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Futures drop as rate worries keep Treasury yields near recent peaks


2023-09-26T11:33:38Z

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 26, 2023. REUTERS/Brendan McDermid/File Photo

U.S. stock index futures declined on Tuesday as investors continued to grapple with the prospects of a prolonged restrictive monetary policy by the Federal Reserve and its subsequent impact on the economy.

Adding to investor anxiety was the likelihood of a partial shutdown of the U.S. government by Sunday, which according to ratings agency Moody’s is likely to be a “credit negative“.

Megacap growth stocks including Apple (AAPL.O), Microsoft (MSFT.O), Meta Platforms (META.O) and Tesla (TSLA.O) lost between 0.5% and 1.3% in premarket trading.

Amazon.com shares (AMZN.O) also dipped 0.5% after boosting Wall Street on Monday on its plans to invest in the high-profile startup, Anthropic.

At 7:12 a.m. ET, Dow e-minis were down 157 points, or 0.46%, S&P 500 e-minis were down 23.75 points, or 0.54%, and Nasdaq 100 e-minis were down 92.25 points, or 0.62%.

All three major U.S. stock indexes are set to log quarterly declines for the first time this year heading into the last trading days of September.

Pressuring equities, the benchmark two- and 10-year Treasury yields have scaled multi-year highs after the Fed’s hawkish longer-term rate outlook, a stance also projected by other major central banks.

“There is a growing sense of despondency that rates will not come down any time soon, and that they will remain in restrictive territory for an extended period, hampering growth and making for a more difficult economic environment for companies to operate in,” said Stuart Cole, chief macro economist at Equiti Capital.

Traders’ bet on the benchmark rate remaining unchanged in November and December stood close to 80% and 59%, respectively, according to CME’s FedWatch tool. Meanwhile, a 25-basis-point rate cut is being priced in as early as March, growing to over 33% in June and July.

Investors will keep an eye out for the consumer confidence index for September and a report on new home sales for August, due after the opening bell.

Through the week, data including on durable goods, the personal consumption expenditures price index for August, second-quarter gross domestic product, as well as remarks by Fed policymakers such as Chair Jerome Powell will be monitored.

Minneapolis Fed President Neel Kashkari on Monday noted the need for raising borrowing costs to tame inflation in light of a surprisingly resilient economy, while Chicago Fed chief Austan Goolsbee in a CNBC interview said inflation above 2% target remains a greater risk than the scope of a slowing economy.

Meanwhile, a Goldman Sachs report showed hedge funds increased their bearish bets mainly on U.S. stocks last week, with clients mostly adding short positions and getting rid of long positions. Consumer discretionary, industrials and financials were the most net sold.

U.S.-listed shares of Chinese firms JD.com , PDD Holdings (PDD.O) and Xpeng were down between 1.3% and 3% on economic concerns and geopolitical tensions.

DraftKings (DKNG.O) rose 3% after J.P. Morgan upgraded the online sports and gaming company’s stock to “overweight” from “neutral”.

The post Futures drop as rate worries keep Treasury yields near recent peaks first appeared on The News And Times – thenewsandtimes.com.


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Spillover From Air War in Ukraine Violates Another International Border – This Time It’s Transnistria’s


ec58ee197f85ac70f6a043b2869efe00.jpg?w=1

In another example of how Moscow’s war seems increasingly to be in danger of spreading beyond Ukraine’s borders, another missile flew into another neighboring country, this time Moldova.

The post Spillover From Air War in Ukraine Violates Another International Border – This Time It’s Transnistria’s first appeared on The News And Times – thenewsandtimes.com.


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GeneralSVR: #Patrushev vs. #Kadyrov: During his speech, Patrushev addressed Putin on a first-name basis, using expressions in relation to the president such as “you must be an idiot” and “what a cretin you have to be to allow this.”


