Financial Markets and Economy
Central bankers have collectively lost the plot. They must raise interest rates or face their doom (The Telegraph)
It was May 6 1997, and the forlorn Tory survivors of Labour’s landslide election victory five days earlier had to make our first collective decision. On that day, the new Chancellor, Gordon Brown, announced that henceforth the Bank of England would have operational independence from governments.
Hedge Funds Cost N.Y. Pension Plan $3.8 Billion, Report Says (Bloomberg)
The New York state comptroller’s decision to stick with hedge funds despite their poor returns has cost the Common Retirement Fund $3.8 billion in fees and underperformance, according to a critical report by the Department of Financial Services.
Bank of America enjoys best quarter since the financial crisis (Bank of America)
Bank of America shrugged off a plunge in equity trading and the impact of low interest rates to post its best quarterly profits since the financial crisis, boosting shares in the second-biggest US lender.
OPEC Spat Over Production Data Grows as Iran Rejects Estimates (Bloomberg)
OPEC’s struggle with the first step of its new production deal — agreeing on how much its members are pumping — deepened as Iran became the third nation to openly question the organization’s data.
Fed's Fischer warns: Low rates could lead to 'longer and deeper recessions' (Yahoo Finance)
“Low interest rates make the economy more vulnerable to adverse shocks that can put it in a recession,” Fed Vice Chair Stanley Fischer warned. “The limitation on monetary policy imposed by low trend interest rates could therefore lead to longer and deeper recessions when the economy is hit by negative shocks.”
Casino Employees Held in China Send Gaming Stocks Plummeting (Reuters)
Australian casino giant Crown Resorts said on Monday China had detained 18 of its employees including three Australians, sending gaming stocks tumbling on concerns about their strategy for luring Chinese gamblers.
Your brilliant Kickstarter idea could be on sale in China before you’ve even finished funding it (Quartz)
The Israeli entrepreneur had spent one year designing the product that would make him rich—a smartphone case that unfolds into a selfie stick. He had drawn up prototypes, secured some minimal funds from his family, and launched a crowdfunding campaign.
Where to Invest $10,000 Right Now (Bloomberg)
First, make sure you’re covered on the financial basics. Then start scouting out powerful places to invest any excess cash that's making you next to nothing in a savings account. With the holidays and perhaps a raise or bonus on the horizon, it’s a good time to make that money work for you and your retirement.
CMHC to issue first ‘red’ warning for Canada’s housing market (The Globe And Mail)
Canada’s housing agency is raising the alarm over the country’s real estate sector, warning about a strong risk of problems on the horizon.
Canada Mortgage and Housing Corp. will increase the risk rating in its overall assessment of the country’s residential market to “strong” from “moderate” when it issues a new report on Oct. 26.
Past Is Prologue: New Secular Bull Or A Repeat Of The 70’s (Real Investment Advice)
Last Monday, I discussed why you should be worried about corrections due to the damage inflicted upon your investment capital and the time required to “get back to even.” Not surprisingly, as usual when I discuss such heresy as actually managing your money, I received several emails stating we are in a new “secular bull market” and“indexing” is now the best approach.
Boston Fed’s Rosengren makes case for reverse Operation Twist (Market Watch)
Boston Fed President Eric Rosengren wants the market to be aware that the central bank could act to mitigate a potential bubble brewing in the bond market.
The extraordinary powers the Fed used to help the economy get out of the financial crisis can now do the reverse and raise long-term Treasury yields.
Empire State Kicks Off Regional Manufacturing Reports With Dismal Showing: Spotlight On Look-Ahead Sentiment (Talk Markets)
The Empire State manufacturing survey is the first in the series of monthly reports from the Fed regions.
This survey picked up where it last left off, in the red, but deeper.
The Econoday Consensus Estimate for the Empire State survey was +1.00 vs. an actual reading of -6.8.
Market Myth Shattered: Ned Davis Warns "There's No More Cash On The Sidelines" (Zero Hedge)
While the "cash on the sidelines" myth has infuriated many, it remains a staple excuse for why there's always a buying opportunity in stocks when the market dips. However, as Ned Davis Research warns "we can't find much cash on the sidelines… and when we do it seems mostly offset by debt/liabilities," crushing yet another pillar of strength for stocks.
