FRIDAY 5/9/14; RL; Wholesale Trade

China inflation in April rises 1.8% the lowest reading in 18 months and the slowest pace of rising since 2008. The global disinflationary and deflationary shadow continues to stalk the world. The low China inflation does not jive with the strong 7% to 8% GDP growth constantly reported. Asian markets trade mixed on each side of the flat line. US futures are flat. Dollar/yen 101.72. The NIKK prints a slight gain but is down -1.8% on the week. Rakuten, an e-commerce company, plummets -5% on weak results. Canon announces a buyback and bounces +2%. Anti-government protests continue in Thailand. India markets rise ahead of election results to be announced in a few days.

Russia celebrates Victory Day (when Russia defeated Nazi Germany in WW II) by displaying its military hardware and might. Ukraine tensions are expected to increase due to Victory Day. Pro-Russian separatists plan to go ahead with the referendum secession vote this weekend. The EU threatens the serious Level III sanctions but both sides know that Europe will be hurt as well. Putin plays a cagey game saying he is pulling back troops from Ukraine borders but Russia troops remain in place according to the UN and satellite imagery. Putin arrives in Crimea to review Russia’s fleet.

[Text is Redacted: Purchase May 2014-05 to Read the Complete Chronology]

President Obama speaks from a WMT store embracing the big-box non-union culture that he vehemently opposed a few short years ago. Union leaders cry foul since it appears the president is throwing organized labor under the bus. The EPA plans to increase regulations on fracking chemicals. Beef prices are at highs not seen since 1984 and pork prices are at highs not seen since 1998. Smaller cattle herds are maintained due to the drought conditions in recent years. The PEDv hog virus is limiting supply in the pork industry.