Monday April 24 2017 Housing and Economic stories

TOP STORIES:            

Meltdown of Houston Auto Sales Has Eerie Financial Crisis Look - (www.wolfstreet.com) New car and truck sales by franchised dealers in the Houston area plunged 22.6% in March from a year ago, to 20,934 new vehicles, with sales of cars down 30.7% and sales of trucks and SUVs down 17.7%. This is the type of plunge Houston went through during the Financial Crisis. By comparison, in the US overall, new vehicle sales declined 1.6% in March, despite record incentives that desperate automakers threw at the market. There are no green shoots. The first quarter, with 69,936 new vehicles sold, was the worst quarter since Q1 2011, according to TexAuto Facts, published by InfoNation, and cited today by Greater Houston Partnership. It was the 15th month in a row of year-over-year declines.

State pension funds are getting whacked by billions in hidden fees…and you could be on the hook - (www.cnbc.com) When it comes to investment advice, you don't always get what you pay for. And when it comes to state pensions, it's not even clear how much those funds' advisors are getting paid. That's the takeaway from a recent analysis of more than 70 large pension funds in all 50 states for fiscal 2014 by The Pew Charitable Trusts. Unreported investment fees in 2014 were estimated at more than $4 billion, mostly payments to private equity managers, in addition to the $10 billion in reported investment expenses that year, the report shows.

Martin Shkreli Harvard Talk Interrupted by Fire Alarm and Protesters ...  - (www.forbes.com)  Martin Shkreli's speech at Harvard University didn't exactly go off without a hitch. The notorious hedge fund manager-turned price hiking biotech executive was met with protests and general name-calling during the event, which was hosted by the Harvard Financial Analysts Club on Wednesday evening. In fact, the talk started late because somebody pulled the fire alarm and police had to evacuate the building where it was taking place, according to CNBC. For his part, Shkreli discussed his experience in managing hedge funds and health care specifically. He is currently under indictment for alleged securities fraud and out on $5 million bail. That trial is set to start this summer. But Shkreli's hit back hard recently. He launched a website tracking pharma company "skeletons" on drug price hikes in an effort to show that many drug makers share his methodology without eliciting the same kind of outrage. He even credited the latest drug price hike villain, Marathon Pharmaceuticals, with "teaching" him how to take advantage of existing regulations to increase prices.

44% Of Americans Won't Pay Any Federal Income Tax – (www.zerohedge.com) Yesterday, April 18th, was the deadline for filing your taxes... Many Americans discovered they don’t owe the government a dime. More than four in 10 American households (44.3%) — or upwards of 76 million — didn’t pay any income tax to the federal government last year, according to data for 2016 from the Tax Policy Center. This year that number is expected to be roughly the same, at 43.9%. Most of these people aren’t paying income taxes because they either don’t have any income that is taxable (many fall below the poverty line), or because they get enough tax breaks and don’t owe the government money. Common tax breaks include the child tax credit, the earned income tax credit (EITC), and the exclusion of some or all Social Security income, explains Roberton Williams of the Tax Policy Center.

Canada Puts Housing Speculators on Notice as Toronto Prices Soar - (www.bloomberg.com) Canadian officials across all three levels of government vowed to be vigilant in monitoring the Toronto region’s rapidly accelerating housing market, including possibly taking formal steps aimed at curbing speculative activity. Federal Finance Minister Bill Morneau, Ontario Finance Minister Charles Sousa and Toronto Mayor John Tory met Tuesday to discuss the thorny question of how to cool the city’s residential real estate market, though they stopped short of providing details on specific measures. Possible steps include taxing homes left empty for speculative purposes, Tory said. “We are looking at a vacant home tax and whether that could ensure real estate in Toronto is first and foremost as it should be, a place to live, and as an investment second,” the mayor said said at a joint press conference with Morneau and Sousa. “I hope today’s meeting sends a message that we are concerned, we are preparing for intervention if needed and we’re committed to keeping Toronto as affordable as possible.”

