Financial Markets and Economy
The World's $49 Trillion Infrastructure Problem May Not Get Solved Anytime Soon (Bloomberg)
An abundance of global savings. Trillions of dollars of negative-yielding bonds. And a bevy of institutional investors hungry for positive, long-dated yields to match their liabilities.
Bond Traders Suffer Worst Rout in Three Years as Selloff Deepens (Bloomberg)
After all central bankers have done since the financial crisis to prop up bond prices, it didn’t take much for them to send the global debt market reeling.
EU Reaches Agreement on Canada Trade Deal (The Wall Street Journal)
BRUSSELS—European Union governments agreed Friday to back a trade deal between the 28-country bloc and Canada, marking the end of a contentions approval process and clearing the way for the accord to be formally signed this Sunday.
OPEC Splits Prevent Deal With Other Producers to Curb Supply (Bloomberg)
OPEC’s internal disagreements over how to implement oil-supply cuts agreed to last month prevented a deal to secure the cooperation of other major suppliers.
OPEC Fails to Finalize Proposal to Implement Production Cut (The Wall Street Journal)
VIENNA—A weekend marathon of talks between major oil producers failed to finalize plans to implement an output cut, threatening the viability of an agreement reached last month to reduce production by as much as 2%.
Saudi Stocks Extend Winning Streak as Cash Crunch Concern Eases (Bloomberg)
Saudi Arabian stocks rose the most among Gulf equities, extending their longest winning streak in more than two years on investor optimism the outlook for the kingdom’s banks is improving.
Singapore's Spreading Oil Slick (Bloomberg)
Oil is still causing Singapore banks to lose their footing. The city-state's three biggest lenders posted another spike in nonperforming loans because of souring advances to energy companies. Given the rate of deterioration, it may be wishful thinking to predict the worst is behind them.
The Feds Won’t Buy This $19 Million Stealth Boat—or Let It Be Sold Abroad (Bloomberg)
Self-made millionaire Gregory Sancoff has spent a decade and $19 million building a highly unusual stealth boat. Called Ghost, it’s designed to be faster, more stable, and more fuel-efficient than anything currently in the U.S. Navy’s fleet, he says.
More Wretched News for Newspapers as Advertising Woes Drive Anxiety (NY Times)
The gloom began earlier this month, when Gerard Baker, the editor in chief of The Wall Street Journal, sent a memo to employees that said, in part, “every story should be as short as it needs to be.” The next week, William Lewis, the chief executive of Dow Jones, which owns The Journal, announced a newsroom review that he said would be “underpinned by a series of cost-management initiatives.”
Gotta own the banks, the incredible Canadian earning machines (FP Street)
On Monday the financial year for the country’s chartered banks ends. And for those who own bank stocks — or at least shares in the Big Six — the past 12 months has, as have many previous years, been a rewarding experience.
What Good Is a $20 Million Mansion if You Can’t Walk to Dinner? (Bloomberg)
For decades, Greenwich, Conn., has enjoyed a reputation as a bastion of wealth just 30 miles northeast of New York, known for its concentration of hedge funds, horse farms, and waterfront estates.
Keeping Your Affordable Care Act Plan Affordable (Your Money Advisor, NY Times)
INSURER defections and double-digit premium increases may be making consumers wary of seeking health insurance through Affordable Care Act marketplaces. But despite the turmoil, health care advocates are still urging people to shop for 2017 coverage when the annual open enrollment period begins on Tuesday.
Head-Scratcher: Venezuela Begs U.S. To Join OPEC Oil Talks (Forbes)
This past week, OPEC countries and some major non-OPEC oil producers continued with their series of talks about a potential oil production freeze. The hope is that even a slight reduction or freeze in oil production rates will raise oil prices. Once again, these OPEC talks raised hopes but failed to reach an agreement.
U.S., EU Say 'No' To China Buying The World (Forbes)
Regulators on both sides of the Atlantic, acting as if on cue, are moving to block acquisitions of local businesses by Chinese companies.
The Disaster of Inflation–For the Bottom 95% (Max Keiser)
Central banks are obsessed with boosting inflation, but the “why inflation is good” arguments make no sense for households being ravaged by inflation. The basic argument is that inflation makes it easier for debtors to service their debts.
A standard statistical model for stock prices is probably wrong (JP Morgan Asset Management)
The idea that returns from financial assets are normally distributed underpins many traditional financial theories, but the reality is that many (even most) assets do not conform to this.
