Europe

Submitted by Douglas Murray via The Gatestone Institute,

Submitted by Charles Hugh-Smith via OfTwoMinds blog,

Profits are faltering for structural reasons that are not easily resolved..

The bedrock assumption of the Bull market is that corporate profits will keep rising indefinitely. Hiccups are allowed, but current stock market valuations are implicitly based on profits expanding.

In a special report by Barclays' Michael Cohen, the analyst lays out what he believes are the 13 commodity "black swan threats" for the current year, divided into two "shock" categories: supply and demand, split evenly between bearish and bullish.

Obama has deployed US Special Forces close to the Russian border to defend Baltic states who are allegedly ‘scared to death’ of Putin’s aggression. As part of a “persistent” presence of American troops in the Baltics, dozens of special ops solders will be being stationed along Europe’s eastern flank to provide reassurance to NATO allies Latvia, Lithuania and Estonia. They will also complement around 4,000 Nato troops being posted to Poland, Lithuania, Estonia and Latvia in the coming months.

Asian stocks rose, led by Hong Kong, while European shares and U.S. equity-index futures are little changed. Euro, yen climb as the dollar posted an unexpected loss following some serious fireworks out of China, which intervened in funding market to crush offshore Yuan shorts.

Top news stories include Macy’s and Kohl’s cutting their outlook after weak holiday season, Deutsche Bank exploring lending money to PE firms buying distressed loans, Apple planning to invest $1b in SoftBank’s new technology fund.