Facebook Sinks After Confirming Ad Growth To Slow Down “Meaningfully”

Update: If it was still a question in anyone’s mind whether Facebook was really going to slow down ad revenue growth, it’s not anymore. CFO Wehner was very clear in his comments. Wehner is doubling down on the comments from last quarter that ad growth will come down “meaningfully.” He’s also maintaining the forecast of new spending of $7 billion to $7.5 billion this year, 50 percent more than last year.

This post was published at Zero Hedge on May 3, 2017.

When Robots Take All of Our Jobs, Remember the Luddites

If you don’t think the transformation we’re embarked upon is a profound one, consider this: Within two decades, half the jobs in this country may be performed by robots. What then of our unemployment rate and social safety net? Opinion is divided: Will the next technological wave further skew the wealth distribution toward the uber-rich, or will it ultimately create more entrepreneurial and job opportunities than it destroys?
There is an interesting historical precedent for our situation, an era during which the technological firmament shifted just as abruptly as it is here and now. In the United Kingdom in the year 1800, the textile industry dominated economic life, particularly in Northern England and Scotland. Cotton-spinners, weavers (mostly of stockings), and croppers (who trimmed large sheets of woven wool) worked from home, were well compensated, and enjoyed ample leisure time.
Ten years later, that had all changed. Clive Thompson, the author of today’s Outside the Box, tells us what happened:
(I)n the first decade of the 1800s, the textile economy went into a tailspin. A decade of war with Napoleon had halted trade and driven up the cost of food and everyday goods. Fashions changed, too: Men began wearing ‘trowsers,’ so the demand for stockings plummeted. The merchant class – the overlords who paid hosiers and croppers and weavers for the work – began looking for ways to shrink their costs.
That meant reducing wages – and bringing in more technology to improve efficiency. A new form of shearer and ‘gig mill’ let one person crop wool much more quickly. An innovative, ‘wide’ stocking frame allowed weavers to produce stockings six times faster than before: Instead of weaving the entire stocking around, they’d produce a big sheet of hosiery and cut it up into several stockings. ‘Cut-ups’ were shoddy and fell apart quickly, and could be made by untrained workers who hadn’t done apprenticeships, but the merchants didn’t care. They also began to build huge factories where coal-burning engines would propel dozens of automated cotton-weaving machines….

This post was published at Mauldin Economics on MAY 3, 2017.

The ’51st U.S. State’ Declares Bankruptcy As Corporate Insiders Sell Stocks At The Fastest Rate Since The Last Financial Crisis

Puerto Rico has collapsed financially and has ‘filed for the equivalent of bankruptcy protection’. When this was announced on Wednesday, it quickly made front page news all over the planet. For decades, Puerto Rico has been considered to be the territory most likely to become ‘the 51st U. S. state’, and there have even been rumblings that we could soon see a renewed push for statehood. But that is on the back burner for now, because at the moment Puerto Rico is dealing with a nightmarish financial crisis that is the result of an accelerating economic collapse. Unfortunately, many Americans still don’t believe that what has happened to Puerto Rico could happen to us, even though signs of major economic trouble are emerging all around us.
Almost two years ago I issued a major warning about the debt crisis in Puerto Rico, and now the day of reckoning for ‘America’s Greece’ has finally arrived…
Saddled by mountainous debts and undermined by rapid population loss, Puerto Rico filed for the equivalent of bankruptcy protection Wednesday in a historic move that will trigger a fierce legal battle, with the fate of the island’s citizens, creditors and workers at stake.
The oversight board appointed to lead the U. S. territory back to fiscal sustainability declared in a court filing that it is ‘unable to provide its citizens effective services,’ crushed by $74 billion in debts and $49 billion in pension liabilities.

This post was published at The Economic Collapse Blog on May 3rd, 2017.

