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Brazilians Stunned By Death Of Supreme Court Justice Ahead Of "Explosive Testimony"

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By Tyler Durden

The death of Brazilian Supreme Court Justice Teori Zavascki who had presided over the sprawling “Carwash” corruption scandal, and who died yesterday in a freak airplane crash has sent shockwaves both around the globe and in Brazil, because while few in polite company will discuss it, it has opened the possibility of political assassinations as a means of “quieting” legal proceedings.

And as Reuters reports today, while the death of the judge will likely not derail the country’s biggest ever graft probe, it will delay it, “handing valuable breathing space to President Michel Temer” who many have accused of being even more corrupt than his predecessor.

While there is no evidence yet of “foul play”, the timing of the death is oddly coincidental, especially since the upcoming revelations could have had damaging implications for Brazil’s still relatively new president Temer.

As a reminder, Justice Zavascki was killed in a plane crash on Thursday, “just weeks before he was due to unveil explosive testimony from executives at engineering group Odebrecht SA that is expected to implicate as many as 200 politicians in a vast kickback scandalReuters notes.

While the Police are investigating the crash in which a small, twin-prop plane that was carrying him plunged into the sea south of Rio de Janeiro during heavy rain, it is unlikely that they will find anything damaging.

And now, thanks to the tragic delay, postponing the fallout from evidence that could incriminate powerful political figures in Temer’s coalition, and perhaps Temer himself, gives the president more time to push through reforms to generous pension and labor rules and restore business confidence in a country stuck in a two-year recession.

Temer has already lost four cabinet members to corruption allegations. Several other ministers and leaders of his PMDB party in Congress have been named in Odebrecht plea deals, raising concern about the survival of his government.

“This can give Temer more room to move ahead with his reform agenda in Congress but Zavascki’s death won’t stall or change the course of the investigations,” said Thiago de Aragao quoted by Reuters, partner at ARKO consultancy that advises corporations and banks on investment in Brazil. “It will just pause it for a while.” Temer, who has himself been named by one defendant as a recipient of illegal campaign funds, has said he will rapidly appoint a new justice who, under Supreme Court rules, would take over Zavascki’s cases.

“In the short-run, any delay works in Temer’s favor because it will put off the instability that the new accusations will bring,” said Roberto Dias, a constitutional law professor at the FGV think tank in Sao Paulo. “But it’s bad for Brazil.”

And since Temer will likely try to float a judge “friendly” to his cause, it will be up to the Brazilian Senate to confirm him. That process, however, will weeks if not months after Congress returns from its Christmas recess in February. The new judge would then need to get up to speed …read more

Source: Brazilians Stunned By Death Of Supreme Court Justice Ahead Of "Explosive Testimony"

    

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Trump suspends mortgage premium rate cut

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The Department of Housing and Urban Development has suspended the reduction of annual mortgage insurance premiums that was supposed to go into effect January 27. …read more

Source: Trump suspends mortgage premium rate cut

    

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Protesters Block Traffic Outside Trump Tower In Manhattan

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By Tyler Durden

As reproted earlier, violence erupted in some streets of Washington, D.C as members of a group dressed head to toe in black smashed the windows of cars and store windows shortly before President Donald Trump took the oath of office. Over 90 people were arrested, Interim Police Chief Peter Newsham said in a Periscope video posted on Twitter.

Quoted by ABC, He added that the problems were caused by one group, “and it’s a very, very small percentage of the number of folks that came here to peacefully assemble in our city.”

Police said in a statement an organized group marched through the northwest part of the city at around 10:30 a.m., and that “members of the group acting in a concerted effort engaged in acts of vandalism and several instances of destruction of property.”

The police statement said the group damaged vehicles, destroyed the property of multiple businesses, and ignited smaller isolated fires” and that police vehicles were among those damaged.

So far at least three police officers have been injured, and approximately 100 protesters arrested.

Meanwhile, as ABC also reports, the anti-Trump protest has shifted to Manhattan, where it notes that protesters have blocked traffic outside the Trump Tower on Fifth Avenue.

Protesters block traffic outside Trump Tower in Manhattan following Pres. Trump’s #inauguration https://t.co/r6XHIFhUBb pic.twitter.com/94VFHUFCCa

— ABC News Politics (@ABCPolitics) January 20, 2017

More protests are likely in other cities, with groups already congregating in Los Angeles and other major cities.

Billed as “United against hate” protest begins in Los Angeles pic.twitter.com/GaBmR3fwXb

— Jennifer Medina (@jennymedina) January 20, 2017

…read more

Source: Protesters Block Traffic Outside Trump Tower In Manhattan

    

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World needs green energy & gas to meet demand

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for latest details. …read more

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Trump’s historic moment arrives

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…read more

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Twitter transfer of power: Trump gets @POTUS

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Shortly after Donald Trump was sworn in as the 45th president of the United States, he gained another prestigious title: @POTUS. …read more

Source: Twitter transfer of power: Trump gets @POTUS

    

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Stocks greet Trump era with a bounce

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The Dow climbed about 100 points on Friday morning as investors around the world await the swearing in of America’s 45th president. …read more

Source: Stocks greet Trump era with a bounce

    

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The Trump era dawns

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…read more

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The Trump Inauguration: All You Need To Know

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By Tyler Durden

The day is finally here: the long and turbulent 2016 election reaches its dramatic conclusion today when Donald Trump is sworn in as the 45th president of the United States. In a ceremony likely to draw 900,000 people, including protesters, Trump and his vice president, Mike Pence, will take the oath of office at noon outside the domed U.S. Capitol, with U.S. Chief Justice John Roberts presiding.

