Financial Markets and Economy
How the Federal Reserve Could Still Surprise the Market (Fortune)
The U.S. central bank meets this week. But the real question is not whether they will up the short-term interest rate they control—everyone expects they will, a quarter of a point to 0.5%—but when Janet Yellen & Co. will raise rates again.
Dollar dips before Fed rate decision (Reuters)
The dollar inched down on Wednesday in the run-in to the Federal Reserve's policy statement later in the day, with an almost 1 percent fall this week showing minimal expectations the Fed will ramp up its forecasts for future rises in interest rates.
GUNDLACH: Watch out for a stock market sell-off around inauguration day (Business Insider)
During his final investor webcast for the year on Tuesday, he pointed out that stocks typically rise in the days after an election, just as they have.
Polar Vortex Blasting U.S. Dealt a Short Life by Dueling Weather (Bloomberg)
Just last week, models had this polar vortex — a term loosely used to describe extremely cold air spilling out of the North Pole — lasting deep into December. By Monday, outlooks had turned warmer. While a similar chill brought record low temperatures to parts of the U.S. and froze most of the Great Lakes just two years ago, this one’s having a hard time sticking around as unpredictable weather patterns jostle for control.
A former Wall Street exec is trying to do to real-estate what technology did to stock trading (Business Insider)
Jarred Kessler, a 15-year Wall Street veteran and former head of US equities at financial services firm Cantor Fitzgerald, came up with his big idea when a friend lost his job.
A hot $1 billion hedge fund is building computers to predict how human traders will act (Business Insider)
People are getting quantitative hedge funds all wrong, according to a manager who is launching a new $1 billion fund.
Trump's China Swagger Means Big Risks for U.S. Companies (Bloomberg)
Donald Trump’s suggestion that the decades-old “One China” policy could be used as a bargaining chip to win future trade concessions from China is a brash negotiating ploy loyal viewers of “The Apprentice” might appreciate.
Stop Letting Quarterly Numbers Dictate Your Strategy (Harvard Business Review)
In 2008, as the CEO of a software company that had just missed its target for the second quarter in a row, I was so intent on hitting our fourth-quarter revenue number of $8 million — and so scared for my job — that I promised the company I would get a tattoo of the number somewhere on my body if we hit it.
5 lies investors tell themselves when stocks are surging (Market Watch)
With U.S. stocks in record territory, investors need to take their emotional temperature. Emotions can be your worst enemy when it comes to money and stocks, especially during big, rapid market moves that can warp your thinking in unforgiving ways.
Bitcoin doesn’t care what Silicon Valley thinks—it’s trading at a 34-month high (Quartz)
There’s been plenty of news to keep bitcoin down this year, from plunging venture capital investment to rising skepticism about blockchain technology’s viability in the marketplace. Yet the cryptocurrency is trading at its highest levels since its insane bull run of 2013.
Skip the Fed and Watch the Holiday Shoppers (The Wall Street Journal)
The Federal Reserve meeting isn’t the only show in town on Wednesday.
A deluge of data is due before the opening bell, giving U.S. central bankers one last look at the economy before the conclusion of their final policy meeting of the year.
Italy’s largest bank is firing 14,000 people and investors are cheering it on (Quartz)
UniCredit, the country’s largest bank, unveiled an aggressive three-year restructuring plan today, featuring 14,000 job cuts, nearly 1,000 branch closures, and sour-loan selloffs at deep discounts.
Gambling shares up on Japan casino vote (BBC News)
A parliamentary panel approved a long-awaited bill, effectively meaning it is guaranteed to become law, possibly as soon as Wednesday.
Analysts CSLA says Japan's casino market could be worth $40bn a year.
Cash economy taskforce to decide future of $100 note (The Guardian)
The black economy, the part of a country’s economic activity that is unrecorded and untaxed by government, is estimated to be worth $21bn or 1.5% of gross domestic product in Australia.
Company: Equipment Didn't Detect North Dakota Oil Leak (Associated Press)
BISMARCK, N.D. — Electronic monitoring equipment failed to detect a pipeline rupture that spewed more than 176,000 gallons of crude oil into a North Dakota creek, the pipeline's operator said Monday.
There's no industry hotter than marijuana right now (The Motley Fool)
Look around, and you'll struggle to find an industry hotter than marijuana.
Back in 1995, not a single state had a law on its books legalizing medical cannabis or recreational pot. Today, following the November elections in which residents in eight out of nine states voted in favor of their state's marijuana initiative or amendment, there are 28 states with legal medical cannabis laws and eight recreational weed states.
