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Markets Pricing In A Viral All Clear

Markets Pricing In A Viral All Clear

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Financial markets disconnection with the real world accelerated overnight, with both equities and energy markets recording substantial gains as coronavirus lockdowns are eased across the globe. Life as we knew it, will not return to anything like normal anytime soon, even sans lockdowns, but facing down herd-like FOMO momentum usually leaves one trampled on the ground. Joining in or stepping aside seems to be safer strategies these days than “deep value investing.”

 

To be fair, some heavyweight names are saying the worst is over. Morgan Stanley and Goldman Sachs both said as much overnight. The Federal Reserve Vice-Chairman Richard Clarida counterposed that though, by saying that the US economy will need government support for some time yet. The welcome stating of the obvious poured a dose of reality on frothy equity markets, although they still finished comfortably in the green. The US government itself could still be a problem on this front. With further fiscal packages seemingly being dragged into a partisan mire. How quickly have we forgotten the increased China tensions? Nary a mention today of a trade war story that filled the headlines in the business press yesterday. Such is the desperation for a return to even partial normalcy for the world, and I can’t argue with that.

 

Someone who is arguing is the German Constitutional Court. Overnight it ruled that parts of the ECB quantitative easing programmes were illegal under German Law. It has overridden an EU Court of Justice ruling previously that they were legal, banned the Bundesbank from participating in any more bond-buying programmes for now, and given the ECB three months to sort the mess out. The ruling sent Euro lower versus the Dollar and rightly so. EUR/USD fell 0.65% to 1.0840.

 

The more profound question though is who is in charge in Europe? The German Courts of the European ones? The former opens up a continent-sized can of worms. Readers will know how underwhelmed I am with the European project in the absence of a monetary and fiscal union. And as a result, its recovery prospects, both since the GFC and now COVID-19. This adds another huge black mark to the debacle.

 

Both China and South Korea return from holiday today, although Japan remains on vacation until tomorrow. Both markets will have some bullish catchup to complete, and Asia, as a whole, should trade positively as the coronavirus reopening trade continues to gain momentum.

 

The data calendar is light in Asia today, with both Singapore and Hong Kong’s PMI today lower, but not surprisingly so. German Factory Orders this afternoon ae expected to drop by 10% with Europe-wide Retail Sales data likely to make grim reading. US ADP Employment data for March is forecast to drop by 20 million jobs. However, the street appears to have built up some herd immunity to bad news in recent days, accepting its inevitability but preferring to concentrate on the potentially better days ahead. Who I am to argue with this? The nightmarish US Initial Claims and Non-Farm Payroll data due this week, Trump trade wars, or the German Constitutional Court trying to seize control of Europe, may not be received as negatively as they usually should and would be.

 

Positive Wall Street session greenlights equity gains in Asia.

 

Wall Street continues embracing the peak virus trade overnight, with only the Fed’s Clarida dampening an otherwise frothy session late in the day. Equity markets were in no mood to listen to a Fed governor being the voice of reason though. The S&P 500 climbing 0.90%, the Nasdaq rising 1.10% and the Dow Jones rising 0.60%.

 

Asia looks set to continue in the same vein with markets concentrating on the winding down of coronavirus lockdowns and a resurgence in economic activity to follow. One exception is likely to be Chinese Mainland markets that return from Labour Day holidays today. The trade rhetoric and virus coverup accusations from Washington DC will weigh on sentiment this morning.

 

South Korea has returned from holiday and has surged higher by 1.10%. Singapore has risen 0.35% although Australia has retreated by 0.70% this morning. Still, a rebound in retail sales by 8.50% just released, should limit losses. The rest of Asia though, as it comes online set to emulate Wall Street and head higher over the morning.

 

US Dollar strength lingers.

 

The US Dollar continues to outperform as forex markets diverge somewhat from equity and energy markets. The EUR/USD falling 70 points to 1.0840 lifted the dollar index, which climbed 0.30% to 99.27. USD/JPY has also fallen from 107.00 to 106.35 this morning, its lowest level in one month. The persistent buying of haven currency US Dollars and Japanese Yen this week, suggests that currency markets are not yet wholeheartedly embracing the peak virus story.

 

FX traders are also likely to be more nervous about renewed US-China trade hostilities, especially with China only returning to work today. Worries that China may tolerate a weaker Yuan to punish the US is likely holding up a more wholesale rotation out of haven positioning.

 

Oil continues its breath-taking rally.

 

The perils of standing in front of short-term momentum are nowhere more apparent then oil markets at the moment, as the colossal rally continued overnight. Investors are piling into black gold as expectations that the peak drop in demand has occurred, as coronavirus lockdowns are unwound.

 

Brent crude surged 14.50% higher overnight to $31.50 a barrel and touched $32.00 a barrel this morning before easing slightly. Brent crude has resistance at these levels in the form of the 50-day moving average at $32.00 a barrel. Major resistance lies at $36.00 a barrel. Given that Brent has rallied from $20.00 a barrel only a week, $36.00 should prove an insurmountable challenge, even in this wildly optimistic environment.