Stocks and Precious Metals Charts – FOMC Day, NFP on Friday

‘Therefore I must say that, as I hope for mercy, I can have no other notion of all the other governments that I see or know, than that they are a conspiracy of the rich, who, on pretense of managing the public, only pursue their private ends, and devise all the ways and arts they can find out; first, that they may, without danger, preserve all that they have so ill acquired, and then that they may engage the poor to toil and labor for them at as low rates as possible, and oppress them as much as they please.”
Thomas More, Utopia
Today was an FOMC decision day, and the Fed pretty much decided to do nothing. They did acknowledge that there is some slowing in the economy in the first quarter. Ya think? lol
But as usual, the quarter was dismissed by reason of bad statistical analysis and/or adverse weather.
Stocks held up into the close despite weakness all day. This *could* be the handoff of the rally from the pros to the schmoes. Let’s see how the rest of the week goes.
Gold and silver were steadily knackered from the open in NY, and pushed down to the lows in very quiet trade into the close. The daddies of brides in India thank you for your service.
Today was the last of the queen’s radiation treatments, and she is doing remarkably well. We are getting dinner out (meaning I go out and bring it home) to celebrate.

This post was published at Jesses Crossroads Cafe on 03 MAY 2017.

Watch Live: Le Pen Debates Macron – What To Watch For In Today’s “Crucial” Debate

After numerous media appearances, Macron and Le Pen are facing each other in a TV debate tonight, which Barclays’ analyst Francois Cabau dubs “Crucial.”
According to Barclays, this debate is key for two main reasons: 1) it will allow Le Pen to clarify her views on Europe (that she has tried to soften to a large extent recently in an apparent move to attract Fillon’s voters) which are arguably a weak point on her side; and 2) it may be seen to, informally, mark the start of the campaign for the legislative elections.
Some further thoughts from Barclays:
Since the first round, there has been unclear second-round voter guidance from some of the Republicans, including Laurent Wauquiez, Interim president of the Republicans, as well as Jean-Luc Mlenchon, who declined to announce how he would vote next Sunday. This has reduced clarity, and has weakened the so-called ‘Republican front’ against Front National. Despite Le Pen striking an historical alliance with another party (of the sovereignist candidate Nicolas Dupont-Aignant), polls have remained largely stable, only tightening very slightly recently, pointing to a c.20pp lead for Macron – with polls having shown very good reliability in the first round.

This post was published at Zero Hedge on May 3, 2017.

The Central Bank Signals That It’s On Track To Bring The Entire System Down – Episode 1270a

The following video was published by X22Report on May 3, 2017
Puerto Rico declares bankruptcy, the restructuring is larger than Detroit. EU blackmails any country that wants to leave the EU, now they want 100 billion euros. ADP employment declines. US auto sales decline as there are more delinquencies among the American people. The debt debacle is not even being talked about. Insiders are selling stocks at a record pace, do they know something we don’t. The Fed explains why the economy is still doing well, the recent numbers are just transitional, the push for the collapse is on and most likely they will raise rates in June.

GM Auto Inventory Hits 10 Year High: Most Since November 2007, One Month Before The Recession Started

GM inventories now at 9.5-year high. 935,758 units (100-day supply) is most since Nov. 2007, 1 month before the recession officially began.
— Nick Bunkley (@nickbunkley) May 2, 2017

When we summarized yesterday’s disappointing monthly car sales report, which badly missing expectations showing the fourth consecutive month of declining auto sales – the first time this has happened since July 2009 – we noted what may be the biggest concern for the auto industry: inventory days continued to trend higher as OEMs push product on to dealer lots even though sale-through to end customers has seemingly stalled.
We highlighted GM, one of the few OEMs to actually disclose dealer inventories in monthly sales releases, which reported that April inventories increased to 100 days (935,758 vehicles) from 98 days at the end of March and just 71 days (681,402 vehicles) in April 2016. Indicatlvely, analysts say an overall inventory level of 60 to 70 days is healthy. 100 is not.

This post was published at Zero Hedge on May 3, 2017.

