Business

The ongoing retail massacre claimed its latest victim this morning when iconic luxury retailer Ralph Lauren said it would shut its flagship Polo store on Fifth Avenue in New York City, among other office and store locations, and cut jobs as part of a cost-cutting plan. The company also said on Tuesday that it would integrate its products from the Fifth Avenue store into the Ralph Lauren men's and women's flagship stores on Madison Avenue and its downtown locations.

From the press release:

The markets are talking but few are listening.

Historically, the start of the second quarter is an EXTREMELY bullish day for stocks. But despite this seasonality the market struggled yesterday. It was only through a dramatic intervention from Central banks that we closed marginally down.

This is a major warning sign.

Indeed, the S&P 500 has broken out of a bearish rising wedge pattern. And even worse, it has FAILED to reclaim critical support. Instead, it has just “kissed” it and then rolled over, which is usually called “the kiss of death.”

From Blain's Morning Porridge by Bill Blain of Mint Partners

This morning we’ve got a Risk-Off blip as the market winds itself into a tizz because suddenly the US recovery isn’t looking so well founded on the back of yesterday’s slowing Auto-sales number. Shock and horror! And it might get worse… we’ve got employment numbers on Friday, (which might be less strong than expected, therefore confirming it’s the end of everything), and who knows what Trump will say to China… 

Stop! No need to panic.. Worry, yes.

The World’s Best Economist

Paul Craig Roberts

If you want to learn real economics instead of neoliberal junk economics, read Michael Hudson’s books.

What you will learn is that neoliberal economics is an apology for the rentier class and the large banks that have succeeded in financializing the economy, shifting consumer spending power from the purchase of goods and services that drive the real economy to the payment of interest and fees to banks.

Global stocks were pressured by a poor start to the second quarter in the US, where carmakers reported disappointing sales data, slamming auto stocks around the globe. The selling has persisted for a second day, with Asian stocks and European shares all partially in the red today after their biggest decline in two weeks. Car sector is biggest mover in Europe, offsetting gains in financial services and media.