 

WTI’s overnight rally was even more impressive, albeit from a lower base. WTI futures leapt by 20.50% to $ 24.60 a barrel in overnight trading, although WTI is unchanged this morning. WTI’s next meaningful resistance lies at $29.00 a barrel although, like Brent, that may be a bridge too far.

 

The return of China from holiday is capping gains in oil as energy markets reluctantly face up to the reality of deteriorating relations between China and the US. While the rest of the world despairs of the biggest kids in the playground ever being able to share the toys, worries that China could retaliate against the US virus and trade accusations are real. If anything can undermine a peak virus rally, a US-China trade war would do the job nicely.

 

Nothing has changed for gold traders.

 

Gold continues to experience impressive $30 ranges intra-day, with equally unimpressive almost unchanged close concluding the day. Such was the case overnight, with gold trading between $1680.00 and $1710.00 an ounce, only to close unchanged from the previous day at $1700.00 an ounce.

 

The price action suggests that gold remains the domain of intra-day momentum traders and not longer-term fundamental ones. The latter appears to be content residing on the side-lines until either $1650.00 or $1750.00 an ounce, are convincingly broken.

 

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Are Voters Recoiling Against Disorder?

Are Voters Recoiling Against Disorder?

Authored by Michael Barone via The Epoch Times (emphasis ours),

The headlines coming out of the Super…

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Are Voters Recoiling Against Disorder?

Authored by Michael Barone via The Epoch Times (emphasis ours),

The headlines coming out of the Super Tuesday primaries have got it right. Barring cataclysmic changes, Donald Trump and Joe Biden will be the Republican and Democratic nominees for president in 2024.

(Left) President Joe Biden delivers remarks on canceling student debt at Culver City Julian Dixon Library in Culver City, Calif., on Feb. 21, 2024. (Right) Republican presidential candidate and former U.S. President Donald Trump stands on stage during a campaign event at Big League Dreams Las Vegas in Las Vegas, Nev., on Jan. 27, 2024. (Mario Tama/Getty Images; David Becker/Getty Images)

With Nikki Haley’s withdrawal, there will be no more significantly contested primaries or caucuses—the earliest both parties’ races have been over since something like the current primary-dominated system was put in place in 1972.

The primary results have spotlighted some of both nominees’ weaknesses.

Donald Trump lost high-income, high-educated constituencies, including the entire metro area—aka the Swamp. Many but by no means all Haley votes there were cast by Biden Democrats. Mr. Trump can’t afford to lose too many of the others in target states like Pennsylvania and Michigan.

Majorities and large minorities of voters in overwhelmingly Latino counties in Texas’s Rio Grande Valley and some in Houston voted against Joe Biden, and even more against Senate nominee Rep. Colin Allred (D-Texas).

Returns from Hispanic precincts in New Hampshire and Massachusetts show the same thing. Mr. Biden can’t afford to lose too many Latino votes in target states like Arizona and Georgia.

When Mr. Trump rode down that escalator in 2015, commentators assumed he’d repel Latinos. Instead, Latino voters nationally, and especially the closest eyewitnesses of Biden’s open-border policy, have been trending heavily Republican.

High-income liberal Democrats may sport lawn signs proclaiming, “In this house, we believe ... no human is illegal.” The logical consequence of that belief is an open border. But modest-income folks in border counties know that flows of illegal immigrants result in disorder, disease, and crime.

There is plenty of impatience with increased disorder in election returns below the presidential level. Consider Los Angeles County, America’s largest county, with nearly 10 million people, more people than 40 of the 50 states. It voted 71 percent for Mr. Biden in 2020.

Current returns show county District Attorney George Gascon winning only 21 percent of the vote in the nonpartisan primary. He’ll apparently face Republican Nathan Hochman, a critic of his liberal policies, in November.

Gascon, elected after the May 2020 death of counterfeit-passing suspect George Floyd in Minneapolis, is one of many county prosecutors supported by billionaire George Soros. His policies include not charging juveniles as adults, not seeking higher penalties for gang membership or use of firearms, and bringing fewer misdemeanor cases.

The predictable result has been increased car thefts, burglaries, and personal robberies. Some 120 assistant district attorneys have left the office, and there’s a backlog of 10,000 unprosecuted cases.

More than a dozen other Soros-backed and similarly liberal prosecutors have faced strong opposition or have left office.

St. Louis prosecutor Kim Gardner resigned last May amid lawsuits seeking her removal, Milwaukee’s John Chisholm retired in January, and Baltimore’s Marilyn Mosby was defeated in July 2022 and convicted of perjury in September 2023. Last November, Loudoun County, Virginia, voters (62 percent Biden) ousted liberal Buta Biberaj, who declined to prosecute a transgender student for assault, and in June 2022 voters in San Francisco (85 percent Biden) recalled famed radical Chesa Boudin.

Similarly, this Tuesday, voters in San Francisco passed ballot measures strengthening police powers and requiring treatment of drug-addicted welfare recipients.

In retrospect, it appears the Floyd video, appearing after three months of COVID-19 confinement, sparked a frenzied, even crazed reaction, especially among the highly educated and articulate. One fatal incident was seen as proof that America’s “systemic racism” was worse than ever and that police forces should be defunded and perhaps abolished.