MAY 3/ANOTHER RAID ON GOLD AND SILVER ESPECIALLY AFTER FOMC STATEMENT/THE AMT OF SILVER STANDING AT THE COMEX IN MAY HAS INCREASED AGAIN AND NOW STANDS AT OVER 19 MILLION OZ/USA SENDS A MESSAGE T…

Gold: $1246.40 DOWN 8.70
Silver: $16.49 DOWN 34 cent(s)
Closing access prices:
Gold $1237.50
silver: $16.48!!!
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
SHANGHAI FIRST GOLD FIX: $1264.95 DOLLARS PER OZ
NY PRICE OF GOLD AT EXACT SAME TIME: 1256.40
PREMIUM FIRST FIX: $8.55
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
SECOND SHANGHAI GOLD FIX: $1264.10
NY GOLD PRICE AT THE EXACT SAME TIME: 1253.95
Premium of Shanghai 2nd fix/NY:$9.25
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
LONDON FIRST GOLD FIX: 5:30 am est $1253.95
NY PRICING AT THE EXACT SAME TIME: $1253.80
LONDON SECOND GOLD FIX 10 AM: $1255.45
NY PRICING AT THE EXACT SAME TIME. $1254.85
For comex gold:
MAY/
NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 8 NOTICE(S) FOR 800 OZ.
TOTAL NOTICES SO FAR: 35 FOR 3500 OZ (.1088 TONNES)
For silver:
For silver: MAY
535 NOTICES FILED TODAY FOR 2,675,000 OZ/
Total number of notices filed so far this month: 2713 for 13,565,000 oz
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
FEDERAL RESERVE EAR MARKED GOLD REPORT for April
In Feb we had $7,841,000 worth of gold housed at the FRBNY valued at 42.21 dollars per oz
Last month: we had the same; $7,841,000 of gold valued at 42.21
thus 0 oz of gold moved out.

This post was published at Harvey Organ Blog on May 3, 2017.

Tesla Burns Through $620 Million, Loses $13,000 Per Car Made Ahead Of Model 3 Launch

Traders were looking forward to today’s “black box” earnings from Tesla as it would be the first quarterly report that combined Tesla Motors operations with a full quarter from cash-bleeding monstrocity SolarCity following the pair’s merger, and would also provide much needed information about the “imminent” launch of the Model 3.
And, as usual, Elon Musk managed to fool those who were only focusing on the headline numbers, which were both good and bad: while TSLA missed earnings, reporting a (non-GAAP) 4Q loss per share of $1.33, or $215 million, far worse than the consensus estimate loss of $0.82. On a GAAP basis, the company reported a loss of $330 million, or $2.04 per share, compared with a loss of $283 million or $2.13 a share in the year-earlier quarter. This amount to a loss of over $13,000 for each of the 25,051 cars delivered in the quarter.

This post was published at Zero Hedge on May 3, 2017.

Puerto Rico Triggers Largest Ever US Muni Bankruptcy Process

‘We’re going to protect our people.’ Hedge funds reel.
Puerto Rico’s Governor Ricardo Rossell took the momentous step on Wednesday to trigger the largest municipal bankruptcy-type process in the US, four times larger than the prior record, Detroit’s bankruptcy.
Puerto Rico’s population has declined by about 10% since 2004 to 3.4 million. Its economy has declined by as much since 2005. Unemployment is at 14%. Public deficits have ballooned. Puerto Rico and over a dozen agencies, after years of reckless spending amid an aiding and abetting bond market, piled up over $70 billion in debt. That this was a mega problem became official two years ago; bonds crashed, and bond insurers got clobbered.
As multiple defaults have rippled through Puerto Rico’s debt since then, hedge funds jumped into the fray and snapped up the beaten-down bonds. They figured since US states cannot file for bankruptcy the US territory couldn’t either, and that much of the debt would have to be repaid, no matter what the cost to Puerto Rico and its people.
This calculus took a serious hit today.
‘We’re going to protect our people,’ Gov. Rossell announced at the press conference in San Juan, after holders of defaulted bonds had filed a slew of lawsuits. He said one of the lawsuits claimed that bondholders should get all revenues generated by Puerto Rico’s Treasury Department. ‘I’m not going to allow that to happen,’ he said.

