Financial Markets and Economy
The Fed Is Still Living in Denial (Fortune)
The Federal Reserve’s mood about the economy may still be too overheated.
On Wednesday, the Federal Reserve decided to keep rates where they were for another month, and indicated that it was only likely to raise rates twice in the next year and four times in 2017. The change brings the Fed’s own rate expectations closer in line to what the market was predicting before this week’s FOMC meeting.
China's Exporters Struggle as Yuan Swings Disrupt Business (Bloomberg)
The yuan’s swings are becoming a headache for the Chinese companies that should have been the biggest beneficiaries of last year’s devaluation.
Under the Hood of Japan Trade Data Are Weak Exports to U.S. (Bloomberg)
Here’s a key takeaway from Japan’s trade data released Thursday: Exports to the U.S., which for most of last year were a bright spot amid slowing demand from China, were almost flat in value terms as the yen strengthened against the dollar.
Gold jumps to $1,260/oz after Fed statement pressures dollar (Reuters)
Gold rallied 2 percent to $1,260 an ounce on Wednesday, turning higher after the Federal Reserve indicated that the United States continues to face risks from an uncertain global economy, pressuring the dollar.
The U.S. central bank held interest rates steady after its two-day meeting, as expected. However, fresh projections from policymakers showed they expected two quarter-point rate hikes by year's end.
Yuan Falls to 15-Month Low Versus Basket as Fixing Lags Dollar (Bloomberg)
The yuan fell to a 15-month low versus a basket of currencies as a smaller-than-estimated increase in the central bank’s fixing spurred speculation that China is trying to limit gains against the dollar.
'What Carbon Bubble?' Says Oil Company Economist (Forbes)
The carbon bubble that’s driving investors away from stranded coal, oil and gas assets may be a scare tactic, the chief economist for ConocoPhillips said in Chicago yesterday—and if it succeeds, we may all find our assets stranded.
The share price of fossil fuel companies assumes their proven fossil fuel reserves will be consumed. The carbon bubble, an idea coined in a 2011 report by the Carbon Tracker Initiative and spread in a 2012 Rolling Stone article by climate activist Bill McKibben—holds that fossil fuel companies must be overvalued, because renewable energy sources will offset much of that consumption.
With or without Iran, oil producers to meet in April on output deal (Reuters)
Oil producers including Gulf OPEC members support holding talks next month on a deal to freeze output even if Iran declines to participate, OPEC sources said, increasing the likelihood of the first global supply deal in 15 years.
From the Firehose: The Explosive Growth of Solar Power in China (Medium)
China is adopting solar power faster than any other country. According toReuters, China added 15 gigawatts of solar power in 2015. For comparison, the total installed solar capacity in the United States is 24.1 gigawatts. China’s total capacity was 43 gigawatts by the end of 2015.
Made in China Not as Cheap as You Think (Bloomberg)
Here's something to think about the next time you hear a U.S. presidential candidate criticize China for unfair trade: labor costs adjusted for productivity in China are only 4 percent cheaper than in the U.S.
Swiss Keep Franc Intervention Threat Alive as Rates Left on Hold (Bloomberg)
Switzerland’s central bank held interest rates at a record low and repeated its pledge to intervene in currency markets, a threat President Thomas Jordan has used to keep the franc from strengthening.
Builder Confidence Vs Builder Activity (Wall Street Examiner)
One of the more interesting housing data lines we have seen in this economic cycle has been the gap between the (HMI) Housing Market Index and data from new home sales, starts and permits. At first glance it does look like a major disconnect from builder confidence to builder activity. However, we need to put the gap in perspective.
FedEx: Amazon would have to spend 'tens of billions' to compete with us (Business Insider)
FedEx is not concerned about recent reports of Amazon possibly building up an in-house shipping network, and downplayed it as mere "headline grabbing" stories.
Impaled On Its Own Petard——The Fed’s Folly Festers Further (Wall Street Examiner)
Listening to even a small portion of Simple Janet’s incoherent babble makes very clear that the nation’s central bank is well and truly impaled on its own petard. According to the dictionary, the latter term refers to…..
Wage Growth Dream Crushed – Weekly Earnings Rise Weakest In 18 Months (Zero Hedge)
If the labor market is "tight", and jobless claims are at 42 year lows…
Chipotle mulls more food giveaways as customers slowly return (Reuters)
Chipotle Mexican Grill Inc (CMG.N) could give away roughly 9 million burritos as it fights to win back customers following several food safety mishaps that have dented its sales.