JPM Warns Shift To Passive Investing Increases Systemic Risk, Will Make Crashes Worse (Zero Hedge)
After nearly a decade of central planning by global monetary authorities, the hedge fund industry has found itself unable to generate any alpha since 2011. As Barclays recently calculated, the average monthly alpha has declined to -0.07% (annualized ~0.8%) from 2011 to May 2016 compared to an average of +0.48% (-5.9% annualized) for the entire period analysed (1993 to May 2016).
FINANCE PROFESSOR: 'There is good reason few economists have endorsed Trump's economic plan' (Business Insider)
Is Donald Trump’s economic policy a magical way to generate hyper growth, sprout millions of new jobs and cut the nations’ debt — or is it simply a mirage?
Trump claims his “America First” plan will grow the U.S. economy over the next decade by a whopping 3.5 to 4%, generating 25 million new jobs.
How To Become A Billionaire (Seriously) (Forbes)
You’ll find plenty of articles on the internet on how to become a millionaire. Here’s one example. Never one to be outdone, I think it’s time that we all up our game a bit. Becoming a billionaire isn’t that difficult. It also offers some important lessons about investing and building wealth.
New York City's real estate tax revenue is tumbling (The Real Deal)
New York City’s tax revenues declined about 1 percent in the past few months, reversing a trend of continuous growth since 2012. And a choppy real estate market is a major culprit.
Iraq Reveals Oilfields Output to Win Over OPEC Ahead of Meeting (Bloomberg)
Iraq published data showing a rare level of detail for its oil production and exports, a week after inviting energy reporters to Baghdad to make a case that the country is pumping more crude than analysts and OPEC acknowledge.
Report: 81% Of Young Italians Still Live With Their Parents [Infographic] (Forbes)
In some countries around the world, a shockingly high proportion of young people still live at home with their parents. The trend is most noticeable in countries badly impacted by the global financial crisis and it’s particularly pronounced in Italy, Greece and Spain.
China as Factory to World Mulls the Unthinkable: Price Hikes (Bloomberg)
China’s factories may be on the cusp of delivering a new shock to the global economy after years of undercutting rivals with cheaper costs. This time, increases in prices could reverberate around the world.
Key GDP Takeaway: Ever Weakening Real Final Demand (MishTalk)
What’s the most important metric in GDP report on Friday?
Caroline Baum tweets that it’s private final demand, the slowest in three years, excluding the first quarter of 2016.
"China's Debt Has Grown $4.5 Trillion In Past 12 Months, More Than The US, Japan And Europe Combined" (Zero Hedge)
While concerns about China's debt load, capital flows, and depreciating currency have been pushed to the backburner in recent months, perhaps facilitated by a welcome rebound in global inflation – perceived by markets and global central bankers that monetary policy is finally working – it is worth a quick reminder of how we got here.
Coffee-Loving Millennials Push Demand to a Record (Bloomberg)
Millennials’ seemingly unquenchable thirst for coffee is helping to push global demand to a record just as supplies are tightening.
Americans are becoming java junkies at an earlier age, and young adults are increasing their daily consumption at a fast enough pace to make up for declines by older folks.
There's a Seasonably Spooky Stock Chart Making the Rounds (Money Morning)
Not even the markets are immune to the time of year. No kidding –CNBC even asked me to do a segment tonight on my top three Halloween spooky-scare stocks.
Companies
What Investors Should Watch for When Frontier Communications Reports Q3 Earnings (Fool.com)
When Frontier Communications (NASDAQ: FTR) reports its third-quarter results on Nov. 1, it will have owned the former Verizon (NYSE: VZ) wireline properties it bought for $10.54 billion for two full quarters.
Chinese automaker BYD forecasts up to 84 percent profit rise for 2016 (Reuters)
Chinese automaker BYD Co Ltd (1211.HK) (002594.SZ), backed by Warren Buffett's Berkshire Hathaway Inc (BRKa.N), on Sunday said 2016 full-year profit was likely to rise as much as 84.17 percent, as rapid growth of the green car market eases.
In Marlboro Country, a Big-Money Race for the New Smoke (Bloomberg)
You want a trip to Philip Morris International Inc. to feel like a visit to Marlboro Country. But the company’s Swiss research center, aka the Cube, just won’t play along.
