ZeroHedge Nachrichten

 

Loonie Strengthens After BoC Slashes Rates By 50bps Again, Blames De-Growth On Trump & Immigration The Bank of Canada just slashed rates by 50bps (to 3.25%) - as expected - and the second 50bps cut in a row as the central bank claimed growth looks weaker than expected... but they were careful to tamp down any exuberance over future cuts. The bank said it cut by 50 basis points to “support growth and keep inflation close to the middle of the 1-3% target range,” citing inflation near 2%, excess supply, and softer-than-expected growth. The decision was expected by markets and most economists in a Bloomberg survey. Slightly hawkish shift in language... The central bank said it will be “evaluating the need for further reductions in the policy rate one decision at a time.” By comparison, October's policy statement said that “if the economy evolves broadly in line with our latest forecast, we expect to reduce the policy rate further.” Who's to blame for the slower growth? Trump ...

Wall Street Reacts To CPI Report, Even As Markets Price In Certainty Of Dec Rate Cut Today's CPI report - the final important economic report of 2024 - came on the screws with every Inflationary metric coming in as expected (if somewhat hotter when looked at a bit closer). Still, the market was relieved that the print did not beat estimates (as some whispers hinted), and for many this was enough to assure that the Fed cuts rates by 25bps next week before potentially pausing in January. Many... but not all. As the following kneejerk reaction snapshots from a selection of Wall Street analysts, strategists and economists suggests, even today's print wasn't enough to assure everyone that a 25bps cut is a done deal, even if market implied odds are now up to 97.9% Below we excerpt several key post-CPI soundbites: Neil Birrell, Premier Miton Investors "This report will give the Fed confidence. Investors will also take heart, as the lack of a surprise, good or bad, allows for more certainty in dec...

Reuters Fact-Checks Babylon Bee Article Stating 'Allahu Akbar' Has Replaced 'Cheerio Mate' As UK's Favored Farewell Authored by Steve Watson via Modernity.news, Reuters is at it again with their team of 'fact checkers'. They're targeting The Babylon Bee, a satirical website, over an article that states the most favoured farewell  in the UK, 'cheerio mate' has been replaced with 'Allahu Akbar.' The humorous satire piece states, “A recent poll conducted by the University of Oxford just revealed that 'Allahu Akbar' has officially replaced 'Cheerio, mate!' as the most popular greeting in the UK,” adding that experts called the results of the “survey” a “flippin' landslide, old bean.” Kyle Mann, the Editor-in-Chief of the Babylon Bee, shared the lunacy on X, noting that “Reuters fact-checkers reached out for comment on our Babylon Bee story about 'Allahu Akbar' replacing 'Cheerio Mate' in the UK. I tried to help them out.”Mann then shared screenshots of the r...

Luigi Mangione's Lawyer Says He's Not Seen Evidence Showing Client Is Guilty Authored by Zachary Stieber via The Epoch Times, The attorney hired to represent the man accused of killing UnitedHealthcare's CEO said that he's seen no evidence showing his client is guilty. “I haven't seen any evidence that says that he's the shooter,” Thomas Dickey told reporters in Pennsylvania on Dec. 10, after a hearing in which his client Luigi Mangione was denied bail. Law enforcement officials say Mangione is the individual who approached UnitedHealthcare CEO Brian Thompson on a New York City sidewalk earlier this month and fatally shot him in the back. Dickey said Mangione plans to plead not guilty and urged people to remember that in the American justice system, defendants are innocent until proven guilty. “The burden is always on the government, thank God, and that's their burden, and they're going to have to produce some evidence, and we're anxious to see it,” said the lawyer, who announ...

WTI Holds Gains On Surprise Crude Draw; US Production Hit New Record Highs  Oil prices are up this morning on the possibility of tighter sanctions on Russian crude and held its gains after US inflation data matched expectations.  US consumer prices rose 0.3% in November, meeting expectations and leaving traders to focus on a report that the Biden administration is considering tougher sanctions on Russia's oil trade. Curtailing Russian barrels could tighten the market and drive up prices before President-elect Donald Trump takes office. Details of the possible measures were still being worked out, according to people familiar with the matter. The market is focused on the official crude inventory data from the US Department of Energy after API reported a small buildup last week. API Crude +500k Cushing -1.5mm Gasoline +2.85mm Distillates +2.45mm DOE Crude -1.425mm Cushing -1.298mm Gasoline +5.086mm - biggest build since January Distillates +3.235mm T...

