This week is going to be filled with quite a bit of economic data being released globally including Q3 GDP figures for the US and the Eurozone. We’ll also see various global PMI prints, inflation figures, jobs reports, and consumer confidence numbers. All of this fundamental economic data, however, mat take a backseat to a couple of other events. Namely earnings reports from some major tech firms such as Apple, Facebook, and Alphabet, the parent company of Google. Recall, despite the fact that Amazon missed and gave poor forward guidance, the markets still made all-time highs last week with respect to the S+P 500 on an intraday basis and the Nasdaq100 as well. These tech giants have been the market leaders over the course of this 10+ year bull market. They are the darlings of Wall Street, so even if we should witness further deterioration on the economic front, these earnings reports could make the markets turn a temporary blind-eye.
Also, the markets will be waiting to hear from the Federal Reserve on Wednesday following the conclusion of the FOMC meeting where the Fed determines interest rates. The Kapital News is expecting that the Fed in the very least will cut rates by another 25bps. The markets are pricing in a 94% chance that the Fed will cut once again, and we are all but certain that the Fed does not want to disappoint the addicts on Wall Street. Also note that the Bank of Japan will be making a monetary decision this week as well and given their recent rhetoric, do not be surprised if they continue with further easing.
Lastly, we discuss the impeachment inquiry and how the investigation into the genesis of the Trump-Russia collusion/conspiracy case was opened. On the inquiry front, former National Security Advisor, John Bolton, is expected to agree to testify before House committees to discuss what he knows of the Ukrainian affair and perhaps other areas of concern surrounding the President of the United States and his administration. Be mindful that John Bolton may be a disgruntled former employee, but that does not give him the right to lie under oath, nor does that protect him from prosecution of perjury should he lie about his time in the White House and what he may have witnessed. His testimony could prove fatal to the President since John Bolton would have been aware of many of these issues in question.
On the Trump-Russia front, this investigation has turned into a criminal investigation. This is likely to imply that members of the Obama administration are likely involved and/or members of the DOJ, FBI, and/or other intelligence agencies who served in those agencies during President Obama’s tenure. Or, this could imply that there were details missed during the Mueller investigation and members of the Trump campaign and/or administration are once again in the crosshairs. Regardless we want the truth and we want justice no matter who is implicated. Also, the mainstream media is already saying the President is simply using his Office and the DOJ as a weapon to investigate his political opponents. This is exactly what we predicted would happen and the fact that there is a phone call and a quasi-transcription, which was released by the White House, whereby the President asks his counterpart in Ukraine to look into former VP Joe Biden and his son, Hunter, does not bode well for Mr. Trump. This week will be very interesting. Stay diversified, stay vigilant, and stay with The Kapital News. #Recession #Impeachment #Justice #Truth #Economy #EndTheFed #Politics #Republic #Peace