OTHER STORIES:

Japan 10-Year Yield Hits Zero for First Time in Five Months - (www.bloomberg.com)
U.S. Stocks Fall as Goldman Earnings Disappoint: Markets Wrap - (www.bloomberg.com)
Treasuries Rise; Yields Fall to Lowest Levels of 2017 - (www.bloomberg.com)

Industrial Metals Are Diving - (www.bloomberg.com) - (www.bloomberg.com)
Pound Surges to 4-Month High After Snap Call for U.K. Election - (www.bloomberg.com)
Follow $17 Trillion of Fund Money to See Cracks in Trump Trade - (www.bloomberg.com)

Friday April 21 2017 Housing and Economic stories

TOP STORIES:            

What the Heck’s Going On with Classic Cars? - (www.wolfstreet.com) Prices of collector cars fell again, according to the April report by Hagerty, which specializes in insuring vintage automobiles. After a tremendous price surge that peaked in 2015, they’ve been ratcheting their way down ever so slowly. But it adds up after a while. The “Hagerty Market Rating Index” – which tracks the “heat” of the market – fell 0.33 points to 66.65 in April. The index, which is adjusted for inflation, is now down 7.4% from its all-time high of 71.99 in May 2015. Here are more clues from Hagerty’s report: The number of owners expressing the belief that the values of their vehicles are rising continues to fall. The number is at its lowest since November 2013 for owners of mainstream vehicles and at its lowest since May 2012 for owners of high-end vehicles.

Warren Buffett Now Selling US Houses To Chinese Oligarchs - (www.zerohedge.com) While extolling the virtues of American consumers and praising the US economy, Warren Buffett has started seeking the help - and funds - of Chinese oligarchs to sell houses from his real estate brokerage HomeServices. According to Bloomberg's Berkshire's real estate brokerage, HomeServices - currently the second-largest U.S. residential real estate brokerage - acquired as part of Buffett acquisition of an energy business, "is expanding its global reach with a push to attract wealthy Chinese citizens to purchase homes in the U.S", in the process diverting "hot" Chinese money to the US (see Vancouver and Toronto for the outcome). As Bloomberg reports, HomeServices has been expanding under Buffett by opening new locations, forming a 2012 venture to expand licensing operations and then working to capitalize on demand from non-U.S. buyers. The unit hired Realogy’s Peter Turtzo in 2015 to push into international markets and recruited Mitchell Lewis from Christie’s International Real Estate in September to build operations in Europe, the Middle East and Africa. brokerage, "is expanding its global reach with a push to attract wealthy Chinese citizens to purchase homes in the U.S", in the process diverting "hot" Chinese money to the US.

Why Canada’s Housing Bubble Could Soon Become Your Problem - (www.caseyresearch.com) What kind of house would you buy with $1 million? A beachfront property…a mansion on a large estate…maybe a luxury condo? Any of these would be possible in most cities. But you might want to temper your expectations if you live in Toronto. That’s because $1 million won’t buy you much there. Just look at this house. It recently sold for C$1,050,000. That’s 63% more than the property was appraised for in January 2016. As if that weren’t crazy enough, this property sold for C$370,000 above list price after only being on the market for ten days.

Iron Ore Ignores China Data, Index as Decline Accelerates: Chart - (www.bloomberg.com) Iron ore futures have fallen more than seven percent in the past two days despite encouraging data showing the economy in China, a major consumer of the steel-making material, grew more than expected in the first quarter. The 14-day relative strength index is also at its lowest since December 2015, when it hit a record bottom on data going back to 2008. It is now at a level that suggests the commodity has been oversold.

A seismic shift is happening, and billions are pouring into these index funds and ETFs - (www.cnbc.com) In the past decade, there's been a seismic shift from active to passive management, i.e., from mutual funds run by ersatz Peter Lynches to index funds and ETFs that track the market. The fiduciary rule, which President Obama first advocated for in February of 2015 and the DOL formally proposed on April 14, 2016, accelerated that trend. If implemented, it would impose "impartial conduct" standards on financial advisors requiring they always act in their clients' best interests. That means finding the best investment fund possible, while the older, "suitability standard" required only finding an acceptable option for an investor's given risk tolerance. The best option, reams of academic studies have confirmed, is generally the low-cost one. And the lowest-cost funds are index ones.