 Generalsvr_en

#Patrushev vs. #Kadyrov. The time of unrest is coming

Last night, Secretary of the Russian Security Council Nikolai Patrushev insisted on holding an urgent online meeting with the participation of Russian President Vladimir

#Putin. In addition to Patrushev and Putin, three more representatives of the leadership of the security bloc took part in the meeting. The reason for the urgent convening of such a representative team was the release of a video recording of Ramzan Kadyrov’s son beating Nikita Zhuravel, who is accused of burning the Koran. The video recording caused not only a wide public outcry but also the indignation of Nikolai Patrushev, who, despite the president’s poor health, insisted on the need for an urgent meeting. In fact, Patrushev held this meeting, giving Putin the opportunity only to say hello. The Secretary of the Security Council provided a video recording in advance, which he gathered to discuss, and all participants in the meeting, including the president, became familiar with it shortly before the start of the conversation. Patrushev immediately began with complaints against Putin, accusing him of the fact that with the connivance of the president, a situation became possible where the leadership of Chechnya openly ignores the laws of the Russian Federation and does it demonstratively and brazenly. The Secretary of the Security Council harshly criticized Putin and chided the president for more than fifteen minutes, giving reasons for each reproach. During his speech, Patrushev addressed Putin on a first-name basis, using expressions in relation to the president such as “you must be an idiot” and “what a cretin you have to be to allow this.” At the end of his speech, the Secretary of the Security Council said to the president: “You don’t care, you don’t listen to anyone, you’re practically gone, and we have to clean up all this after you.” Putin listened to Patrushev with a downcast look and, without giving anyone else the floor and, without speaking himself, closed the meeting. The hostility of the leadership of the security bloc led by Patrushev towards the current leadership of Chechnya has a long history, but Putin has always balanced the situation by acting as the centre of the balance of power. Now, the balance is broken. The time of unrest is coming.

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The post GeneralSVR: #Patrushev vs. #Kadyrov: During his speech, Patrushev addressed Putin on a first-name basis, using expressions in relation to the president such as “you must be an idiot” and “what a cretin you have to be to allow this.” first appeared on The News And Times – thenewsandtimes.com.


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GeneralSVR: #Patrushev vs. #Kadyrov: During his speech, Patrushev addressed Putin on a first-name basis, using expressions in relation to the president such as “you must be an idiot” and “what a cretin you have to be to allow this.”


 Generalsvr_en

#Patrushev vs. #Kadyrov. The time of unrest is coming

Last night, Secretary of the Russian Security Council Nikolai Patrushev insisted on holding an urgent online meeting with the participation of Russian President Vladimir

#Putin. In addition to Patrushev and Putin, three more representatives of the leadership of the security bloc took part in the meeting. The reason for the urgent convening of such a representative team was the release of a video recording of Ramzan Kadyrov’s son beating Nikita Zhuravel, who is accused of burning the Koran. The video recording caused not only a wide public outcry but also the indignation of Nikolai Patrushev, who, despite the president’s poor health, insisted on the need for an urgent meeting. In fact, Patrushev held this meeting, giving Putin the opportunity only to say hello. The Secretary of the Security Council provided a video recording in advance, which he gathered to discuss, and all participants in the meeting, including the president, became familiar with it shortly before the start of the conversation. Patrushev immediately began with complaints against Putin, accusing him of the fact that with the connivance of the president, a situation became possible where the leadership of Chechnya openly ignores the laws of the Russian Federation and does it demonstratively and brazenly. The Secretary of the Security Council harshly criticized Putin and chided the president for more than fifteen minutes, giving reasons for each reproach. During his speech, Patrushev addressed Putin on a first-name basis, using expressions in relation to the president such as “you must be an idiot” and “what a cretin you have to be to allow this.” At the end of his speech, the Secretary of the Security Council said to the president: “You don’t care, you don’t listen to anyone, you’re practically gone, and we have to clean up all this after you.” Putin listened to Patrushev with a downcast look and, without giving anyone else the floor and, without speaking himself, closed the meeting. The hostility of the leadership of the security bloc led by Patrushev towards the current leadership of Chechnya has a long history, but Putin has always balanced the situation by acting as the centre of the balance of power. Now, the balance is broken. The time of unrest is coming.

