Financial Markets and Economy
The dollar is at a 10-month low — here's what's happening in FX (Business Insider)
The US dollar index trades at its weakest level since June following Tuesday's disappointing housing data.
Global markets stabilize as likely ECB support offsets weak oil (Reuters)
Oil prices fell on Wednesday as investor focus returned to worries about oversupply after Kuwaiti workers ended a three-day strike that had halved the nation's crude output.
Japan's Trade in Surplus as Imports Drop for Fifteenth Month (Bloomberg)
Japan’s trade balance was in surplus in March as the stronger yen reduced the cost of energy and other imports, while exports fell.
Overseas shipments dropped 6.8 percent from a year earlier, while imports declined 14.9 percent, leaving a surplus of 755 billion yen ($6.9 billion). That was less than the 834.6 billion yen forecast in a Bloomberg survey.
How Finance Took Over the Economy (Bloomberg View)
First, it’s important to point out that when an industry grows as a share of U.S. gross domestic product, it doesn’t always mean that it’s more profitable than before. Profitability could potentially shrink as an industry grows. But in the case of finance, that’s not what’s happened. Here, courtesy of economist Thomas Philippon, is a graph that shows finance’s share of GDP on the vertical y-axis:
There's no evidence that low oil prices are boosting the world economy (Business Insider)
Low oil prices are usually great for the world economy.
China's Stocks Tumble Most in Seven Weeks to Break Trading Calm (Bloomberg)
China’s stocks sank the most in almost two months, pushing a gauge of volatility up from its lowest level this year as turnover surged.
Blankfein's Decade Ending With a Thud on a Humbled Wall Street (Bloomberg)
To see how Wall Street has changed over the past decade, look to Goldman Sachs Group Inc. under Lloyd C. Blankfein.
Toyota to Resume Production at Most Japan Plants Next Week (Wall Street Journal)
Toyota Motor Corp. said it would resume car production at many of its plants in Japan next week, after scaling back output following the recent earthquakes in southern Japan.
The auto maker had been shutting down most of its car assembly lines throughout the country this week due to component shortages after the earthquakes.
Commerzbank CEO Says Slow Quarter Means `Challenging' 2016 (Bloomberg)
Commerzbank AG Chief Executive Officer Martin Blessing said a “slow” first quarter will make it more difficult to match last year’s profit, just a month after the bank projected an increase in full-year earnings.
Saudi $10 Billion Financial District Is Missing One Thing: Banks (Bloomberg)
Saudi Arabia’s $10 billion financial hub in Riyadh will have gleaming towers connected by sky bridges, cutting-edge climate technology and a monorail that can circle the whole area in 11 minutes. What it doesn’t have yet are banks.
Not a single financial institution has agreed to take space in the 73 buildings the state is constructing at the King Abdullah Financial District, according to Waleed Aleisa, chief executive officer and project manager of the district at developer Al Ra’idah.
Benchmark Bank Stock Index Enters Bull Market (Wall Street Journal)
The KBW Bank Index is up 21% from its closing low on Feb. 11, officially putting the benchmark index of bank stocks in a new bull market.
‘Fear of missing out’ is driving this stock-market rally (Market Watch)
U.S. stocks are up 14.5% from their Feb 11 low, with the S&P 500 hovering a hair’s breadth away from the all-time high set nearly a year ago, all thanks to a pair of acronyms: FOMO and TINA.
EMC Earnings Fall Short as Storage Demand Is Hurt by Cloud (Bloomberg)
EMC Corp. reported first quarter sales and profit that fell short of analysts’ estimates in a slowing market for storage devices, as the company nears a $67 billion takeover by Dell Inc.
Lira Rises With Turkey Stocks on Relief Over Interest Rate Cut (Bloomberg)
Turkey’s lira was poised for the strongest level in eight months and banking stocks advanced after the central bank cut borrowing costs in line with expectations, dispelling concern the new governor would bow to government pressure to deepen cuts at his first rates meeting.
The New All-Time High in SPY That Was Considered Impossible (Fat Pitch)
SPY made a new all-time high on Tuesday despite falling margin debt, the end of QE, negative household fund flows, flat profit growth and a host of other reasons. In other words, exactly as a rationale and objective investor should have expected.
Watching Stock Prices Is Not Always the Best Way to Assess the Economy (Advisors Perspective)
The American economist Paul Samuelson famously noted that the stock market has “predicted nine out of the last five recessions! And its mistakes were beauties.”
U.S. stock futures edge up as market tries to add to 2-day advance (Market Watch)
U.S. stock futures inched higher Wednesday even as oil prices dropped, with the S&P 500 trying to extend a two-day advance.
