a stark change from VW’s aggressive EV lobbying just three years ago.

VW’s electrification drive was partly a response to the fallout from its diesel emissions scandal, leading to an ambitious plan to launch 75 electric models by 2029. Former CEO Herbert Diess championed this rapid transition, causing friction with industry peers.

While not abandoning EVs, Blume is forming partnerships, like with Xpeng Inc., and preparing a new EV brand in China to attract young consumers. VW is also discussing with Renault SA to develop cheaper EVs for the mass market.

Recall back in April we noted that Ford was “re-timing” its efforts to go all electric and back in February we wrote that GM was shifting to plug-in hybrids, too. 

CEO Mary Barra said on an earnings call back in February: “Let me be clear, GM remains committed to eliminating tailpipe emissions from our light-duty vehicles by 2035, but, in the interim, deploying plug-in technology in strategic segments will deliver some of the environment or environmental benefits of EVs as the nation continues to build this charging infrastructure.”

Barra announced plans to introduce plug-in hybrid electric vehicles (PHEVs) in North America on select models, aiming to comply with stricter federal fuel economy regulations. This shift mirrors industry trends, as automakers increasingly adopt hybrid technology to meet consumer demands and federal standards, following GM’s main rivals who already offer hybrids and PHEVs, according to CNBC

As we noted then, the automotive industry – which has now seen investment pulled from EV development by both major automakers that struck massive extortion labor deals with the UAW over the last year – is screaming that pure electric vehicles simply don’t make financial sense. 

That’s the magic of Bidenomics!

Tyler Durden
Fri, 05/17/2024 – 05:45

via ZeroHedge News https://ift.tt/TAOdNJg Tyler Durden

The Trouble With World Government

The Trouble With World Government

Authored by Jeffrey Tucker via The Epoch Times,

Well, at least that’s one setback for world government.

A court in Australia has told the government’s own eSafety Commission that Elon Musk is correct: One country cannot impose censorship on the world. The company X, formerly known as Twitter, must obey national law but not global law.

Mr. Musk seems to have won a very similar fight in Brazil, where a judge demanded not just a national but global takedown. X refused and won. For now.

This really does raise a serious issue: How big of a threat are these global government institutions?

Dreamy, dopey, and often scary intellectuals have dreamed of global government for centuries. If you are rich enough and smart enough, the idea seems to be the perennial temptation. The list of advocates includes people who otherwise have made notable contributions: Albert Einstein, Isaac Asimov, Walter Cronkite, Buckminster Fuller, and many others.

Often the dream comes alive following huge upheavals such as war and depression. Or a pandemic period such as the one we’ve just gone through. The use of “disinformation” as a cross-border test case of global government power is designed to deploy a new strategy of governance in general, one that disregards national control in favor of global control.

That has always been the dream. In history, for example, following the Great War, we saw the creation of the League of Nations, which was a forerunner to the United Nations, at the urging of President Woodrow Wilson. Both were seen by the intellectual class as necessary building blocks for what they really wanted, which was a binding world state.

This is not a conspiracy theory. It’s what they said and what they wanted.

In 1919, H.G. Wells, inspired by the League, became so excited about the idea that he wrote a sweeping reinterpretation of world history that extended from the ninth century B.C. until that present moment. It was called “The Outline of History.”

The goal of the book was to turn on its head the popular Whig theory from the previous century, which saw history as the story of ever more freedom for individuals and away from powerful states. Wells told a story of tribes turning to nations and then to regions, with ever less power to the people and ever more to dictators and planners. His purpose was to chronicle and defend exactly this.

It was a huge bestseller at a time when the appetite for books was voracious because they were becoming affordable and there was a burning passion in the population for universal education. The thesis of his book, however valuable in some historical respects, was genuinely bizarre. He imagined a future world state ruled by a tiny elite of the smartest people who would plan all economies, information flows, migration patterns, and governance systems while crushing national ambitions, free enterprise, traditions, and constitutions.

It was crazy stuff and didn’t really happen. But the efforts never stopped among a certain class of intellectuals. Following World War II, we saw similar efforts, the U.N. being only one. In the agreement hammered out at Bretton Woods in 1944, we had forged the World Bank and International Monetary Fund (IMF), which were seen as the basis of a global planning apparatus, together with a new world monetary system.