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Рамзан Кадыров поддержал своего сына Адама, избившего арестованного по обвинению в сожжении Корана Никиту Журавеля

В телеграм-канале Кадырова опубликовано пятисекундное видео, на котором его сын набрасывается на Журавеля и начинает его битьhttps://t.co/Dspj0UYvCV

— Радио Свобода (@SvobodaRadio) September 25, 2023

Kadyrov released a video of his teenage son Adam attacking Nikita Zhuravlev, who had been arrested for burning a Koran. Kadyrov says Adam did the right thing. https://t.co/oIzg7APBMX

— XSovietNews 🇺🇦 (@XSovietNews) September 25, 2023

The News And Times Information Network – Blogs By Michael Novakhov – thenewsandtimes.blogspot.com

The post GeneralSVR: #Patrushev vs. #Kadyrov: During his speech, Patrushev addressed Putin on a first-name basis, using expressions in relation to the president such as “you must be an idiot” and “what a cretin you have to be to allow this.” first appeared on The News And Times – thenewsandtimes.com.


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Michael Rubin: Aliyev is turning into Saddam Hussein


1633693023_1649512.jpg

In late September Michael Rubin, a senior fellow at the American Enterprise Institute, wrote an article Nagorno-Karabakh: A Year of U.S. Failure in the South Caucasus.

Michael Rubin worked previously at the Office of the U.S. Secretary of Defense where he was staff adviser for Iran and Iraq (2002–04) and served as Political Adviser for Coalition Provisional Authority at Baghdad (2003–04).

Mediamax talked to Michael Rubin.

Most likely, U.S. intelligence was aware of the intention of Azerbaijan and Turkey to start a war in September 2020. Did the American side have real opportunities to prevent this war?

The Congress has never confirmed whether U.S. intelligence was aware of Azerbaijan and Turkey’s intention to start a war. I think it more likely there was an intelligence failure rather than a deliberate decision to ignore a pending attack. If the American side did have foreknowledge, however, simply exposing it in advance might have prevented the attack. After all, Turkey and Azerbaijan launched a surprise attack; had Armenia and Artsakh been aware of it beforehand, they could have taken steps to pre-empt or blunt the attack.

What could the United States do after the war broke up to stop it as soon as possible but did not do it?

Drones were decisive in the war. The United States might have helped with counter-drone technology but, realistically, Armenia’s defense relationship with Russia precludes the sharing of such sensitive technology. Certainly, the United States could have sanctioned Turkey and Azerbaijan. This would be slower sanctions do work: Erdogan is full of bluster but, when Trump imposed sanctions, he released Pastor Andrew Brunson, an American hostage Erdogan has seized.

For decades, representatives of the United States and Russia were saying that despite the differences over many issues of international politics, the OSCE Minsk Group co-chairmanship was the format in which they really cooperate effectively. How sincere were these assurances?

Obviously, Washington was more sincere than Moscow, since Russia unilaterally abrogated its agreements. That said, while the Minsk Group was founded with good intentions and there had been some progress in recent years, it was not a major focus of US policy. While Russia and France appointed ambassadors as its co-chairs, the United States appointed a lesser-ranked diplomat.

Does the format of the OSCE Minsk Group co-chairmanship continue to be a capable instrument, or does it rather work by inertia and sooner or later will lose its significance?

I’d say its significance was lost last year.

There are forces in Yerevan which believe that despite the increased dependence on Russia, Armenia should make efforts to build relations with the United States. But does the American side have an intention to strengthen relations with Armenia? What can Armenia’s attraction be?

There is no reason why Armenia can’t have good relations with both the United States and Russia, much like Kazakhstan and Egypt do. While many in the US are suspicious of Armenia’s ties to Russia and Iran, Armenia should respond by pointing out that these are of necessity given the Turkish-Azerbaijani blockade. There is no reason why the United States should not pressure for the lifting of the illegal Turkish and Azeri blockade of Armenia. Armenia also can make its diaspora ties to the UK, Iran, and Russia and asset and market itself as a hub for diplomacy.