EU charges Google with abusing Android market dominance (Reuters)
The European Union charged Google on Wednesday with abusing the dominant position of its Android mobile operating system, opening a second front against the U.S. technology giant that could lead to large fines.
China Gold Yuan Trading To Boost Power In Gold and FX Markets – End Manipulation? (Zero Hedge)
China launched yuan denominated gold bullion trading today in a move that will further boost its power in the global gold and fx markets. Critics of the existing pricing mechanisms hope that it will lead to increased transparency and may end price manipulation.
Coca-Cola Underwhelms Investors Seeking Faster Turnaround (Bloomberg)
Coca-Cola Co. posted first-quarter results that mostly met analysts’ expectations, underwhelming investors who’d been optimistic that a stronger turnaround was taking hold.
VW resists move for trial instead of EPA settlement (Bloomberg)
Volkswagen is resisting a demand from U.S. plaintiffs to go to trial rather than settle its diesel emissions case with government regulators, according to a court filing, as it braces for a crucial court hearing on Thursday.
Politics
Canada-China relations to enter ‘golden’ era, Chinese Premier says (The Globe and Mail)
Canada and China are set to enter a new “golden” era under Prime Minister Justin Trudeau, China’s second-most powerful man told Jean Chrétien in Beijing this week.
“Mr. Chrétien, it will be like the golden years of your relationship with China will be back hopefully,” Premier Li Keqiang told the former Canadian prime minister in a half-hour meeting Tuesday.
Eastern States Take Turn in Presidential Primary Spotlight (Wall Street Journal)
After New York, the next big voting day is April 26 when five states—Pennsylvania, Maryland, Connecticut, Rhode Island and Delaware—head to the polls. Pennsylvania is the big prize, but for Republicans, the state’s delegate-selection process gives the statewide winner only 17 of the state’s 71 delegates.
Come On, Candidates. Stop Whining. (Bloomberg View)
Now that Hillary Clinton and Donald Trump have scored their comfortable victories in the New York primary, can everybody please stop bellyaching? Neither party's presidential selection system is perfect, as several candidates have been loudly proclaiming, but each has more virtues than shortcomings.
After big New York wins, Trump and Clinton cast themselves as inevitable (Reuters)
Republican Donald Trump and Democrat Hillary Clinton scored sweeping victories in nominating contests in their home state of New York, and immediately cited those wins to argue that they are all but unstoppable as their respective parties' presidential nominees.
Technology
This futuristic guitar makes it possible to learn how to play in minutes (Quartz)
The lights dim on the stage, and the rocker steps out as the crowd starts to cheer. He plugs in his guitar, and gets ready to play his favorite song. As the cheers fade, he presses the buttons on his guitar and taps his way toward greatness.
These futuristic driverless pods will run on Singapore's roads by end of the year (Mashable)
Before the year is up, Singaporeans could be hopping on these driverless pod vehicles to get to school and work.
The pods run on electricity, and are able to travel autonomously on smaller roads, such as those within a gated community or school campus.
Health and Life Sciences
Can testing ‘mental maps’ find Alzheimer’s sooner (Futurity)
Increasing difficulties with building cognitive maps of new surroundings could herald the eventual clinical onset of Alzheimer’s—long before a clinical diagnosis is possible.
Loneliness May Be Bad for Your Heart (NY Times)
Researchers, writing in the journal Heart, pooled data from 23 studies and found that social isolation or feelings of loneliness were tied to an increased risk for coronary heart disease and stroke.
Unmasking the Bad Guys in the Fight Against Alzheimer's (Scientific American)
Peer inside the brain of someone with Alzheimer’s disease, and you’ll see some striking features: shriveled nerve cells and strange protein clumps. According to a leading theory, proteins called amyloid beta and tau build up in the brain and choke nerve cell communication, setting the disease in motion years before people suspect anything is wrong with their recall.
Life on the Home Planet
Can Marijuana Ever Be Environmentally Friendly? (Think Progress)
One of the first things that Tyson Haworth does when we meet on his farm in rural Oregon is spread his palms out, up toward the April sunshine, and apologize.
“I just applied some predatory fungus in the greenhouse,” he says, splaying his fingers and inspecting his hands. He doesn’t use any synthetic pesticides on his farm, he explains, preferring predatory bugs and bacteria and fungi instead, and before he can show me around, he excuses himself to wash his hands in his house adjacent to the farm.
Aftershocks bring misery for Japan quake survivors; death toll to 47 (Reuters)
Aftershocks rattled survivors of deadly Japanese earthquakes on Wednesday, nearly a week after the first one struck, as the area braced for heavy rain and the possibility of more landslides.
Rescuers using backhoes and shovels to dig through crumpled houses swept away in a landslide found a woman's body, one of several people still missing. Another death was confirmed later in the day, taking the toll to 48.
