Tuesday, June 7, 2016

Today's Links

1--Wages inch higher while productivity slips

Productivity fell at a 1.7 percent rate in the fourth quarter. The government last month raised its first-quarter economic growth estimate to a 0.8 percent rate from the 0.5 percent pace reported in April....

Productivity increased at a annual rate of less than 1.0 percent in each of the last five years. This suggests the economy's potential rate of growth has declined.
The increase in hours worked in the first quarter was unrevised at a 1.5 percent rate.
Unit labor costs, the price of labor per single unit of output, increased at a revised 4.5 percent pace. They were previously reported to have advanced at a 4.1 percent rate. Fourth-quarter unit labor costs were revised to show a 5.4 percent rate of increase, the fastest rate since the fourth quarter of 2014, instead of 2.7 percent.
Despite the upward revision, the trend in labor cost increases remains moderate

2--S&P Nears All Time High, Global Stocks Rally As Dovish Yellen Unleashes Animal Spirits

3--Is the Fed Outright Buying Stocks/Futures to Prop Up the Markets?

“Someone” is getting desperate.

Throughout the last week, anytime stocks have begun to correct or drop, “someone” has bought S&P 500 futures to prop the market up.
Anyone who’s been involved with the markets for a while knows the difference between real buyers and manipulation. This is manipulation plain and simple.
Look at all those “V” rallies. Three days in a row stocks opened DOWN and someone immediately stepped in and began buying aggressively....

4--With frontrunner’s poll numbers falling in California

Clinton campaign, media rush to declare Clinton the Democratic nominee

The rush to declare Clinton the presumptive nominee, even as Sanders publicly pledges to continue fighting for the nomination up to and perhaps during next month’s Democratic National Convention in Philadelphia, is a measure not of political strength on the part of the Clinton campaign, but rather immense weakness and crisis. Clinton, the overwhelming choice of the Democratic Party establishment, continues to see her popular support erode in favor of Sanders, who has based his campaign on an appeal to popular anger over social inequality and Wall Street criminality...

Sanders has been counting on an upset victory in California, the biggest trove of delegates at 548, to fuel already percolating concerns over the viability of a Clinton candidacy. Widely despised by young and lower-income voters as a corrupt personification of the status quo and a warmonger, Clinton has failed to generate any significant enthusiasm for her bid to follow her husband into the White House....

Clinton canceled scheduled appearances in New Jersey in order to return to California in an attempt to avoid a crippling defeat. However, she has limited her appearances to small, vetted media events, knowing she could not attract large audiences. Her campaign has made clear that regardless of the outcome in California, Clinton will declare herself the presumptive nominee.
There is an element of desperation in the effort to declare a fait accompli, along with a large measure of arrogance and contempt for the voters and for democratic procedures. The not-too-veiled message is that the plutocracy has chosen its candidate and the people should just reconcile themselves to the choice, no matter how much they might hate her. There is barely concealed annoyance at having even to go through the motions of an election...

The political function of the Sanders campaign from the outset has been to serve as a lightning rod for social discontent and preemptively block it from taking an independent form, channeling the working class and youth instead back behind the Democratic Party, the oldest capitalist party and historic graveyard of social protest in the United States

5--More jobs down the Shute: Global Development and Environment Study Finds TPP Will Cost US Nearly 500,000 Jobs

6--The Latest Attempt to Whitewash the Saudi-Led Coalition’s Crimes in Yemen

7--America Excels in Business of Death

America may lag behind the developed world in many categories, but it is No. 1 in the “merchant of death” business, experiencing a boom in the commerce of boom, especially in areas destabilized by U.S. invasions, notes JP Sottile.

8--Anything goes: Hillary Clinton Has Clinched Democratic Nomination, Survey Reports

 ripshit over this and he considers himself to be a battle-hardened political commentator. Jeff W:
This “news story” is so unbelievably, mindbogglingly wrong on so many different levels—the most obvious being its timing on the eve of the California primary—that it is difficult to express them all. Who, exactly, is in charge of the New York Times or the AP? Joseph Goebbels?
As cynical as I am about the mainstream media, I could not have imagined that it would sink this low.

9--The Media is Lying to You - Hillary Clinton is Not the Democratic Presidential Nominee

10--This Job Market Slump Started a While Ago

11--How the Fed Stopped the “Corporate Profit Recession” (and the Media Fell for it)

But there’s a detail – a huge detail – that the media conveniently forgot to point out: whose profits are included in “corporate profits.” The BEA tells us (emphasis added):
These organizations consist of all entities required to file federal corporate tax returns, including mutual financial institutions and cooperatives subject to federal income tax; nonprofit organizations that primarily serve business; Federal Reserve banks; and federally sponsored credit agencies.
For the first quarter, the Federal Reserve Banks reported a consolidated profit that had jumped 11% from a year earlier to a record $24.9 billion!

And this magic profit was added to the BEA’s measure of “corporate profits.” Total corporate profits ticked up $8.1 billion in the first quarter, including the Fed’s magic $24.9 billion. And without the Fed’s magic profits?

So somewhat embarrassingly for the gurus of the end of the corporate profit recession: “Were it not for this increase, overall profits in the US would have actually been down for a third consecutive quarter.”

In fact, on an annualized basis, the Fed’s magic profits accounted for 27.2% of US financial sector profits and for 5.3% of total US corporate profits (blue line in the chart below), “the highest level in a generation.” 

12--Employment report, PMI services, ISM non manufacturing, Factory orders

Continuing to decelerate.
As previously discussed, I see no chance of a reversal until deficit spending- public or private- picks up to offset the unspent income/savings desires

13--Fed’s labor market index, Saudi price hikes

It's all bad...


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