UK Soccer Players Abandon Pound, Demand Payment In Euros

Leading English Premier League football (soccer) stars are demanding to be paid in euros because of the weak value of the Pound, according to Manchester United, the wealthiest club in world football.
As The FT reports, speaking at the KPMG Football Benchmark event in London on Wednesday. Cliff Baty, the English Premier League side’s chief financial officer said that last summer’s Brexit vote, which led to a sharp drop in the pound against the euro, had complicated the transfers of big-name players.
‘It was a bit difficult last year when we were trying to make signings and you had players questioning the value of being paid in sterling,’ he said. ‘A lot of European players will want to be paid in euros, understandably to a degree. But we are a sterling company’.’.’.'[and] managing that is quite tricky.’
The biggest clubs are hedged against currency movements, earning euros from playing in European competition and dollars from international sponsorship deals. Even so, Mr Baty said his club does not have enough euros in hand to accede to the request, insisting players be paid in pounds instead.

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

93% Of All Jobs “Created” Since 2008 Were Added Through The Birth/Death Model

According to the prevailing narrative, job growth in the US, where GDP over the past decade has been on par with that in the 1930s, is one of the otherwise brighter economic indicators in a time when much of the economic data such as capital spending, productivity and especially wage growth (so critical for the Fed’s future plans) has been a chronic disappointment. Today, for example, headlines blast that the US has enjoyed 80 months of continuous jobs growth with unemployment hitting 4.3% – the lowest since 2001. However, there is more to this “strong” number than meets the untrained eye.
As our friends at Morningside Hill calculate, a full 93% of the new jobs reported since 2008 – 6.3 million out of 6.7 million – and 40% of the jobs in 2016 alone were added through the business birth and death model – a highly controversial model which is not supported by the data. On the contrary, all data on establishment births and deaths point to an ongoing decrease in entrepreneurship.

Here are the details of how over 90% of the jobs created in the past decade were nothing more than a “statistical” adjustment in some BLS model.

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

The Ridiculous Reality of Our Time

This is one ugly article in the WaPo and if you have a hint of common sense it will make you both angry and sad.
First came Kathy Strait, 55, who withdrew six pills from a miniature backpack and swallowed them. Then emerged her daughter, Franny Tidwell, 32, who rummaged through 29 bottles of medication atop the refrigerator and brought down her own: oxcarbazepine for bipolar disorder, fluoxetine for depression, an opiate for pain. She next reached for two green bottles of Tenex, a medication for hyperactivity, filled two glasses with water and said, ‘Come here, boys.’
Sweet Jesus.
There’s a picture a bit down the page, along with one right on the top. You’ll notice something up front — the adults in the pictures are horribly fat.
Not a little overweight — obese.
Then you read on with the reality of their “finances.”

This post was published at Market-Ticker on 2017-06-03.

Macron Invites All Americans Disappointed With Trump To Flee To France

French President Macron invited American citizens – especially those with a higher education – who are disappointed with Trump’s decision to pull out of the Paris accord, to help ‘make our planet great again’ by moving to that bastion of liberal global values, France , where they will find “a second homeland.”
In a short address to Americans following Trump’s announcement to withdraw from the Paris climate accord, the French leader said that while he respects President Donald Trump’s decision, he believes it was a “mistake” and invited all Americans (ideally those with a college education) to come join him in France “to work together on concrete solutions, for our climate, our environment.”

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

Simply Unaffordable! Manhattan Has Nation’s Highest Rents Followed By San Francisco (Wichita KS The Cheapest)

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.
New York City, composed resrticted land masses such as Manhattan, Brooklyn and Staten Island, has the most expensive housing rents in the nation followed by another restricted land mass known as San Francisco. According to RentCafe.com, Boston MA is the third most expensive area in terms of housing rents.

This post was published at Wall Street Examiner on June 3, 2017.

The US Unemployment Rate Is Now Below The Average Recession “Entry Point”

Submitted by Eric Hickman of Kessler Companies
We have begun to see the ‘event-horizon’ (Lance Roberts) of an economic slowdown in several indicators. Adding to that, and counter-intuitively perhaps, an unemployment rate this low (4.29%) is a signal to run-away from Stocks and run-to Treasuries.
Historically, unemployment rate lows have occurred at, or very near-to, market inflection points preceding recessions (see green and red hash marks in chart below). The unemployment rate just released on 6/2/2017 at 4.29% is now just below the average unemployment “entry prior” to recessions over the last 67 years, at 4.4%.

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

BLS B.S.: 93% Of New Jobs Since 2008 Were Birth/Death Model Estimates

A research report from Morningside Hill Capital sourced from Zerohedge shows that 93% of the jobs ‘created’ since 2008 were Birth/Death model estimates. While some portion of those jobs were no doubt legitimately created, the issue is over-estimation of jobs created by new businesses net of jobs lost from failed businesses. As it turns out, most of the job growth that has been reported by the Government since 2008 – and which in turn fueled some massive stock rallies – never existed.
Ronald Reagan’s administration was the ‘culprit’ behind the creation of the Birth/Death model because apparently Reagan was complaining that the BLS was undercounting the jobs he ‘created’ (from the link above, pg 11).
The source of estimation error derived from the methodology used by the Census Bureau is highly flawed because it extrapolates B/D growth estimates based on historical experience. When the economic activity in the current period is below the historical rate of economic activity (real economic activity, not inflation-generated growth or growth fashioned from data manipulation), the slow-down in new business formation that occurs in reality is not picked up by the B/D model.