None of this worked out either. The IMF and World Bank ended up being well-funded sinecures for elite academics but not really the financial basis of a world state. The U.N. turned into a disappointment for many. The efforts at global management of trade finally came to fruition with the World Trade Organization, but that machinery has proven mostly toothless and unable to stop the sweeping turning back on free trade that has taken place over the past five years. Today, no nation really fears that entity.

The drive to unite Europe was advertised as a liberal move to inspire cooperation on trade and travel and to make economic cooperation possible. But that was just the pitch. The reality of the European Union was the creation of a mean bureaucracy in Brussels that would override the sovereignty of nations and force deference to a new central state in Europe that actually had no historical precedent. It was an experiment in region-wide government planning.

Britain was always a reluctant member, but when its worst fears were realized, the people voted to leave the whole thing. The result was Brexit, a political movement that panicked elites all over the world. They saw the plans of decades going up in smoke. Boris Johnson became prime minister with the task of making Brexit happen, but his rule was confounded at every step. Finally, the COVID-19 pandemic came along to upend his entire tenure.

One way to understand the COVID-19 pandemic response is as a further experiment in world government, a way for the elites to broadcast to the entire planet that they can achieve global cooperation when they want to.

In most every nation, the response was the same in terms of timing and protocol. Social distancing was everywhere, and masks, too. The breakup of gatherings including worship, along with idiotic schemes such as one-way grocery aisles, were imposed everywhere. The slogans (“We are all in this together”) and signage (wash hands, keep distance, mask up) were also the same.

It was creepy in the extreme, especially when you consider the way it all happened at once, even though we knew for sure that there are huge hemispheric differences in the way respiratory pathogens spread. Something can be a problem in New York but not in Sydney. Why did this happen all at once? The message seemed to be: This is just what we do in a global pandemic.

What they did not tell anyone is that none of this constituted “common sense public health measures” but rather amounted to an experiment without any precedent in the history of humanity. Nowhere had all this cockamamie stuff ever been implemented. Only crazy people had recommended them in the past, but the crazies somehow carried the day. There was a message behind the entire effort: We are the government, and we rule the world, populists’ resentment be damned.

In the aftermath, the World Health Organization (WHO) has picked up the mantle to goad the nations of the world to give up their sovereignty and agree to implement the same protocols anytime that the WHO demands it. They have this treaty or agreement that they have been shopping around the planet for signers. At first, it seemed to be in the bag. But with the calamity of the COVID-19 pandemic response in the rearview mirror, it turned out to not be so easy.

The group REPPARE started looking carefully at this agreement and the amendments and saw that the entire thing rested on faulty premises, twisted thinking, and fiscal profligacy. Governments around the world are now flat-out rejecting the offer to give up their control over nations. It appears now that the World Health Organization’s agreement is in trouble. We are even starting to see movements in the direction of leaving the WHO completely, just as President Donald Trump attempted to do back in 2017.

No question that a nascent world government is in operation today. It is hugely influential over media, technology, and the operation of the internet. It is managing global money flows and asset prices. It aims to reduce national sovereignty to mere brand names of the same thing and make it impossible for the will of the voters to prevail in any policy outcomes. It consists of large and well-funded elites that swim between the public and private sectors and operate through foundations and nongovernmental organizations. It is utterly detached from democratic processes.

“Nothing more disastrous could happen in the field of international economic relations than the realization of such plans,” Ludwig von Mises wrote in 1944. “It would divide the nations into two groups—the exploiting and the exploited; those restricting output and charging monopoly prices, and those forced to pay monopoly prices. It would engender insoluble conflicts of interests and inevitably result in new wars.”

In other words, like all government actions, the results of a world government would end in the opposite of the promise: not peace but war, not prosperity but poverty, not health but sickness, not a better environment but a worse one. It would be a prison for the world and utterly unworkable. People of the world need to be on the lookout for what is happening and reject it whenever the opportunity presents itself to do so.

For this reason, we should cheer anytime global government impositions such as censorship experience a setback. Government in one country causes enough trouble. A unitary government ruling all countries would doom what’s left of civilization.

Tyler Durden
Fri, 05/17/2024 – 05:00

via ZeroHedge News https://ift.tt/5ym9M0C Tyler Durden