Notes Today: 

• Market Watch: China overtook the U.S. as the world’s top destination for new foreign direct investment last year, as the COVID-19 pandemic amplifies an eastward shift in the center of gravity of the global economy.
• New investments by overseas businesses into the U.S., which for decades held the No. 1 spot, fell 49% in 2020, according to U.N. figures released Sunday, as the country struggled to curb the spread of the new coronavirus and economic output slumped.
• China, long ranked No. 2, saw direct investments by foreign companies climb 4%, the United Nations Conference on Trade and Development said. Beijing used strict lockdowns to largely contain COVID-19 after the disease first emerged in a central Chinese city, and China’s gross domestic product grew even as most other major economies contracted last year.

• The notable drop-off in Chinese iron ore demand may be behind AUD’s recent bit of weakness.
• 

• The IHS Markit Manufacturing PMI for the US jumped to 59.1 in January of 2021 from 58.3 in December and well above market forecasts of 56.5.

• Sales of previously owned houses in the US rose 0.7% MoM to 6.76 million units in December of 2020, beating market forecasts of 6.55 million. The median existing-home price was $309,800, up 12.9% YoY

• Bloomberg: “I have received calls from every building with Trump on it in the city trying to get it removed,” Bailey said. “Over time in New York, Donald Trump has not been very popular and New York is about money, so having Trump’s name on the building reduces its value.” 

• Bloomberg: Trump’s campaign paid more than $2.7million over two years to individuals and firms that organized the Jan. 6 rally that led to rioters storming the U.S. Capitol, according to the Center for Responsive Politics. 

• AT&T gains on report of talks to sell minority DirecTV stake to TPG. T is reporting Wednesday morning. (I enjoyed HBO Max the Flight Attendant)
  
  
  

• A hacker hacked sensitive information from Intel’s website, prompting the company to report the numbers earlier than planned. Hopefully Pat Gelsinger can get INTC’s act together – I’m expecting the answer to be yes. 
  
  
  

•  MoM Retail sales in Australia fell 4.2% 

• Japan Manufacturing PMI fell to 49.7 In December. 

• New Zealand inflation running at 1.4% currently. 

• (MW) Biden’s plan to make community college free and four-year public college tuition-free for students from households earning $125,000 or less would increase Americans’ disposable income by $61 billion, according to an analysis published this week by the Campaign for Free College Tuition and Rise, an advocacy organization focused on college affordability and other youth and student issues. 

The best first-day reaction to an elected president’s inauguration since Jan. 20 became the official start in 1937. (Bloomberg)

 Good Riddance !

Quick Overview is up to date

Notes Today: 

• You can observe a lot by just watching. Yogi Berra
• Or: Wildebeest investors and the dangers of the herd (FT)  

• Looks like another $1400 may be coming to some 150 million Americans - encouraging additional speculation - for some. 

• Misinformation dropped dramatically the week after Twitter banned Trump. Surprise ,surprise. 

• Bloomberg: Norway expressed increasing concern about the safety of the Pfizer Inc. vaccine on elderly people with serious underlying health conditions after raising an estimate of the number who died after receiving inoculations to 29.

• Bloomberg: The Treasury market’s bears had better take notice: There’s a wall of global cash poised to swoop in and buy, likely limiting the upside in yields. 

• A new ETF ARK Space Exploration ETF (ARXX) is getting ready to launch and creating buzz. ARK's will primarily track companies engaged in space exploration and innovation.

• The Port of Long Beach reported its busiest year in 2020. IT moved a record 8.1 million TEUs in 2020 despite facing headwinds from the COVID-19 pandemic and the ongoing trade war with China. 

• FT: The cost of shipping goods from China to Europe has more than tripled in the past eight weeks as a shortage of empty containers stemming from Covid-19 disrupts global trade

• The China Containerized Freight Index continues higher

  
  
  

Dow Trend Earnings (aka Fed model) is up to date, and ready for your perusal.

 

Notes Today: 

• Twitter has suspended 70,000+ accounts linked to QAnon. 