Want college to pay off? These are the 50 majors with the highest earnings. (The Washington Post)
Engineering and technology are among the most challenging fields of study in college, but all of that hard work apparently is paying off, as many of the top-earning entry-level jobs are tied to related majors, according to a Glassdoor study released Monday.
Restaurant Chains Get Burned by Overexpansion, New Rivals (The Wall Street Journal)
The U.S. is having one of its biggest restaurant shakeouts in years, as an oversupply of eateries and new rivals offering prepared meals to go claim what is expected to be a growing number of casualties.
Biggest Market Cap Gainers Since February Low (Bespoke)
An article on Amazon.com (AMZN) in Barron’s this weekend had a really eye-popping statistic in it, and that was that since its low earlier this year, AMZN’s stock is up over 70%.
Two Charts That Show How Renewable Energy Has Blown Away Expectations (Bloomberg)
The world’s most prominent energy forecaster will raise its outlook for wind and solar installations following a decade of underestimating growth in the renewables industry.
Consumers' Holiday Spending Estimate Matches Recent Years (Gallup)
PRINCETON, N.J. — Americans, on average, anticipate spending $785 on Christmas gifts this year. This is consistent with the range in October spending estimates since 2013 and represents a meaningful improvement over the post-recession lows near $700 recorded in 2010 and 2011.
Companies
Gilead Sciences: Surging Yield Signals Weakness Overdone (Stone Fox Capital, Seeking Alpha)
Gilead Sciences (NASDAQ:GILD) continues dipping to new multi-year lows. The biotech faces some pressure regarding the ability to maintain profit levels and reduced full-year estimates with the Q2 results.
France Is Pushing For a Tax on YouTube and Netflix (Fortune)
Le tax would apply to Netflix too.
French lawmakers voted in favor of a “YouTube tax” that would apply a 2% levy on all streaming video, and a 10% rate on any online films that are pornographic or capable of inciting violence.
IBM Aims Watson at the Financial Services Industry (The Motley Fool)
Artificial intelligence (AI) has become the next great buzzword in the technology industry. It seems like every tech company under the sun is embracing AI. Software giant Microsoftrecently formed a new AI research group, comprised of 5,000 computer scientists and engineers, in an effort to bring AI to all of its applications and services.
Disney's ESPN Woes Could Continue In The New Year (Benzinga)
Daniel Salmon, a media and internet analyst with BMO Capital Markets isn't optimistic about Walt Disney Co DIS 0.51%'s ESPN outlook.
In a research report, Salmon suggested that ESPN represents around 65 percent of Disney's domestic affiliate fees, and ESPN2 adds another 5 percent.
Politics
This is what Donald Trump’s poll ceiling looks like (The Washington Post)
The pattern of the 2016 race has been that Hillary Clinton is winning. Not to oversimplify or anything, but that's the pattern. Clinton gets the support of a bit under 50 percent of voters. Donald Trump gets the support of a bit over 40 percent.
Trump Supporters Monitoring Polls Alarms Voting-Rights Groups (Bloomberg)
For the first time in a half-century, Americans will go to the polls in November without the full protection of the Voting Rights Act. Following a 2013 U.S. Supreme Court ruling invalidating a key section of the 1965 law, the U.S. Department of Justice has had to curtail its federal observer program, under which trained monitors oversee access to ballot boxes in areas historically prone to discrimination.
Donald Trump Says GOP Office Firebombed ‘Because We Are Winning’ (TIME)
After the North Carolina GOP headquarters was firebombed on Sunday, one of the presidential candidates blamed “animals” while the other called the act “unacceptable.”
New Mexico Republicans threaten Albuquerque residents: “Your neighbors will know” if Democrats win (Salon)
The New Mexico Republican Party mailed intimidating fliers to Albuquerque residents, warning those who vote Democrat that they will be outed because “voting is a matter of public record.”
7 photos that capture the absurdity of this election season (Columbia Journalism Review)
THE 2016 PRESIDENTIAL CAMPAIGN has inspired a visual backlash to business as usual, targeting the typical posturing, rituals, and coronations.
From early on in the election cycle, staff photographers and freelancers have been challenging the campaign process at every turn, especially on Instagram and Twitter.
Technology
How Do You Hail a Tractor in India? All It Takes Is a Few Taps on Your Phone (NY Times)
Hailing a ride with your smartphone? That’s old news — ask any Uber, Lyft or Careem customer.