This post was published at Investment Research Dynamics on June 3, 2017.

Which States Have Suffered The Biggest Retail Losses

With the great retail bankruptcy tsunami claiming its latest victim on Thursday, when Gymboree announced it wouldn’t make its June 1 interest payment guaranteeing a Chapter 11 bankruptcy filing in the next month, the signs continue to mount that the next “big short” – either in the form of REITs, CMBS, CMBX, or single name stocks as discussed here – is shorting America’s bloated retail sector in general, and that staple of US “bricks and mortar” retailers in particular, the mall.
As a reminder, last week Credit Suisse made the remarkable prediction that over the next five years, no less than 25% of US mall will close, which in light of the record store closures in just the first five months of the year…

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

Autos and Liquidity Preferences

This is a syndicated repost courtesy of Alhambra Investments. To view original, click here. Reposted with permission.
When looking at the bond market or eurodollar futures, both tugged by JPY, I don’t think it was just the payroll report that pushed new levels of anti-reflation today. Instead, there is too much that is consistent with a weak payroll report, and by that I mean a string of them. Yesterday, for example, automakers released their sales estimates for the very important month of May. Memorial Day looms large on their calendar and can often set the tone for the summer season.
Instead, it was another largely negative month. If GDP and all its constituents suggested weakness in just Q1 (transitory as always) as Janet Yellen’s FOMC still believes, then auto sales are perhaps the most salient counterpoint that such ‘headwinds’ persist even this far nearly halfway into 2017. We are right back in 2014 again, where such mysterious inconsistencies abound at least in the mainstream:
May’s results sealed the first three-month stretch since 2014 during which the monthly sales pace fell short of 17 million. The lack of consumer demand even amid readily available financing, low gasoline prices and strong job growth belies underlying weakness within the market.

This post was published at Wall Street Examiner by Jeffrey P. Snider ‘ June 2, 2017.

The stock market Crash of 2017 that never was but could it still come to Pass?

I add this, that rational ability without education has more often raised a man to glory and virtue, than education without natural ability.
Marcus T. Cicero
For the past few years much the angst of many experts we have consistently stated that the markets were not ready to crash. From late 2016 to early 2017, many former Bulls who predicted the direction of this market quite well, suddenly decided that the stock market was ready to crash. We, however, begged to differ, and we provided two very simple reasons for our stance.
Emotions drive the markets:
The masses have remained nervous throughout this bull run; no bull market has ever ended when the masses are nervous. History indicates that stock market crashes begin on a euphoric note and end on a note of hysteria.
The trend
We focus more on the psychology of the masses than on any other single factor. However, the 2nd most important factor is the trend. The trend has remained positive throughout this bull run; occasionally it has moved into the neutral zone, but it has never turned negative. We are not talking about the trend based on the drawing of simple trend lines but one that is calculated utilizing several factors one of which happens to price action.
So when the experts started to scream over and over again about the impending stock market crash of 2017; these are some of the comments we recently made to our readers and or subscribers
Let the experts sing their songs of doom and con the masses; it takes two to tango, one to cry and three to have a party. We have experts from the technical analysis side and experts employing fundamentals trying to use to back their faulty assertions. Unfortunately for these penguins both of them are wrong. They have failed to pay attention to the psychological factor. There is no factor more important when it comes to playing the markets then market psychology. Market Update April 30, 2017

This post was published at GoldSeek on June 2, 2017.

Shock Waves Spread from Spain’s New Banking Crisis

Has the time finally come to test the EU’s bail-in law? ****
The shares of Spain’s sixth biggest bank, Banco Popular, plunged 36% this week to 0.43, reducing the bank’s market capitalization to 1.7 billion. Just three weeks ago, when there was still a glimmer of hope that things could be turned around, it was worth almost double that. Its shares traded at 15 ten years ago, before the collapse of Spain’s mind-boggling housing bubble that left Popular holding billions of euros of real estate assets.
Popular may not be a systemically important institution, but it’s nonetheless an institution of great import. It has the largest portfolio of small business customers in Spain and enjoys the patronage of one of Spain’s most influential institutions, Opus Dei. Its well-heeled members are among the bank’s most important shareholders and investors, and they stand to lose a lot of money if a last-minute buyer is not found soon.
This is an outcome that can no longer be discounted, especially after reports emerged on Thursday that senior officials of the ECB’s regulatory arm, the Single Supervisory Mechanism, had warned the bank could be wound down if it fails to find a buyer. But the EU agency charged with overseeing bank failures later issued a statement saying it ‘never issues warnings about banks.’