Accounting Error Sends Macy's Shares Tumbling; Goldman Calls Earnings "Disappointing" Macy's reported its financial results for the third quarter on Wednesday and slashed its outlook after concluding an investigation into an employee who intentionally hid $151 million in delivery expenses from the fourth quarter of 2021 through the third quarter of this year.  During an earnings call on Wednesday morning, Macy's CEO Tony Spring told investors that "integrity is paramount at Macy's," adding, "The responsible individual is no longer with the company, following discovery of their actions."  Spring continued, "We've also identified and begun to implement additional controls to be a stronger and more disciplined organization so that an action like this could not happen again." In late November, Macy's delayed its third-quarter report due to an investigation and forensic analysis that specified a "single employee with responsibility for small package delivery expense accounting intent...

After 2024 Losses, Hardball Democrat Lawyer Marc Elias Vows To Fight Back In '26 And '28 Authored by Paul Sperry via RealClearPolitics, Democratic election lawyer Marc Elias had a rough election. Several of his clients, notably Kamala Harris and Pennsylvania Sen. Bob Casey, fell to defeat. But instead of accepting their losses, Elias disputed the presidential and senatorial results in Pennsylvania, leading to charges that Elias, a self-advertised "democracy defender," is what he's accused Donald Trump of being: an "election denier." With the races now settled – and many of his skeptical posts on X deleted – Elias is unrepentant and remains defiant. Not only is he shaking off the criticism, but he is vowing to fight Trump and Republicans even harder in court in 2026 and 2028. "Democrats need to oppose, and not simply resist, a second Trump presidency," the lawyer said last week. This time, Elias promises to employ more "ruthless" tactics to stop Trump, Republicans, and their MAGA agenda....

Re-Inflation Continues - November Consumer Prices Surge Most Since April Having accelerated MoM for the past four months, analysts expected today's CPI print (for November) will rise once again to +0.3% MoM and they were dead on (the biggest MoM rise since April). The 0.3% MoM rise pushed headline CPI up 2.7% YoY - the highest since July... Source: Bloomberg Core CPI also rose 0.3% MoM (as expected) which pushed it up 3.3% YoY (not even close to the 2% mandate)... Source: Bloomberg There has not been a single monthly decrease in core consumer prices since Biden too office. There is a silver lining however, with so-called SuperCore CPI - Services Ex Shelter - rising just 0.19% MoM which leaves it +4.3% YoY (the lowest inflationary print since Dec 2023)... Source: Bloomberg Services inflation continues to slow (but remains very hot) as goods deflation is rapidly reversing... Source: Bloomberg On a three-month annualized basis, it is only energy's deflation that is holding CPI back from a much ...

Judge Rejects The Onion's Purchase Of Alex Jones' Infowars In Bankruptcy Sale Authored by Katabella Roberts via The Epoch Times, A federal judge in Texas on Dec. 10 rejected the auction sale of Alex Jones's Infowars website to satirical publication The Onion, ruling that the process did not result in the best possible bids and citing concerns about transparency in the auction. The Onion was named the winning bidder of Infowars' assets during the Nov. 14 auction, part of a personal bankruptcy case Jones filed in late 2022 after he was ordered to pay nearly $1.5 billion in several defamation lawsuits. The lawsuits were filed against Jones in Connecticut and Texas by relatives of victims of the 2012 Sandy Hook Elementary School shooting, which Jones repeatedly claimed was staged as part of a government plot to increase gun control. A total of 20 children and six educators were killed in the shooting. Jones has since acknowledged that the shooting took place and was “100 percent real.” He ...

Futures Flat Ahead Of CPI, Dollar Surges On China Devaluation Speculation US equity futures are flat ahead of the CPI report that will determine if the Fed cuts rates next week. As of 8:00am, S&P and Nasdaq futures are up 0.1%, with the Mag 7 mostly higher led by NVDA, GOOG and TSLA. Bond yields and the dollar are also higher after a Reuters report that Chinese leaders are considering allowing their currency to weaken as they brace for higher tariffs under a second Donald Trump presidency. In commodities oil is up +1.0%, and gold is trading just shy of $2700. The main macro focus will be CPI at 8.30am ET (see our preview here). We will also have 10y auction at 1pm ET and ADBE earnings after the close. Among individual stock movers, Walgreens Boots Alliance slipped 3.5% in US premarket trading, ceding some of the previous day's 28% surge, as analysts questioned the probability of Sycamore Partners acquiring the pharmacy chain. Videogame retailer GameStop was flat after posting a surprise p...