• Google suspends Trump's YouTube account and  disables comments. 

• The U.S. trade deficit jumped to $68.1 billion in November, the highest monthly deficit in 14 years... 

• Soybeans are above $14 per bushel for the first time since June 2014 on shrinking global supplies and strong demand. If Brazil and Argentine stay dry – there is no telling how high.  (See below)

• McConnell, the Senate majority leader, has told associates that he believes President Trump committed impeachable offenses. 

• SouthKorea Unemployment Rate at 4.6%, above expectations (3.9%).

Long term look at soybeans & USDA report today;

 

San Diego Zoo Safari gorillas test positive for COVID-19

 Quick Overview is up to date

The American Abyss

 A historian of fascism and political atrocity on Trump, the mob and what comes next. NYT

Twitter says it has "permanently suspended" Trump's account "due to the risk of further incitement of violence. S&P is higher..

I think I'll have a couple more scoops of UL  !

Ben & Jerry's Urge 25th Amendment, Trump Impeachment After Capitol Riots

Notes Today: 

• Facebook declares DC situation an "emergency," MULLS stronger action. “The plague on humanity” is mulling. 

• Twitter is locking trumps account for 12 hours. Wow, a full 12 hours. 

• Trumps senators are beginning to climb down. Soon it’ll be trump who? No, that was premature, the BS continues.

• Congratulations to Senators Warnock & Ossoff. Well done Georgia for showing the world the civilized side of America.

 Revolting!

Absolutely sickening to watch GOP members clapping at this anti- democratic charade!

 Notes Today:

1. The NYT has the probability of Warnock and Ossoff winning in Georgia at over 95%. 👍

• Fed's Evans says 3% inflation wouldn't be bad. Yes it would! 

• China vowed to expand domestic crop production and strengthened its plan to ensuring grain and food security after imports surged to unprecedented levels. 

• Eleon Musk reportedly says that “China is more responsible to its citizens" than the US.

Notes Today: 

• US Construction spending rose 0.9% in November, reflecting a surge in demand from buyers taking advantage of ultra-low interest rates or leave cities for more space during a pandemic. Spending on new homes rose 16.2% YoY.  

• The US cost of buying a home climbed to the highest level in six years. 

• US Manufacturing PMI climbed to 57.1 in December from 56.7 in November.  

• Expected higher inflation ahead along with sovereign/corporate debt that’s out of hand is helping precious metals.

• (Reuters) - Chicago Federal Reserve President Charles Evans on Monday had a message for markets: vaccines may bring the coronavirus pandemic under control this year, but the U.S. central bank is nowhere close to ending its super-easy monetarypolicy.

As of tonight, for around $35,000 you can buy: 

1 Bitcoin  

or

1.15 Shares in the DJIA

18 oz of gold

1230 oz of silver

2600 bushels of soybeans

5400 bushels of wheat

7000 bushels of corn

 

All  # rounded up or down a bit.

 

 

Ben Rhodes

@brhodes

·

55m

Pretty remarkable how much more commitment to democracy the Georgia Secretary of State has than almost the entire House and Senate Republican caucus

 And another remarkable chart: The PHLX SOX Semiconductor ETF

 Interesting long term chart of the Nikkei

The "memorable" 11 Republican senators that say they'll "vote on January 6 to reject the electors" from certain states. Ted Cruz Ron Johnson James Lankford Steve Daines John Kennedy Marsha Blackburn Mike Braun Cynthia Lummis Roger Marshall Bill Hagerty Tommy Tuberville

 Quick Overview is up  to date

 40 Years of the S&P

 Soybeans performing as advertised!

Notes Today:  

• Just before New Year’s McConnell's managed to block the $2000 relieve bill. Kentucky, the state that elects this guy, is in the bottom 5 states in every economic quality-of-life measure. Yet he wins. It boggles the mind. 