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

One Step Forward, Two Steps Back

This is a syndicated repost courtesy of The Daily Reckoning. To view original, click here. Reposted with permission.
The nation appears trapped in a one-step-forward, two-steps-back economy… an economy of false starts… and false dawns.
We were told last month the economy added 211,000 jobs in April, crushing all expectations.
Unemployment fell to its lowest level since May 2007.
One step forward.
But May’s unemployment numbers came out today.
Economists expected 185,000 new additions to the national payrolls. The lowest estimate was 140,000.

This post was published at Wall Street Examiner by Brian Maher ‘ June 2, 2017.

The Anti-Perfect Jobs Condition

This is a syndicated repost courtesy of Alhambra Investments. To view original, click here. Reposted with permission.
The irony of the unemployment rate for the Federal Reserve is that the lower it gets now the bigger the problem it is for officials. It has been up to this year their sole source of economic comfort. Throughout 2015, the Establishment Survey improperly contributed much the same sympathy, but even it no longer resides on the plus side of the official ledger.
So many people may have exited the labor force in May that the unemployment rate dropped to just 4.3% even though headline payroll gains were once again lackluster. The last time the ratio was this low George W. Bush was just a year into his first term, no one had yet much idea of the housing bubble because at that moment in May 2001 of greater concern was the dot-com bubble and its related recession that had yet to be realized in effect. It was then the last hurrah of the nineties economy.

This post was published at Wall Street Examiner by Jeffrey P. Snider ‘ June 2, 2017.

May Jobs Report: 138K New Jobs Added, Disappoints Forecast

This morning’s employment report for May showed a 138K increase in total nonfarm payrolls, disappointing forecasts. The unemployment rate ticked downward from 4.4% to 4.3%. TheInvesting.com consensus was for 185K new jobs and the unemployment rate to remain at 4.4%. March and April nonfarm payrolls were revised for a total loss of 66K.
Here is an excerpt from the Employment Situation Summary released this morning by the Bureau of Labor Statistics:
Total nonfarm payroll employment increased by 138,000 in May, and the unemployment rate was little changed at 4.3 percent, the US Bureau of Labor Statistics reported today. Job gains occurred in health care and mining.
You may also like Are We in for Below-Average Returns Over the Next Decade?
Here is a snapshot of the monthly percent change in Nonfarm Employment since 2000. We’ve added a 12-month moving average to highlight the long-term trend.

This post was published at FinancialSense on 06/02/2017.

From Debt Peons To Wage Slaves – Are Students A ‘Class’?

Authored by Michael Hudson, via NakedCapitalism.com,
Students usually don’t think of themselves as a class. They seem ‘pre-class,’ because they have not yet entered the labor force. They can only hope to become part of the middle class after they graduate. And that means becoming a wage earner – what impolitely is called the working class.
But as soon as they take out a student debt, they become part of the economy. They are in this sense a debtor class. But to be a debtor, one needs a means to pay – and the student’s means to pay is out of the wages and salaries they may earn after they graduate. And after all, the reason most students get an education is so that they can qualify for a middle-class job.
The middle class in America consists of the widening sector of the working class that qualifies for bank loans – not merely usurious short-term payday loans, but a lifetime of debt. So the middle class today is a debtor class.
Shedding crocodile tears for the slow growth of U. S. employment in the post-2008 doldrums (the ‘permanent Obama economy’ in which only the banks were bailed out, not the economy), the financial class views the role industry and the economy at large as being to pay its employees enough so that they can take on an exponentially rising volume of debt. Interest and fees (late fees and penalties now yield credit card companies more than they receive in interest charges) are soaring, leaving the economy of goods and services languishing.

This post was published at Zero Hedge on Jun 2, 2017.

Dow Jones News Today: Stocks Climb Higher as Wall Street Dismisses Lackluster Jobs Report

This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission.
In Dow Jones news today, stock prices climbed despite a lukewarm May jobs report from the U. S. Labor Department.
Here are the numbers from Friday for the Dow, S&P 500, and Nasdaq:
Index Closing Point Change Percentage Change Dow Jones 21,206.29 +62.11 +0.29% S&P 500 2,439.07 +9.01 +0.37% Nasdaq 6,305.80 +58.97 +0.94% Now here’s a closer look at today’s most important market events and stocks, plus Monday’s economic calendar.

This post was published at Wall Street Examiner by Garrett Baldwin ‘ June 2, 2017.

Gold Tests ‘Game Changing’ Trend Line Again After Weak US Jobs Data

Gold prices jumped to 5-week highs against a weakening Dollar on Friday, rising to meet the metal’s 6-year downtrend – starting from the all-time peak of September 2011 – after new US data said the world’s largest economy added fewer jobs than expected in May.
Instead of expanded by 185,000 as analysts forecast, non-farm payrolls expanded by 138,000 according to the Bureau of Labor Statistics, which also revised both March and April’s NFP figures sharply lower.
Read Gold Is Unloved…and That’s a Good Thing for Metals Investors, Says Kathy Derbes
Average earnings also grew less quickly than analysts predicted in May, while the unemployment rate only fell because the number of working-age people in or seeking work slipped from April’s near a 3-year high.
The US trade deficit widened in April to $47.6 billion, separate figures showed.

This post was published at FinancialSense on 06/02/2017.