Executives speaking at an investment conference on Wednesday said the company has recovered about one-third of sales lost to a string of food safety lapses last year, and more free offers may be forthcoming as part of its turnaround strategy.
Norway Cuts Rate and Signals More Easing Ahead Amid Oil Plunge (Bloomberg)
Norway’s central bank cut its benchmark interest rate to a record low and signaled it’s prepared to ease policy further to ward off a recession in western Europe’s biggest crude oil producer.
Ackman Begins Portfolio Liquidation To Shore Up Cash, Sells $800 Million In Mondelez After Losing 26% YTD (Zero Hedge)
Yesterday morning, after the biggest ever crash in Valeant stock, we showed that "When Ackman Gets A Valeant Margin Call Today, This Is What He Will Be Selling"
59% of fund managers see an economy in its final innings — highest percent since 2008 (Market Watch)
Fund managers increasingly think this stretch of global economic growth is in its final innings, according to a Bank of America Merrill Lynch survey.
Politics
GOP Leaders Double Down on Pledge to Block SCOTUS Pick (NBC)
Congressional Republicans reiterated on Wednesday that they have no intention of taking any action on President Barack Obama's Supreme Court pick — a defiant position that foreshadows a tense confirmation fight.
A Bernie Blackout (NY Times)
On Tuesday night, after Hillary Clinton trounced Bernie Sanders in state after state, Sanders took to a podium before throngs of thousands in Arizona and delivered a stirring speech for nearly an hour.
Now “The Daily Show” goes after Hillary Clinton? Thanks for nothing, Trevor Noah! (Salon)
“Daily Show” host Trevor Noah last night skewered Hillary Clinton in a game show called “This Should Be Easy,” referring to the Democratic frontrunner’s off-message and otherwise historically inaccurate gaffes.
Technology
Electric vs hydrogen: the battle to fuel the future of cars (Holy Kaw!)
Since we don’t appear to be willing to give up the freedom of cars any time soon, to save us from ourselves, companies are duking it out over what the fuel of the future will be.
Here’s a match-up between hydrogen versus electric vehicles to give you a glimpse of what each offers, how they work, and who is using them.
Google And Telcos Join Facebook, Microsoft And Rackspace To Standardize Data Center Equipment (Forbes)
The Open Compute Project (OCP) is at a pivotal point in OCP’s mission is to standardize server, storage and data center hardware designs to increase economies of scale. OCP’s challenge is defining specifications intended for large scale manufacturing when not all data center companies are participating in OCP. Microsoft and Facebook are members, and Google started participating in a limited fashion last week, but Amazon Web Services (AWS) and many Chinese companies, such as Alibaba , Baidu and Tencent, are not members. Many of these large public cloud service providers define their own systems; they build their own hardware or order it from leading OEMs with some feature customization.
Health and Life Sciences
Using Genetically Modified Mosquitoes To Fight Zika Is The Right Thing To Do (Forbes)
When most of us think of mosquito control, we think of repellent, sprays and DEET. You might think long sleeves, window screens or mosquito control trucks, too. We’ve gotten pretty used to the idea that mosquitoes live around and among us–even when those mosquitoes carry diseases like West Nile, dengue, malaria and Zika. The best we can do to avoid their pesky, and sometimes lethal, bites is make our bodies unreachable or unappetizing.
Life on the Home Planet
The world’s carbon-dioxide emissions have stabilised? (The Economist)
It could be a rare piece of good news in the battle against global warming. The International Energy Agency (IEA), the world’s most prominent energy forecaster, said on March 16th that carbon-dioxide emissions from burning fossil fuels have remained flat for two years in a row. Emissions from the world’s two biggest polluters, America and China, have been falling. The world has not seen such a lull since the early 1980s.
Refugees and The Economy: Lessons from History (New Economic Thinking)
As Syrian refugees started to reach the European continent, discussions about the “influx of migrants” dominated media outlets, with very little attention paid to the crisis of the refugees instead of the “refugees crisis.”
Some cite national security concerns to justify closing the borders in the face of desperate refugees, while others, citing economic reasons, say: “we cannot afford to open our borders”
Denmark Ranks as Happiest Country; Burundi, Not So Much (NY Times)
Denmark has reclaimed its place as the world’s happiest country, while Burundi ranks as the least happy nation, according to the fourth World Happiness Report, released on Wednesday.
The report found that inequality was strongly associated with unhappiness — a stark finding for rich countries like the United States, where rising disparities in income, wealth, health and well-being have fueled political discontent.