ESPN Loses A Record 621,000 Subscribers In One Month (Zero Hedge)
Last April, HBO effectively marked the death of the cable TV bundle when they decided to launch "HBO Now" and sell their content directly to consumers for $15 per month. While other "over-the-top" providers have existed for years, this decision was pivotal because it was the first time that any major content provider decided to break with the traditional cable delivery model and go direct to consumer.
PAL: There's 'something bad on the horizon,' and the average investor should get out of the way (Business Insider)
The average Joe needs to get out of the markets, former hedge fund manager Raoul Pal says.
"There's no point in playing right now," Pal, the founder of Real Vision TV and Global Macro Investor, told Business Insider's Matt Turner on Monday.
Technology
AT&T Needs the Time Warner Content Factory to Survive (Bloomberg)
Big media distributors such as AT&T, which owns DirecTV and delivers movies and TV shows to 100 million subscribers of its wireless, internet, and video services, have argued for years over which can best withstand the disruption brought about by online services like Netflix: Content providers? Or cable and satellite operators?
Twitter Couldn’t Hold Onto Vine’s Audience—or the Stars It Created (Bloomberg)
Jerome Jarre hasn't posted on Vine in more than a year. The 26-year-old goofy Frenchman once ruled the six-second looping video platform, where he drew in millions of viewers with clips of him walking up to unsuspecting strangers and saying, "I love you." But by 2014, he was already doing similar videos on Snapchat, where teens were beginning to spend hours sending each other selfies.
25-Year-Old’s $500 Million Startup Fuels China Bike-Share Battle (Bloomberg)
In China’s internet warzone, there’s a road map for success: find a rich backer, get lots of money, burn it to buy market share.
The latest chapter of that playbook is being written by two young entrepreneurs each offering an update on a former icon of China’s communist party — the bicycle.
First Test of Apple Watch Nike+, a Sporty Wearable on Steroids (Bloomberg)
Apple has released the newest update to its watch, the Apple Watch Nike+. The new timepiece, in 38mm- ($369) or 42mm-wide ($399) models, is the latest innovation in the long line of running-related apparatus that Nike started producing in 2006, when runners could connect iPod playlists to devices embedded in their shoes.
The Inevitability of Being Hacked (The Atlantic)
Last week, a massive chain of hacked computers simultaneously dropped what they were doing and blasted terabytes of junk data to a set of key servers, temporarily shutting down access to popular sites in the eastern U.S. and beyond.
This Huge Robot Will Drive Up and Build You a House (Singularity Hub)
Bricklaying is a very old, traditional way to build a house—except now we have robots doing it faster than people. Hadrian X, a construction robot by Fastbrick Robotics, is a laser-guided, fully-automated bricklaying system. Its aim? Building brick houses in days instead of weeks.
Politics
Donald Trump is still making a lot of money off his presidential campaign (Salon)
While the Trump brand has taken a direct hit this election, it does not appear the real estate mogul will retire from politics empty handed. A notorious grifter, Donald Trump may be pulling off his most impressive con yet, using small-donor contributions to stuff his own pockets.
How Democrats Killed Their Populist Soul (The Atlantic)
It was January 1975, and the Watergate Babies had arrived in Washington looking for blood. The Watergate Babies—as the recently elected Democratic congressmen were known—were young, idealistic liberals who had been swept into office on a promise to clean up government, end the war in Vietnam, and rid the nation’s capital of the kind of corruption and dirty politics the Nixon White House had wrought.
Republicans aren’t sure if they want to fill that vacant Supreme Court seat at all (Salon)
More than 150 years after Abraham Lincoln, the first Republican President, declared that “a house divided against itself cannot stand,” the party that he helped to found is hopelessly divided against itself, at least when it comes to appointing a replacement for Supreme Court Justice Antonin Scalia.
Jason Chaffetz and Ted Cruz’s GOP obstructionism may be worse than Donald Trump’s insanity (Salon)
Republicans like Rep. Jason Chaffetz of Utah are doing a little distancing-themselves-from-Trump tap dance these days, but don’t be fooled: While the small-fingered orange one is especially vulgar about it, his view that politics is little more than an exercise in settling imaginary scores is hardly unique.
Let’s congratulate Rep. Jason Chaffetz, R-Utah. He made news twice on the same day. First there was his Wednesday announcement that, as chairman of the House’s government oversight committee, he or someone on his staff has pulled enough bullshit links about Democratic presidential nominee Hillary Clinton from right-wing websites to keep them busy investigating her administration for at least two years and more likely for the length of however many terms she serves as president.