You conclude your article with a call to impose sanctions against Ilham Aliyev’s regime. But why impose sanctions against a president who, apparently, suits everyone: Russia, the United States and the Europeans, who today, more than ever, need alternative energy suppliers?

Remember, the US doesn’t get its energy from the Middle East let alone Azerbaijan; we get ours from Alaska, the Gulf of Mexico, or Brazil. Azerbaijan is not as important as it thinks it is, especially with the development of Eastern Mediterranean fields. The problem really is not economic, though: it’s that Aliyev is turning into Saddam Hussein. British Petroleum and London can have their own policy, but the US should see the warning signs and pull back from its ties before he sets off a cascade of events which would destabilize the entire region.

The post Michael Rubin: Aliyev is turning into Saddam Hussein first appeared on The News And Times – thenewsandtimes.com.


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The News And Times – thenewsandtimes.com

Michael Rubin: Aliyev is turning into Saddam Hussein


1633693023_1649512.jpg

In late September Michael Rubin, a senior fellow at the American Enterprise Institute, wrote an article Nagorno-Karabakh: A Year of U.S. Failure in the South Caucasus.

Michael Rubin worked previously at the Office of the U.S. Secretary of Defense where he was staff adviser for Iran and Iraq (2002–04) and served as Political Adviser for Coalition Provisional Authority at Baghdad (2003–04).

Mediamax talked to Michael Rubin.

Most likely, U.S. intelligence was aware of the intention of Azerbaijan and Turkey to start a war in September 2020. Did the American side have real opportunities to prevent this war?

The Congress has never confirmed whether U.S. intelligence was aware of Azerbaijan and Turkey’s intention to start a war. I think it more likely there was an intelligence failure rather than a deliberate decision to ignore a pending attack. If the American side did have foreknowledge, however, simply exposing it in advance might have prevented the attack. After all, Turkey and Azerbaijan launched a surprise attack; had Armenia and Artsakh been aware of it beforehand, they could have taken steps to pre-empt or blunt the attack.

What could the United States do after the war broke up to stop it as soon as possible but did not do it?

Drones were decisive in the war. The United States might have helped with counter-drone technology but, realistically, Armenia’s defense relationship with Russia precludes the sharing of such sensitive technology. Certainly, the United States could have sanctioned Turkey and Azerbaijan. This would be slower sanctions do work: Erdogan is full of bluster but, when Trump imposed sanctions, he released Pastor Andrew Brunson, an American hostage Erdogan has seized.

For decades, representatives of the United States and Russia were saying that despite the differences over many issues of international politics, the OSCE Minsk Group co-chairmanship was the format in which they really cooperate effectively. How sincere were these assurances?

Obviously, Washington was more sincere than Moscow, since Russia unilaterally abrogated its agreements. That said, while the Minsk Group was founded with good intentions and there had been some progress in recent years, it was not a major focus of US policy. While Russia and France appointed ambassadors as its co-chairs, the United States appointed a lesser-ranked diplomat.

Does the format of the OSCE Minsk Group co-chairmanship continue to be a capable instrument, or does it rather work by inertia and sooner or later will lose its significance?

I’d say its significance was lost last year.

There are forces in Yerevan which believe that despite the increased dependence on Russia, Armenia should make efforts to build relations with the United States. But does the American side have an intention to strengthen relations with Armenia? What can Armenia’s attraction be?

There is no reason why Armenia can’t have good relations with both the United States and Russia, much like Kazakhstan and Egypt do. While many in the US are suspicious of Armenia’s ties to Russia and Iran, Armenia should respond by pointing out that these are of necessity given the Turkish-Azerbaijani blockade. There is no reason why the United States should not pressure for the lifting of the illegal Turkish and Azeri blockade of Armenia. Armenia also can make its diaspora ties to the UK, Iran, and Russia and asset and market itself as a hub for diplomacy.

You conclude your article with a call to impose sanctions against Ilham Aliyev’s regime. But why impose sanctions against a president who, apparently, suits everyone: Russia, the United States and the Europeans, who today, more than ever, need alternative energy suppliers?

