Retailers are slashing iPhone prices across China as consumers say the phones aren’t worth the cost

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Three big factors behind Apple’s big sales slump and dire warning about China from CNBC. via CNBC: Apple’s latest iPhone models are seeing huge discounts from retailers in China. The technology giant recently revised its first quarter sales forecast downward, putting a large part of the blame on a slowdown in the Chinese market. Experts … Read more

IRS Free File opens today

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by these-things-happen Starting today, taxpayers can go to http://www.irs.gov/freefile to find the Free File software product that matches their situation. Each partner sets its own eligibility standards, generally based on age, income or state residency. Taxpayers can do their taxes online from IRS.gov or they can use the IRS2Go mobile app to access Free File and do … Read more

BEAR THESIS

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via @OccupyWisdom : 1/ Excessive debt, particularly in corporates ~70% of GDP. Raising rates vs. earnings 2/ Global banking/financial houses signaling crisis/instability now – German banking index, Italian banks, US financials down 2x broader market – Banks/Financials leading down 3/ Divided domestic government, desire by some to see @POTUS fail by way of the economy 4/ Liquidations … Read more

Weekly Leading Index Increases Are Crashing

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via ECRI ECRI’s U.S. Weekly Leading Index (WLI) increased to 143.4 as WLI growth fell further to -6.5%, a 363-week low. On desktop click here to download WLI data for free, including the full history of its level and growth rate. On mobile click here to go to ECRI’s Reports & Indexes page, then click the “Full Site” link … Read more

Immediately After Vowing to End Stimulus, ECB Discusses New, Powerful Stimulus

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via Reuters: European Central Bank policymakers are likely to debate new multi-year loans to banks, a potent stimulus tool, in the months ahead as they navigate a “fragile and fluid” global context, minutes of their December meeting showed on Thursday. A five-year economic expansion in the euro zone is rapidly losing pace as weak demand from … Read more

Growth at Any Cost: How China’s Slowing Economy Is Leading to Untested Policy

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via CNBC: Beijing’s efforts to prop up a slowing Chinese economy, in the middle of an ongoing trade war with Washington, is pushing the government to introduce previously untested policies, according to a senior analyst at Moody’s Investors Service. It is still unclear if China’s move to grant more tax cuts to small businesses would … Read more

Law Enforcement, Handcuffed by Shutdown, Sees Investigations Grind to Halt

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via Reuters: Federal law enforcement agencies that keep Americans safe are starting to feel the strain of the U.S. government shutdown, in its 21st day, with agents working for no pay and investigations delayed, law enforcement officials said. Training events have been canceled and travel cut back, with President Donald Trump and Congress unable to end … Read more

Gundlach: Debt-Financed Buybacks Have Made Stock Market Like a High-Risk CDO

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via mishtalk: Jeffrey Gundlach, CEO of DoubleLine Capital LP, has some interesting thoughts on debt, stock buybacks, and leverage. Please consider Gundlach’s Slideshow on Debt Financed Buybacks. Corporate Credit as Percentage of GDP ​ Investment Grade Has Shorter Maturity Than High Yield ​ US Corporate BBB Debt ​ BBB debt is one step above junk. Rise of … Read more

There is only so much gov’t & fed can do to prop stocks, at some point, the market will figure out the global economy continues to implode.

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There is only so much gov't & fed can do to prop stocks, at some point, the market will figure out the global economy continues to implode. pic.twitter.com/uKrfk6pwhr — Alastair (@StockBoardAsset) January 11, 2019 https://twitter.com/GreekFire23/status/1083843957539393536 The big declines in the industrial production data for Germany, France, Italy, Spain and the UK raises the specter of … Read more

Fed’s Powell: Balance Sheet to be “Substantially Smaller.” How Small? He Gave Big Clues. My Dive into the Dynamics & Charts

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Wolf Richter wolfstreet.com, http://www.amazon.com/author/wolfrichter In fact, QE started reversing at the end of 2014. The Fed’s balance sheet would be “substantially smaller” after the Fed gets done with its QE unwind, Fed Chairman Jerome Powell said on Thursday. How far the Fed might go in shedding assets is a red-hot topic right now that causes … Read more

Do economic booms die of old age?

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From Bloomberg: Ben Bernanke got a big laugh from economists in Atlanta on Jan. 4. A few minutes after Janet Yellen said, “I don’t think expansions just die of old age,” he replied, “I like to say they get murdered.” All right, not that funny. But the nerdy repartee between the past two Federal Reserve chairs … Read more

Gold forecast raised on recession fears

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The bank cites “a sharp deterioration in risk sentiment following soft macroeconomic data in December and renewed concerns about the future direction of growth.” From CNBC: Goldman Sachs has found the safe haven gold more attractive after a volatile December. The bank on Thursday raised its gold forecasts to $1,325, $1,375 and $1,425 per troy ounce … Read more