OTHER STORIES:

Wall Street rallies in low volume led by banks, tech - (www.reuters.com)
Mnuchin warns of tax reform delay following healthcare setback: FT - (www.reuters.com)
North Korea 'will test missiles weekly', senior official tells BBC - (www.bbc.com)

US admits Trump tax reforms will be hit by healthcare setback - (www.ft.com)
Mélenchon barges way into tight French race in final straight - (www.ft.com)
Investors Pile Into Risky Chinese Debt - (www.wsj.com)

Thursday April 20 2017 Housing and Economic stories

TOP STORIES:            

So Who Are the Debt Slaves in this Rich Nation? - (www.wolfstreet.com) We constantly hear the factoids about “American households” that paint a picture of immense wealth – and therefore a lack of risk for consumer lenders during the next downturn. We hear: “This – the thing that happened in 2008 and 2009 – won’t happen again.” For example, total net worth (assets minus debt) of US households and non-profit organization (they’re lumped together) rose to an astronomical $92.8 trillion at the end of 2016, according to the Federal Reserve. This is up by nearly 70% in early 2009 when the Fed started its QE and zero-interest-rate programs. Inflating household wealth was one of the big priorities of the Fed during the Financial Crisis. It would crank up the economy. In an editorial in 2010, Fed Chair Ben Bernanke himself called this the “wealth effect.” So with this colossal wealth of US households, what could go wrong during the next downturn?

Is The Deep State Creating Another "Crash Of 1929"? - (www.zerohedge.com) In his speech above, future Federal Reserve Chairman Ben Bernanke acknowledged that, by raising interest rates, the Fed triggered the stock market crash of 1929, which heralded in the Great Depression. Yet, in her speech above, Fed Chair Janet Yellen announced that “it makes sense” for the Fed to raise interest rates “a few times a year.” This is a concern, as economic conditions are similar to those in 1929, and a rise in interest rates may have the same effect as it did then. So let’s back up a bit and have a look at what happened in 1929. In the run-up to the 1929 crash, the Federal Reserve raised rates to 6%, ostensibly to “limit speculation in securities markets.” As history shows, this sent economic activity south rather quickly. Countless investors, large and small, who had bought stocks on margin, would be unable to pay increased interest rates and would be forced to default. (It’s important to understand that the actual default was not necessary to crash markets. The knowledge that investors would be in trouble was sufficient to send the markets into a tailspin.)

Undaunted by oil bust, financiers pour billions into U.S. shale - (www.reuters.com) Investors who took a hit last year when dozens of U.S. shale producers filed for bankruptcy are already making big new bets on the industry's resurgence. In the first quarter, private equity funds raised $19.8 billion for energy ventures - nearly three times the total in the same period last year, according to financial data provider Preqin. The quickening pace of investments from private equity, along with hedge funds and investment banks, comes even as the recovery in oil prices CLc1 from an 8-year low has stalled at just over $50 per barrel amid a stubborn global supply glut.

Is American Retail at a Historic Tipping Point? - (www.nytimes.com) Along the cobblestone streets of SoHo, Chanel handbags and Arc’teryx jackets are displayed in shops like museum pieces, harking back to the height of the neighborhood’s trendiness. But rents there are softening, and the number of vacant storefronts is rising. Today, some of the most sought-after real estate by retailers is not in SoHo, but five miles away in Red Hook, a gritty Brooklyn enclave with a shipbuilding past. E-commerce merchants are vying to lease part of a huge warehouse space, spanning 11 acres, that would allow them to deliver goods the same day they’re ordered online. The profound reordering of New York’s shopping scene reflects a broad restructuring in the American retail industry.

Boeing To Lay Off "Hundreds" Of Engineers - (www.zerohedge.com) In a letter to employees, Boeing VP John Hamilton announces that the company will lay off "hundreds" of engineers as soon as this week, affecting Washington and "other enterprise locations." The timing is interesting as the Ex-Im Bank discussions hot up and comes just 2 months after Trump visited Boeing's South Carolina plant. Standing in front of a new Boeing 787-10 Dreamliner passenger aircraft made at in North Charleston, Trump repeated his campaign promises to promote American production that partly fueled his dizzying path to the White House. He warned of a "substantial penalty" for companies that move jobs out of the United States. "We want products made by our workers in our factories stamped with those four magnificent words — made in the USA," Trump said.

OTHER STORIES:

Asian economies escape 'manipulator' tag, but expect more pressure on trade - (www.reuters.com)
North Korea displays apparently new missiles as U.S. carrier group approaches - (www.reuters.com)
North Korea Parades New Long-Range ‘Frankenmissile’ - (www.wsj.com)

North Korean test missile 'fizzles' hours before Pence arrives in South - (www.reuters.com)
Trump Says China ‘Working With Us’ on North Korean Issue - (www.bloomberg.com)
Exchange traded funds attract record inflows in first quarter - (www.ft.com)

Wednesday April 19 2017 Housing and Economic stories

TOP STORIES:            

Restaurants in Worst Tailspin since 2009/2010 - (www.wolfstreet.com) This thermometer for discretionary spending is the first to react when consumers hit their limits. Foot traffic at chain restaurants in March dropped 3.4% from a year ago. Menu prices couldn’t be increased enough to make up for it, and same-store sales fell 1.1%. The least bad region was the Western US, where sales inched up 1.2% year-over-year and traffic fell only 1.7%, according to TDn2K’s Restaurant Industry Snapshot. The worst was the NY-NJ Region, where sales plunged 4.6% and foot traffic 6.3%. This comes after a dismal February, when foot traffic had dropped 5% year-over-year, and same-store sales 3.7%. 