Remember, the US doesn’t get its energy from the Middle East let alone Azerbaijan; we get ours from Alaska, the Gulf of Mexico, or Brazil. Azerbaijan is not as important as it thinks it is, especially with the development of Eastern Mediterranean fields. The problem really is not economic, though: it’s that Aliyev is turning into Saddam Hussein. British Petroleum and London can have their own policy, but the US should see the warning signs and pull back from its ties before he sets off a cascade of events which would destabilize the entire region.

The post Michael Rubin: Aliyev is turning into Saddam Hussein first appeared on The News And Times – thenewsandtimes.com.


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US yields at 2007 levels crimp stocks, while yen sirens blare


2023-09-26T11:17:24Z

U.S. Treasury yields hit a peak not seen since the early tremors of the 2007-2008 global financial crisis on Tuesday, as fears of interest rates staying high for longer roiled risk assets globally and drove the dollar to a 10-month high.

Asian and European stock benchmarks sagged, with U.S. equities set to follow suit, and crude oil prices dipped on recent remarks from Federal Reserve officials that drove a bearish steepening of the U.S. yield curve.

The benchmark STOXX index of 600 European shares (.STOXX) slid 0.5%, in line with an earlier fall in MSCI’s broadest index of Asia-Pacific shares (.MIAP00000PUS).

The yield on 10-year Treasury notes rose as high as 4.566%, a 16-year peak, while a hefty pipeline of U.S. treasury auctions this week and fears of a U.S. government shutdown all further stoked the skittish mood.

Bond yields, which move inversely to prices and rise when risks related to the issuer are perceived as growing, remained elevated among euro zone sovereigns as the narrative that central banks will keep rates higher for longer held sway.

Germany’s 10-year government bond yield , the euro area’s benchmark, was last little changed on the day at 2.789%, having briefly hit a 12-year high of 2.813% in early trade.

The gap between the yields on Italian benchmark 10-year BTP bonds and safer German Bunds has risen to around 1.86 percentage points (186 basis points), the widest since late May, as Prime Minister Giorgia Meloni prepares a difficult 2024 budget.

Minneapolis Fed President Neel Kashkari said more rate hikes were likely needed given the surprising resilience of the U.S. economy.

The nervousness around U.S. government debt is exacerbated by efforts from the Republican-controlled House of Representatives to advance steep spending cuts this week, which stand no chance of becoming law but could trigger a partial shutdown of the government by next Sunday.

Hundreds of thousands of federal workers could be furloughed and public services suspended if Congress is unable to fund the new fiscal year starting Oct. 1.

Traders now put the odds of another quarter-point Fed hike by January at a coin toss, and have pushed the likely start of rate cuts to summer.

Chicago Fed President Austan Goolsbee said on Monday that inflation staying entrenched above the central bank’s 2% target remains a bigger risk than tight Fed policy slowing the economy more than needed.

The European Central Bank and Bank of England have also touted higher rates for longer in policy meetings since the middle of the month.

The U.S. dollar index – which measures the currency against six major developed market peers, including the euro and yen – ticked up 0.2% to 106.2, the highest since November 2022, as the world’s biggest economy continued to outperform.

The greenback’s strength against the yen in particular has kept traders on alert for an intervention to prop up the Japanese currency, especially after Finance Minister Shunichi Suzuki on Tuesday said no options were off the table.

The dollar held near an 11-month peak of 148.97 yen from overnight, with 150 per dollar seen by financial markets as a red line that would spur Japanese authorities to act, as they did last year.

Gold drifted slightly lower to $1,910.6, extending its slump from above $1,947 over the past week, as bullion’s appeal dimmed in the shade of the steamroller dollar.

Crude oil remained weak amid concerns that fuel demand would be crimped by major central banks holding interest rates higher for longer, even with supply expected to be tight.

Brent crude futures were down 72 cents at $92.57 a barrel, while U.S. West Texas Intermediate crude futures were trading 69 cents lower at $89.99.

