How Much Has Inflation And Free-Money Goosed Consumer Spending?

How Much Has Inflation And Free-Money Goosed Consumer Spending? Authored by Mike Shedlock via MishTalk.com,

Retail sales came in on the hot side in April. But how much of that is inflation?

Retail Sales from Commerce Department, chart by Mish  ...read more

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US Stocks Extend Losses On China Smartphone News

US Stocks Extend Losses On China Smartphone News US equity markets were already in puke mode following catastrophic earnings from WMT, TGT, and a bunch of other retailers confirming the US consumer is about to implode, but headlines from Nikkei just sparked another leg lower.

According to Nikkei, China’s top smartphone makers – Xiaomi, Vivo, and Oppo – have told suppliers to scale back orders for the upcoming quarters by about 20% due to supply chain disruptions from the country’s Covid-19 lockdowns (i.e., demand has cratered).

Xiaomi, China’s biggest smartphone maker and No. 3 globally, has told suppliers that

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How US Trade Policy Is Making The Baby Formula Shortage Worse

How US Trade Policy Is Making The Baby Formula Shortage Worse By Eric Kulisch of FreightWaves

Policy analysts say U.S. trade restrictions, including ones engineered under the Trump administration, along with lean manufacturing practices help explain why stores can’t easily replenish stocks of baby formula. The taxes and extra regulatory hoops make it expensive and difficult to import the specialized baby food.

Parents are increasingly frustrated by the nationwide shortage of infant formula

The U.S. produces 98% of the infant formula it consumes, but that self-sufficiency is being tested by limited availability of ingredients because of supply chain disruptions, labor

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Biden’s ‘Disinfo’ Board Paused, ‘Scary Poppins’ Drafts Resignation

Biden’s ‘Disinfo’ Board Paused, ‘Scary Poppins’ Drafts Resignation The Department of Homeland Security has ‘paused’ it’s newly created Disinformation Governance Board, after its head, Nina Jankowicz, was called out for being a Russiagate truther, and going full “libs of TikTok” with creepy Disney-themed songs in a fake British accent – lending to the nickname “Scary Poppins.”

According to the Washington Post, the 33-year-old Jankowicz “was thrust into the spotlight by the very forces she dedicated her career to combating,”

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Rabobank: If The US Is Going To Win This War, It Needs Higher Rates, A Stronger Dollar, And Lower Commodity Prices

Rabobank: If The US Is Going To Win This War, It Needs Higher Rates, A Stronger Dollar, And Lower Commodity Prices By Michael Every of Rabobank

Everything Old is New Again

Using the matrix of both bond yields AND commodity prices I suggested yesterday as a judge of what the market is thinking vs. what the Fed then needs to be doing seems to have held water. Amid the usual “why bother paying attention to facts when one can buy dips” equity action, US 10-year yields surged 8bp back to 2.99% and 2-year yields 12bps to 2.69%, AND oil and

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1,000 Azovstal Fighters Have Surrendered Since Monday, But Top Commanders Remain: Kremlin

1,000 Azovstal Fighters Have Surrendered Since Monday, But Top Commanders Remain: Kremlin According to fresh statements from Russia’s defense ministry Wednesday nearly 700 more Ukrainian fighters have surrendered at Mariupol’s Azovstal steelworks plant since the initial Tuesday reports that 300 had laid down their arms, with the wounded transferred to a Russian-controlled hospital.

This would bring the total number to almost 1,000 fighters surrendered, according to the Russian statements. The Russian MoD counted “694 Ukrainian fighters who had been holed up in Mariupol’s Azovstal steelworks have surrendered over the past 24 hours, according to a report by the country’s RIA

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WTI Erases Gains Despite Big Crude, Gasoline Draws; SPR At 1987 Lows

WTI Erases Gains Despite Big Crude, Gasoline Draws; SPR At 1987 Lows Oil pries are up overnight as China relaxed some of its quarantine restrictions on Shanghai extending gains from the surprise crude draws reported by API. For now, all eyes are on the middle market as refineries shift their mix amid record high gasoline and diesel prices…

“Gasoline prices on the exchanges had followed the two price peaks seen on the crude oil market in March to only a disproportionate extent. Margins had increased on the diesel market in particular, partly because product stocks were and remain very

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Lost Decade On Menu As Yields Collide With 3% Hurdle

Lost Decade On Menu As Yields Collide With 3% Hurdle By Garfield Reynolds, Bloomberg Markets commentator and analyst

The extraordinary rally in Treasuries that defied last week’s red-hot inflation print looks set to cement the 3% barrier as a hard ceiling for yields, and that makes it possible this year’s cross-asset crash is the start of a years-long downtrend.

The turnaround in sentiment among investors was almost as rapid as the shift from Federal Reserve Chairman Jerome Powell and the ultimate message is the same. Even with unemployment close to the lowest since the 1960s, and central bank officials saying

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NYC Mayor Eric Adams Is Pleading Jamie Dimon To Ride The Subway To Work

NYC Mayor Eric Adams Is Pleading Jamie Dimon To Ride The Subway To Work New York Mayor Eric Adams has resorted to begging businesspeople to ride the subway on the daily, as he strives to get more people back into their offices. Among those he has asked to ride the subway is JP Morgan boss Jamie Dimon.

Hmm…should I wear my $20,000 suit and $50,000 Rolex on a private corporate helicopter to work or on the filthy New York City subway, we’re sure Dimon asks himself daily. 

Adams doesn’t seem to care how bold of a request it is, telling

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Stocks Puke As TINA Unwind Accelerates

Stocks Puke As TINA Unwind Accelerates Remember the rally yesterday and how great that felt… “is the bottom in?” etc… yadadadada… Well… it’s gone…

US equity futures are tanking after the cash markets open, taking out yesterday’s lows…

As Nomura’s Charlie McElligott notes, it appears this is the potential unwind of the “TINA” phenomenon, as, thanks to the repricing of the risk-free rate – then pushing into yields on spread-product – “there is an alternative” to equities once again. ...read more

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