2020 was “the year America went crazy,” I wrote in January 2021, a year in which police funding was actually cut by Democrats in New York, Los Angeles, San Francisco, Seattle, and Denver. A year in which young New York Times (NYT) staffers claimed they were endangered by the publication of Sen. Tom Cotton’s (R-Ark.) opinion article advocating calling in military forces if necessary to stop rioting, as had been done in Detroit in 1967 and Los Angeles in 1992. A craven NYT publisher even fired the editorial page editor for running the article.

Evidence of visible and tangible discontent with increasing violence and its consequences—barren and locked shelves in Manhattan chain drugstores, skyrocketing carjackings in Washington, D.C.—is as unmistakable in polls and election results as it is in daily life in large metropolitan areas. Maybe 2024 will turn out to be the year even liberal America stopped acting crazy.

Chaos and disorder work against incumbents, as they did in 1968 when Democrats saw their party’s popular vote fall from 61 percent to 43 percent.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times or ZeroHedge.

Tyler Durden Sat, 03/09/2024 - 23:20

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Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The…

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Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The U.S. Department of Veterans Affairs (VA) reviewed no data when deciding in 2023 to keep its COVID-19 vaccine mandate in place.

Doses of a COVID-19 vaccine in Washington in a file image. (Jacquelyn Martin/Pool/AFP via Getty Images)

VA Secretary Denis McDonough said on May 1, 2023, that the end of many other federal mandates “will not impact current policies at the Department of Veterans Affairs.”

He said the mandate was remaining for VA health care personnel “to ensure the safety of veterans and our colleagues.”

Mr. McDonough did not cite any studies or other data. A VA spokesperson declined to provide any data that was reviewed when deciding not to rescind the mandate. The Epoch Times submitted a Freedom of Information Act for “all documents outlining which data was relied upon when establishing the mandate when deciding to keep the mandate in place.”

The agency searched for such data and did not find any.

The VA does not even attempt to justify its policies with science, because it can’t,” Leslie Manookian, president and founder of the Health Freedom Defense Fund, told The Epoch Times.

“The VA just trusts that the process and cost of challenging its unfounded policies is so onerous, most people are dissuaded from even trying,” she added.

The VA’s mandate remains in place to this day.

The VA’s website claims that vaccines “help protect you from getting severe illness” and “offer good protection against most COVID-19 variants,” pointing in part to observational data from the U.S. Centers for Disease Control and Prevention (CDC) that estimate the vaccines provide poor protection against symptomatic infection and transient shielding against hospitalization.

There have also been increasing concerns among outside scientists about confirmed side effects like heart inflammation—the VA hid a safety signal it detected for the inflammation—and possible side effects such as tinnitus, which shift the benefit-risk calculus.

President Joe Biden imposed a slate of COVID-19 vaccine mandates in 2021. The VA was the first federal agency to implement a mandate.

President Biden rescinded the mandates in May 2023, citing a drop in COVID-19 cases and hospitalizations. His administration maintains the choice to require vaccines was the right one and saved lives.

“Our administration’s vaccination requirements helped ensure the safety of workers in critical workforces including those in the healthcare and education sectors, protecting themselves and the populations they serve, and strengthening their ability to provide services without disruptions to operations,” the White House said.

Some experts said requiring vaccination meant many younger people were forced to get a vaccine despite the risks potentially outweighing the benefits, leaving fewer doses for older adults.

By mandating the vaccines to younger people and those with natural immunity from having had COVID, older people in the U.S. and other countries did not have access to them, and many people might have died because of that,” Martin Kulldorff, a professor of medicine on leave from Harvard Medical School, told The Epoch Times previously.

The VA was one of just a handful of agencies to keep its mandate in place following the removal of many federal mandates.

“At this time, the vaccine requirement will remain in effect for VA health care personnel, including VA psychologists, pharmacists, social workers, nursing assistants, physical therapists, respiratory therapists, peer specialists, medical support assistants, engineers, housekeepers, and other clinical, administrative, and infrastructure support employees,” Mr. McDonough wrote to VA employees at the time.

This also includes VA volunteers and contractors. Effectively, this means that any Veterans Health Administration (VHA) employee, volunteer, or contractor who works in VHA facilities, visits VHA facilities, or provides direct care to those we serve will still be subject to the vaccine requirement at this time,” he said. “We continue to monitor and discuss this requirement, and we will provide more information about the vaccination requirements for VA health care employees soon. As always, we will process requests for vaccination exceptions in accordance with applicable laws, regulations, and policies.”

The version of the shots cleared in the fall of 2022, and available through the fall of 2023, did not have any clinical trial data supporting them.

A new version was approved in the fall of 2023 because there were indications that the shots not only offered temporary protection but also that the level of protection was lower than what was observed during earlier stages of the pandemic.

Ms. Manookian, whose group has challenged several of the federal mandates, said that the mandate “illustrates the dangers of the administrative state and how these federal agencies have become a law unto themselves.”

Tyler Durden Sat, 03/09/2024 - 22:10

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

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