Related Galleries:

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 11, 2023. REUTERS/Brendan McDermid/file photo

A man is reflected on an electric stock quotation board outside a brokerage in Tokyo, Japan April 18, 2023. REUTERS/Issei Kato/File photo


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Those injured in Karabakh gasoline depot explosion are transferred to Yerevan burn center (PHOTOS)


Those injured in the explosion of a gasoline depot in Artsakh (Nagorno-Karabakh) have been transferred from Sisian, Armenia to the National Burn Center in capital Yerevan.

At this moment, six ambulances have come to the aforesaid center and the injured are being placed in the hospital.

Those at this medical center are waiting for the other ambulances to arrive.

Many of those gathered near the center do not know whether their relatives have been brought there, as they have not been able to contact them. They are waiting for the clarification from the doctors.

Tuesday morning, a team of doctors left from Armenia to Artsakh capital Stepanakert by helicopter, with the necessary medicines and medical supplies, to help the victims of the explosion in a gasoline depot near the Stepanakert-Askeran motorway last evening. At around 11:30am, the first helicopter landed in Sisian, from where the injured were ambulanced to Yerevan.

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The post Those injured in Karabakh gasoline depot explosion are transferred to Yerevan burn center (PHOTOS) first appeared on The News And Times – thenewsandtimes.com.


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The News And Times – thenewsandtimes.com

Those injured in Karabakh gasoline depot explosion are transferred to Yerevan burn center (PHOTOS)


Those injured in the explosion of a gasoline depot in Artsakh (Nagorno-Karabakh) have been transferred from Sisian, Armenia to the National Burn Center in capital Yerevan.

At this moment, six ambulances have come to the aforesaid center and the injured are being placed in the hospital.

Those at this medical center are waiting for the other ambulances to arrive.

Many of those gathered near the center do not know whether their relatives have been brought there, as they have not been able to contact them. They are waiting for the clarification from the doctors.

Tuesday morning, a team of doctors left from Armenia to Artsakh capital Stepanakert by helicopter, with the necessary medicines and medical supplies, to help the victims of the explosion in a gasoline depot near the Stepanakert-Askeran motorway last evening. At around 11:30am, the first helicopter landed in Sisian, from where the injured were ambulanced to Yerevan.

20230926_133130.jpg (206 KB)

20230926_133139.jpg (177 KB)

20230926_133237.jpg (190 KB)

20230926_133250.jpg (187 KB)

!

This text available in   Հայերեն and Русский

Print

The post Those injured in Karabakh gasoline depot explosion are transferred to Yerevan burn center (PHOTOS) first appeared on The News And Times – thenewsandtimes.com.


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Mexican officials fear border entry shutdowns amid migrant influx


EL PASO, Texas (NewsNation) — Mexico’s top officials fear another U.S.-Mexico border closure as the Juarez-El Paso border crossing has seen 2,000 illegal crossings each day.

Officials are concerned this will lead to another border entry point shutdown like the one in Eagle Pass last week.

Over 1,000 migrants — mostly Venezuelans — have been waiting in long lines at the border, waiting to turn themselves in to Border Patrol agents on the El Paso side.

Nearly a 1,000 migrants awaiting to turn themselves in to border patrol agents in Juarez , Mexico , we’ve been reporting in the last couple days on shelters in El Paso at capacity as the mayor says El Paso is at a “breaking point” @NewsNation pic.twitter.com/LHUkyCWxqE

— Jorge Ventura Media (@VenturaReport) September 25, 2023

Standing there for hours in the scorching heat, the migrants wait to make it past the concertina wire to be processed.

Groups of migrants like this trek to the border every day, trying to cross over onto U.S. soil.

NewsNation crews witnessed a group of Venezuelans with a 2-year-old slide right under the concertina wire, placing cardboard on their backs to avoid being cut.

However, this has become common as the humanitarian crisis at the southern border continues to grow.

The post Mexican officials fear border entry shutdowns amid migrant influx first appeared on The News And Times – thenewsandtimes.com.