• Just before New Year’s Louie Gohmert sues Pence in (GOP clown show) bid to overturn election results on Jan. 6 

• Just before Christmas, Johnson managed to bring about the only trade deal in history that puts up barriers to commerce rather than removing them, and in the process Britons lost the right to live and work in 27 countries.  

• CNN: Stanley Johnson, the father of British Prime Minister Boris Johnson, has said that he intends to obtain French citizenship -- his comments coming just hours before the UK's final transition out of the European Union. 

• The NYSE is starting the process of delisting securities of three Chinese telecom companies, after Trump last month barred U.S. investments in Chinese firms he says are owned or controlled by the military. They are  China Telecom Corporation Limited , China Mobile Limited  and China Unicom (Hong Kong) Limited  

•  African countries began officially trading under a new continent-wide free trade area. 

• Small drones will be allowed to fly over people and at night in the United States, the Federal Aviation Administration (FAA) said. A significant step toward their use for widespread commercial deliveries. Now that will make everyone feel very safe. Especially since none will be hacked – I’m sure.  

• 12/23/2020 New home sales fell 11% in November to 841k, but still +21% y/y Decline in all regions: - Midwest -43% - West -17% - Northeast -2.5% - South -1.9%
• Inventory: 4.1 months
• Median home price: $335,300, +2.2% y/y
• Some moderation in sales in 2021, but still strong activity expected

 

 Happy Holidays  Be well, see you next year.

Quick Overview is up to date

Notes Today: 

•  Boris Johnson summoned ministers for an emergency meeting on Friday to discuss how to tackle mounting concerns about the new strain of coronavirus identified in parts of south-east England. The variant is thought to be more infectious. 

•  The U.S. current-account deficit, rose 10.6% in Q3

• Senator Ron Johnson blocks $1,200 checks for Americans cites the deficit. No deficit problem when he voted for tax cuts for the top 1%

• Fed allows banks to resume share buybacks

• Do you think the money Rupert Murdoch paid to get first in line in getting a vaccine came from his Fox profits for the ratings they got telling their viewers COVID is a hoax and that the vaccine is bad? @kurteichenwald asks.

• The defense bill Trump is threatening to veto contains cyber security to protect against Russian hacks.

• Germany's  VW falling a bit behind Tesla. Well, perhaps more than a bit.
  

Nuclear weapons agency breached amid massive cyber onslaught. 

Hackers accessed systems at the National Nuclear Security Administration, which maintains the U.S. nuclear weapons stockpile.   Trump, along with all the Russia attacked America deniers, are mum.. no-one is in charge.

 

Notes Today:  

• 
  Republican Bid to End Virus Lending Slows Relief Deal The holdup comes as some 11 million people are unemployed, and applications for U.S. state jobless benefits unexpectedly jumped to the highest level in three months.
• With a new democratic administration - as predicted, vast deficit Republicans are now “once more” becoming extremely concerned about government spending and the deficit. Rinse and repeat – rinse and repeat.  

• ATT, after month of procrastination, finally got around to be included in the Roku platform.

• Boris Johnson has stated that EU talks are in a serious situation. No kidding, who could have thought. BP rally continues..

 

‘We want them infected’: Trump appointee demanded ‘herd immunity’ strategy, emails reveal. 

successful toxic policy- most regrettably

Notes Today:  

• The Dow rallied 337 points today as Nasdaq closes at a record high ahead of one more stimulus meeting. 

The Port of Los Angeles processed 980,729 Twenty-Foot Equivalent Units (TEUs) in October, an increase of 27.3% compared to October 2019. Propelled by replenishment of inventories and retailers preparing for upcoming holidays, October marked the busiest month in the Port’s 114-year history.

• YoY, overall cargo volumes lag by 5.3% compared to 2019. 

• Japan Exports (YoY) at -4.2%,

Notes Today: 

Forget 100-year bonds. The U.S. should sell 1,000-year bonds to finance infrastructure a Goldman bond expert. 

Can you imagine the volatility on that 1,000-year bond when rates go up? Wow, that really would be something to behold.

