Financial Markets and Economy
How oil prices are trapped in a vicious circle, in one chart (Market Watch)
Oil is on track for a sizable weekly gain, thanks in large part to Saudi Arabia sparking hopes for a production freeze.
U.S. retail sales unexpectedly flat in July (Reuters)
U.S. retail sales were unexpectedly flat in July as Americans cut back on purchases of clothing and other goods, pointing to a moderation in consumer spending that could temper expectations of an acceleration in economic growth in the third quarter.
No sign of comedown for stocks after Wall Street record highs (Reuters)
World stocks were headed for their fourth week of gains in five on Friday after a surge in oil prices helped propel Wall Street's three main indexes to co-ordinated record highs for the first time since 1999.
Oil Set for Weekly Gain as Saudis Reiterate Wish for Stability (Bloomberg)
Oil is heading for its biggest weekly advance since April after Saudi Arabia signaled it’s prepared to discuss stabilizing markets at informal OPEC talks next month after prices tumbled into a bear market.
Why U.S. stocks are on their marks to go faster, higher, stronger (Market Watch)
Wall Street looks like its catching the spirit of Team USA, which has been raking in medals left and right in Rio.
Wall St. banks ask Fed for five more years to comply with Volcker rule (Reuters)
Big Wall Street banks are asking the U.S. Federal Reserve to grant them an additional five-year grace period to comply with a financial reform regulation known as the Volcker rule, people familiar with the matter said.
Where America exports its oil (Economist)
It is rare for policies championed by lobbyists and special interests to make economic sense. It is rarer still for the sound ones to be written into law.
A Look at China's Stimulus Efforts Shows 'Malinvestment Is Still Hard at Work' (Bloomberg)
It was supposed to be different this time.
The Great Productivity Puzzle (The New Yorker)
I was going to start this column with some new productivity figures from the Bureau of Labor Statistics, but I realized that at least half of the readers would quit right there. Productivity is one of those subjects that fascinates economists and bores, or mystifies, almost everyone else.
Yuan Free Float Seen a Decade Away as China Keeps Strict Control (Bloomberg)
Miles to go and promises to keep.
The Moment When Deutsche Bank's Joe LaVorgna Threw in the Towel on Being a U.S. Economic Bull (Bloomberg)
July 30, 2015 was the day it all changed for Deutsche Bank AG Chief U.S. Economist Joseph LaVorgna.
The Math of GDP Growth in the Euro Area Explained in Bars (Bloomberg)
Private consumption has been the main driver of economic growth in the euro area, with net trade acting as a drag in each of the past three quarters for which a breakdown is available.
Stocks Hit New Highs, and That Could Be Just the Start (Wall Street Journal)
A troika of stock indexes hit records in tandem for the first time since 1999. The question is whether the party is just getting started.
German Economy Slows Less Than Forecast as Italian Growth Stalls (Bloomberg)
German growth slowed less than predicted in the second quarter while Italian output unexpectedly stagnated, signaling diverging fortunes for two of the region’s biggest economies as they brace for any fallout from Britain’s decision to leave the European Union.
The Twilight of China’s Online Consumer Paradise (Bloomberg)
For the past year, Li Weiling has been living large on the cheap in Beijing, courtesy of deep-pocketed investors from around the world.
The end of discount luxury? The exodus of high-end brands is killing department stores (Salon)
Luxury fashion brands have always lured customers with rarified products then chasing many of them away with their price tags. A fundamental part of the market math for high-end goods is that they need to be available, but not too available.
Alibaba Reaps Growth From Jack Ma’s Push Into Media, Cloud (Bloomberg)
Jack Ma’s diversification strategy is starting to pay off as revenue at Alibaba Group Holding Ltd. accelerates to the fastest since its record initial public offering.
The Hidden Risk in Wal-Mart's Acquisition of Jet.com (The Motley Fool)
This week, the United States' largest retailer, Wal-Mart Stores Inc., confirmed earlier rumors by buying upstart e-commerce company Jet.com.
Maersk Gains as Company Meets Tough Market With Cost Cuts (Bloomberg)
A.P. Moeller Maersk A/S shares gained as Denmark’s biggest company met punishing market conditions with cost cuts in order to create a leaner business.
