Fed’s Underlying Inflation Gauge Warns Of Imminent Inflation Surge

As if inflation wasn’t “mysterious” enough to the Fed already, recently the New York Fed joined the Atlanta Fed in releasing its own measure to track underlying inflation called, simply, the Underlying Inflation Gauge. What is notable is that this latest inflation tracker shows prices behaving quite differently from traditional indexes this year.

According to the UIG’s August measure, broad inflation came in at a red hot 3.27%, the highest since September 2005. That compares with just 2.8% annual inflation according to the Labor Department’s CPI and an even more modest 2.0% as measured by the preferred PCE gauge of Fed policy makers. read more

Twitter Rebounds After CEO Claims The 70 Million Fake Accounts Were Not Part Of Its Metrics

Update: Twitter shares have rebounded, erasing half its losses, after CEO Jack Dorsey retweets that the 70 million ‘bot’ users removed from his platform were not included in the company’s metrics…

If we removed 70M accounts from our reported metrics, you would hear directly from us. This article reflects us getting better at improving the health of the service. Look forward to talking more on our earnings call July 27! read more

“We Are Headed For The Status Of A Colony”: Boris Johnson’s Full Resignation Letter

The much anticipated resignation letter penned by the former UK Foreign Minister Boris Johnson has been released, and in as expected, he does not mince his words in unleashing a brutal attack on Thersa May, warning that “we have postponed crucial decisions — including the preparations for no deal, as I argued in my letter to you of last November — with the result that we appear to be heading for a semi-Brexit, with large parts of the economy still locked in the EU system, but with no UK control over that system.” read more

Trump Slams Pfizer, Warns “We Will Respond” To Rising Drug Prices

Once again, with the swipe of a few digits, President Trump has knocked a few billion in market cap of stocks as he tweeted that Pfizer and others “should be ashamed that they have raised drug prices for no reason,” criticizing the company for offering cheaper prices abroad than in the U.S. and pledging that “we will respond.”

Pfizer & others should be ashamed that they have raised drug prices for no reason. They are merely taking advantage of the poor & others unable to defend themselves, while at the same time giving bargain basement prices to other countries in Europe & elsewhere. We will respond! read more

Is The “Ghost Of 2015” Back: Goldman Answers

Last week, JPMorgan spooked investors when looking at recent moves in Chinese markets, it concluded that “2018 Is Looking Increasingly Like 2015.” Now, in a note seeking to address this issue (and to ease investor concerns) Goldman analyzes the similarities and differences between 2015 and 2018 to see if JPM is right, and if indeed the “ghost of 2015” is back.

Goldman’s note comes just days after a separate Goldman analysis in which the bank wrote that “the past week we met with investors in Guangzhou and Shenzhen, and the tone remains very negative” for one reason: most investors suddenly feel as if they have lost the backstop of the central bank, which until recently would never allow corporate bankruptcies, and suddenly – as part of the country’s deleveraging campaign – is eager to take air out of the system, while at the same tine draining liquidity out of the system resulting in financial conditions approaching the tightest on record. read more

Mueller’s “Pit Bull” Attorney Arranged Secret “Black Ledger” Meeting With AP Reporters

Documents released Friday by the Department of Justice confirm that a DOJ attorney known as Robert Mueller’s “pit bull” arranged an April 11, 2017 meeting with journalists to discuss their investigation into Paul Manafort in which information may have been leaked back and forth concerning the case.

At question is the FBI’s relationship with AP – and whether or not the FBI leaked information about the Manafort case to them or vice-versa.

According to memos written by FBI agents, Special Counsel attorney Andrew Weissmann, Mueller’s #2 (who donated $6,600 to the DNC, Obama and Clinton campaigns and reportedly attended a Clinton election night party in NYC), arranged a meeting between DOJ/FBI officials and four reporters from the Associated Press – who told the FBI about a storage locker owned by Manafort and then gave the FBI a passcode to access it read more

Republicans Face Narrow Margin Of Error In SCOTUS Nomination Battle

With President Trump preparing to announce his Supreme Court pick tonight at 9 pm, it appears restive social conservatives are making some headway in their last-minute push to dissuade the president from going with the purported frontrunner, US circuit judge Brett Kavanaugh. However, as Axios pointed out, the push to nominate a deeply conservative justice could be scuttled by moderate Republican senators, who could easily sink a nomination that they don’t support.

As Axios explains, “Republicans have a narrower margin for error than they did when the Senate confirmed Trump’s first Supreme Court nominee, Neil Gorsuch by a vote of 54-45 in April 207.” read more

With Her Cabinet In Crisis, Here’s How Theresa May May Be Ousted

They’re dropping like flies…

Infographic: Davis joins growing list of Conservative departures | Statista

You will find more infographics at Statista

Following the resignations of Foreign Secretary Boris Johnson and Brexit Secretary David Davis within hours of one another (as well a number of junior ministers), UK Prime Minister Theresa May has been left exposed as the head of an increasingly divided Conservative Party.

Below, Reuters’ Andrew MacAskill  explains how May could be removed from office if she has to face a leadership challenge:

What needs to happen for there to be a leadership contest?

A leadership challenge can be triggered if 15 percent of members of parliament in May’s Conservative Party write a letter to the chairman of the party’s so-called “1922 committee”. read more

Tourist Sentenced To 8 Years In Prison For Insulting Egypt On Facebook

Via MiddleEastMonitor.com,

A Lebanese tourist who was arrested last month for posting a video on Facebook complaining of sexual harassment and conditions in Egypt was sentenced to eight years in prison by a Cairo court on Saturday, her lawyer told Reuters.

Mona el-Mazboh was arrested at Cairo airport at the end of her stay in Egypt after a 10-minute video in which she called Egypt a “son of a bitch country” went viral on social media

read more

“Craziness Becoming Strategic” – NATO Leaders In Panic Mode Ahead Of Trump Visit

The Washington Post asks ‘Will NATO survive Trump?’ ahead of a summit with NATO leaders this week as bureaucrats in Brussels voice concern over his potentially disruptive ‘America first’ rhetoric, and as the president is set to meet with Vladimir Putin only days later in their first one-on-one meeting.

In a characteristically over-dramatic tone, WaPo answers concerning NATO leaders, “Now they’re worried about something bigger: a full crackup of the alliance, or at least such a weakening of Washington’s security commitments that NATO would emerge deeply damaged.” read more