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The Morning Track good-places

- The Morning Track – Good Places by Bob Savage
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Welcome to Monday and the ides of March. Markets are in a good place – or good enough to rebound as the FOMC continues to push its wait-and-see policy. US/China talks are in a good place according to the rumor mills from Beijing/Washington even as the weekend showed less CNY loans and lower PPI/CPI. The UK appears to be in a less good place as the PM May has “run out of road,” and considers offering up her resignation in exchange for a Brexit deal with her Tory party. The tragedy of Ethiopia Air crash Sunday also leaves Boeing in a less good place with China and others grounding their 737 Max 8 plane. North Korea and the US are also in a less good place as satellite images suggest further missile test preparation and a UN security council report admits holes in the sanctions regime. The clearly not good place is Venezuela as it suffers the 4th day of blackouts with no cell phones, the government urging stay in place and food rotting in stores. Throw in the weakne
ss in the economic data today from Japan machine tool orders – there is a growing debate about recession risks now there - and German industrial production weakness continuing and you get the picture of a world in a less good place than the US. Markets are struggling to be bearish, however, as risk aversion last week left many value opportunities and the passive money flows continue.