US: Musk And Ramaswamy Tout 'DOGE' On Capitol Hill
Dec-05 14:25
Elon Musk and Vivek Ramaswamy are on Capitol Hill today to promote the “Department of Government Efficiency,” a new advisory body established by President-elect Donald Trump to cut government spending.
- NPR notes that the pair have floated, "a 75 percent reduction in the federal workforce, a $2 trillion cut to federal spending and the elimination of entire agencies such as the Consumer Financial Protection Bureau."
- House Speaker Mike Johnson (R-LA) said today's meeting are, "to discuss major reform ideas to achieve regulatory rescissions, administrative reductions, and cost savings—& revive the principle of limited government!"
- Fox News reports they, “are expected to attend the first Senate DOGE Caucus meeting Thursday morning. Later [will attend] a bicameral event hosted by [Johnson] who invited legislators from both the House and Senate to the event.”
- Ramaswamy said yesterday that cutting the federal workforce isn’t primarily about saving money: “Part of what you have is an overgrown federal government that's doing things that were never supposed to be done by the federal government in the first place... Bigger savings will come from reducing waste, fraud and abuse in entitlement programs, as well as efficiencies like better government IT systems and a new approach to Pentagon contracting.”
- Politico writes: “DOGE has no statutory authority or fast-track floor process, and Hill leaders have no idea how they’ll handle any of the proposed spending cuts... Yet it’d be foolish to underestimate this effort..."
- Punchbowl News reports that at least 40 lawmakers have joined a DOGE caucus so far, including some Democrats.
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EQUITY TECHS: E-MINI S&P: (Z4) Short-Term Bearish Threat
Nov-05 14:22
- RES 4: 6012.75 1.00 projection of the Aug 5 - Sep 3 - 6 price swing
- RES 3: 6000.00 Psychological handle
- RES 2: 5961.00 1.00 projection of the Sep 6 - 17 - 18 price swing
- RES 1: 5816.84/5927.25 20-day EMA / High Oct 17 and bull trigger
- PRICE: 5751.50 @ 14:11 GMT Nov 5
- SUP 1: 5724.00 Low Oct 2
- SUP 2: 5675.25 Low Sep 18
- SUP 3: 5637.60 38.2% retracement of the Aug 5 - Oct 17 bull cycle
- SUP 4: 5600.25 Low Sep 12
S&P E-Minis traded sharply lower last Thursday and the contract is trading just above its recent low. Price has cleared both the 20- and 50-day EMAs - an important short-term bearish development. The break lower signals scope for an extension and has exposed the next support at 5724.00, the Oct 2 low. Clearance of this level would open 5637.60, a Fibonacci retracement. Initial firm resistance is 5816.84, the 20-day EMA.
CANADA DATA: Trade Data Show Mixed Signs For Domestic Demand Growth
Nov-05 14:14
- Canada saw another month with a larger than expected merchandise trade deficit, at C$1.26bn (cons C$0.95bn) in September after an upward revised C$1.47bn (initial C$1.1bn).
- The relative improvement from that larger than first thought deficit came as a smaller non-energy deficit (from C$13.1bn to $12.1bn) offset a smaller energy surplus (from C$11.6bn to C$10.9bn).
- It leaves a three-month run annualized deficit at 0.4% GDP, comprising of a non-energy deficit worth 5.0% GDP and an energy surplus worth 4.6% GDP.
- Add a services deficit worth 0.5% GDP over the same three-month basis and the goods & services trade deficit was unchanged at 0.9% GDP, having averaged close to 1% GDP since late spring. That’s relatively large by post-pandemic standards but smaller than the 1.5-2% GDP averaged pre-pandemic.
- Taking a step back and looking just at the merchandise data again, import volumes show mixed domestic demand implications.
- Total import volumes were broadly flat in September (-0.2% M/M) which left them at -2% Y/Y (0% Y/Y 3mth). It masks genuinely strong consumer goods volumes of 6% Y/Y (8% Y/Y 3mth) with a sizeable counterweight from continued weakness in our proxy for capital goods import volumes at -3% Y/Y (-1% Y/Y 3mth).
CANADA DATA: Sep Trade Balance Narrows; Q3 Will Aid GDP Growth
Nov-05 14:07
- Canada Sept trade balance CAD-1.3B from Aug CAD-1.5B, StatsCan says Tues.
- Exports -0.1%, the third straight decline, led by -5.4% metal and non-metallic minerals. Exports of energy -2.6% on lower crude oil prices. In "real" terms exports +1.4%.
- Imports -0.4% after +0.5% in August.
- YOY exports -2.8% while imports +0.2%.
- US surplus widened to +CAD8.3B in Sept from +CAD7.8B in Aug.
- Ex-US deficit was also up, -CAD9.6B in September from -CAD9.3B.
- Q3 exports -0.2%, imports -0.1%, and in "real" terms more closely linked to GDP exports +0.3% and imports -0.2%. Autos were the biggest drag in Q3.
- August trade deficit revised to CAD-1.5B from CAD-1.1B.
