Business

Authored by Jeffrey Snider via Alhambra Investment Partners,

Bank stocks down on earnings day... "inconceivable"

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And all it took to break the Trump trade was the mother of all bombs...

The S&P and Dow closed the week at 2-month lows...

Two weeks ago, in order to preserve Goldman's happy narrative that US growth is still strong (which is ironic because while on one hand Goldman tells its clients to buy the dollar, at the same time it tells Trump to short it), Goldman tried to justify the apparent collapse in loan growth, which as we showed earlier this week, is growing at the slowest pace in 6 years, and will soon contract outright.

Authored by Kevin Muir via The Macro Tourist blog,

The market was sent for a spin yesterday afternoon after President Trump told the Wall Street Journal the U.S. dollar “is getting too strong” and he would prefer the Federal Reserve keep interest rates low. From the WSJ:

Mr. Trump also said his administration won’t label China a currency manipulator in a report due this week.

Over the weekend, New River CIO Eric Peters had a simple and concise summary for events over the past year: "Pretty much everything that happened in 2016 can be explained by two things; China and oil prices,” he said. “Literally, that’s it."

Today, thanks to a research report from UBS titled "Where is the epicentre of the reflation trade?", we have confirmation that Peters was spot on.