This post was published at Wolf Street on May 3, 2017.

DOJ Probing Goldman For Rigging Treasury Auctions

While we doubt anything material will emerge for various obvious reasons, the NY Post reports that the DOJ is probing Goldman Sachs for alleged Treasury auction rigging: the charge is that Goldman, one of the 23 US primary dealers, won almost all Treasury bond auctions from 2007 to about 2011 even after the Treasury department established safeguards to maintain competitiveness. The case is said to center on chats and emails showing Goldman traders sharing price information with traders at other banks:
Chats and emails believed to show Goldman traders sharing sensitive price information with traders at other banks are at the center of the case, according to sources familiar with the investigation.
‘They didn’t lose many bids,’ one person who has seen the bid data told The Post. The prices Goldman offered for Treasury bonds ‘would be very close’ but just above offers from other banks, and typically arrived ‘at the end of the auction.’
While not the first time we have had news of a DOJ probe into Treasury market rigging – the Post itself reported last March virtually the same story, namely that “Goldman Sachs probed in alleged Treasury rigging“, and prior that in June of 2015 – the details are new, and suggest that collusion between the banks reaches far beyond merely FX. Also notable is the deference to Goldman by other banks, raising questions what was the quid pro quo. The timing is also notable, coming at a time when at least half a dozen Goldman Sachs alumni are in high levels of the executive branch. Which is perhaps why Goldman feels compelled to clarify that “No one has accused any bank, or Mnuchin or Cohn, of any wrongdoing.”

This post was published at Zero Hedge on May 3, 2017.

“Hawkish” Fed Shrugs Off “Transitory” Weakness In Data, Signals More Rate Hikes Ahead

Having perfectly top-ticked US economic data with its March rate-hike, the subsequent collapse in ‘data’ has been shrugged off as transitory (or seasonal) and by all indications The Fed seems set on two more rate hikes this year no matter what (even as the market diverges dovishly).
*FED SAYS GROWTH SLOWDOWN IN 1Q LIKELY TO BE TRANSITORY *FED SAYS 12-MONTH INFLATION RUNNING CLOSE TO ITS 2% GOAL *FED: JOB GAINS SOLID, HOUSEHOLD SPENDING ROSE ONLY MODESTLY *FED: LABOR MKT CONTINUED TO STRENGTHEN EVEN AS GROWTH SLOWED *FED REPEATS IT MAINTAINING BALANCE-SHEET REINVESTMENT STRATEGY *FED SAYS FOMC VOTE WAS UNANIMOUS There was no mention of the most hotly debated topic at this moment, the Fed’s balance sheet. But at least the Fed was unified this time – there were no dissenters.
* * *
Here are some of the most notable changes (in bold):
“Information received since the Federal Open Market Committee met in March indicates that the labor market has continued to strengthen even as growth in economic activity slowed“ “Job gains were solid, on average, in recent months, and the unemployment rate declined” “Household spending rose only modestly, but the fundamentals underpinning the continued growth of consumption remained solid“ The Fed commented that inflation is reaching its goal:

This post was published at Zero Hedge on May 3, 2017.

Gold and Silver Market Morning: May 03 2017 – Gold continues consolidating!

Gold Today – New York closed at $1,256.90 yesterday after closing at$1,257.20 Tuesday. London opened at $1,254.00 today.
Overall the dollar was slightly weaker against global currencies early today. Before London’s opening:
– The $: was weaker at $1.0912 after yesterday’s $1.0908: 1.
– The Dollar index was weaker at 99.08 after yesterday’s 99.13.
– The Yen was barely changed at 112.16 after yesterday’s 112.14:$1.
– The Yuan was stronger at 6.8921 after Friday’s 6.8969: $1.
– The Pound Sterling was stronger at $1.2923 after Friday’s $1.2875: 1.
Yuan Gold Fix
The Shanghai Gold Exchange was trading at 280.70 towards the close today. This translates into $1,261.78. New York closed at a $4.88discount to Shanghai’s close yesterday. London opened at a discount of$7.78 to Shanghai’s close today.
LBMA price setting: The LBMA gold price was set today at$1,253.95 from yesterday’s $1,255.80.
The gold price in the euro was set at 1,148.88 after yesterday’s1,151.27.