But how about hailing a tractor?
Just as urbanites may find it impractical to own a car but still need a ride once in a while, so, too, in the Indian countryside: To get the most from their land, small-scale farmers may need tractors and other machines from time to time, but they may not be able to afford their own.
:format(webp)/cdn3.vox-cdn.com/uploads/chorus_image/image/51385993/109912538.0.jpg)
Apple has hired a big brain in AI to make Siri less dumb (Recode)
Apple has hired a Carnegie Mellon University professor to head up a team working on artificial intelligence as tech giants increasingly place big bets on machine learning as a key part of their future.
Google creates AI program that uses reasoning to navigate the London tube (The Guardian)
Google scientists have created a computer program that uses basic reasoning to learn to navigate the London Underground system by itself.
The same Artificial Intelligence (AI) agent could also answer questions about the content of snippets of stories and work out family relationships by looking at a family tree.
Netflix and Amazon are spending a truckload on TV programming (Business Insider)
You know the trend by now: Cable TV is losing its grip, internet TV is slowly eating it away. You can see it in the continuous decline in cable TV subscribers, and the streaming TV services cable companies are launching themselves.
Robot Babies From Japan Raise Questions About How Parents Bond With AI (Singularity Hub)
Driven by a declining population, a trend for developing robotic babies has emerged in Japan as a means of encouraging couples to become “parents”. The approaches taken vary widely and are driven by different philosophical approaches that also beg a number of questions, not least whether these robo-tots will achieve the aim of their creators.
Massive Disruption Is Coming With Quantum Computing (Singularity Hub)
Moore’s Law (or the exponential growth of integrated circuits) is actually referring to the fifth paradigm of computation. Here’s the list of the underlying technologies: (1) Electromechanical; (2) Vacuum Tube; (3) Relay; (4) Transistors; and (5) Integrated Circuits.
Health and Biotech
NanoTech Wafer Turns Carbon Dioxide Into Ethanol (Popular Science)
Scientists have found a way to take everyone's least favorite greenhouse gas, carbon dioxide, and mix it with water to create alcohol.
A research team at Oak Ridge National Laboratory in Tennessee developed a way to convert carbon dioxide into ethanol–and they did it by accident.
Harvard finds certified green buildings improve both thinking and sleep (Think Progress)
New research from the Harvard School of Public Health finds that workers in high-performing, green-certified buildings think and sleep better than those in similar buildings that were not green-certified.
Eggs made from skin cells in lab could herald end of infertility (New Scientist)
Fertile, mature eggs have been created from mouse skin cells in the lab for the first time. They have even been fertilised to create seemingly healthy pups. The feat suggests it is only a matter of time before the same is achieved in humans, opening up the possibility of new fertility treatments, and the potential for two men to genetically father a baby together.
Life on the Home Planet
Vice News Tonight is the newscast we want, not the one we need (Columbia Journalism Review)
VICE CO-FOUNDER SHANE SMITH’S interview with John Boehner, which aired last Tuesday on Vice News Tonight, opens with b-roll footage of the former House Speaker mowing his lawn, then pensively smoking a cigarette as he peers into the distance.
Ben Affleck's 'The Accountant' Dominates Box Office With $24.7 Million Debut (Reuters)
It came in significantly above expectations, which had ranged from $18 million to $20 million.
Underlining Ben Affleck’s star power, The Accountantdominated moviegoing with a solid $24.7 million opening weekend at 3,222 North American sites.
Portugal to levy sugar tax on soft drinks in 2017 (The Guardian)
Portugal’s Socialist government will introduce a sugar tax on soft drinks in 2017 which is expected to raise €80m (£72m) for the public health service, a budget bill presented on Friday showed.
Nearly 200 Nations Agree To Cut Greenhouse Gases In Landmark Climate Change Deal (Reuters)
KIGALI (Reuters) – Nearly 200 nations have agreed a legally binding deal to cut back on greenhouse gases used in refrigerators and air conditioners, a major move against climate change that prompted loud cheers when it was announced on Saturday.
You are almost assuredly living in the hottest year ever recorded, according to NASA (Think Progress)
Last month “was the warmest September in 136 years of modern record-keeping,” reports NASA’s Goddard Institute for Space Studies (GISS)
This follows a record-setting July and August, which were so hot, they tied each other for the “warmest month ever recorded.”