Rise of private debt creates fears of a bubble - (www.ft.com) Nature is said to abhor a vacuum, but finance loves them. After all, they tend to be very profitable — at least for savvy early movers. Banks have in recent years been forced to retrench their operations, tamed by financial crisis losses, bridled by shareholders and tethered by more onerous regulation. Lending to smaller and mid-sized companies has been one of the biggest victims, as banks have focused on servicing their blue-chip clients. But a swelling array of investors have stepped into the resulting breach. So-called private debt funds act much like a bank, making loans to businesses too small to go to the bond market, but too big to simply rely on a loan facility from their neighbourhood credit union. It is an eminently sensible and useful business model, marrying the corporate need for funding with institutional investors’ desperation for higher returns at a time interest rates have plumbed historic lows.

“Secular Low in Bond Yields Remains in the Future” says Hoisington’s Lacy Hunt - (www.mishtalk.com) With the Fed having hiked thrice and calling for three more hikes still, the 2017 Hoisington First Quarter Review contains a call that will have many if not most analysts shaking their heads: “The secular low in bond yields remains in the future, not the past,” says Lacy Hunt. That’s a pretty bold call, but betting against Hunt or on alleged bond bubbles has been extremely unrewarding, to say the least. The Fed thinks three more rate hikes are baked in the cake over the rest of the year. I highly doubt the Fed gets in even one more hike. You can take this dot plot of expected rate hikes and throw it out the window.

Puerto Rico seen sliding toward bankruptcy as deadline nears - (www.reuters.com) Bankruptcy for Puerto Rico is looking ever more likely as the clock ticks down toward a May 1 deadline to restructure $70 billion in debt, ramping up uncertainty for anyone betting on returns from the island's widely held U.S. municipal bonds. When U.S. Congress last year passed the Puerto Rico rescue law dubbed PROMESA, it froze creditor lawsuits against the island so its federally appointed oversight board and creditors could negotiate out of court on the biggest debt restructuring in U.S. municipal history. The freeze expires on May 1, however, and an extension by Congress is "not going to happen," said a Republican aide to the House Committee on Natural Resources, which is in charge of territory matters.

13 Years Of No Profit Leads Tesla To Become Most Valuable Automaker - (www.dailycaller.com) Tesla became the most valuable car marker in the country Monday, even though the electric car company has yet to turn a profit in its 13 years of existence. The California-based automaker raised its market capitalization to $51 billion, a number that is valued at about $1.7 billion more than GM. The two companies wrestled for supremacy during early trading Monday. There is significant debate over whether Tesla’s recent surge is sustainable, given the company’s chronic inability to deliver products on deadline. Some analysts say the old metrics of valuation do not apply to Tesla, because investors and the public believe the company is upending the auto market.

OTHER STORIES:

Trump tanks the dollar after saying it's 'getting too strong' - (www.cnbc.com)
Trump Says He's Open to Renominating Yellen at Fed, WSJ Says - (www.bloomberg.com)
U.S. tax reform debate moves away from Ryan blueprint - (www.reuters.com)
U.S. government posts $176 billion deficit in March - (www.reuters.com)

Trump Drops Campaign Promise to Label China a Currency Manipulator - (www.bloomberg.com)
Brazil Slashes Key Rate by Most Since 2009 to Revive Economy - (www.bloomberg.com)
Tillerson Says U.S.-Russia Relations at ‘Low Point’ After Meeting With Putin - (www.wsj.com)

Tuesday April 18 2017 Housing and Economic stories

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Appeals Court Rules Against San Diego Unions: First of Many Taxpayer Victories To Come - (www.zerohedge.com) In 2012, San Diego voters gave Landslide Approval to Proposition B, which eliminated defined-benefit pensions for newly hired city workers except for police. In December of 2015, the state Public Employment Relations Board, a bastion of Union sympathizers, ordered the city to make millions of dollars of retroactive payments to workers hired since the law took effect. The city appealed. Today we have a very welcome ruling for taxpayers: An Appeals Court overturned the PERB Ruling.