The inauguration by the numbers:

  • The crowd is expected to be between 700,000 and 900,000. This compares to roughly 1.8 million present during Barack Obama’s first inauguration.
  • 28,000 security officials, including secret service and national guard are expected to be present
  • Trump’s inaugural address is expected to last about 20 minutes
  • The parade will include 8,000 participants representing 40 organizations, including marching bands and veteran groups
  • There will be 3 official balls, compared to 10 for Obama
  • 99 protest groups have signed up to demonstrate the inauguration

* * *

The Inauguration

The inauguration of the controversial real estate mogul and former reality television star will largely follow tradition, but there will be several unique changes scattered throughout.

In what will likely be the most personal touch, Trump has chosen his childhood Bible for the swearing-in ceremony. He will also use the Lincoln Bible, which has been used at three previous inaugural ceremonies: that of Abraham Lincoln in 1861, and for Barack Obama both in 2009 and 2013.

Unlike previous inaugurations, the lineup of performers has been largely kept quiet as a number of individuals who were either asked to participate or who were announced as part of the lineup ended up dropping out following backlash. One performer who has been confirmed is Jackie Evancho, a 16-year-old “America’s Got Talent” alum. She will be singing the national anthem.

Another abnormal aspect of the day will be the number of congressional Democrats who have announced that they are skipping the inauguration. The latest count has one-third of all House Democrats skipping the inauguration. There is no modern precedent for a planned political boycott of this scale. The boycott does not appear to have shaken Trump, who used his most common form of communication to make his first statement of the day. Trump sent out a tweet from his personal account, writing “it all begins today!”

It all begins today! I will see you at 11:00 A.M. for the swearing-in. THE MOVEMENT CONTINUES – THE WORK BEGINS!

— Donald J. Trump (@realDonaldTrump) January 20, 2017

The day’s schedule of events follows the familiar pattern of inaugurations of the past, however, as Trump will have stayed overnight at Blair House across the street from the White House and will go from there to a church service. Then, he and his wife, Melania Trump, will go to the White House for tea with the Obamas before proceeding to the Capitol.

The swearing-in ceremony will take place shortly after they arrive, and Trump will take the oath of office promptly at noon, which marks the official transfer of power.

The inaugural address comes toward the …read more

Source: The Trump Inauguration: All You Need To Know

    

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Trump Rally Reverses: US Equity Outflows In 4 of Past 5 Weeks Offset By Gold, Bond Inflows

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By Tyler Durden

When looking at the latest weekly fund flows, it is clear that the Trump trade is over if only for the time being. As BofA reports, citing EPFR data, the last week saw the largest precious metal inflows in 5 months ($1.3bn), the 4th consecutive week of bond inflows ($4.5bn), and a week of modest $1.7bn equity inflows, however US stocks saw $2.5 billion in outflows, representing the 4th weekly outflow in the past 5 weeks.

Some highlights from BofA’s Michael Hartnett:

Election to Inauguration flows: since the US election, BofAML GWIM ETFs show private clients big buyers of Financials, Materials, Bank Loans, Industrials, TIPS, Value; big sellers of Low-Volatility & Precious Metals

Inauguration reversals: EPFR flows show partial profit-taking in these Trump reflation trades into the inauguration…1st outflows from financials in 17 weeks, 1st government bond inflows in 6 weeks (largest in 6 months), and 1st inflows to precious metals in 10 weeks; we also note 1st outflows from HY funds in 8 weeks; but we also see ongoing inflows to “inflation trades” of materials, TIPS, and (in particular) bank loans; so a “pause” in the Davos Man to Joe Six Pack rotation rather than major reversal

Post-inauguration tactics: meanwhile our Global Flow Trading Rule, which had flirted with a “sell” signal mid-Dec’16, has pulled back from the abyss (inflows to equities & HY currently below the 4-week “sell” threshold of 1.0% of AUM, and global PMIs continue to trend higher

Stick with Icarus Trade: our BofAML Bull & Bear Indicator also indicates more bullish sentiment (up to 3-month high of 4.9 – Chart 2) but remains some way below “sell” trigger of 8.0; Positioning, Profits & Policy make us stick with our Icarus Trade view… any Jan/Feb wobble to be followed by one last 10% melt-up in stocks & commodities in H1 before visible investor “hubris” on macro & markets signals the “Big Top”

And the details:

Asset Class Flows

  • Equities: $1.7bn inflows ($1.7bn mutual fund outflows vs $3.4bn ETF inflows)
  • Bonds: $4.5bn inflows (4 straight weeks)
  • Precious metals: first inflows in 10 weeks ($1.3bn – largest in 5 months)

Fixed Income Flows

  • First outflows from HY bond funds in 8 weeks ($0.3bn)
  • First govt bond inflows in 6 weeks ($1.0bn – largest in 6 months)
  • 4 straight weeks of IG bond inflows ($2.2bn)
  • 10 straight weeks of inflows to bank loan funds ($0.7bn)
  • 6 straight weeks of inflows to TIPS funds ($0.3bn)
  • 3 straight weeks of inflows to EM debt funds ($0.4bn)

Equity Flows

  • Japan: strong $2.5bn inflows
  • Europe: $0.7bn outflows (largest in 6 weeks)
  • EM: small inflows of $64mn (2 straight weeks)
  • US: $2.5bn outflows (outflows in 4 of past 5 weeks)
  • By sector: first outflows from financials in 17 weeks ($0.7bn); first outflows from tech in 6 weeks ($0.1bn); inflows to energy in 6 of past 7 weeks ($0.4bn); inflows to materials in 10 of past 11 weeks ($0.2bn)



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