• Barr is out , clearly not subservient enough.

Notes Today:  

• Brexit talks extended - beyond..........   The British pound gained a bit against the  dollar and  the euro -  relieved that talks continue. Whiplash - to be continued…

• I suppose, if you want to trade in a marker, you’ll probably have to abide by the rules set by the members of that market. - as Britain "used" to be.

• 

•  EXCLUSIVE-U.S. Treasury breached by hackers backed by foreign government – sources.
• Russian government spies are behind a broad hacking campaign that has breached U.S. agencies and a top cyber firm. 
• Trump fires smart people like Krebs etc. what's to be expected?

 Quick Overview is up to date

62% of Smarkets bettors do not expect a Brexit deal this weekend. My guess: whiplash - to be continued…

China Containerized Freight Index (CCFI) 

• Reuters: But due to China’s lopsided trade balance - exporting three containers for every one imported recently - and delays in containers returning to China due to the pandemic overseas, a severe shortage is now starting to pinch export flows. Roughly 60% of global goods move by container, and according to United Nations trade data there are close to 180 million containers worldwide.

• Nearly 2,000 containers aboard a ship managed by NYK Shipmanagement of Japan were lost or damaged when it hit by stormy weather in the Pacific Ocean,

Couple of closing charts for the week:

•  British Pound closing for the week with Brexit on course for a no-deal - or so forth ..
  

• Lumber

• Disney, a very happy mouse.

Notes Today: 

• In a very real sense, it feels like a third political party has been born. America now has the Republicans, the Democrats and the Seditionists. Glenn Kirschner @glennkirschner

• (WP) White House “orders” FDA chief to authorize Pfizer-BioNTech vaccine Friday or submit his resignation. "ORDERS - will undoubtedly  build lots of confidence.

• Another 20 House Republicans sign onto to the Texas lawsuit that seeks to overturn the election. The total is now 126  or  64% of the House GOP    Un-Freakin'-Believable  - Now rejected by U.S. Supreme Court. ✅

        And if Mitt Romney had some cajones he’d form a new  party.

• In the view of the analysts at JP Morgan, the S&P 500 index is set to rally 25% in 2021, as the US banking giant lifts its price target to 4,600.

• Bloomberg:  Apple Inc. has started building its own cellular modem for future devices, a move that would replace components from Qualcomm Inc., Apple’s top chip executive told staff on Thursday.
• Qcom is down 7.6% so far on the day.

• US Baker Hughes US Oil Rig Count climbed from previous 246 to 258  

• US Michigan Consumer Sentiment Index above forecasts at 81.4 versus forecast of 76.5

• And Mitch McConnell keeps blowing up relief bill ..😠

 TIME's 2020 Person of the Year.

Notes Today:

• And Mitch McConnell keeps blocking relieve ..

• It didn’t take long for the Federal Reserve’s increased attention to climate change to spark pushback from (what climate change)  Republicans.

• Bloomberg:  Boris Johnson warns Britain should prepare to leave the European Union’s single market without a trade deal as negotiations falter. 
• Fishing accounts for only 0.1% of British GDP. Yet it could sink the chances of a (very fishy) Brexit deal.

• US Initial jobless claims rose by 137,000 to 853,000 in the seven days ended Dec. 5, the Bureau of Labor Statistics said Thursday. More than expected. 

• Shares of Airbnb IPO valued at just over $100 billion 

• 
   USDA cut the 2020 U.S. #cotton crop by 6.7% from November, and that was all on yield. This year's harvest was 20% smaller than in 2019 and is the smallest crop in 5 years. Market participants had a pretty good idea that a cut was likely this month. (Karen Braun  @kannbwx)

•  USDA leaves the U.S. #corn balance sheet unchanged, but #soybeans fall to 175 mln bu on a 15 mln bu jump in crush. Soy exports unch. #Wheat exports were increased 10 mln bu. (Karen Braun @kannbwx)
• See market analyst #Steve Freed recap the Dec 10 #USDA S/D crop report. No changes in soybean & corn exports hubs.ly/H0CpdbB0

These 18 States want  the Supreme Court to throw out the 2020 Election.   Incredible  - Seditious Abuse

Latest: 106 Republican House members, that evidently do not believe in democracy, are supporting the Texas' bid to overturn President-elect Joe Biden's win.  

