Market News Update 9-2

JPM on equities) The lack of major events/news is making for a very slow and quiet tape and that will prob. continue for the foreseeable future (Yellen’s testimony 2/14-15 is the next major macro catalyst). Washington skepticism is rising although for now the doubts are more around timing (i.e. the Trump/Ryan pro-growth agenda is still anticipated but maybe not until 2018) and not magnitude/efficacy (which is the real risk – it will take serious doubts around magnitude/efficacy to materially dent stocks).
(WSJ) US companies are proceeding w/plans to shift manufacturing to Mexico despite Trump’s protests
(Reuters) Polls show Le Pen winning election first round but losing second round.
(Bloomberg) More than 1,000 workers at BHP’s Escondida copper mine in Chile are still preparing for a long strike, a union spokesman said. Mining companies could also curb copper output, turning back to lower ore grades as the commodity slump eases, Goldman Sachs said. The IEA and OPEC monthly reports are due on Friday and Monday, respectively, providing the first full month of production data since OPEC’s supply deal.
(Bloomberg) On average, trade deals take more than three and a half years to implement, according to research by Caroline Freund and Christine McDaniel published by the Peterson Institute for International Economics. On that schedule, any new trade pact wouldn’t take effect before the November 2020 presidential election, even if Trump announced the start of talks today.
(Reuters) – 2016/17 Mexican Corn production projected at 26 mmt by Ag Attache– higher than previous estimates, as farmers shifted production from sorghum to corn due to pest concerns. Favorable weather conditions this growing season have been beneficial to both corn and rice production.

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