In The News Today

Posted at 11:53 AM (CST) by & filed under In The News.

 

 

 

 

 

 

 

Bill Holter’s Commentary

I started out as a broker in 1984 and do not ever remember ANY firm “downgrading stocks to sell” prior to or during some devastating bear markets.  Should it make us wonder “why”?

Morgan Stanley Breaks Consensus, Downgrades US Stocks To Sell
November 26, 2018

The decoupling is over for the US economy and its stock market according to Morgan Stanley which has long held a bearish outlook on the US, but overnight officially downgraded US stocks to “sell”, expecting the S&P to end 2019 at 2,750, while double upgrading emerging market to overweight.

In a note release by Morgan Stanley strategist Andrew Sheet, he expects a sharp slowdown for the US economy, along with a pick-up in global inflation that will keep monetary tightening intact, urging clients to get out of credit, load up on emerging markets and stock up on cash. In short, while 2018 was defined by “rolling bear markets”, 2019 will be the year of “turning.”

Additionally, Sheets writes that last year’s ‘tricky handoff’ of slower growth, higher inflation and tighter policy continues, and is now joined by key shifts in the relative trend of growth and policy. These macro shifts will mean turning points in five key market

relationships, and as Morgan Stanley explains, it differs from the consensus when it comes to: USD weakens, US and EU rates converge, EM outperforms, US stocks underperform, value beats growth, EM sovereigns outperform US HY.

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Bill Holter’s Commentary

Growth?

GM To Fire 15% Of Salaried Workers, Close 7 Plants
November 26, 2018

Update 3: In case you were wondering why GM would be doing this amid ‘the greatest recovery’ of all time and global synchronized growth; this chart should help!!

 

 

 

 

 

 

 

h/t @M_McDonough

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Update 2: The cutbacks announced by GM Monday morning were more severe than most analysts expected – and were certainly steeper than leaked reports published late Sunday and early Monday had suggested.

After GM shares were halted pending news following a 2%+ jump after the open, Barra revealed that the company would shutter 7 plants (5 in North America and 2 international) after 2019, fire 15% of its salaried workforce and shift hiring priorities to more tech workers in a cost-cutting drive intended to save the company some $6 billion by the end of 2020 ($4.5 billion will come from cost savings, $1.5 billion from lower capital spending). As GM seeks more workers with “different skills”, it also plans to shift its investment focus toward electric and autonomous vehicles.

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Bill Holter’s Commentary

Is this surprising? Of course not. The only thing surprising is that Martin Armstrong is claiming “manipulation” when in the past he lambasted anyone claiming manipulation? Did he take some truth serum…?

Goldman Sachs Going Down on the Pi Target?
November 23, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Abu Dhabi sovereign wealth fund sued Goldman Sachs on the Pi Target, Wednesday, November 21st, 2018,  for allegedly conspiring against the Middle Eastern fund to further a criminal scheme by Malaysia’s scandal-plagued 1MDB. The suit, filed in a New York court on behalf of Abu Dhabi’s International Petroleum Investment Company (IPIC), names Goldman Sachs as well as former Goldman officials who were charged by the US Justice Department in indictments unsealed earlier this month. “This action seeks redress for a massive global conspiracy on the part of the defendants to defraud and injure plaintiffs,” said the lawsuit, which also named former executives from IPIC and its subsidiary Aabar Investments.

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