Marco Rubio can’t bring himself to say bad things about Donald Trump (Salon)
Sen. Marco Rubio refused to answer questions on Thursday about whether he thought Donald Trump could keep America safe or serve as a good role model for children.
The absolute farce of modern American politics (PM Carpenter's Commentary)
American politics has morphed with frightening endurance into a low-budget Kafka play, directed by Ed Wood. And we, the spectators, are all helpless bugs on a wall. There is no escape from this theatrical farce of a nightmare; it'll all be over in 10 days, we're told in stage asides, but of course it won't be over, come that predestined night of November 8.
‘We do not have a warrant’: FBI admits Comey jumped the gun with Clinton email announcement (Raw Story)
As of Saturday night, the Federal Bureau of Investigation still did not have a warrant to view the emails it is purportedly investigating in the reopening of its case regarding Democratic presidential nominee Hillary Clinton and her use of a private email server during her tenure as Secretary of State.
How to gerrymander your way to a huge election victory (The Washington Post)
A recent analysis by political scientists John Sides and Eric McGhee suggests that Democrats are poised to win a majority of votes in U.S. House contests but walk away with a minority of seats — again. As I wrote last week, a big factor in this odd disparity is the way some Republican state legislatures have gerrymandered congressional districts in a way that gives them far more House seats than their popular vote totals would suggest.
Pirate Party Surge Falls Short as Icelanders Back Stability (Bloomberg)
Finance Minister Bjarni Benediktsson, who leads the Independence Party, gained followers by pointing to his success in steering an economy that is expanding at a pace of more than 4 percent a year and driving down unemployment below 2 percent.
Queen Offers To Restore British Rule Over United States (The New Yorker, Humor)
LONDON (The Borowitz Report)—In an unexpected televised address on Saturday, Queen Elizabeth II offered to restore British rule over the United States of America.
Historically speaking, this election and its candidates aren’t that bad (Holy Kaw)
We’re looking at this election like it’s the totally unprecedented in US political history. But as Adam (from Adam Ruins Everything) shows us, it’s definitely not.
South Koreans are furious after reports that their president is controlled by a 'shamanistic cult' (Reuters, Business Insider)
South Korean President Park Geun-hye has accepted the resignations of her top presidential aides, including the chief of staff, the presidential office said on Sunday, amid a deepening political crisis.
Health and Biotech
Doubts About the Promised Bounty of Genetically Modified Crops (NY Times)
LONDON — The controversy over genetically modified crops has long focused on largely unsubstantiated fears that they are unsafe to eat.
Making a killing under Obamacare: The ACA gets blamed for rising premiums, while insurance companies are reaping massive profitsJust days before the next open enrollment period was to begin under the Affordable Care Act, President Barack Obama’s signature health care law, Americans received some sobering news about how much more they’ll pay yet again for health insurance, an annual cost that’s already straining many household budgets.
Life on the Home Planet
NASA's New 'Intruder Alert' System Spots An Incoming Asteroid (NPR, The Two Way)
A large space rock came fairly close to Earth on Sunday night. Astronomers knew it wasn't going to hit Earth, thanks in part to a new tool NASA is developing for detecting potentially dangerous asteroids.
Ancient Greeks may have built China's famous Terracotta Army – 1,500 years before Marco Polo (Independent)
Ancient Greeks artists could have travelled to China 1,500 years before Marco Polo’s historic trip to the east and helped design the famous Terracotta Army, according to new research.
The startling claim is based on two key pieces of evidence: European DNA discovered at sites in China’s Xinjiang province from the time of the First Emperor in the Third Century BC and the sudden appearance of life-sized statues.
New Earthquake Rocks Central Italy, Destroying Buildings Across Region (The Wall Street Journal)
ROME—A strong earthquake struck central Italy early Sunday, injuring about 20 people and flattening historical buildings in small villages and towns that were rattled by temblors just days earlier.
West Antarctica Begins to Destabilize With ‘Intense Unbalanced Melting’ (Bloomberg)
If you want to see the future of New York, Tokyo, or Mumbai, look no further than West Antarctica, where a warmer sea is turning ice into water that may be headed to your doorstep.
10 little-known but proven secrets to selling your home (Holy Kaw)
The excitement of finding a new home is all too often eclipsed by worry the old won’t sell.
