Treasury Unloads On Russia: Warns Of “Economic Pain”, Sanctions If Conduct Does Not Change

Just hours after Microsoft said it had thwarted Russian intelligence attempts to hack two conservative think tanks and government sites used by Congressional staff, on Tuesday, the United States imposed new sanctions on two Russians and one Russian and one Slovakian firm under a U.S. program targeting malicious cyber-related activities.

In a statement on its website, the U.S. Treasury said the sanctioned firms – Saint Petersburg-based Vela-Marine Ltd and Slovakia-based Lacno S.R.O. – and the two individuals were linked to Divetechnoservices, a previously sanctioned entity. read more

Used Car Prices Hit All Time High

Submitted by Nicholas Colas of DataTrek Research

Regular readers know that we consider used car prices an important, if overlooked, indicator of the true state of the US economy. More Americans buy used vehicles than new ones, making them a deeper measure of consumer sentiment. And since the supply of used cars and trucks is essentially fixed – you can’t “make” one – prices are exceptionally twitchy and move noticeably on both dealer (and therefore small business) sentiment and underlying retail demand. read more

China, US “Not Optimistic” Trade Negotiations Will Succeed: FT

Commenting on the upcoming, fourth round of trade talks between the US and China, which are scheduled to take place in Washington tomorrow ahead of the Aug.23 implementation of new China tariffs by the US, the FT reports that “neither side is optimistic that the meeting in Washington, between teams led by Wang Shouwen and David Malpass, can succeed where three earlier rounds failed.

There has been a resurgence in market optimism that the ongoing trade war between the two nations may be resolved after the WSJ reported last week that a November summit between Trump and Xi seeks to find a common ground on trade, sending global risk sharply higher in the past 3 days. read more

US Small Caps Hit Record High As US Macro Data Dumps To 11-Month Lows

Another day, another short squeeze and the Russell 2000 index of US small cap companies has just hit a new record high…

The narrative of small cap outperformance has been “domestic” safety vs overseas trade war scares (as a reminder, here’s why that is a false thesis)…

Which is odd given that “domestic” data has collapsed in recent months…

Probably nothing…

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Author: Tyler Durden