Billionaire Brit Abandons Tories; Backs Reform UK's Farage As Next PM In July, the UK held a general election that on the surface looked to be as consequential as the one we had here in the US in November. After 14 years of Conservative Party leadership, the Labour Party won an astonishing number of seats in Parliament, but because of the UK's system, which awards seats to the recipient of a plurality of votes - and as many as six parties fielding candidates - many of these new members of Parliament won with as little as 35% of the vote. It didn't take long for Brits to sour on this new Labour government. Even though the Tories (Conservatives) still have a low favorability rating, Labour's leaders saw a significant drop in net favorability less than two months after the election. Then, in late November, an online petition surfaced with over 2 million signatures urging the Labour government to call for a new election. "'I would like there to be another General Election. I believe the curr...

Russian State Duma Deputy Proposes Strategic Bitcoin Reserve Authored by Nikolaus Hoffman via BitcoinMagazine.com, Russian state-owned domestic news agency, RIA Novosti, reported that State Duma Deputy Anton Tkachev proposed creating a strategic bitcoin reserve for Russia, claiming they have obtained a copy of the document. Tkachev, from the New People party, sent the proposal to Russia's Finance Minister, Anton Siluanov, to create a bitcoin reserve similar to Russia's traditional currencies reserves. “I ask you, dear Anton Germanovich, to assess the feasibility of creating a strategic reserve of bitcoin in Russia by analogy with state reserves in traditional currencies,” the document reportedly stated. “If this initiative is approved, I ask you to submit it to the government of the Russian Federation for further implementation.” “In conditions of limited access to traditional international payment systems for countries under sanctions, cryptocurrencies are becoming virtually th...

Watch: Powerful Blast Rocks Luxury Residential Tower In Shenzhen Dramatic footage has been posted on X, capturing the moment a powerful blast rocked a luxury residential tower in the southern Chinese city of Shenzhen. Number 1 trend on Weibo now: the terrible explosion that occurred in a residential building in Shenzhen's Nanshan District today just after 14.30 after which 16 fire trucks and 80 fire rescue workers rushed to the scene. pic.twitter.com/6l3RJlFeN3 — Manya Koetse (@manyapan) December 11, 2024 Reuters reported: The Shenzhen fire brigade said it had dispatched 16 fire trucks and 80 rescue personnel after receiving a report of the emergency at the compound. ... According to state media The Beijing News, a preliminary investigation showed that a gas explosion on the 28th floor of the building caused the fire, while the exact cause of the explosion was still being investigated. According to the Shanghai Morning Post, local officials have not confirmed casualty numbers, which remain...

China Deploys 'Astonishing' Number Of Warships After Taiwan President's Trip To Hawaii, Guam  While all eyes in the West have been busy following events in Syria, Ukraine, and Gaza - China's military has been making big moves around Taiwan, and interestingly this comes with just weeks to go before the new Trump administration enters the White House. Taiwan's Defense Ministry announced Tuesday that it is monitoring a surge of Chinese military activities in the Taiwan Strait and Western Pacific. This state of 'high alert' has been on since Monday, and new major PLA military drills are expected. Illustrative via AFP The deployment of PLA vessels extends well beyond waters off Taiwan, strongly suggesting Beijing is readying for new exercises which threaten other regional US allies as well, such as the Philippines. According to details in CNN: An "astonishing” number of Chinese vessels have been deployed at a scale that “could block external forces,” Lt. Gen. Hsieh Jih-Sheng, deputy ...

'Polarization' Is Merriam-Webster's 2024 Word Of The Year Via Headline USA, The results of the 2024 U.S. presidential election either saved the nation from a permanent socialist takeover, or else they marked the second coming of Adolf Hitler, depending on whom you ask. Is it any surprise then that the Merriam–Webster word of the year is “polarization”? “Polarization means division, but it's a very specific kind of division,” said Peter Sokolowski, Merriam–Webster's editor at large, in an exclusive interview with the Associated Press ahead of Monday's announcement. “Polarization means that we are tending toward the extremes rather than toward the center.” The election was so divisive, many American voters went to the polls with a feeling that the opposing candidate was an existential threat to the nation. According to AP VoteCast, a survey of more than 120,000 voters, about 8 in 10 Kamala Harris voters were very or somewhat concerned that Donald Trump's views—but...