“This is a victory for the citizens of San Diego and the state of California,” said taxpayer advocate April Boling, one of three who filed court appeals. “The court agreed citizens can take matters into their own hands through the initiative process and support of elected officials does not somehow trigger the requirement for union negotiations.” Since the provisions of the ballot measure were implemented, most new employees have been offered 401k-style plans. The proposition was opposed by organized labor groups, which took their case to the PERB.

Banks Gear up for “Hacienda Hedge,” World’s Biggest Oil Deal - (www.wolfstreet.com) International banks are preparing for the Hacienda Hedge – the secretive oil deal that has seen Mexico earn billions from successful bets on future oil prices. Detailed in an analysis by Javier Blas for Bloomberg, the history of the Hacienda Hedge is certainly impressive and might incite other countries to try their hand at betting on future oil prices. Or then again, it might not, as Mexico’s success story seems to be kind of unique. Blas interviewed Mexican government officials, traders, brokers, and bankers, and reviewed thousands of documents to compile the history of the bet that bankers await every year and that, contrary to what the Mexican authorities say, could swing the oil market. The story began in 1990, when Iraq’s invasion of Kuwait took one-tenth of the global oil supply off the market, raising prices. The government then accurately predicted that the high prices wouldn’t last, betting on a decline. This accuracy has been remarkably consistent through the years, with Mexico making money most of the time when it has placed the bet. And it hasn’t been alone.

Huishan Says HSBC Claims Loan Default as Court Freezes Assets - (www.bloomberg.com) HSBC Holdings Plc said no “enforcement actions” have been taken against China Huishan Dairy Holdings Co., responding to an earlier statement from the embattled dairy producer that suggested it was in default on a $200 million loan agreement. HSBC, acting on behalf of a group of banks, sent Huishan Dairy a letter to call “events of default,” alleging that the company had failed to comply with covenants on the dual-tranche loan, the Chinese firm said in a statement late Monday, without being more specific. Huishan Dairy shares in Hong Kong have been suspended from trading since March 24, when a record stock plunge wiped $4.1 billion off the firm’s market value. The company said four days later it has been late on some payments to banks. “It is standard practice in such circumstances to remind borrowers of their obligations under the terms of the loan agreement,” a HSBC spokesman said in a statement to Bloomberg. “The letter does not indicate the commencement of enforcement actions against the company at this point in time.”

Secret Recording Implicates Bank of England in Libor Rigging – (www.mishtalk.com) In the financial crisis, LIBOR rates soared due to payment uncertainty (recall Bear Stearns, Lehman, etc). Banks lowballed their borrowing rates so as to make their financial conditions look better than they were. LIBOR stands for London Interbank Offered Rate, the average of interest rates estimated by each of the leading banks in London that it would be charged were it to borrow overnight from other banks. In June 2012, multiple criminal settlements by Barclays Bank revealed significant fraud and collusion by member banks connected to the rate submissions. The LIBOR rigging admission cost Barclays’ CEO, Bob Diamond, his job. Two traders went to jail.

China's $1.4 Trillion Debt Wall Seen Forcing Issuance Rise - (www.bloomberg.com) China’s bond issuers, faced with 9.7 trillion yuan ($1.4 trillion) of maturing debt this year, are stepping on the gas. Companies and governments sold 1.3 trillion yuan of onshore notes in March, about as much as in the first two months of the year combined, according to data compiled by Bloomberg that excludes certificates of deposit. Fitch Ratings expects refinancing needs to drive issuance in the coming months, with corporate debt sales for the year forecast to match or even exceed last year’s total. Chinese companies issued a record 9.8 trillion yuan of bonds in 2016.