This post was published at GoldSeek on 3 May 2017.

GOLD & SILVER SMASHED BY CARTEL

The following video was published by SilverDoctors on May 3, 2017
The gold cartel smashes gold and silver lower again. Trump says he would be open to meeting with North Korean dictator Kim Jong-un. Obamacare repeal may finally pass the House. Trump talks with Putin.
The relentless smash of gold and silver prices continued Wednesday.
Gold was down another $10 to $1245, finally breaking below significant support at $1250. Silver prices are down another 30 cents to $16.55, now a full $2 below recent highs near $18.60.
The all time record open interest in silver and massive commercial short positions in the COT report was indicating a cartel slam was coming, and come it has. Adding to the downside fuel is the Fed. The Fed is apparently preparing to unleash another rate hike in June, regardless of economic conditions. The metals have stabilized in the wake of the FOMC statement’s 2pm Eastern Time release, and we are looking for a bottom in both metals over the next 48 hours as an excellent entry point opportunity.

Silver News: Institutional Investment Pushes Price Higher; US Jewelry Sales Robust

The Silver Institute has released the April issue of Silver News. This edition highlights rising silver prices pushed by strong institutional investment.
The price of silver had increased by about 11% as of April 25. According to the Silver Institute, improving sentiment among institutional investors has helped drive up the price.
Changing expectations towards the outlook for U. S. interest rates and the proliferation of negative policy rates across other key reserve currencies has
rekindled institutional investor interest in precious metals. Meanwhile, a marked improvement in silver industrial offtake, led by photovoltaics, which achieved a record high last year, is also helping. All these factors in turn have fueled investment inflows into silver futures, options, exchange traded products (ETPs) and over-the-counter products.’
The Silver institute also reports strong silver jewelry sales in the US last year. Survey work on behalf of the institute showed 62% of jewelry retailers reporting increased sales in 2016.

This post was published at Schiffgold on MAY 3, 2017.

The Sellside Reacts: “Fed On Autopilot” To June Hike, But Dollar Bulls May Be Disappointed

As expected, there were no fireworks in the Fed statement which on balance was rather hawkish thanks to the Fed’s explicit assurance that recent weak data was “transitory” (we wonder how the “data-dependent” Fed will react if the weakness is not transitory). And as the Wall Street reactions start trickling in, the consensus is that the Fed remains on “autopilot” until June, when it will hike once again.
And while the dollar is stronger, Citi’s Todd Elmer made an interesting observation, namely that “if anything the knee-jerk response to the statement saw USD selling. While this very modest move has since unwound, this suggests that market lean was not quite as dovish as recent softer data flow might suggest. The forward looking implications are two-fold: 1) It may take a much more significant shift in signals from the Fed either on rates or the balance sheet to see investors add to expected tightening in the quarters ahead. With limited incentive for the Fed to induce such a move, we doubt that this factor will offer USD much support for the time being. 2) This may denote a more hawkish lean into the data later this week.”
Citi’s conclusion – the dollar may be prone for a selloff: “The elevated payrolls forecast is partly a function of presumed seasonality and payback, but insomuch as this points to investor willingness to shrug off recent weaker indicators, this points to potential for USD-negative disappointment”
First, here is Citi’s Todd Elmer:
Fed on autopilot
Today’s policy statement is unlikely to drive many ripples in the market, so the likelihood is that we will continue to see broadly range bound trade until the heavier hitting events later this week. Specifically, speeches by Fed Vice-Chairman Fischer on monetary policy and other Fed officials, as well as the payrolls release are far more likely catalysts for moves in FX. The former provides more freedom for the Fed to offer nuanced shifts on forward guidance than is possible in the constrained policy statement, while the latter will be seen as a key marker on whether or not the recent soft patch in data flow is extending.

This post was published at Zero Hedge on May 3, 2017.