A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web
Statistics Canada released a disappointing report on domestic gross domestic product growth at 8:30 a.m. ET Thursday morning.
Month-over-month growth came in at negative 0.1 per cent versus the expectation of a 0.1-per-cent rise. Year-over-year growth was 2.7 per cent versus consensus forecasts of 2.9 per cent.
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Societe Generale strategist Albert Edwards has accomplished a remarkable feat.
The general rule of sell-side strategists and economists is “bearish and wrong gets you fired,” but Mr. Edwards’s research has been interesting enough that he remains employed despite his bearish forecasts being defied by the bull market rally,
“Are your nostrils finally filling with the sickly aroma of recession? The rapid flattening of the US yield curve has been telling us for some time that all might not be well with the US economic recovery. But how can that be with consumer and business optimism at extreme highs, and the US manufacturing ISM making one of its very rare forays above the heady 60 mark? The optimists have had their day. This data merely reflects the illusion of prosperity. The markets are now sniffing out a rising stench from decaying debt.”
“@SBarlow_ROB SocGen strategy takes a turn to the macabre” – (research excerpt) Twitter
“The Lesson From Stock Corrections Past? 200 Days of Pain” – Bloomberg
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The White House renewed its animosity towards Amazon.com Inc., exacerbating the sell-off in technology stocks that started with Facebook Inc.,
“@realDonaldTrump I have stated my concerns with Amazon long before the Election. Unlike others, they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!” – Twitter
“Trump Renews Amazon Criticism After Aide Denies Policy Changes” – Bloomberg
“Amazon shares fall after report Trump wants to curb its power” – Reuters
“Tesla shares dive again, stung by fatal crash, credit downgrade” – Reuters
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Iraqi officials noted a significant move within OPEC to extend production cuts,
“Some [OPEC] producers suggested extending the cuts for three months and others for six months after their planned expiration at the end of this year, [Iraq’s Oil Minister Jabbar al-Luaibi] told reporters at an energy conference in Baghdad. He didn’t identify the countries. OPEC is looking for a long-term cooperation with other global producers, OPEC Secretary-General Mohammad Barkindo said at the same event.”
“Iraq Says Some OPEC, Allied Producers Seek Oil Cuts Into 2019” – Bloomberg
“What the oil-futures curve is saying about where crude is heading next” – Barlow, Inside the Market
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Tweet of the Day:
Diversion: “The egg-spoon fight explains how America is driving itself insane” – Business Insider
Scott Barlow