Business

In 60 years, the US economy has never suffered a 17-month continuous YoY drop in Factory orders without being in recession. Which begs the question: are we in one now. Moments ago the Department of Commerce confirmed that in March, US factory orders - despite rising 1.1% sequentially and above the 0.6% expected -  declined for 17th consecutive month on an annual basis, dropping 4.2% from a year ago.

Despite a modest rise in April's headline Services PMI print to 52.8 (from 52.1) the details under the surface paint a different picture (remaining weaker than its post-crisis average of 55.6). The rate of employment growth was the weakest seen since December 2015 as backlogs of work declined for the ninth consecutive month, which is the longest continuous period of depletion since the survey began in late-2009.   ISM Services data also beat expectations, rising to 55.7 despite a drop in business activity and backlogs.

Submitted by David Stockman via Contra Corner blog,

The central bank war on savers is rooted in a monumental case of the Big Lie. Here is what a retired worker who managed to save $5,000 per year over a 40 year’s lifetime of toil and sweat in a steel factory now earns in daily interest on a bank CD. To wit, a single cup of cappuccino.

Yet the central bankers claim they have absolutely nothing to do with this flaming economic injustice.

Moments ago, the 2016 edition of the Sohn Investment Conference started, a feeding frenzy for traders and hedge fund managers such as Gundlach, Einhorn and Chanos who descend on this popular annual "round table" to pitch their best and worst ideas. As always, the moment a company's name is mentioned in a bullish or bearish context, its stock is sure to surge or slump, as the headline-hungry algos immediate pounce in the current reactionary market environment. But is following the advice of these hedge fund gurus such a good idea? 

By Bill Gross Of Janus Capital

Culture Clash