America

Over the past week we have shown on several occasions that there once again appears to be a sharp, sudden dollar-funding liquidity strain in global markets, manifesting itself in a dramatic widening in FX basis swaps, which - in this particular case - has flowed through in the forward discount for USDJPY spiking from around 0.04 yen to around 0.23 yen overnight. As Bloomberg speculated, this discount for buying yen at future dates widened sharply as non-U.S.

The Trump Administration quietly issued an Executive Order (EO) last Thursday which allows for the freezing of US-housed assets belonging to foreign individuals or entities deemed "serious human rights abusers," along with government officials and executives of foreign corporations (current or former) found to have engaged in corruption - which includes the misappropriation of state assets, the expropriation of private assets for personal gain, and corruption related to government contracts or the extraction of natural resources. 

Despite the GOP's tax reform victory, over the past few weeks, Congress once again punted on a formal decision how to keep government funded and what to do with America's debt ceiling and as a result US legislators simply kicked the can on the agreement of raising the nation’s borrowing limit for another few months. However, with the Treasury expected to breach the ceiling as soon as late March, today's $45 billion 3-Month Bill auction was closely watched as it serves as a fresh gauge of investor anxiety about the ongoing impasse.

Having taken a shot at The FBI on Christmas Eve Eve...

How can FBI Deputy Director Andrew McCabe, the man in charge, along with leakin’ James Comey, of the Phony Hillary Clinton investigation (including her 33,000 illegally deleted emails) be given $700,000 for wife’s campaign by Clinton Puppets during investigation?

— Donald J. Trump (@realDonaldTrump) December 23, 2017

• Analysts Cut iPhone X Shipment Forecasts, Citing Lukewarm Demand (BBG)
• North Korea likely to pursue talks, says South (Reuters)
• The quiet probe into Clinton email investigation could be a landmine for Robert Mueller (USA Today)
• Bitcoin rises 10 percent, recovers from last week's brutal selloff (Reuters)
• U.S. Retailers Feel Christmas Cheer After a Tough Year (WSJ)
• Kremlin Sees ‘Unbearable’ Risk to U.S. Ties in New Sanctions (BBG)
• Murder in America: What Makes Cities More Dangerous (WSJ)