Profit Sharing Boosts Employee Productivity and Satisfaction (Harvard Business Review)
We all know that people respond to incentives. Economics 101 teaches that workers put forth greater effort when these efforts are rewarded financially, and top talent tends to gravitate toward jobs and firms where rewards are geared to performance.
2016 Dogs of the Dow Performance Update (Bespoke)
Back on October 12th, we published this report on the performance of 2016’s “Dogs of the Dow” strategy, which says to simply buy the 10 highest-yielding stocks in the Dow Jones Industrial Average at the start of each year.
Even if OPEC and non-OPEC producers deliver the promised cuts and oil spikes to US$60, a recovering U.S. shale production would drag crude prices back to US$55, and the Saudis would be wrong to underestimate an American shale rebound next year, Goldman Sachs said in a report on Sunday.
This Startup Uses Night Lights to Forecast GDP (Bloomberg)
Nowcast Inc., a Japanese financial research and technology startup, has developed a product that estimates economic growth in real time by using satellite images of night-time lights.
Rising Rates? Here's How to Invest for 3% to 10% (Market Watch)
Lisa Jones of Pioneer investments is finding generous yields from floating rate securities and catastrophe bonds. Plus, how she's avoiding losses if rates rise.
The Death of Dignity In Working Class America (Occupy.com)
More true now than ever. I see it in my work as an entrepreneur wearing many different hats. I have been self employed for over 25 years serving the retail industry as a designer/manufacturer of handcrafted and vintage home goods, and have witnessed first-hand the demise of “handmade” on every level.
Bank Of Japan Intervenes, Boosts Bond Buy Ahead Of Fed Decision (Zero Hedge)
Having seen 10Y JGB yields spike to 10bps (highest since Feb), The Bank of Japan has decided enough is enough and intervened to bring yields back to the stable 0.00% level they decree as fair.
FOMC Announcement Retail Sales, PPI, Industrial Production (Calculated Risk)
Mortgage rates started stronger out of the gate, but morning weakness in bond markets prompted many lenders to adjust rates higher by early afternoon.
Companies
Here Are 5 Reasons Why Apple's Stock Might Rise in 2017 (Fortune)
Apple had some stumbles in 2016 and though its stock price has gained 9%, the overall market has done slightly better. But next year could be significant for investors, at least according to Citigroup analyst Jim Suva, who offered five reasons to bet on Apple shares in a report on Tuesday.
Costco's most disappointing product of 2016 was its store credit cards (The Motley Fool)
Costco shoppers may have noticed shorter lines at the warehouse retailer lately. In fact, the company just posted its weakest customer traffic growth pace in almost six years.
Pershing Square Sells Some Valeant Shares, Seeking Tax Loss (The Wall Street Journal)
William Ackman’s Pershing Square Capital Management LP cut its stake in Valeant Pharmaceuticals International Inc. to help generate a loss for tax purposes.
U.S. healthcare company Johnson & Johnson said on Tuesday it has ended discussions with Actelion regarding a potential deal with Europe's largest biotech firm.
Wells Fargo’s ‘Living Will’ Plan Is Rejected Again by Regulators (DealBook)
Wells Fargo has run afoul of banking regulators once again: On Tuesday, for the second time this year, the bank did not pass a key regulatory test that was created after the 2008 financial crisis to reduce the threats that large banks pose to the broader economy.
Why The $85B AT&T-Time Warner Deal Is The Most Expensive Fish Dinner Ever (Cartoon Of The Day)
AT&T’s ongoing campaign to buy itself back into prominence comes at some expense – $85 billion to be exact. That's the price tag for acquiring Time-Warner and directly competing with companies such as Netflix and Comcast for eyeballs.
Forget AT&T. The Real Monopolies Are Google and Facebook. (NY Times)
The proposed merger of AT&T and Time Warner has drawn censure from both sides of the political aisle, as well as a Senate hearing that looked into the potential for the combined company to become a monopoly.
IBM Lays Out Plans to Hire 25,000 in U.S. Ahead of Trump Meeting (Bloomberg)
IBM Chief Executive Officer Ginni Rometty said she plans to hire about 25,000 people in the U.S. and invest $1 billion over the next four years, laying out her vision for filling technology jobs in America on the eve of a meeting of industry leaders with President-elect Donald Trump.
Technology
Amazon makes its first Prime Air drone delivery to a customer (New Scientist)
Amazon has completed its first customer delivery by drone.
The company made the used its Prime Air service for the first time to deliver goods to a customer in Cambridgeshire on December 7. Amazon founder and chief executive Jeff Bezos confirmed the delivery in a tweet.