Risk Parity Deleveraging “Worth Monitoring” Across Markets (Value Walk)
As markets continue to remain skeptical of a 2016 rate hike, a Bank of America Merrill Lynch volatility research report notes that latent risk in risk parity strategies is “worth monitoring” across markets. Last week’s sharp sell-off in Japanese bonds stoked fears among investors that forced selling by risk parity funds might spread in an ever more globally interconnected world.
Why This CEO Wants to Cancel Earnings Season Forever (Money Morning)
This didn't exactly make the news, but in July, financial chieftains, including Berkshire Hathaway's Warren Buffett, BlackRock's Larry Fink, and JPMorgan Chase's Jamie Dimon, got together to talk corporate governance practices.
One simple reason why gold can still jump 50% (Sovereign Man)
Heike Hoffman is a 54-year old fruit merchant in a small town in western Germany.
She has no formal training in finance. She’s not running a multi-billion dollar portfolio.
How Can We Train Our Brains for Trading Success? (Trader Feed)
The most common reason traders encounter problems with discipline pertains to willpower as a limited resource. Reading, following prices, conducting analyses, and managing risk all day taxes our capacities for focused concentration. Like any muscle, our willpower can become fatigued. That's when we lose focus, and that's when we are most likely to take action in ways that we did not plan or intend.
Politics
Will Donald Trump Hand State Capitols to Democrats? (The Atlantic)
Donald Trump’s recent plunge in the polls has tempted Democrats to widen their dreams for a big night in November. A landslide victory for Hillary Clinton, they now believe, could bring with it control of the U.S. Senate and dramatically shrink the party’s gap with Republicans in the House—if not flip it entirely.
Last week, when Donald Trump decided to enact his keenly timed revenge on House Speaker Paul Ryan, who Trump’s begrudged for his delayed and hesitant endorsement, refusing to offer his reciprocal endorsement days before Ryan faced re-election, instead offering up complimentary words for Ryan’s primary challenger, RNC chair Reince Priebus reportedly went into full panic mode.
Trump Just Proved His Tough Talk About Taxing The Rich Is A Scam (Think Progress)
Donald Trump’s campaign portrayed his economic policy speech Monday as a pivot, with the brash wheeler-dealer now proposing higher tax rates on the wealthiest than he had initially suggested in primary season.
Technology
This company says it's ready to build a real flying car — here's how it works (Business Insider)
After all, Larry Page, one of the cofounders of Google who is now the CEO of its parent company, has secretly spent more than $100 million to develop flying cars. Peter Diamandis, a board member of Hyperloop One, told Business Insider we're only five years away from flying cars.
The brave new world of robots and lost jobs (The Washington Post)
Job insecurity is a central theme of the 2016 campaign, fueling popular anger about trade deals and immigration. But economists warn that much bigger job losses are ahead in the United States — driven not by foreign competition but by advancing technology.
Health and Life Sciences
Cheating death (Economist)
Imagine a world in which getting fitted with a new heart, liver or set of kidneys, all grown from your own body cells, was as commonplace as knee and hip replacements are now. Or one in which you celebrated your 94th birthday by running a marathon with your school friends. Imagine, in other words, a world in which ageing had been abolished.
The Missing Case for Medical Marijuana (Bloomberg View)
The federal Drug Enforcement Administration has just issued a helpful reminder to all Americans. In denying a petition to loosen restrictions on marijuana, the agency repeated that the drug has “no currently accepted medical use” in the U.S.
New “Bionic” Leaf Is Roughly 10 Times More Efficient Than Natural Photosynthesis (Scientific American)
A tree's leaf, a blade of grass, a single algal cell: all make fuel from the simple combination of water, sunlight and carbon dioxide through photosynthesis. Now scientists say they have replicated—and improved on—that trick with their own “bionic leaf.”
Life on the Home Planet
Brazilian Forces Clash With Gangs in Rio Slums as Olympics Continue (Wall Street Journal)
Clashes between criminal gangs and security forces during the Olympic Games continued to simmer in pockets of Rio on Thursday, with police officers being ambushed on patrol in one large slum, while a military-style operation took place in another.