OTHER STORIES:

Asia Stocks Mixed as Haven Bids Ease; Yen Steadies: Markets Wrap - (www.bloomberg.com)
Gold, Yen Climb to 5-Month Highs as Refuges Sought: Markets Wrap - (www.bloomberg.com)
Yen Gains Against All G-10 Peers as Geopolitical Tensions Rise - (www.bloomberg.com)

The 2017 Short Trade That’s Getting Pummelled This Week - (www.wsj.com)
Gold miners jump as jitters prompt haven buying - (www.ft.com)
White House Says Russia Tried to Cover Up Syrian Chemical Attack - (www.wsj.com)

Monday April 17 2017 Housing and Economic stories

TOP STORIES:            

Americans are taking out the largest mortgages on record - (www.marketwatch.com) The Mortgage Bankers Association's weekly purchase loan data showed that the average size of a home loan was the largest in the history of its survey, which goes back to 1990. .. The 20% down payment is a relic: the median down payment in 2016 was 10%. For first-time buyers, it was 6%. First-timers and other buyers of less-expensive homes are more leveraged now than they were at the height of the housing bubble a decade ago. Home loan sizes aren't the only things that have changed in the years since MBA started its survey. Back at the start of the survey, the median mortgage size was only about 3.3 times the median annual income. It's now over five times as big - though buyers get bigger homes and lower interest rates.

Atlanta Fed GDPNow Forecast Spirals Toward Zero - (www.wolfstreet.com) I hope the model is wrong. The Atlanta Fed’s GDPNow model, which forecasts GDP growth in the US, dropped to 0.6% seasonally adjusted annualized GDP growth for the first quarter. This means, if economic growth at this rate continues for an entire year, the US economy would edge up only 0.6% for the year. As more data for the quarter is released, the model becomes a more accurate predictor of GDP growth, as measured in the first estimate for that quarter by the Bureau of Economic Analysis (BEA). So now the first quarter is over, and more data for the quarter is piling up, and the GDPNow forecast is spiraling down in direction of zero. The forecast dropped by half from April 4, when it was still 1.2%. I added the red arrow to the chart to show just how fast and how far it fell in the past seven weeks, from 2.5% to 0.6%:

US Credit Card Debt Rises Above $1 Trillion For The First Time In A Decade - (www.zerohedge.com) in February, following modest prior revisions, total revolving/credit card debt, has once again risen above the "nice round number" of $1 trillion for the first time since January 2007... Unlike last month's unexpectedly weak consumer credit report, which saw a plunge in revolving, or credit card, debt moments ago the Fed, in its latest G.19 release, announced that there were few surprises in the February report: Total revolving credit rose by $2.9 billion, undoing last month's $2.6 billion drop - the biggest since 2012 - while non-revolving credit increased by $12.3 billion, for a total increase in February consumer credit of $15.2 billion, roughly in line with the $15 billion expected. However, while in general the data was uneventful, there was one notable milestone: in February, following modest prior revisions, total revolving/credit card debt, has once again risen above the "nice round number" of $1 trillion for the first time since January 2007...

Draghi Struggles to Shut Down ECB Debate Weidmann Wants to Have - (www.bloomberg.com) Mario Draghi may have hoped to put an end to the bubbling debate on the European Central Bank’s exit strategy on Thursday. It didn’t take long for a reminder of how complicated this will be. Speaking in Frankfurt, the ECB president sought to quash the idea that policy makers will begin tightening policy sooner than planned and dispel doubts about the planned route to the eventual stimulus exit. Less than three hours later, Bundesbank President Jens Weidmann re-opened the issue, saying that a discussion on forward guidance is “legitimate.” The conflicting signals are exactly what executive board member Benoit Coeure warned about last week when he said public disagreements may hamper the effectiveness of policy. But credibility can be also hurt if the policy steer doesn’t evolve to reflect new economic conditions, he said.

Russian PM: "US on brink of military clash with Russia" - (www.apa.az) In a statement on Friday morning, Russian Prime Minister Dmitry Medvedev said that the US missile strike violated not only international, and added that the attack “was on the brink of military clashes with Russia”, Zero Hedge reported. “Instead of their much-publicized thesis about a joint fight with a common enemy, Islamic State, the Trump administration has proven that it will fiercely fight against the legal government of Syria,” Medvedev wrote on his Facebook page. Meanwhile, the International Committee of the Red Cross told Reuters that the situation in Syria "amounts to an international armed conflict" following U.S. missile strikes on a Syrian airbase.

OTHER STORIES:

Watch These Assets for Clues on Trade Policy as Trump Meets Xi - (www.bloomberg.com)
Gary Cohn Backs Breaking Up Big Banks - (www.wsj.com)
Not a Dot-Com Bubble, Not 2007, but a Nasty Mix of Both - (www.wsj.com)

Complacency and self-delusion: the most significant risk to markets — BIS economists - (www.ft.com)
Trump says 'something should happen' with Assad as U.S. weighs military options - (www.bloomberg.com)
China fighter plane spotted on South China Sea island: think tank - (www.reuters.com)