Regarding  Covid ( 2560 death today)  No mask Republicans are mum. 

Alabama

Arkansas

Florida

Indiana

Kansas

Missouri

Louisiana

Mississippi

Montana

Nebraska

North Dakota

Oklahoma

South Carolina

South Dakota

Tennessee

TEXAS  < Started in

Utah

West Virginia

 Notes Today:

• More firmness on the way! Sunday deadline set for ‘firm decision’ on Brexit talks. Really, this coming Sunday?

•  Bloomberg: Facebook (AKA as the plague on humanity) uses algorithms to spread its poison. But those algos are designed by human data scientists. 

• Thirty-one countries around the globe have reserved more Covid-19 vaccine per capita than the U.S., according to a Bloomberg analysis of country vaccine agreements.

 BREAKING: For the very first time, the US has surpassed 3,000 COVID deaths in a single day. 3121 Covid deaths today.

• (Reuters) -YouTube said on Wednesday it would start removing content that falsely allege widespread fraud changed the outcome of the U.S. presidential election, in a change to its more hands-off stance on videos making similar claims. (About Time)

Notes Today:

• Ray Dalio  (smart dude) said he saw no reason that stocks couldn’t trade at 50 times earnings. Plus, according to Investmenttools.com “invaluable”😏 Dow Trend Earnings (AKA FED Model) still inexpensive. 

• QuantumScape (NYSE:QS) releases performance data demonstrating that its technology addresses fundamental issues holding back widespread adoption of high-energy density solid-state batteries, including charge time, cycle life, safety, and operating temperature. The stock is up 57% today 
• If you are not risk-averse, it might be worth your while to take a look at QS. In the greater scheme of things, it is only a $1.6 billion Co. (Tesla 613 billion) and has More than a $1 billion in its war chest. If the technology performs as advertised it could improve things substantially.
  
  
  

•  China Producer Price Index (YoY) out at -1.5%, above expectations (-1.8%)

•  Pelosi and Schumer say Mnuchin's $916b aid plan unacceptable.

•  The Supreme Court rejected the Trump lawyers bid to overturn the Pa. election and doesn’t even bother to comment.

•   Trump's

and Scott Atlas’s herd immunity at work.  US Coronavirus deaths  at 293,398, surpassing the number of US combat deaths (291,557) in World War II. 

Notes Today:

• Reuters: Australia to make Facebook (AKA the plague on humanity), Google pay news outlets for content.

• U.K. officials warn Brexit talks could collapse in hours. 

• Facebook's (AKA the plague on humanity) renamed cryptocurrency is still 'wolf in sheep's clothing': German Finance Minister

• US Senate Democratic leader Schumer says McConnell has refused to compromise on covid relief and today we heard the "same old song" from McConnell. 

• Karen Braun  @kannbwx   Checking in on traffic of #soybeans - or lack thereof. Looks like #Brazil really did run out of beans. It's been a couple years since the activity was this light.

• QoQ Japans GDP was up 5.0 % 

• Japan had a current account surplus of 2,144.7 billion yen in October, the Ministry of Finance said on Tuesday - up 15.7 % YoY.

NYT: 

Trump administration officials passed when Pfizer offered in late summer to sell the U.S. government additional doses of its Covid-19 vaccine.

Now Pfizer may not be able provide more of its vaccine to the United States until next June because of its commitments to other countries, they said. 

Trump Admin. performing as expected!

Putin's former son-in-law bought shares worth $380m for $100, report says

A Russian businessman who was married to Vladimir Putin’s daughter received an estimated $380m (£283m) stake in a Russian petrochemicals company for just $100, an investigation by Russia’s iStories invest
igative outlet has claimed.