Faber News Flow

As Bloomberg macro technician William Maloney writes this morning, after a lengthy period of meandering, the yield on 10-year U.S. Treasuries spiked above 1.0% and hit 1.052% amid an ascending triangle breakout, signalling a further rise could be on the way. According to Maloney, the breakout could set up a run to 1.09%, which is 76.4% Fibonacci of the March 19 peak to August low. The reason for the breakout, as discussed earlier, is simple: the Docratic blue sweep which now appears likely paves the way for more spending, much more stimulus and a gaping budget deficit, pushing inflation expectations and nominal yields sharply higher. Indeed, long-bond rates were on track for their biggest one-day jump since March's pandemic-related turmoil and investors have already started to dust off reflation trades in anticipation of a so-called Blue Sweep. "The result will certainly be seen as a driver of higher Treasury yields," said James Athey, a mo...

The first trading day of 2021 was, as Peter Schiff put it, "atypical." In his first podcast of 2021, Peter analyzed the unusual day on Wall Street and explored a significant question: are we beginning to see the decoupling in the global financial markets that he's been predicting for years? The major indexes opened up but then closed sharply down on the day. The Dow Jones set a new record before falling 382 points. The S&P 500 set a record and then dropped 1.5%. The NASDAQ started strong, although it didn't set a record, but then followed the other indexes lower, closing down 189.8 points. Meanwhile, the dollar continued to show weakness against the euro, the yen and particularly the Chinese yuan. The dollar dropped just over 1% against the Chinese currency. Peter called this move "extremely rare." This has happened occasionally, but it's very rare to see this big a move in that particular pair. You're more likely to see the dollar move 1% agains...

After yesterday's debacle in Markit's US Manufacturing PMI (which rose against expectations of a drop thanks to supplier delivery times rising being judged as a 'positive' instead of a clear negative due to trade flow disruption on lockdowns), analysts expected ISM's Manufacturing survey to signal further deterioration occurred in December (unless slow supplier delivery times are also attributed as a positive). As hard data has declined aggressively, Manufacturing PMI is at its highest since 2014 while  ISM's Manufacturing survey prints at 60.7 - smashing expectations of 56.8 and well above the 57.5 in November... Source: Bloomberg ISM's Tim Fiore writes  that " The manufacturing economy continued its recovery in December.  Survey Committee members reported that their companies and suppliers continue to operate in reconfigured factories, but  absenteeism, short-term shutdowns to sanitize facilities and difficulties in returning and hiring workers are ca...