Here's Who Owns US Debt U.S. gross debt increased from $34.4 trillion at the end of 2023 to $36.1 trillion as of December 2024, with some experts calling it unsustainable. In this graphic, Visual Capitalist's Bruno Venditti brings a breakdown of U.S. debt composition, categorized by domestic and foreign investors as well as intragovernmental holdings. The data is sourced from the U.S. Department of the Treasury by the Peter G. Peterson Foundation, as of year-end for 2023. Key Data on U.S. Debt The U.S. national debt increases when the federal government spends more than it collects through taxes and other revenue streams. When government spending exceeds tax revenue, a budget deficit occurs. To cover the shortfall, the U.S. Treasury issues Treasury bills, notes, and bonds. The national debt is the cumulative total of the federal government's budget deficits, adjusted for any surpluses. Of the $34.4 trillion in gross debt in 2023, $27.3 trillion (79%) was public debt borrowed from dom...

World Coal Demand And Exports Set For New Record High In 2024 By Tsvetana Paraskova of OilPrice.com The world's consumption and exports of thermal coal are expected to rise this year from 2023 to hit fresh record-highs, according to export and power generation data cited by Reuters columnist Gavin Maguire. Coal-fired electricity generation has increased so far this year by 2% compared to 2023, to hit new highs as power demand in emerging markets grows. Coal power emissions are also set to rise to a record high in 2024, according to data from energy think tank Ember quoted by Maguire. Moreover, global exports of thermal coal – the type used in coal power plants – have also climbed this year, due to rising demand in India and China in particular. The world's thermal coal exports rose by 9 million metric tons between January and November 2024 compared to the same period of last year, per vessel-tracking data by commodity analysts at Kpler. Indonesia, the largest coal exporter in the world, ...

Deutsche Bank Sees Volkswagen, BMW, Tesla, BYD As Standout Picks For 2025 Deutsche Bank released a new note on coming 2025 themes, trends and top picks in the automotive industry this week. Among the standouts from the note were: Volkswagen (Europe): Volkswagen is addressing cost inefficiencies with bold restructuring efforts, such as plant closures and a canceled labor agreement in Germany. Its new product launches, particularly in premium brands Audi and Porsche, position it to have the youngest portfolio by year-end 2025, enhancing competitiveness. BMW (Europe): BMW leads German automakers in Battery Electric Vehicle (BEV) adoption, helping it comply with EU CO2 regulations. Additionally, its cash return potential, with €2 billion allocated for share buybacks and plans for more, provides shareholder value. Michelin (Europe): Despite recent challenges, Michelin is expected to outperform in 2025 due to a recovery in volume growth, strong cash generation, and lower risk exposur...

Can Europe Afford Its Energy Transition? Authored by Irina Slav via OilPrice.com, A new report estimates the EU's green transition could cost €1.3 trillion annually until 2030 and €1.54 trillion annually until 2050. The high cost of the transition may require higher taxes, subsidies, and potentially national green investment strategies. Concerns exist about public support for the transition due to rising living costs and potential harm to businesses' competitiveness. Climate finance is a white-hot topic right now. The COP2 delegates failed to agree on a generous enough deal for the transition in developing countries; in the U.S., project Veritas revealed that the EPA was funneling billions into climate activist organizations ahead of Trump's presidency to ensure continued pressure on the government; and in the EU, a think tank put a price tag on the transition. The EU cannot afford it. Bruegel, the Brussels-based energy outlet, published a policy brief this week focusing ...

Japan Set To Restart Shimane Nuclear Reactor For First Time Since Fukushima Disaster The world continues to "warm" back up to nuclear, with the latest example coming out of Japan, where its Shimane nuclear power station in western Japan has been restarted for the first time since the 2011 Fukushima meltdown. Japan's long-delayed restart of the 820 MW No. 2 reactor at the Shimane plant, shut down since January 2012, raises the number of operational reactors to 14, with a total capacity of 13,253 MW, according to Reuters. Tohoku Electric Power also recently resumed operations of its 825 MW No. 2 reactor at the Onagawa plant, reducing Japan's reliance on liquefied natural gas and thermal coal. Reuters writes that the expanded use of nuclear energy is expected to support Japan's growing power needs, particularly for semiconductor plants and AI-driven data centers. The government projects power demand will rise from 1 trillion kWh this decade to 1.35–1.5 trillion kWh by 2050, fueled by the ex...