WEDNESDAY 6/11/14; World Bank Lowers Growth Forecast; 10-Year Note Auction; Iraq Descends Into Chaos

Asia trades mixed again. The NIKK, SSEC and KOSPI print slight gains while Australia, India’s BSE and the Hang Seng each lose -0.3%. India reports strong export numbers. Miners are weak. Copper leaks lower. The World Bank cuts the global growth forecast to 2.8% from the prior 3.2%.

OPEC oil ministers meet in Vienna to discuss and set production quotas. The al-Qaeda takeover of Mosul, Iraq, will dampen oil production as well as the ongoing fight over splitting oil revenue with the Kurds that control northern Iraq. WTIC crude oil is nearing 105 and Brent is at 110. Gasoline prices at the pump will remain elevated which will hurt consumer retail spending.

Protests against Uber begin across Europe with taxi cab drivers recruiting friends, family and supporters to create bottle necks and traffic. Uber is in about 20 European cities. Protests in London and Madrid are ramping up the fastest. London police are setting location and time conditions for the growing demonstrations. The taxicab industry wants Uber to follow the same stringent regulations they follow while Uber believes its disruptive technology provides a better solution.

Executives at London’s top firms see higher bonuses year on year. The rich get richer because of central banker easy money. The UK ILO unemployment rate is 6.6% slightly better than the 6.7% expected and the lowest since January 2009. The Emirates cancel a large Airbus A350 order. Airline stocks are weak. Lufthansia collapses -15% the worst drop in 13 years on weak earnings, guidance and currency issues. Engine-maker Rolls Royce is down -5%. The EU launches a probe into tax practices of AAPL, SBUX and Fiat. European stocks trade lower across the board down from -0.6% to -1.0%.

At 4:30 AM, S&P futures -3. Dow -21. Nasdaq -5. The 10-year yield is 2.66%. Copper is slightly lower with gold and silver slightly higher. At 5:30 AM, S&P -7. Dow -45. Nasdaq -12. 








[Text is Redacted: Purchase June 2014-06 to Read the Complete Chronology]

Of additional interest is that despite disagreement with President Obama’s policies, most Americans always liked the president as a person, however, this sentiment is quickly deteriorating. The ongoing scandals and lying, and growing image of incompetence, are catching up to the president and the Whitehouse.