Twitter is now going all the way live, video, that is (CNet)
The social network said Wednesday it's made it easier for users to broadcast live video from the Twitter app. The service is similar Twitter's live-streaming app, Periscope, which anyone can use to join a live video, add comments or, for those inclined to do so, those floating hearts.
Microsoft's Cortana bot can schedule meetings on your behalf (Engadget)
Microsoft is trying to turn Cortana into the digital assistant of your dreams with a new AI bot called Calendar help. The beta service requires an invitation, but once signed up, you link it to your Outlook, Google or Office 365 calendar apps.
Apple's iOS support app is now live in the US (Engadget)
After quietly launching in the Netherlands last month, Apple's standalone support app is now finally available in the US. Serving as iOS users' one-stop-shop for Apple product problem solving, the app offers a wealth of product information and advice on how to resolve common issues.
Researchers use machine learning to pull interest signals from readers’ brain waves (Tech Crunch)
How will people sift and navigate information intelligently in the future, when there’s even more data being pushed at them? Information overload is a problem we struggle with now, so the need for better ways to filter and triage digital content is only going to step up as the MBs keep piling up.
Politics
Democratic House Candidates Were Also Targets of Russian Hacking (NY Times)
WASHINGTON — South Florida has long been a laboratory for some of the nation’s roughest politics, with techniques like phantom candidates created by political rivals to siphon off votes from their opponents, or so-called boleteras hired to illegally fill out stacks of absentee ballots on behalf of elderly or disabled voters.
California Governor Seeks Permanent Ban On Offshore Drilling (Associated Press)
CORONADO, Calif. (AP) — California Gov. Jerry Brown on Tuesday asked President Barack Obama to permanently ban new offshore oil and gas drilling in the state before he leaves office.
Donald Trump’s campaign is threatening “political reprisal” for defecting Republican electors (Salon)
Donald Trump’s campaign is pressuring Republican electors into voting for them under “threats of political reprisal,” according to a member of the Electoral College who spoke to Salon under the condition of anonymity.
Following the Links From Russian Hackers to the U.S. Election (NY Times)
The Central Intelligence Agency concluded that the Russian government deployed computer hackers to help elect Donald J. Trump.
Donald Trump may be worried that, if Alexander Hamilton’s reasoning from 1788 prevails in 2016, he may wind up being president-elect no more.
Kanye West meets with Donald Trump as Inaugural Committee scrambles to book a relevant act (Salon)
Only carnival barker-in-chief Donald Trump could make the transition process so gaudy as to be worthy of a live stream. Unfortunately, C-SPAN discontinued its daily Trump Tower #ElevatorCam feed last month — too early to catch the president-elect’s bizarre joint presser with Kanye West on Tuesday.
Health and Biotech
Viruses have evolved to be more deadly for men than women, study suggests (Science Alert)
Men infected with tuberculosis are 1.5 times more likely to die than women, and five times more likely to develop cancer when infected with human papillomavirus (HPV). And now scientists think they know why – women are more valuable as hosts, so pathogens have evolved to keep them alive longer than men.
Life on the Home Planet
A New Warning Says We Could Run Out of Fish by 2048 (The Huffington Post)
If the world keeps fishing at its current pace, there will no more fish left to eat by 2048. That’s the dire warning laid out by the World Wildlife Federation, which says that the planet’s fishing fleet is two to three times larger than the oceans can support, and that 85 percent of the world’s fisheries are either fully exploited or overexploited, depleted, or recovering from depletion.
Reversing Course, E.P.A. Says Fracking Can Contaminate Drinking Water (NY Times)
WASHINGTON — The Environmental Protection Agency has concluded that hydraulic fracturing, the oil and gas extraction technique also known as fracking, has contaminated drinking water in some circumstances, according to the final version of a comprehensive study first issued in 2015.
New Report Indicates Accelerated Ice Melt in Antarctica (The Wall Street Journal)
Winds blowing across Antarctica’s ice shelves may be contributing to an increase in meltwater, which could accelerate their break up, scientists say in a new report published in "Nature Climate Change."
Scientists are frantically copying U.S. climate data, fearing it might vanish under Trump (The Washington Post)
Alarmed that decades of crucial climate measurements could vanish under a hostile Trump administration, scientists have begun a feverish attempt to copy reams of government data onto independent servers in hopes of safeguarding it from any political interference.
Climate change forced over 1 million Africans from their homes in 2015 (Think Progress)
At least 12 million people lived in ongoing displacement caused by conflict, violence, and other disasters across the African continent in 2015. And in the future, climate change may be the lead driver of even greater displacement.
