Authored by Simon Black via SovereignMan.com,
File this one away under “Completely Obvious…”
Earlier this week the parent company of Snapchat reported a quarterly loss of more than TWO BILLION dollars.
Snapchat, of course, is the photo-focused social networking app that’s adored by tweens and adults who still live with their parents.
(Talk about a lucractive demographic.)
Two weeks ago we reported that European stocks had just enjoyed the biggest fund inflows since 2015, just as the continent appeared to have hit its economic peak...
... and according to Deutsche Bank was rolling over.
That assessment, however, did absolutely nothing to halt the "great rotation" out of other global markets and into Europe, especially in the aftermath of Macron's victory, when as Bank of America reported citing EPFR data, Europe saw the largest weekly equity inflows on record.
Earlier today, when looking at BofA's internal credit and debit card data, we warned to expect a miss in retail sales:
And, sure enough, the actual spending data once again did not disappoint when moments ago the Census reported April retail sales which, well, did disappoint across the board:
For the first time since October 2015, core consumer prices rose at a pace slower than The Fed's mandate. The 1.9% YoY rise is the weakest print since Sept 2015.
The last time this pattern played out - in 2012 - The Fed unleashed Operation Twist and subsequently QE3 to stall the disinlationary dive...
This time they are hiking rates??
Perhaps even more concerning is that Core inflation ex-shelter is at its lowest since Feb 2015... and near record lows...
According to its latest daily update, Canada's biggest non-bank lender Home Capital Group showed the rate of withdrawals by depositors was slowing, one day after the company raised doubts about its ability to continue as a going concern, albeit for a simple reason: there are almost none left. In other words, over the past six weeks, depositors have withdrawn 94% of funds from Home Capital's high-interest savings accounts since March 28, when the company terminated the employment of former Chief Executive Martin Reid.