MAD Macro - Hey, Pootie, Daddy Is Home
Thank You, Thank You, So Happy, Daddy Is Home
Thanks Andrew, Mamdani The Commie Will Now Win
It took some time, but Tariff Man Trump finally realized Pootie is not interested in peace when victory is his reality. I am guessing that Pootie thinks he can take Odessa, control access to the Black Sea and control all of Ukraine’s agriculture exports before he comes to the negotiation table. Then Xi makes his move on Taiwan. Pootie continues on and makes his move on Western Europe. North Korea makes its move on South Korea. The only good news is that Bibi single handedly stopped all of the plans with his crushing victory over Iran and it’s proxies. The exploding pagers saved the West. Now Mr. Isolationist, Tariff Man Trump has become a neocon. He might even win Bibi’s Nobel Peace Prize. Tucker and Hillbilly what’s his name, no one can remember the Vice President’s name, will be very upset. The WSJ editorial board has a article today on the policy shift, linked here. It’s titled, “Trump Sends a New Message to Putin”.
What in the world is Andrew Cuomo thinking? Does he want Mamdani the Commie to win? Maybe. By staying in the race as an independent he is guaranteed to split the Adams vote and put Mamdani the Commie in office as the next mayor of NYC. I think the funniest thing about Andrew Cuomo staying in the race is that this forces Schumer and the NYT to endorse Mamdani the Commie. If he doesn’t, AOC will challenge him for his Senate seat. If the NYT does not endorse Mamdani the Commie they lose all their readers. Rome is burning and Mamdani the Commie is smiling. His parents are also smiling, they can upgrade their apartment when prices crash. That’s it! Maybe Andrew wants to buy an Upper East Side apartment on the cheap. Andrew needs a nice place to retire, no chance he wants to be in a senior home. On the other hand, in a senior home he could hit on all of the nurses and no one would care.
Jensen Huang talked the Tariff Man Trump into allowing him to resume selling Nvidia’s H20 AI chips to China. It’s not worth trying to figure out what Tariff Man Trump is going to do next. But in this case it’s obvious. He is allowing the Nvidia H20 AI chip sales so he can take them away again at some point. The art of the deal has been to escalate to deescalate. In this case it’s the opposite, deescalate to escalate. Our other business super hero, Jamie Dimon reported some JPM super hero sales and trading revenue this morning to kick off the Q2 earnings season.
Markets are strong overnight on the Nvidia news. The NASDAQ 99 is due to open at new all-time highs. Interestingly now that bitcoin has become less correlated with risk assets it’s trading lower this morning. We get the important CPI inflation report this morning before the opening. CPI is expected to be 2.6% year-over-year vs 2.4% last month. Ex-food and energy CPI is expected to be 2.9% vs 2.8% last month.
I updated the U.S. Dollar Index, U.S. 10yr yield, U.S. 10yr-2yr yield spread, WTI crude oil, NY copper, spot gold, NYSE Arca Gold Miners Index, bitcoin, Strategy, S&P futures, NASDAQ 99 futures and DOW futures charts below.
The dollar is a little lower and interest rates are unchanged in front of the CPI report.
Crude oil and copper are a little lower. Gold is higher and the NYSE Arca Gold Miners Index should also open higher. Bitcoin is lower and Strategy is due to open lower as well.
S&P and NASDAQ 99 futures are higher on the Nvidia news. The DOW futures are unchanged.
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